A team of robots help with FBA prep services.

Category:

When Should I Use a Fulfillment Center for FBA Prep Services?

It’s no secret that Amazon is the powerhouse when it comes to online commerce. If you’re thinking of selling products through Amazon’s marketplace, you’ll want to make sure you have the preparation process figured out down to a T.

If you’ve ever seen an FBA warehouse (Fulfillment by Amazon) operation in action, it’s pretty impressive. They employ more than 15,000 robots to help retrieve products, have huge conveyor belts to transport product from storage to packing stations, and they ship 35 items every second. In fact, Amazon’s outbound shipping cost is over $1.5 billion a year!

One of the main reasons why Amazon can ship so many items each day is because they’ve streamlined their inbound process. That minimizes the time it takes to receive products and get them ready to be picked, packed and shipped. They’ve been able to streamline their receivings by passing the preparation process on to its vendors.

Failing to comply with FBA product preparation requirements may result in the vendor being charged for non-compliance and/or their products being returned, disposed of, or even blocked from future shipments to the ecommerce fulfillment center or 3PL.

Amazon does offer its vendors guidelines such as its Quick Reference Guide on how to prepare inventory for FBA. However, the opportunity cost of vendors preparing products for fulfillment takes away from sales and marketing. A lot of fulfillment centers—like ShipMonk, for instance—saw an opportunity and began offering FBA prep services to help vendors prepare their inventory before it’s sent to an FBA warehouse. Everything from opening containers and repackaging thousands of SKUs to simply labeling products correctly with barcodes—prepping products for FBA is essential if you want to be a successful Amazon vendor.

FBA Prep Services include:

  •      Quality control
  •      Repackaging
  •      Labeling
  •      Fragile item preparation
  •      Loose products
  •      Sold as a set
  •      Boxed units
  •      Poly bagged units
  •      Case-packed products
  •      Expiration dates

Now that you understand the importance of Amazon preparation, you’re probably wondering if you should do it yourself or look to a fulfillment center for help.

The answer isn’t anywhere near cut and dried. Therefore, you’ll need to take into account the following:

Where is your product manufactured?

The best solution would be for your manufacturer to prep the products for FBA for you, but you’d have to calculate how much that affects your shipping rates. If you’re importing from China or another foreign country, you’ll probably want to save as much as you can on shipping to the U.S. To do this you’ll need to put more than 1 SKU on a pallet—which is great for lowering costs but makes the product unfit as an FBA receivable.

How many SKUs do you have?

If you have a lot of different SKUs that require different prep services, it may be too much to keep track of and stay up-to-date. Also, do you have the space and equipment to de-palletize and repack the products on pallets or in boxes for FBA?

What packing materials are needed?

If you need specific packing materials such as poly mailers, fragile item wrapping, or labels, a fulfillment center may be a great option. They have various materials in stock and may even give you a discount since they can purchase in bulk.

What’s your profit margin?

How much are you selling your products for and what are you making? If you have room in your profit margin, it probably makes sense to outsource the FBA prep service. Then you can focus your efforts on expanding your product line and/or selling more product. (Unless, of course, you just love working in the warehouse, then absolutely, you should not outsource!)

Is the risk worth the reward?

Can your business afford to have its products returned or be billed a non-compliance fee for failing to meet FBA standards? A reputable fulfillment center will include in their SLA that if something happens due to not following FBA guidelines, the fulfillment center will assume responsibility.

Are there seasonal spikes throughout the year?

You may want to prepare inventory yourself throughout the year except for the holiday season. During that time, you’ll probably want to focus on customer service and marketing. So consider outsourcing FBA prep during those busy months and then take it back into your own hands if you want to cut back on outside costs during the offseason.

What can I be doing with the resources it takes to manage FBA prep?

This is the million-dollar question that only you can answer. Most business owners can manage the FBA prep process, but—will it take away from growing your business?

Ready to hand off FBA prep to a fulfillment center? We’re here to help! Learn more about our FBA Prep Services, or shoot us a line if you have questions.

Level up your fulfillment strategy

Subscribe to the ShipMonk Content Hub

By submitting this form, you agree to our Terms & Privacy Policy

Ready to take your ecommerce business to new heights?

Outsourcing your order fulfillment has never been so easy. ShipMonk integrates with your sales channels so you can “Stress Less, Grow More.” Unlock scalable growth today!

Related Posts

Learn more about ShipMonk’s ecommerce fulfillment

Hello there! Its Tom Hanks, bringing you a delightful blend of charm and sophistication as we explore the wonders of ShipMonks exceptional 3PL Ecommerce Fulfillment Platform Tour. Imagine this: youre comfortably seated, perhaps with a lovely cup of coffee, gazing at your laptop screen adorned with vibrant graphs and intriguing maps. Behind this digital tableau? Splashes of green cubes that offer both a simple elegance and an energetic backdrop. Now, picture yourself diving into the sparkling world of bonded Section 321 logistics—an area where efficiency isnt just suggested; its actually celebrated! This tour is your golden ticket to understanding how ShipMonk transforms complex logistical challenges into seamless solutions for businesses looking to thrive. So come along on this journey with us—adventure awaits at every click on ShipMonk.com!. via ShipMonk.com
Picture this: A dedicated ShipMonk employee, donned in a trusty cap and bright safety vest, typing diligently on their ever-reliable laptop. Behind them, a majestic cargo ship glides across the water, a testament to global commerce and adventure. Now imagine youre tapping into the potential to save big on import duties and taxes with Section 321 fulfillment through our third-party logistics services at ShipMonk.com. Its not just about efficiency—its about steering your business towards smoother sailing and more prosperous horizons. Ahoy, savings!. via ShipMonk.com
Hey there, friends! Imagine this: youre donning a virtual reality headset and stepping into the mesmerizing realm of efficient fulfillment. Right before your eyes is an impressive warehouse filled to the brim with shelves and boxes, ready to whisk orders right to customers doorsteps like magic. This isnt just any ordinary operation—this is the ShipMonk 3PL Fulfillment Center Tour in immersive 3D VR 360°! Now, picture yourself in this vast expanse teeming with organization and precision—its not just logistics; its a revolution in e-commerce fulfillment! With ShipMonks cutting-edge virtual tour, youll feel as though youre standing alongside their busy team, who ensure that each package finds its way home seamlessly. Isnt it wonderful how technology can bring us closer while making our lives simpler? So put on those headsets and see for yourself how ShipMonk.com is changing the game. Trust me; its something you wont want to miss!. via ShipMonk.com