Warehousing for E-Commerce in the US

If you sell online and ship to US customers, at some point inventory has to physically sit somewhere on US soil. This guide is the decision framework for where and how you hold it — the models that exist, their trade-offs, and the regulatory and tax consequences that catch out sellers who choose a warehouse before understanding what holding inventory in a state actually commits them to.

This is written primarily for e-commerce businesses outside the US entering the market, but the framework applies equally to domestic sellers scaling beyond their garage.

The warehouse models available

You have four structural options for holding US inventory. Each shifts risk, cost, and control differently.

Your own leased warehouse

You sign a lease — typically three to five years for industrial space — take on the building, install racking and forklifts, deploy a warehouse management system, and hire a team. You own the full operation and you carry the full fixed cost.

This model makes sense when volume is high, stable, and predictable, when your fulfillment process is genuinely specialized, or when control over the operation is a competitive advantage rather than a preference. It is almost always the lowest per-unit cost at steady high volume, but it converts warehousing into a fixed cost that arrives every month regardless of whether you ship anything.

For the full cost structure and decision framework, see 3PL vs. Leasing Your Own Warehouse. For what it costs to stand up your own building — security deposit, racking, forklifts, WMS, permits, insurance — see How Much Does It Cost to Open a US Warehouse?. For sizing the space requirement, see How Much Warehouse Space Do I Need? and the Pallet Position Calculator.

Third-party logistics (3PL) / fulfillment services

A 3PL stores your inventory in their building alongside other clients' goods and picks, packs, and ships your orders. You pay for what you use: typically receiving fees, monthly storage per pallet or cubic foot, pick-and-pack fees per order and per line, plus shipping.

No lease, no equipment, no staff. Warehousing becomes a variable cost. This is the structurally correct choice when you are new to the US, uncertain about where demand will land, lack US credit history, or need to be live in weeks rather than quarters. Per unit, a 3PL almost always costs more than running your own building at steady high volume — but that premium buys you the option to be wrong about your forecast, and early on that option is worth a great deal.

The trade-off and switching point are covered in detail in 3PL vs. Leasing Your Own Warehouse.

Co-warehousing and flexible space

Co-warehousing is a private lockable suite inside a shared warehouse, with shared docks, forklifts, and infrastructure. You control a defined space without taking a full building, and you can often onboard faster than leasing industrial space while retaining more operational control than a 3PL offers.

This model fits businesses that have outgrown a 3PL's one-size-fits-all process but are not ready for a full building, or businesses that need some customization but want to avoid the capital and lease commitment of their own space. It is also useful for businesses testing a new US region without committing to a long-term lease.

For the full breakdown — how co-warehousing differs from on-demand and 3PL, typical terms, and when it fits — see What Is Co-warehousing? Private Space in a Shared Warehouse.

Marketplace fulfillment programs

Amazon FBA, Walmart Fulfillment Services, and similar programs allow you to send inventory into the marketplace's network and have them fulfill orders placed on their platform. These are not general fulfillment solutions — they fulfill only orders from that specific marketplace, not your own website or other channels.

The advantage is access to the marketplace's delivery speed and Prime eligibility (on Amazon). The cost is loss of control: the marketplace decides where your inventory sits, how it is distributed across their network, and when it is eligible for removal. Storage fees, long-term storage surcharges, and FBA prep requirements are detailed, strictly enforced, and change periodically.

Marketplace fulfillment often runs in parallel with a 3PL or your own warehouse for non-marketplace orders. It is common to use FBA for Amazon orders and a separate 3PL for direct-to-consumer and wholesale fulfillment.

Be aware that inventory held in a marketplace's warehouse, even though you do not control its location, still creates state tax consequences as discussed below.

Sales tax nexus: holding inventory creates nexus

This is the regulatory consequence most e-commerce sellers discover too late.

