E-Commerce, Logistics & Distribution

Reach Consumers Quickly in Greater Phoenix 

Greater Phoenix is a large and growing e-commerce, distribution and logistics hub that houses facilities of many of the largest firms in the industry. With exceptional access to other major markets, innovative trade programs and high-quality infrastructure, the region is an ideal location for these types of operations.

E-Commerce Industry Report

Get our 24-page, in-depth report on the e-commerce, distribution and logistics ecosystem in Greater Phoenix.

Reliable Infrastructure

Freight carriers are well-served in Greater Phoenix with the region’s connectivity to four major interstates, Union Pacific and BNSF Railroad service and its air presence with Phoenix Sky Harbor International and Phoenix-Mesa Gateway airports.

Competitive Operating Costs

With real estate that is more affordable than Las Vegas and Riverside, Greater Phoenix offers up to 12% less expensive operating costs than in competitor markets.

Existing Supplier Network

This region is home to the largest full-truckload carrier in the nation. With major firms like Amazon, REI, Chewy and UPS, Greater Phoenix is one of the top cities for e-commerce, distribution and logistics.

Robust Workforce

Greater Phoenix is the fastest-growing U.S. market and already has the second-largest talent pool in the western U.S. with over 300,000 qualified individuals in e-commerce, distribution and logistics occupations.

Talent Pipeline

Greater Phoenix offers competitive, non-distance program completions at colleges and universities in concentrations related to e-commerce, distribution and logistics.

High Quality of Life

Greater Phoenix offers a vibrant lifestyle and diverse culture at an affordable cost of living. Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events.

Reliable Infrastructure

Greater Phoenix offers a reliable power grid for e-commerce, logistics, and distribution companies in Phoenix
Reliable Power

Arizona has the second-most reliable power grid in the nation and 73% fewer natural disasters than the adjacent state of California. Over the last 10-year period, Arizona recorded only 33 total hours of disturbances. Reduce risk and increase operating efficiency moving to Greater Phoenix.

The greater Phoenix region’s highways are well-planned and provide easy access
Grid System

Greater Phoenix was built in the age of the automobile, meaning the streets and highways were created for vehicles, featuring a well-planned grid system that provides convenient access to other west coast markets.

Greater Phoenix's regional railway access makes transportation easy for ecommerce, distribution and logistics operations
Regional Rail

Served by both Union Pacific and BNSF Railroads, there are more than 1,700 miles of freight rail system throughout Arizona and Greater Phoenix that provide connections to the Southwest and Mexico.

Ecommerce, distribution, and logistics operations can utilize Phoenix's airline connectivity for quick transportation
Airline Connectivity

There are 17 airports in Greater Phoenix, including Phoenix Sky Harbor International Airport and Phoenix-Mesa Gateway Airport, the latter of which will house the first joint U.S.-Mexico inspection facility.

Hauling Through the Southwest

Hauling is made easy thanks to convenient access to Interstates 8, 10, 17 and 40. Greater Phoenix has access to more than 35 million people in seven states within a one-day truck haul, including major seaports in Los Angeles and Long Beach. Firms have access to nearly the entire Southwest within a two-day haul.

Competitive Operating Costs

Greater Phoenix offers a competitive tax environment for Ecommerce, Distribution, and Logistics operations
AZ Tax Environment vs. Competitor Markets

Greater Phoenix has competitive operating costs for e-commerce and distribution businesses relocating and starting operations compared to other top markets. Despite having one of the largest talent pools among peer markets, the region has lower employee payroll costs than Las Vegas, Riverside and Reno.

Operating costs are low in Greater Phoenix compared to competitor markets for E-commerce and distribution companies
Industrial Real Estate Rates

Greater Phoenix offers a competitive advantage over other regions in the southwest with lease rates more than 10% less expensive than Las Vegas and the Inland Empire. On average, Greater Phoenix’s monthly rate is $0.87 per square foot, with prices ranging as low as 64 cents in Goodyear, Tolleson and some parts of the city of Phoenix.

Annual Operating Cost Analysis

Low cost of employee benefits and a property tax that is a mere fraction of competitor regions allow companies in Greater Phoenix to save more money. The Annual Business Operating Cost Pro-forma below estimates the cost of running a typical e-commerce business in competitor markets across a handful of major expense categories.

