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Whether you’re a budding entrepreneur or an established Amazon tycoon, being a part of the Fulfillment by Amazon (FBA) program can help you grow your business. Utilizing Amazon’s fulfillment centers grants you access to Amazon’s customer base and aids you in improving business credibility, enhancing customer service, and more. Among the growth-driving services that Amazon FBA sellers can use to maximize their efficiency are Amazon FBA prep centers.
As the name suggests, prep centers are companies that specialize in the logistics of order fulfillment, from prepping and packing to labeling and more. Although there is yet to be concrete information on the number of online sellers that utilize prep centers, it should be noted that over 73% of Amazon entrepreneurs in the US are FBA sellers.
If you want to learn more about using prep centers, you’ve come to the right place. In this comprehensive guide, we will tackle everything you need to know about Amazon FBA prep centers and how they can take your business to greater heights.
Most Amazon FBA sellers are familiar with the meticulous undertaking of sending products or inventory to Amazon’s fulfillment centers. Each shipment must meet several packaging requirements such as the “shipping from” address, product measurements, poly bags and bubble wrap, labels, and so on. Learn more about the process of shipping your products to FBA here.
If a product does not meet the criteria set by the fulfillment centers, your inventory will likely be sent back to you. This can negatively affect a myriad of business aspects, such as shipping schedules, customer satisfaction, and, of course, business growth.
To sidestep this potential challenge, online sellers can turn to Amazon FBA prep centers. These companies offer end-to-end logistical services that cover all the requirements of order fulfillment. Below are some of the key services that prep centers generally provide.
Upon receiving your inventory, prep centers conduct product inspections to ensure that there are no damages or incorrect items. If any defects are found, they notify you to address the issue. This reduces the risk of customer returns and refunds.
The packaging services offered by prep centers entail everything from wrapping to labeling each package in accordance with Amazon standards. Packages are wrapped in FBA-approved polybags and/or bubble wrap, placed in Amazon-compliant boxes or shipping containers, secured with heavy-duty adhesives, and labeled completely with the necessary addresses, contact details, product information, and FNSKU codes.
Depending on the products and online seller instructions, prep centers can also insert warning labels for potentially dangerous items, add marketing materials such as thank-you notes or product instructions, and create bundled orders.
Prep centers can also act as warehouses where you can store inventory long-term at lower costs. Because of this, many online sellers opt to leave inventory storage and management to prep centers, further optimizing the order fulfillment process without breaking the bank.
Once your items are packaged and prepared, prep centers also take charge of coordinating the shipment of your products to the appropriate Amazon fulfillment centers. From there, Amazon proceeds to ship your products to your customers.
From the various services offered by Amazon FBA prep centers, it is easy to conclude that utilizing these companies can significantly enhance the productivity of your business workflow. If you still need guidance on the advantages of partnering with Amazon FBA prep centers to optimize your logistical productivity, we’ve outlined a few examples of concrete benefits below.
Wrapping, packaging, labeling, and shipping products are time-consuming endeavors. Outsourcing this to prep centers will allow this process to be completed more quickly and more efficiently. Aside from that, you'll no longer have to purchase a variety of packing supplies like shipping boxes, tape, or labels.
As mentioned earlier, FBA sellers have the option to utilize prep centers for inventory storage and management, which is highly beneficial for those with significant item quantities. An increase in inventory space also allows FBA sellers to source new products without worrying about storage.
Product inspections conducted in prep centers can significantly help in ensuring that the quality of the products is up to standard. By reducing the risk of shipping out defective or incorrect items, you are more likely to receive positive customer reviews.
In the experienced hands of prep centers, shipping is processed and completed more quickly. The turnaround times of prep centers average 24 to 48 hours, so you can be better assured that your products will arrive at fulfillment centers quickly to keep you in stock.
When we combine all these benefits, it is clear that partnering with Amazon FBA prep centers can significantly aid in the growth and development of your business. More time and resources can be allotted to other marketing activities such as advertising, product sourcing, customer engagement, and listing optimization.