Physical nexus

Holding inventory in a state — whether in your own warehouse, a 3PL's facility, a co-warehousing suite, or a marketplace fulfillment center — generally creates physical nexus for sales tax purposes in that state. Many states treat inventory stored in the state, including in a marketplace or 3PL warehouse, as creating physical presence that obligates you to register with the state revenue department, collect sales tax on taxable sales to customers in that state, file periodic returns, and remit the tax collected.

The presence of inventory has been a recognized basis for nexus for decades, and you cannot avoid it by using a 3PL or by claiming you do not control where a marketplace places your goods. Treatment varies by state; check each state's revenue department for current positions.

Economic nexus after South Dakota v. Wayfair

In South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), the Supreme Court overruled the physical presence rule for sales tax. A state may now require a remote seller to collect and remit sales tax based solely on economic activity — typically gross sales or transaction count — without any physical presence in the state. South Dakota's law, which the Court upheld, applied to sellers exceeding $100,000 in annual sales or 200 transactions into the state.

Most states subsequently enacted economic nexus thresholds, commonly $100,000 in annual sales into the state. Transaction-count thresholds vary by state; check each state's revenue department for current thresholds.

For an e-commerce seller, this means two separate nexus triggers: physical nexus from having inventory in a state, and economic nexus from selling above the state's threshold even if you have no physical presence there. Both independently require registration and collection.

A practical consequence: if you hold inventory in one state but sell nationally, you will likely owe sales tax registration and filing obligations in multiple states — the state where inventory sits (physical nexus) plus every state where your sales exceed the economic threshold.

Marketplace facilitator laws

All 45 states that levy a sales tax, plus the District of Columbia, have enacted marketplace facilitator laws. Alaska has marketplace facilitator provisions administered through the Alaska Remote Seller Sales Tax Commission that apply to local sales taxes. These laws require platforms such as Amazon, eBay, Etsy, and Walmart to collect and remit sales tax on third-party marketplace sales once the platform meets the state's threshold.

In practical terms: when you sell through Amazon, Amazon collects and remits sales tax on your behalf in all applicable states. You generally do not need a sales tax permit solely for marketplace-facilitated sales in those states.

However, marketplace facilitator collection does not eliminate your obligation to track nexus or to register and collect tax on non-marketplace sales. If you hold inventory in a state — even inventory in an Amazon FBA warehouse — many states treat that as creating physical nexus, and you may need to register and collect tax on direct sales (your own website, wholesale, phone orders) into that state. The marketplace handles only the sales made through its platform. Check each state's revenue department for guidance on whether marketplace inventory alone creates nexus for your non-marketplace sales.

Multi-state inventory distribution

Many 3PLs and all marketplace fulfillment programs distribute your inventory across multiple warehouses to position goods closer to customers. Amazon's FBA network, for example, will place your inventory in several states based on demand forecasting and Prime delivery requirements. You often do not choose or control where the inventory sits, and the distribution changes over time.

Many states treat inventory stored in the state as creating nexus, even temporarily. For an FBA seller, this can mean nexus obligations in multiple states simultaneously.

Before committing inventory to a program that distributes it beyond your control, understand that you may simultaneously be committing to multi-state sales tax registration and compliance. The administrative burden is real, and ignoring it can result in assessments, penalties, and back taxes.

For marketplace facilitator laws and state-specific nexus guidance, see the National Conference of State Legislatures' Marketplace Facilitator Tax Collection analysis. Consult each state's revenue department for current positions on physical nexus triggers.

Inventory tax consequences

Nine states fully tax business inventory as property, and five partially tax it, according to Tax Foundation analysis. If you hold inventory in one of those states, you may owe an annual property tax bill on the value of stock held on the assessment date — typically January 1.

The states that fully tax inventory are Arkansas, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, Texas, Virginia, and West Virginia. States that partially tax it are Alaska, Georgia, Massachusetts, Michigan, and Vermont.