Component and custom analyses to match your company’s operations can be provided upon request. Contact us to request a custom analysis for your business.





Real Estate

Property Tax

Total Operating Cost










Las Vegas
















Riverside-San Bernardino








scatterplot comparing e-commerce in four metros. Greater Phoenix is in the more jobs, less expenses section

Assumptions: $10,000,000 personal property investment; 200,000 square foot Industrial Warehouse, Lease; Utilities (per month): Electric: 1,000W, 200,000KWh, Water/Wastewater: 3,000cf, 5/8 meter; 250 jobs (Bureau of Labor Statistics equivalent occupations)


More than 35 million consumers can be served within a single day’s truck haul

Source: GPEC Analysis


Shipping costs to California are up to 75% cheaper than other Mountain West markets

Source: SRP 2018


Phoenix has the second-largest labor pool in the western U.S.

Source: Lightcast 2021 Q1 Dataset; GPEC Analysis

Existing Supplier Network

Notable E-Commerce & Distribution Firms Headquartered in Greater Phoenix 

Many leading national e-commerce, distribution, and logistics companies have substantial operations in Greater Phoenix. Below are a few of the top companies that have headquarters in the region. 

Major Carriers in the Region

The map below shows freight and sorting locations for major shipping firms in Greater Phoenix. As can be seen, FedEx and UPS have substantial operations in Greater Phoenix, including the development of a new distribution center in Goodyear, near Interstate 10 and Loop 303. 

Robust Workforce

An Experienced Talent Pool

Greater Phoenix has a large existing talent pool of employees in e-commerce, distribution and logistics occupations. With more than 300,000 people employed in these fields, the region has more workers than competitor cities including Las Vegas, Reno and Riverside. Below is a sampling of the top 10 occupations in Greater Phoenix compared to the other three metros.

Occupation Phoenix Las Vegas Reno Riverside

Customer Service Representatives





Laborers and Freight, Stock and Material Movers, Hand





Stockers and Order Fillers





General and Operations Managers





Heavy and Tractor-Trailer Truck Drivers





Light Truck Drivers





Industrial Truck and Tractor Operators





Shipping, Receiving and Inventory Clerks





Packers and Packagers, Hand





First-Line Supervisors of Transportation and Material Moving Workers, Except Aircraft Cargo Handling Supervisors










Talent Pipeline

The Internet Supply Chain Lab in Greater Phoenix researches ways to address chain management issues
Internet Edge Supply Chain Lab

The Internet Edge Supply Chain Lab researches ways to address challenges in supply chain management and find new possibilities in in the industry. The lab is currently working on projects including: 

  • Last-mile fulfillment in omnichannel retailing with Walmart 
  • Merchandise variety in omnichannel retailing with Relay Foods 
  • Role of online retailing in promoting local grocery supply chains with USDA 
  • Management practices in warehouse platform systems with JDA Software and FLEXE 
  • Social media use during humanitarian disaster events with WeLink 
  • IoT Case Study: The IoT Supply Chain with Intel 
  • Universities + program details 
University alignment that supports Ecommerce, Distribution, and Logistics operations in Greater Phoenix

Arizona State University

The Department of Supply Chain Management at Arizona State University’s (ASU) W.P. Carey School of Business advances knowledge in global supply chain management while focusing on issues of practical importance. Its faculty is globally recognized for expertise in procurement, supply management, operations management, logistics and supply chain performance optimization.


ASU has the second-best supply chain management undergraduate programs in the U.S.

Source: U.S. News and World Report


ASU's supply chain management MBA programs are third-best in the country

Source: U.S. News and World Report

Download the full industry analysis for more on the supply chain and talent pipeline.

E-Commerce, Logistics & Distribution Report

Quality of Life

Greater Phoenix offers a vibrant lifestyle and affordable living to residents

Experience a vibrant lifestyle and diverse culture at an affordable cost of living.

Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep.

Calculate your savings

Select your annual income, monthly mortgage, healthcare and grocery costs to find how much you would save with a move to Greater Phoenix.

Los Angeles
San Francisco
Annual Income
Monthly Mortgage
Monthly Healthcare
Monthly Groceries
Total Annual Savings

Source: ACCRA, Cost of Living Index 2022 Q1