It is important to have all the necessary information before committing to a business decision—and this includes starting a partnership with an Amazon FBA prep center. Ample research is required for this step to ensure that the Amazon FBA prep center of your choosing truly aligns with your business needs and goals. Thus, here are some factors that you should take into consideration when choosing an Amazon FBA prep center.
As with any other service, partnering with prep centers will come at a price. Before anything else, make sure that your allotted budget to outsource logistical work aligns with the pricing and payment structures set by a prep center. On average, the price of each unit ranges from $1.00 to $2.00; however, this is still subject to different components such as product dimensions, packaging material, and shipment times.
The location of a prep center plays a significant role in cost reduction and delivery speed. Strategically speaking, the best location for a prep center is one that's close to both you and Amazon fulfillment centers.
Also, some Amazon FBA prep centers are also located in sales tax–free states such as Delaware, Oregon, Montana, and New Hampshire. As such, if you can't find a prep center in your own state/municipality, you can potentially avoid creating an extra sales tax nexus and taking on additional sales tax liability by partnering with prep centers in these locations. Learn more about sales tax–free states here.
Note: The above is not intended as tax advice. Be sure to check with your accountant on any tax-related issue before making major business decisions.
For online sellers, time is of the essence. Ensure that the average turnaround time of a prep center is reasonable, ideally between 24 to 48 hours. Prolonged turnaround times can impact delivery performance, product quality, and customer satisfaction.
If you are looking to outsource inventory storage and management to a prep center, it is best to first assess whether their hub can allot ample storage space. This factor is also important to consider if you sell perishable goods that are at risk of spoiling in extreme temperatures. In this case, consider prep centers that provide climate-controlled facilities.
Before committing to a prep center, take some time to scan through reviews and testimonials from those who have worked with or are currently working with the company. The more positive the sentiments towards the prep center are, the greater assurance you will have in the quality of their service and client support.
Typically, you can look for Amazon FBA prep centers near you with a quick Google search, but these are bound to garner hundreds of different results. To help you get started on this daunting task, here are a few Amazon FBA prep centers that we recommend looking into.
Location: Multiple local and international prep centers across the US, Europe, Canada, and Mexico
Turnaround Time: 24 to 72 hours
Pricing: Starts at $0.90 per unit
MyFBAPrep is one of the best-known centers for exceptional preparation services all over the world. Aside from the diligent work in the logistics of prepping, packaging, and shipping, MyFBAPrep also offers a wide range of services, such as Amazon FBA reimbursements, Amazon FBM, Amazon Seller Fulfilled Prime, subscription box fulfillment, and more.
Location: Wilmington, Delaware
Turnaround Time: Up to 2 business days
Pricing: Starts at $1.00 per unit
Being in a sales tax–free state, Smart Prep Center already offers a significant benefit in reducing costs. However, what sets Smart Prep Center a cut above the rest is its client dashboard, which can allow you to personally monitor the preparation process of your products. Whether you are looking for Amazon FBA or FBM prep services, warehouse storage, or 3PL logistics services, Smart Prep Center can help you.
Location: Hillsboro, Oregon
Turnaround Time: 1 to 3 business days
Pricing: Starts at $1.58 per item
Located in another sales tax–free state, McKenzie Services provides tax-free prep services for a wide range of products, including retail arbitrage items, hazmat materials, and used books. This family-owned business is dedicated to customer satisfaction—each client is given an account manager and a client portal to make sure that all needs are catered to.
These are just a few of the best Amazon FBA prep centers in the US, so make sure to take your time doing research on what kind of prep services best fit your business needs. For more in-depth reviews, take a look at our article on the top 5 Amazon FBA prep centers.
We’ve established that Amazon FBA prep centers will help you manage your business operations more efficiently and productively. Still, as an FBA seller, there are ways that you can further maximize your order fulfillment services with the help of your prep center. Here are a few tips and tricks for optimizing your partnership.