Several inventory-taxing states offer freeport exemptions, which remove from the tax base goods held temporarily for out-of-state shipment — exactly the profile of most e-commerce distribution inventory. Freeport exemptions are often adopted at the county or municipal level, so whether you qualify, what share of value is exempted, and what the holding-period limit is all vary by location within the state.

Holding inventory inside a foreign-trade zone can also eliminate inventory tax on foreign goods and domestic goods held for export, separate from the duty deferral benefits. This may be a standalone reason to use a zone in an inventory-taxing state if your stock value is large.

For the full inventory tax breakdown, freeport rules, and FTZ relief, see Inventory Tax by State: Which States Tax Business Inventory. For comparing states more broadly on tax, labour, and operating cost, see Comparing States for Warehousing.

For foreign sellers: importer of record, US entity, and customs considerations

If you are based outside the US and shipping goods into a US warehouse, you face a set of customs and entity questions that domestic sellers skip.

Importer of record

Someone has to be legally answerable to US Customs and Border Protection for every shipment that crosses the border. That party is the importer of record, responsible for filing the entry, classifying the goods, paying duties, and keeping records.

If you are shipping your own goods into your own warehouse to fulfill your own orders, you are the importer. A foreign entity can act as a non-resident importer, but under 19 CFR 141.18 a nonresident corporation must have a resident agent in the state where the port of entry is located, authorized to accept service of process, and must file a customs bond secured by a US resident surety.

Most foreign businesses opening a US warehouse choose to form a US entity and import through it, since they are establishing a US presence anyway. The alternative — importing as a non-resident — works, but it is administratively more complex and still requires a US agent and surety.

For the full detail on who can be the importer, importer ID numbers, customs bonds, ISF filing deadlines, and how your customs posture shapes warehouse location, see Importer of Record: Who Is Legally Answerable for US Customs. For the specific process of obtaining an importer of record number, see How to Get an Importer of Record Number.

US entity requirements

You can legally lease warehouse space without a US entity, but landlords underwrite tenants, and a foreign company with no US operating history, no US credit file, and no attachable US assets will typically be asked for a parent company guaranty, a letter of credit, an enlarged security deposit, or a personal guaranty.

Forming a US entity — usually an LLC or a corporation — also simplifies banking, insurance, payroll, and contracts. For most businesses opening a US warehouse, the entity question is not whether but when, and the answer is usually "early."

For entity formation, EIN application, beneficial ownership reporting under FinCEN rules as revised in 2025, landlord security requirements, and state selection (local vs. Delaware), see Do You Need a US Entity to Lease a Warehouse?.

Duty deferral: foreign-trade zones and bonded warehouses

If you import high-duty goods, hold large inventory for extended periods, or re-export a meaningful share of what you import, duty deferral can materially affect cash flow and total cost.

A foreign-trade zone (FTZ) is a designated site in the US that, for customs purposes, is treated as outside US customs territory. Goods can be stored, handled, and in some cases manufactured without paying duty until they leave the zone for the US market. The International Trade Administration lists "No duties on or quota charges on re-exports" among FTZ benefits — though under 19 CFR 182.53, certain goods withdrawn from a zone for export to Canada or Mexico are subject to US duty under the USMCA duty-deferral rules. FTZs also offer inverted tariff relief (when finished goods carry lower duty than components), merchandise processing fee savings via weekly entry, and inventory tax exemption on foreign goods.

Setup and operational requirements are real — activation with CBP, inventory control systems, annual reporting, and often consultant help — so FTZs pay off primarily for importers with significant volume, long holding periods, or substantial re-export activity.

For when an FTZ makes sense, costs, general-purpose zones vs. subzones, and the five benefit categories, see Foreign-Trade Zones Explained.

A bonded warehouse offers duty deferral for up to five years from the date of importation without the FTZ overhead. It sits inside US customs territory with duty deferred until withdrawal. Bonded warehouses do not offer inverted tariff relief, weekly entry MPF savings, or inventory tax exemption, but the setup burden is lower — you can rent space in a Class 3 public bonded warehouse operated by a third party.

