Guide
How to choose a co-warehouse
Six steps to pick the right co-warehouse for a growing product brand — and avoid paying for the wrong thing.
The short version: to choose a co-warehouse, confirm it serves your city, decide whether you'll run your own fulfillment, check what's actually included in the rate, size the suite to about 90 days of inventory plus headroom, verify the logistics access, and read the term and exit before you sign.
- 1
Confirm it serves your city
Start with location. A co-warehouse only works if it's a reasonable drive from you and your carriers, so confirm the operator actually has a building (open or pre-leasing) in your metro before going deeper.
- 2
Decide if you'll run your own fulfillment
Co-warehousing means you ship orders yourself; a 3PL ships for you. If you want to control packing, inserts, and margins — and possibly hire your own team — co-warehousing fits. If you'd rather hand shipping off entirely, compare 3PLs instead.
- 3
Check what's actually included in the rate
All-inclusive pricing should cover utilities, Wi-Fi, shared docks and forklifts, receiving, daily carrier pickups, and amenities in one number. Ask what's bundled versus billed separately so you can compare a true all-in cost, not a teaser rate.
- 4
Size the suite to ~90 days of inventory + headroom
Pick the smallest suite that holds about 90 days of inventory plus roughly 30% headroom for seasonal spikes and inbound staging. With month-to-month terms you can resize up later, so over-committing on day one usually just costs money.
- 5
Verify the logistics access
Walk the operations: real dock doors or drive-in bays, forklifts and pallet jacks on-site, drop-bin receiving with daily UPS/FedEx/USPS pickups, and quick highway access. These are what separate a working warehouse from glorified storage.
- 6
Read the term, deposit, and exit
Look for a short initial term that converts to month-to-month, a low or no deposit, and a clear notice period to leave or resize. The flexibility to change your footprint without renegotiating a lease is the whole point of co-warehousing.
FAQ
Choosing a co-warehouse — common questions
What's the most important factor when choosing a co-warehouse?
Location and total all-in cost. The building has to be a workable drive from you and your carriers, and the rate has to be compared on an all-inclusive basis — utilities, equipment, receiving, and amenities included — not on a sticker price that hides separate bills.
How big a suite do I need?
A good rule of thumb is the smallest suite that holds about 90 days of inventory plus roughly 30% headroom for seasonal spikes and inbound staging. Month-to-month terms let you resize up as you grow, so starting smaller protects cash flow.
Co-warehousing or a 3PL — how do I decide?
Choose co-warehousing if you want to run your own shipping and keep operational control, typically at 50–500 orders/day. Choose a 3PL if you'd rather outsource fulfillment entirely, usually at higher, stable volume. See our co-warehousing vs 3PL comparison for the full breakdown.
Keep reading: Best co-warehousing companies · Co-warehousing pricing · Co-warehousing vs 3PL
Tour a co-warehouse and check the list
Bring these six questions to a 30-minute EasyBay tour and see how the all-in cost actually pencils out.