It is the responsibility of both the business owners and the Amazon FBA prep centers to be aware of Amazon guidelines, including any updates or recent developments. The strict requirements of the Amazon FBA program can be a challenge if one or both parties are unaware of any changes in its rules and regulations. Thus, to ensure a smooth and efficient workflow, make sure to keep up with the landscape of Amazon guidelines.
Keeping track of the entire order fulfillment process from beginning to end is a great way to do quality control. Although Amazon FBA prep centers can take on the heavy logistical workload for you, it is still a good practice to monitor your products and ensure that they are up to your standards.
A great way to do this is by using the same inventory management software as your prep center so you can work together. For example, many sellers and prep centers coordinate via InventoryLab.
Good communication is a tenet of all business partnerships. Keeping a direct, open line between you and your Amazon FBA prep center not only helps you with managing your products but also creates an avenue to build camaraderie and trust with your FBA prep center partners.
With an online business, challenges are bound to arise now and then. In case an Amazon FBA prep center flags any issues or challenges, make sure that you reply within a reasonable turnaround time as well. This will maintain the efficiency and productivity of the prep work, which, in turn, will translate to outstanding delivery performance and happy customers.
Aside from prep centers, there are other tools and resources that FBA sellers can use to drive their business growth and stand out from their competitors on Amazon. Here are some of the best resources you can leverage for your business’ benefit.
Like the logistical work provided by prep centers, Amazon Seller Central is the definitive data hub for all Amazon sellers. This platform gives key information and insights on your business sales, growth, inventory, and much more. Furthermore, it is one of the best platforms to help you stay up-to-date with any news or announcements from Amazon, which is a great asset in optimizing partnerships with Amazon FBA prep centers.
The Amazon Seller Forums come in the form of a message board platform where fellow Amazon sellers are free to discuss and provide a variety of insights, trends, or recommendations on different aspects of Amazon businesses. If you are looking for personal anecdotes on other FBA sellers’ experiences with certain FBA prep centers, the Amazon Seller Forums allow you to search certain keywords to help you find what you need.
If you are looking for a comprehensive, in-depth resource for all things related to online businesses, then Threecolts is for you. This third-party service provider has a cloud suite with a variety of tools that you can leverage as an FBA seller, such as inventory management, business report generation, profit recovery services, and so much more. Furthermore, Threecolts also offers educational articles and learning materials to help you further understand how to optimize your business.
In this article, we’ve discussed the wide array of services that Amazon FBA prep centers can provide for your business’ order fulfillment and logistics coordination, such as inventory management, packaging services, and product inspection. Without Amazon FBA prep centers, this amount of work can be understandably overwhelming and counterproductive to business growth.
Choosing the right Amazon FBA prep center allows you to save time and resources, reduce overall costs, maximize productivity, and maintain stellar delivery performances. With your newfound knowledge of the nuances of Amazon FBA prep centers and the help of third-party service providers like Threecolts, you are one step closer to fostering success and progress for your business.
Browse through our blog and read our other posts and data-driven insights from our very own proprietary data. Learn more about Mother's Day trends and best practices, Easter sales, price elasticity of demand, Amazon FBA fee changes, Amazon product title optimization, winter seasonal products, Amazon end-of-year sales, Valentine’s Day trends and best Amazon fulfillment centers by location, and throughput.
Good prep centers prioritize the security and confidentiality of sellers' inventory and sensitive business information through stringent security protocols and data protection measures. They implement access controls, surveillance systems, and secure storage facilities to safeguard against unauthorized access and theft. Additionally, prep centers should adhere to strict confidentiality agreements and data handling policies to maintain the privacy and integrity of sellers' proprietary information.
Yes, many prep centers support customized packaging and branding. These services may include incorporating your custom packaging designs, branded inserts, personalized thank-you notes, and more. For more info, MyFBAPrep has a great article on FBA-compliant custom packaging and how they can help you with it.
By incorporating branding elements into your packaging, you can reinforce your brand identity, enhance customer engagement, and leave a lasting impression on buyers, ultimately fostering brand loyalty and repeat business.