For the bonded warehouse structure, the ten classes, what you can and cannot do in bond, and how bonded warehouses differ from FTZs point by point, see What Is a Bonded Warehouse?. For a direct comparison of FTZs vs. bonded warehouses covering time limits, manufacturing, costs, and when each pays off, see FTZ vs. Bonded Warehouse: How to Choose.

Section 321 de minimis exemption status (2026)

Previously, goods valued at $800 or less per person per day could enter the US duty-free under the Section 321 de minimis administrative exemption (19 U.S.C. 1321(a)(2)(C)). This exemption was widely used by e-commerce sellers shipping direct to consumers from overseas.

As of June 24, 2026, CBP has indefinitely suspended the Section 321 de minimis exemption for merchandise arriving through all modes other than the international postal network (and separately for postal shipments under a concurrent rule). Pursuant to 19 U.S.C. 1321(b) and Executive Orders 14324 and 14388, merchandise valued at $800 or less that previously qualified for de minimis entry now requires formal or informal entry and is subject to any applicable duties.

The June 24, 2026 interim final rule for postal shipments established a new postal informal entry process for merchandise valued at $2,500 or less entering the United States through the mail environment. However, certain categories of merchandise are ineligible for that new informal entry process and must instead use formal entry procedures under 19 CFR 145.12(a). These ineligible categories are merchandise subject to Partner Government Agency (PGA) requirements, merchandise subject to duties under Chapter 98 or Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), or merchandise for which duty-free treatment is claimed under Chapter 98 of the HTSUS or pursuant to a Free Trade Agreement.

On October 22, 2026, CBP published a final rule extending the compliance date for the formal entry requirement under 19 CFR 145.12(a)(2)(v) and (vi) from October 22, 2026 to January 20, 2027. This extension gives importers, brokers, and logistics providers additional time to update internal systems and develop the technological infrastructure needed to comply with the formal entry requirement for the specified categories of international mail shipments.

This suspension remains in effect as of October 2026. Any subsequent modification or revocation will be announced in the Federal Register. For current CBP policy, see the Federal Register interim final rules of June 24, 2026 for non-postal modes and postal shipments, and the October 22, 2026 final rule on delayed compliance extension.

For e-commerce sellers, this means low-value direct-to-consumer shipments from foreign origins no longer clear without formal or informal entry and any applicable duties, which changes the economics of shipping from overseas versus holding inventory in the US.

Location: ports, inland hubs, and proximity to customers

Where you physically locate a warehouse is first a logistics question — proximity to customers, to ports if you import, and to major freight corridors — and second a state-level cost and regulatory question.

If you import ocean freight, proximity to a major container port or an inland rail hub shortens drayage time and cost. The largest US container ports by loaded TEU volume in 2023 were Los Angeles, New York/New Jersey, Long Beach, Savannah, and Houston (per Bureau of Transportation Statistics), and each has spawned warehouse submarkets along the inland corridors running from it.

Goods do not have to clear customs at the port where they land — they can move in bond to an inland location and be entered there. This is what makes Inland Empire (east of LA/Long Beach) and the New Jersey Turnpike corridor work: containers move from the port to a warehouse 60 or 100 miles inland, and customs clearance happens there.

For the port and corridor breakdown, where the major inland hubs sit, and how port proximity shapes warehouse location, see Ports, Rail Hubs, and Inland Distribution.

Sizing your space requirement

E-commerce fulfillment is not pure storage. You need space for receiving and shipping staging, packing stations, returns processing, circulation aisles, equipment charging, office and break areas, and future growth. Storage is only part of a working fulfillment building: receiving, packing, staging and aisles take floor space too.

Start from peak pallet positions, then build out the non-storage areas. Do not compare buildings on rent per square foot — compare on total annual occupancy cost per pallet position, because clear height and racking efficiency determine how much you can store in a given footprint.

