By Karla Urdaneta, Operations Manager at ShipHouse. Karla runs warehouse operations at our facilities in Lincoln Park, New Jersey and Bear, Delaware.
An East Coast warehouse puts your inventory close to the densest part of the U.S. market and to the busiest container port on the Atlantic. For many ecommerce brands, especially those importing from Europe, Turkey, or Asia through the Suez Canal, it's the first warehouse that makes sense, and often the only one they need for years.
This guide explains why New Jersey and Delaware stand out, how two nearby facilities serve different order types, and the one thing about Delaware that sellers most often get wrong: sales tax.
Why the East Coast?
Three things make the East Coast a strong first location for U.S. fulfillment:
- Population density. According to the U.S. Census Bureau, the Northeast region alone is home to about 58 million people, roughly 17% of the U.S. population. New York, New Jersey, Pennsylvania, and Delaware together add up to about 43.7 million. The New York–Newark–Jersey City metro area, with about 20 million residents, is the largest in the country.
- Port access. Imports through the Port of New York and New Jersey, Philadelphia, or Wilmington reach East Coast warehouses by truck in hours, not days.
- Delivery speed where it counts. Orders to the big East Coast cities typically reach customers by ground in one to two days from a warehouse in the region. That's faster and cheaper than shipping across the country.
New Jersey's state economic development agency, Choose NJ, says companies in the state can reach one-third of the U.S. population within a day's drive. Choose Delaware says more than 100 million people live within an overnight drive of Delaware. These figures describe truck reach, not parcel transit times, but they show why so much ecommerce inventory sits in this corridor.
New Jersey: next to the East Coast's busiest port
The Port of New York and New Jersey is the busiest container port on the East Coast. In 2025 it handled 5.96 million loaded TEUs, up 2.8% from 2024, according to the Port Authority's annual report. That made it second in the nation for loaded containers.
For a brand that imports, a warehouse in northern New Jersey shortens the most expensive leg of the trip: the drayage from the port to the warehouse. Our Lincoln Park facility is about 25 to 30 road miles from Port Newark and Elizabeth, and about the same distance from Midtown Manhattan.
Northern New Jersey works especially well for:
- Imported inventory that arrives in containers through Port Newark and Elizabeth
- Fast delivery to the New York metro area, the largest consumer market in the U.S.
- Retail and wholesale shipments to buyers and distribution centers across the Northeast
- Amazon FBA prep and replenishment for inventory that lands at the port
Delaware: the I-95 corridor between Philadelphia and Baltimore
Bear, Delaware sits on the I-95 corridor between Philadelphia and Baltimore. It's roughly 35 to 40 miles from Philadelphia, 60 to 65 miles from Baltimore, about 100 miles from Washington, D.C., and about 125 miles from New York City.
Delaware also has its own port access. Port Wilmington is about 12 miles away, and PhilaPort, which handled a record 889,268 TEUs in 2025, is close by. Delaware's state development group says three full-service ports are within 100 miles of the state.
Bear, Delaware works especially well for:
- Orders headed south and west toward the Mid-Atlantic, Washington, D.C., and beyond
- Amazon FBA prep and replenishment, as a prep center on the I-95 corridor
- Inventory imported through Philadelphia or Wilmington
- Overflow and seasonal capacity alongside a New Jersey operation
Two facilities, one operation
Having facilities in both states is useful because they cover the corridor from two ends:
Lincoln Park, New Jersey | Bear, Delaware | |
|---|---|---|
Closest major port | Port Newark and Elizabeth (about 25–30 mi) | Port Wilmington (about 12 mi); PhilaPort nearby |
Closest major market | New York metro (about 25–30 mi) | Philadelphia (about 35–40 mi) and Baltimore (about 60–65 mi) |
Typical fit | Imports through NY/NJ, Northeast DTC, retail and wholesale | Mid-Atlantic orders, FBA prep, overflow and seasonal capacity |
Distances are approximate road miles.
In practice, we decide which facility handles your inventory after reviewing your products, inbound plan, sales channels, volume, and destinations. You can review both locations on our New Jersey and Delaware pages.
The Delaware sales tax myth
Delaware has no sales tax, which leads to a common misunderstanding: that storing inventory in a Delaware warehouse lets online sellers avoid sales tax, or saves "7 to 10 percent." It doesn't, and here's why.
- U.S. sales tax generally follows the buyer, not the warehouse. Since the Supreme Court's decision in South Dakota v. Wayfair (2018), states can require remote sellers to collect sales tax once they pass the state's economic nexus thresholds. In New Jersey, for example, that's $100,000 in sales or 200 transactions a year.
- Marketplaces collect it for you. Amazon, Walmart, and other marketplace facilitators collect sales tax on their sellers' behalf in every state that has one.
- A shipment from Delaware to New Jersey is still taxed in New Jersey, at New Jersey's 6.625% rate. Only sales delivered in Delaware are free of sales tax.
- Inventory can create nexus where it's stored. New Jersey's Division of Taxation says inventory held in a New Jersey warehouse creates nexus in New Jersey, so the seller must register there. Storing inventory in a state is a tax decision as well as a logistics one.
