Online Retailers Wander in Warehouse Wasteland

Deng Daiguang has been scouring Beijing's outskirts for weeks in search of warehouse space for the apparel, cosmetics, footwear and bags his company plans to sell to China's growing throng of online shoppers.

But Deng, vice president of Shenzhen-based Xiu.com, says he can't find what he wants for his fast-growing company, which sold 200 million yuan worth of goods last year and plans to hit 1 billion yuan in 2011.

"It's just too hard to find warehouses these days," he said. "All the suitable ones have already been rented out."