For the sizing method, staging rules of thumb, office and circulation ratios, and growth reserve, see How Much Warehouse Space Do I Need?. To convert pallet positions to square footage or vice versa based on rack type, clear height, and aisle width, use the Pallet Position Calculator.

A decision sequence

Most e-commerce businesses that get this right follow a similar arc:

1. Enter with a 3PL or marketplace fulfillment. Learn where demand lands, what real volume looks like, and where the process breaks, without committing to a lease or a location.
2. Stay long enough to have real data. A full annual cycle including peak season tells you things a forecast cannot.
3. Track nexus obligations from day one. Register for sales tax in every state where you hold inventory and in every state where you exceed economic thresholds. Ignoring it until you are caught is expensive.
4. Understand the customs and entity requirements before the first container ships. Importer of record, customs bond, ISF deadlines, and US entity formation take time. Discovering them at the border is too late.
5. Reassess when per-unit fulfillment costs start to sting, or when you need control the 3PL cannot offer. Model your own building or co-warehousing with the full cost list — rent, NNN, equipment, WMS, payroll, insurance, build-out — against realistic volume, not your ambitious case.
6. Graduate into your own space in your proven best location, sized for volume you can defend, with expansion rights if you can negotiate them.

The businesses that struggle are usually the ones that signed a five-year lease early, in a location chosen before they had demand data, or the ones that ignored nexus obligations until discovery by a state revenue department.

Common questions

Do I need a warehouse in the US to sell to US customers?

No. Many e-commerce sellers ship direct to US customers from overseas. However, shipping times are longer, and as of June 2026 the Section 321 de minimis exemption has been suspended, so low-value shipments now require formal or informal entry and any applicable duties. Certain categories of international mail shipments must use formal entry procedures, with compliance required by January 20, 2027 under a CBP extension announced October 22, 2026. US-based fulfillment shortens delivery time and simplifies returns. It also creates nexus and compliance obligations as described above.

Does using a 3PL mean the 3PL handles my sales tax obligations?

No. A 3PL stores and ships goods on your behalf, but it does not assume your tax obligations. Holding inventory in a 3PL's warehouse creates nexus for you, and you remain responsible for registration, collection, filing, and remittance in that state. The 3PL is a service provider, not a tax intermediary.

Does Amazon collect sales tax for me if I use FBA?

Yes, for sales made on Amazon's marketplace in states with marketplace facilitator laws (all 45 sales tax states plus DC). Amazon collects and remits the tax as the marketplace facilitator. However, if you hold FBA inventory in a state and make direct sales (your own website, wholesale, other channels) into that state, many states treat that inventory as creating physical nexus, and you may need to register and collect tax on those non-marketplace sales yourself. Check each state's revenue department for guidance.

Can I choose which states my FBA inventory is stored in?

No. Amazon distributes FBA inventory across its network based on demand forecasting, Prime eligibility, and operational factors. You do not control or choose the states. The inventory placement changes over time. Each state where inventory sits generally creates nexus.

How many states will I need to register for sales tax if I use FBA?

It depends on where Amazon places your inventory and where your non-marketplace sales land. Amazon distributes FBA inventory across multiple states, and the distribution changes over time. You may also have economic nexus in states where you have no inventory if your sales exceed the threshold. Multi-state compliance is a real administrative cost; plan for it rather than ignoring it.

If I sell only on Amazon and use FBA, do I still need to register for sales tax?

Generally no, if 100% of your sales are marketplace-facilitated and Amazon is collecting the tax. However, the moment you make a direct sale (your website, a wholesale order, a sale on another platform) into a state where you hold FBA inventory, you have nexus and an obligation to register for that direct sale. Many sellers also have economic nexus in additional states from sales volume alone. Consult a sales tax advisor rather than assuming Amazon's collection covers all obligations.

What is the difference between a 3PL and a fulfillment center?

