Remote ecommerce thrives in unexpected places—low taxes and strong logistics make the Plains a power base.
A new study ranks South Dakota, Wyoming, and North Dakota as the top states for remote ecommerce brands—here’s why operators should pay attention.
The ecommerce capitals of America aren’t San Francisco, Austin, or Miami. They’re Rapid City, Cheyenne, and Fargo.
Why the Plains are winning for ecommerce brands
New research from Omnisend just dropped—and it’s a wake-up call for founders still obsessed with coastal HQs.
Omnisend’s Ecommerce Opportunity Index ranks every U.S. state based on taxes, infrastructure, regional access, and economic conditions for a hypothetical ecommerce brand earning $1 million annually and selling mostly out-of-state.
The top dogs?
- 🥇 South Dakota (1.00 score)
- 🥈 Wyoming (0.98)
- 🥉 North Dakota (0.97)
These states crush the competition because they combine:
- Zero state income tax ✅
- High purchasing power 💵
- Streamlined business formation 📑
- Strong broadband and logistics connections 🚚
No bloated bureaucracy. No tax headaches. Just clean, operational upside.
Meanwhile, California and New Jersey—startup darlings at lower revenue levels—crater when you scale.
- New Jersey drops from #1 at $100K revenue to 45th at $1M
- California slides to 48th, thanks to brutal tax burdens and infrastructure bottlenecks
The hidden value of boring stability
While the Plains win on tax and cost logic, the Rust Belt delivers steady consistency. Ohio, Indiana, and Pennsylvania all land in the top 10 for semi-remote ecommerce operations.
They’re not flashy, but they are:
- Centrally located
- Moderately taxed
- Connected to major metros within a day’s drive
This is exactly why Amazon just invested $20 billion in AI data centers across Pennsylvania, the largest private-sector investment in the state’s history. The play? Proximity, power (nuclear, no less), and policy friendliness. Full breakdown here.
The takeaway: boring wins when you’re building for scale.
Where ecommerce brands should not set up shop
Omnisend’s Index doesn’t pull punches. The worst states for remote ecommerce are:
- Hawaii (50th)
- Alaska (49th)
- California (48th)
- Louisiana (47th)
Hawaii and Alaska suffer from obvious access and cost issues. But California and Louisiana’s problems are self-inflicted:
- Complex tax structures
- Overregulated environments
- Lagging infrastructure
And while some argue that high-cost states still attract talent or capital, that’s not enough when you’re scaling ops for out-of-state sales.
Bulletproof states for remote ecommerce in 2025
Looking to run lean and scale big? Here’s your cheat sheet for semi-remote or fully remote ecommerce:
✅ South Dakota
✅ Wyoming
✅ North Dakota
✅ Delaware
✅ Idaho
💡 These states combine:
- Low or no corporate tax
- High neighbor scores (regional access)
- Decent broadband and logistics
- Above-average buying power
Whether you’re selling supplements, fashion, or digital products—these states make scaling simpler.
So what should operators do with this data?
If your brand’s growth is remote-first, your HQ shouldn’t be an accident.
- Already in California or Jersey? Fine. But don’t scale there.
- Still figuring out where to incorporate or relocate? The Dakotas aren’t sexy—but they’re effective.
- Selling digital products? These low-cost states become force multipliers.
Ecommerce isn’t local anymore. Your margins shouldn’t be either.
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