Do you need a warehouse to run an ecommerce business?

Running an ecommerce business today means juggling customer expectations, inventory management, fast shipping, and operational efficiency—all while trying to stay profitable.

At the heart of it all lies the physical space where you run your business from.

But does that space have to be a warehouse? The answer depends on a multitude of factors, such as the stage of growth you're in, whether or not you need support, your cash flow, etc. For example, businesses in the pre-launch stage definitely don't need a warehouse space. But someone who just went viral on social media might in order to ship orders out quickly and efficiently.

This post unpacks how to decide if you need a warehouse to run an ecommerce business. We'll touch on the various types of warehouse spaces available (i.e., 3PLs, co-warehousing) and even some more affordable alternatives if you decide you don't want a lease (you read that right).

When growing ecommerce businesses do need warehouse space

It's true that many new ecommerce sellers start out running their business from home or a small storage unit. While that's a great starting point, here are some signs it might be time to upgrade to an ecommerce warehousing solution:

• Your order fulfillment times are dragging.
• You need adequate space to organize and scale operations.
• You're managing multiple warehouses or scattered inventory.
• You’re exploring new ecommerce platforms or markets due to business growth.
• Managing inventory from your home or a storage unit is becoming unbearable.
• Your customer experience is beginning to diminish.

Owning or leasing a warehouse can give you more space to grow and run your business.

Ecommerce warehousing: More than just a storage space

Modern ecommerce warehousing operations are smart, agile, and tech-integrated. With the right warehousing services, you can:

• Track inventory in real time
• Optimize order picking and packing
• Integrate with your ecommerce store
• Enhance efficiency and quality control
• Drive increased customer satisfaction
• Optimize your supply chain operations
• Improve your profit margins
• Access multiple fulfillment centers

This setup turns your warehouse into a strategic advantage—not just "a place for boxes."

Benefits of private warehouses

1. Total control over your fulfillment service

No more chasing carriers or guessing where a package went. When you own a warehouse, you manage the shipping carriers, packaging, and warehouse guidelines on your terms.

2. Smart inventory management

A warehouse management system (WMS) helps reduce stockouts, track inventory in real time, and manage restocks intelligently. These smart warehouses improve your supply chain and keep customers happy.

3. Faster ecommerce operations

When you control every step of order fulfillment, you can guarantee faster delivery. That’s not just a logistical win—it’s a customer satisfaction booster.

4. Cost-effective at scale

If you’re moving large volumes, buying or leasing a distribution center may lower your per-order cost over time by slashing third-party fees and reducing shipping costs.

But here’s the flip side…

1. High upfront costs

Leasing or buying a warehouse means putting serious capital into storage space, equipment, tech, and staffing. For new ecommerce businesses, that can strain your budget.

2. Operational complexity

Running your own warehouse means overseeing staffing, equipment maintenance, climate control, and safety measures. That’s a lot of plates to keep spinning.

3. Less flexibility

Traditional ecommerce warehousing models aren’t built to flex with seasonal volume. If you overestimate your space needs, you’re stuck paying for square footage you don’t use.

Alternative ecommerce warehousing options for small businesses

Not ready to go full warehouse-owner? Here are your options:

Third-party logistics (3PL) providers

A 3PL handles storing inventory, picking, packing, and shipping. It’s plug-and-play for many enterprise-level online sellers looking for staffed fulfillment centers.

But the downside is less control over brand experience, lack of visibility into the fulfillment process, and hidden fees.

Public warehouses

These "pay-as-you-go" facilities offer scalable solutions without the commitment. Public warehouses are great for fluctuating stock but may lack customization or personalized support.

Cooperative warehouses

Cooperative warehouses let businesses share costs, space, and resources—perfect for scaling without biting off more than you can chew.

Co-warehousing

Here’s where Saltbox comes in. Our smart warehouses blend physical space, logistics services, and business support to give ecommerce sellers ultimate flexibility. You get:

• Fully equipped warehouse suites
• Access to scalable solutions like pick-and-pack
• On-site support and package drop-offs
• Local carrier discounts through our shipping app partner, Parsel

Saltbox Access Plans

If you’re not quite ready for a dedicated warehouse space but still need shipping support and logistics perks, Saltbox Access Plans are a flexible alternative. You get:

• A professional business mailing address
• Inbound mail handling (plus freight receiving for Pro members)
• Access to loading docks and shipping stations
• Outbound package drop-off services
• Community workspaces and resources
• Access to exclusive shipping rates and discounted labels via Parsel
• Membership in our Upstream Entrepreneurs Club and community Slack channels
• Assistance with tasks from our flexible logistics staff (Pro members only)
• Flex Storage access (Pro members only)

...all without having to commit to a warehouse lease.

Access Plans are perfect for ecommerce sellers testing the waters, handling seasonal overflow, or looking for a professional upgrade from running their business from home. The best part? You can try Access Plans risk-free for 30 days. No commitment = the freedom to choose what works best for you.

Choosing the right ecommerce warehousing solution

Let’s break it down:

• Still scaling? Consider public or cooperative warehouses
• Want control but not complexity? Go with a co-warehousing solution like Saltbox
• Looking for low-commitment support and community? Saltbox Access Plans are the perfect choice
• Have the capital and high volume? A private option is your best bet
• Just need someone else to do it all and don't mind sacrificing your brand image? a 3PL might be right for you

It's important to really evaluate your business needs, order volume, product type, and plans for future growth to make an informed decision.

Bonus: Best practices for managing ecommerce warehousing

1. Use a Warehouse Management System (WMS)

Real-time inventory insights = no more surprises. Automate restocks and fulfill faster.

2. Optimize your warehouse layout

Design matters. Label shelves, streamline your zones, and cut down time spent picking and packing.

3. Train your team

Your fulfillment team is your frontline. Regular training = fewer errors, smoother ops, and happier customers.

4. Monitor your operational costs

From shipping carriers to climate control, know where your money is going—and look for ways to optimize operations.

Your ecommerce warehouse, your way

So...do you need a warehouse to run your online business? Not always.

But as your orders pick up, your ecommerce warehousing setup needs to scale with you.

Whether that’s leasing a space, joining a co-warehousing community, tapping into a low-risk Saltbox Access Plan, or going full 3PL—we’re here to help guide you to the best option for your business model, your brand, and your customers.

Find your flexible warehouse space

Book a tour and see how Saltbox can help you scale your online business without the logistical headaches.