Why traditional logistics solutions fail to serve growing entrepreneurs searching for ecommerce storage

The good news: Your business is growing

The bad news: It’s growing so much that you’re running out of space.

Many companies that start in a home—or maybe in borrowed space—eventually reach a point where they simply don’t have room to store their products, not to mention assemble, kit, pack, and ship them.

But as thriving businesses search for space to accommodate growth, they often see the choice as between renting a self-storage unit and leasing a traditional warehouse. Increasingly, however, there is a third option: Renting a unit in a shared warehouse facility designed to support the needs of growing startups that produce and ship physical goods.

Which is right for your business? Here are the pros and cons of each option:

Self storage units

Often enough the only place entrepreneurs can find to run their business is a self storage unit. This is fine to store extra merchandise in advance of holidays or other busy seasons. But it can be grim to work in a dimly lit rectangle, adjacent to lockers of unused furniture and ancient files.

Pros

• Many sizes available
• Can be rented without long-term commitment
  

Cons

• Not designed for daily shipping and receiving
• Working in a locker may be prohibited
• Unpleasant environment
• No equipment or support services
  

Traditional warehouses

As they grow, most companies that deal in physical products eventually need their own storage and fulfillment facility. Large open spaces are available that can be upgraded to suit a company’s operations. And a well-designed loading dock vastly improves the efficiency of shipping and receiving. But young(ish) companies may not be ready for the cost and commitment of leasing their own warehouse.

Pros

• Built with loading docks to facilitate shipping and receiving
• Efficient when a large amount of space is needed
• Flexible space for storage, light manufacturing, kitting, and shipping
  

Cons

• Minimum size often much larger than growing businesses need
• Requires long-term lease
• Fixtures, equipment, and utilities not included
• Costly to build out space
• Rudimentary working conditions, often with limited heat and air conditioning
  

Shared warehouse space

If you merge the financial flexibility of self-storage with the logistics capabilities of a traditional warehouse—then add in the amenities and community of a modern office—you get a shared warehouse facility. Businesses can rent the amount of space required at the moment, knowing they can expand as sales increase. And they have access to everything they need from pallet jacks to espresso machines without having to buy any of it.

Pros

• Multiple sizes available with flexible commitments
• Rentals of fixtures and furniture available
• Utilities and fast internet service included
• Set up for daily shipping and receiving
• Part-time labor available on demand
• Comfortable working conditions, with temperature control, break rooms with coffee, and frequent cleanings
• Community of other entrepreneurs
• Access to facilities such as conference rooms, office space, and photo studios
  

Cons

• There can be an upper limit on the space available.
• Some facilities have become so popular they are sold out
• Comparing just the cost of the space (and not services and equipment) can be more expensive per square foot

“A lot of companies aren’t ready to commit to 50,000 square feet for five years, and they don’t want to be in an industrial part of town in a run-down building with filthy bathrooms,” said Paul D’Arrigo, co-founder of Saltbox. “They’d rather do their fulfillment from a comfortable, clean building with fresh ground coffee where they only pay for the space they need now.”

About Saltbox

Saltbox offers a cozy and practical spot for small to medium-sized ecommerce businesses looking for a mix of warehouse and co-working space. Think of our spaces as a blend of a functional warehouse and a trendy co-working area, complete with all the essentials like conference rooms, kitchens, and comfy lounges—perfect for both storing goods and getting work done. 

We take the hassle out of logistics with accessible loading docks and our helpful staff who can manage your shipments and inventory for you. Plus, our flexible logistics services are designed to adapt to your business needs, whether you need help by the hour or prefer a dedicated team to handle your orders. Saltbox is here to make your business operations smoother and help you focus on growing your enterprise. 

Come check out the space, book a tour today!