“Co-Warehousing” Could Help Small Businesses Compete With Amazon

Article originally posted on HERE on April 20, 2023

Forget co-working. Metro Phoenix is getting a co-warehousing facility, and it could be a game-changer for local businesses.

Driving the news: Logistics company Saltbox opened a facility near Elliot and Kyrene roads in Tempe this month that will provide private warehouses and office suites to e-commerce companies that have outgrown their home-based operations.

• The spaces range from $450 to $7,200 per month depending on size.

State of play: Saltbox already has 11 facilities nationwide and serves more than 500 businesses such as Sock Fancy, and BlackLIT, a monthly subscription box highlighting Black authors.

Why it matters: The pandemic boosted internet shopping’s popularity, and financial experts predict the e-commerce boom will continue.

• Yes, but: Small businesses struggle to compete with the logistical operations of companies like Amazon that can get goods to customers overnight.

Zoom in: CEO and co-founder Tyler Scriven tells Axios Phoenix that Saltbox uses the economy of scale to help its members simplify order fulfillment, storage and other administrative operations.

What they’re saying: “How could we not?” Scriven told us when asked why the company selected Phoenix for its newest facility.

• “It’s growing so incredibly quickly… and there is a high density of logistically driven small businesses in the market that we can be there to support.”