- Delaware isn't tax-free for businesses. Instead of a sales tax, Delaware charges a gross receipts tax on businesses operating in the state, at rates of roughly 0.09% to 1.99% depending on the activity.
What that means for you: choose your warehouse for delivery speed, port access, and cost, not to avoid sales tax. Talk to a tax professional about your nexus footprint before you place inventory. This section is general information, not tax advice.
A Delaware LLC is not a Delaware warehouse
Delaware is also known for business formation: more than two-thirds of Fortune 500 companies are incorporated there, according to the state's Division of Corporations. But where you incorporate and where your inventory sits are separate decisions:
- A Delaware LLC or corporation is a legal and governance choice. It doesn't require a warehouse in Delaware.
- A Delaware warehouse is a logistics choice. It affects transit times and where you may have tax nexus, whatever state you're incorporated in.
International sellers often hear about both at once. They're unrelated: you can incorporate in Delaware and ship from New Jersey, or the other way around.
Do you need both an East Coast and a West Coast warehouse?
Not at first. A single East Coast warehouse is often enough when:
- Most of your customers are in the East, the Midwest, or the South
- You import through East Coast ports, or through the Suez Canal from Europe, Turkey, the Middle East, or South Asia
- Your order volume doesn't yet justify splitting inventory
A second, West Coast location starts to pay off when a large share of your orders goes to the West, when you sell products where two-day delivery nationwide is expected, or when you import from East Asia through Los Angeles and Long Beach. Splitting inventory has costs of its own: more stock to hold, two inbound flows, and more complex replenishment.
How an East Coast 3PL supports each channel
From one East Coast inventory pool, a 3PL can serve:
- DTC orders from Shopify and your website, with your packaging. See ecommerce fulfillment.
- Amazon, through FBA prep and replenishment and FBM backup. See FBA vs FBM and our FNSKU labeling guide.
- Walmart, TikTok Shop, eBay, and Etsy orders from the same stock
- Retail and wholesale purchase orders, with routing guides and pallet prep. See B2B fulfillment.
- Returns, received and inspected close to most of your customers. See returns management.
- International inbound, with containers and pallets received after customs clearance. See U.S. 3PL for international businesses.
If you're still deciding whether to outsource at all, start with What is a 3PL?.
Frequently asked questions
Is New Jersey or Delaware better for an East Coast fulfillment center?
It depends on your inbound route and customers. Northern New Jersey is closest to the Port of New York and New Jersey and the New York metro area. Bear, Delaware sits on the I-95 corridor between Philadelphia and Baltimore, closer to the Mid-Atlantic and to Port Wilmington and PhilaPort. Many brands benefit from access to both.
Does storing inventory in Delaware avoid sales tax?
No. Sales tax generally follows the buyer's state. Marketplaces collect it on your behalf, and since South Dakota v. Wayfair (2018), states can require remote sellers to collect once they pass economic nexus thresholds. Only sales delivered in Delaware are free of sales tax.
Does inventory in a New Jersey warehouse create sales tax nexus?
Yes. New Jersey's Division of Taxation says inventory stored in a New Jersey warehouse creates nexus, so the seller must register and file in New Jersey. Ask a tax professional how this applies to your business.
Which ports serve New Jersey and Delaware warehouses?
The Port of New York and New Jersey (Port Newark and Elizabeth) serves northern New Jersey. Port Wilmington and PhilaPort serve Delaware and the Philadelphia area.
How big is the Port of New York and New Jersey?
It's the busiest container port on the East Coast. In 2025 it handled 5.96 million loaded TEUs, second in the U.S. for loaded containers.
How many people live near an East Coast warehouse?
The Northeast Census region has about 58 million residents, around 17% of the U.S. population. The New York metro area alone has about 20 million.
Do I need both an East Coast and a West Coast warehouse?
Not usually at the start. One East Coast warehouse often covers most customers in the East, Midwest, and South. A West Coast location makes sense when a large share of orders ships west, or when you import from East Asia through West Coast ports.
Is a Delaware prep center a good fit for Amazon FBA?
It can be. Bear, Delaware is on the I-95 corridor, and a prep center there can receive inventory, label and prep it, and send FBA replenishments in smaller, more frequent batches.
What's the difference between a Delaware LLC and a Delaware warehouse?
A Delaware LLC is a legal entity; a Delaware warehouse is a physical location for inventory. Where you incorporate doesn't decide where your inventory should be stored, or the other way around.
Can one East Coast 3PL handle DTC, Amazon, wholesale, and returns?
Yes. A 3PL can run all of them from one inventory pool, so you don't hold separate stock for each channel.
The bottom line
The East Coast gives ecommerce brands what matters most in a first U.S. warehouse: dense demand, short distances from major ports, and fast ground delivery to the largest metro markets. New Jersey and Delaware cover that corridor from two ends. Just choose your warehouse for speed and cost, not for a sales tax advantage that doesn't exist.
If you're planning East Coast fulfillment, tell us about your products and volume. We'll recommend the right facility and set up the operation behind it.
Figures in this guide come from the Port Authority of New York and New Jersey, PhilaPort, the U.S. Census Bureau, the New Jersey Division of Taxation, the Delaware Division of Revenue, and the Delaware Division of Corporations, current as of November 2026. Distances are approximate. This article is general information, not tax or legal advice.
