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UPS launched a new technology company called Ware2Go on Tuesday, aimed at connecting small- and medium-sized businesses with warehouses to help streamline online orders.
Ware2Go recruits and certifies warehouses for merchants, allowing them to expand to new locations and keep up with new e-commerce growth.
"This is really a technology and platform company – more than a services business – with merchants on one side, looking for order fulfillment capabilities, warehouses looking to fill space appropriately. We wanted to build that using the best of both worlds," said Nick Basford, vice president of global retail and e-commerce strategy for UPS.
Customers make an account on Ware2Go's website as either a merchant, warehouse, or both, and then answer questions on their business or warehouse needs. Once merchants provide details about their products, orders, space requirements, and regional delivery needs, Ware2Go will then allow merchants to manage their inventory and orders across the companies' cloud-based network.
Ware2Go didn't disclose which cloud and other tech companies it is partnering with for the venture, nor did it say how many companies have signed up. There are no set fees, the company said, because services vary.
"Ware2Go uses innovative online technology to match excess warehouse and fulfillment capacity with merchant demand to provide transparent inventory, order fulfillment and final delivery," said Scott Price, chief transformation and strategy officer for UPS.
According to IBIS, the outsourced warehousing market is expected to grow to $26 billion by 2023 based on current growth rates. On demand warehousing market is expected to hit $25 billion, as well.
Ware2Go will be based in Atlanta and is partially owned by BCG Digital Ventures.