Advantages of a Phoenix Warehouse for eCommerce Fulfillment

Late last summer, Inc. magazine ran a story with this intriguing title:  “The Next Tech Hub Isn’t Austin Or Denver.  The Next Tech Hub Is Greater Phoenix.”

Change out the words “tech hub” for “warehousing hub” and we couldn’t agree more – because over the past several years Phoenix’s logistics advantages have proven to be a highly compelling draw for many eCommerce businesses, including those who are looking for a more affordable alternative to California. 

1. Rapid West Coast, Southwest and South of the Border fulfillment

Approximately 33 million consumers are within a day’s truck drive of a Phoenix warehouse.[i]  In fact, Arizona is the only state in the nation that is within a day’s drive of three of the world’s largest economies and markets – California (#8), Texas (#12) and Mexico (#15).[ii]  

2. Much lower operating costs than Southern California

On average you’ll pay 42% less for operational expenses in Phoenix than you would in California.[iii]

3. A lower risk of weather-related transportation delays

You’ll love Phoenix’s 300 sunny days per year – and knowing that the Phoenix area was ranked in the Top Ten for lowest catastrophic and natural disaster risk. 

4. Ample eCommerce transportation infrastructure

Approximately 130,000 miles of Arizona highways, including I-10, I-8 and I-40 make it easy to get your goods on the road and into customers’ hands more quickly.[iv]  And should you require expedited shipping from your Phoenix warehouse, Phoenix’s SkyHarbor Airport, which handles 800 tons of cargo per day, offers numerous options.  

5. A business-friendly climate

Arizona’s corporate income tax rate of 4.90% is one of the lowest the nation.[v]  Plus Arizona doesn’t charge business inventory tax – and it’s a right-to-work state. 

6. Abundant – and high-quality – area labor

With a growing population of 4.4 million – and a median age of 36 – Greater Phoenix boasts a large and relatively young labor pool.  In fact it’s the nation’s sixth youngest metro.  And with more than 40 area universities and trade schools (including America’s largest community college system)[vi] many of these personnel are already well-trained and educated – and ready to tackle the complex nuances of fulfillment jobs.  

7. Numerous parcel handling options

All of the major parcel carriers have a strong presence in Phoenix, including UPS, which recently opened a 970,000 regional processing center there; FedEx, which operates one of its SmartPost hubs in the area; and the USPS, which has more than 100 locations throughout Phoenix.[vii]   

8. A large local customer base

Don’t let the mellow desert vibe fool you. Phoenix is now the country’s fifth-largest city, not to mention its fastest-growing, according to the most recent U.S. census.

9. High marks from businesses who operate in Phoenix

Among other things, Chief Executive magazine has named Arizona one of the most business-friendly states for four years in a row[viii], while Inc. magazine has named Phoenix as the ninth best place to start a business.[ix]  Arizona also ranks second in workforce quality and availability.[x]

10. Great neighbors

Many notable e-commerce, fulfillment and package delivery companies already have a significant presence in Phoenix, because they’ve already done the math and determined that it makes excellent business sense.  These include Amazon, Thred Up, the Home Shopping Network and, yes, Staci Americas, which has operated a distribution center in Phoenix since 2010.

Should you decide that it makes sense to operate in Phoenix but don’t have the budget or bandwidth to operate your own facility, we hope you’ll consider contacting Staci Americas for help.

[i] https://www.gpec.org/industries-operations/operations/logistics-and-distribution/
[ii] Arizona Commerce Authority
[iii] https://www.gpec.org/doing-business-here/operating-costs-incentives/
[iv] Arizona Commerce Authority
[v] https://taxfoundation.org/state-corporate-rates-brackets-2019/
[vi] Arixona Commerce Authority
[vii] http://www.phoenixrelocationguide.com/Top-Major-Employers-and-Businesses/
[viii] https://chiefexecutive.net/2019-best-worst-for-states-business/
[ix] https://www.azcentral.com/story/news/local/phoenix/2019/12/12/phoenix-ranks-9th-nation-best-city-start-business/4410395002/
[x] https://www.azcommerce.com/business-first/top-talent/