The terms are often used interchangeably. "Fulfillment center" emphasizes e-commerce order fulfillment — pick, pack, ship direct to consumers, often with integrations to e-commerce platforms. "3PL" (third-party logistics) is broader and may include bulk storage, B2B distribution, value-added services like kitting or returns processing, and freight management. For e-commerce, the distinction is not sharp; both models typically offer receiving, storage, pick-and-pack, and shipping.

Can I start with a 3PL and switch to my own warehouse later?

Yes, and this is a common graduation path. Moving from a 3PL to your own building typically happens when volume, cost structure, or control requirements justify it. Moving the other direction — from your own lease to a 3PL mid-term — is more expensive, because you are paying rent on a building you no longer need while also paying 3PL fees, until you can sublease or negotiate an exit. This asymmetry is an argument for starting with the 3PL when the decision is close.

Sources

• U.S. Supreme Court, South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018) — overruled physical presence rule for sales tax nexus; substantial nexus may be based on economic activity; South Dakota's law applied to sellers exceeding $100,000 in annual sales or 200 transactions
• U.S. Customs and Border Protection, Federal Register interim final rules of June 24, 2026: Indefinite Suspension of the De Minimis Exemption for Merchandise Arriving Through All Modes Other Than the International Postal Network and Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process — Section 321 de minimis suspension effective June 24, 2026, pursuant to 19 U.S.C. 1321(b) and Executive Orders 14324 and 14388; new postal informal entry process for merchandise valued at $2,500 or less; certain categories (merchandise subject to PGA requirements, duties under Chapter 98 or Chapter 99 of HTSUS, or claiming duty-free treatment under Chapter 98 of HTSUS or pursuant to a Free Trade Agreement) ineligible for postal informal entry and must use formal entry under 19 CFR 145.12(a)(2)(v) and (vi), with initial compliance date of October 22, 2026
• U.S. Customs and Border Protection, Federal Register final rule of October 22, 2026: Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process; Delayed Compliance Extension — extends compliance date for 19 CFR 145.12(a)(2)(v) and (vi) from October 22, 2026 to January 20, 2027, for formal entry of specified international mail shipments (those subject to PGA requirements, duties under Chapter 98 or 99 of HTSUS, or claiming duty-free treatment under Chapter 98 of HTSUS or pursuant to a Free Trade Agreement)
• National Conference of State Legislatures, State and Local Tax Considerations for Marketplace Facilitator Tax Collection Requirements (August 2023) — NCSL SALT Task Force analysis of marketplace facilitator laws and model language
• Alaska Remote Seller Sales Tax Commission, Business/Sellers Information and Uniform Code — marketplace facilitator provisions for Alaska local sales taxes; $100,000 threshold applies to total Alaska gross sales from all marketplace sellers
• Amazon, Marketplace Tax Collection — states where Amazon collects as marketplace facilitator, effective dates
• U.S. Department of Transportation, Bureau of Transportation Statistics, Port Performance Freight Statistics: 2026 Annual Report — 2023 loaded TEU data for top 25 US container ports: Los Angeles (5.7M), New York/New Jersey (5.4M), Long Beach (5.1M), Savannah, Houston
• Tax Foundation, Does Your State Tax Business Inventory? — nine states fully tax inventory, five partially; see Inventory Tax by State for full breakdown
• International Trade Administration, About Foreign-Trade Zones — "No duties on or quota charges on re-exports"
• 19 U.S.C. 1321 — Section 321 de minimis statutory authority
• 19 CFR 141.18 — nonresident corporation entry requirements, resident agent, bond
• 19 CFR 182.53 — Collection and waiver or reduction of duty under duty-deferral programs — USMCA duty-deferral exception for exports to Canada or Mexico

This guide is general information, not tax, legal, or customs advice. Sales tax nexus rules, customs regulations, and state tax laws change. Confirm current positions with state revenue departments, CBP, and qualified advisors before committing to a warehouse model or location.