FBA prep center will assist you to scale your business using the right approach. This blog have a detailed explanation of everything involved in this process.
Before sending your package to Amazon, if you choose to pack them on your own then it’ll be something like you’re digging in a desert to find water. In the beginning, it’ll seem something manageable, but as you start digging you’ll realize that you’re being outdone as you go deeper.
Imagine if, in place of dessert you choose to dig in a fertile land and a team of workers are doing the work of digging on behalf of you and another group of workers are supervising the work with advanced machinery to complete the work. You could then be capable of fast-forwarding the digging process, making it more effective.
The same is true with Amazon selling. If you utilize the FBA prep center then you will scale your business.
You’ve to take care of some important aspects before choosing a prep center. In this guide, you’ll get every required basic information you need to know.
FBA Prep Center- What Is It?
A third-party service provider with expertise in organizing and managing inventory for Amazon sellers is known as an FBA Prep Center. It works with the prime objective of handling all the tasks that are involved in getting your products ready and are labor-intensive. The complete process gives you ample time to focus on other important duties of your business, like product sourcing, marketing, and customer service.
FBA Prep Center Acts as the Bridge Between Your Suppliers and the Warehouses of FBA
A service provided by Amazon is Fulfillment by Amazon (FBA) which permits sellers to outsource the logistics work, like storage, picking, packing, and shipping of products to Amazon’s fulfillment centers. Once your products reach the warehouses of Amazon, the well-being of the products becomes the responsibility of the FBA, as a seller getting your inventory to that point in a compliant manner is a responsibility that is handed over to the FBA.
To meet Amazon’s stringent requirements, you should use a prep center to ensure that your products are received, inspected, labeled, packaged, and shipped appropriately. The entire process of sourcing your products and getting them into the FBA system is more efficient and streamlined with the help of a prep center.
What is the Work of Prep Centers?
A range of services are offered by the FBA prep center which assists and makes your life easier as an Amazon seller. Like:
- Inspection- Before sending the items to Amazon they’re being properly checked for defects or damages.
- Labeling- Putting the appropriate labels, like warning labels, expiration dates, or FNSKU.
- Packaging- Make sure everything is packaged safely and according to Amazon’s requirements.
- Bundling and Kitting- In a single package, assemble multiple items as a bundle for sale.
- Preparation for Oversized or Special objects- Take care of objects that require special preparation, because of their size or nature.
Why is it vital to utilize the FBA Prep Center?
Into four main categories, the reasons are divided and mentioned in detail, Time Efficiency, Cost Efficiency, Quality Management, and Business Scalability. Let’s discuss all of these factors elaborately.
Time Efficiency: Once you use a prep center, many benefits are available among them one of the most compelling reasons is the time you save. Multiple steps are involved in preparing the products for FBA, like inspection, labeling, and packaging, which results in being highly time-consuming. You can get ample free time by outsourcing these tasks and utilizing the same in other aspects that are crucial to focus on, like marketing and sourcing. Additionally, you can get your products to market faster with the expertise of a prep center and streamlined process. This becomes advantageous especially when you’re launching a new product and eager to get wide attention.
Cost Efficiency: The ability to handle large volumes of inventory is a skill at which prep centers are experts, and permits you to benefit from it to save on a huge scale. As your business grows this stands beneficial because you’re saving in per item. Your initiative to do the prep work on your own not only incurs a lot of labor costs but also renting a workspace and the material cost will get involved. Thus, hiring an prep center will stand as a cost-effective option for many.
Quality Management: In dealing with Amazon’s complex requirements for packing, labeling, and shipping you need to be a little attentive if you are doing it on your own, whereas an prep center is an expert in this. The knowledge owned by FBA experts assists you in meeting the asked standards and reduces the risk of non-compliance, and penalties or fees associated. To preserve your seller image and lower the number of returns, many also provide quality control services that involve examining each item for flaws or damages.
Business Scalability: By a prep center, the operational aspects of FBA are handled, so business growth can be properly achieved because you would be capable of looking at strategic activities, like customer engagement and product development. Your business grows as prep centers can adapt to your needs and cater to a wide range of services offered. Along with you, a prep center can scale regardless of whether you are entering new markets or expanding your product line.
How To Decide On The Right Prep Center
While selecting the FBA prep center that can meet your needs you have to consider the below-mentioned factors.
Step 1: Identify strategic locations.
Find Suppliers Within Your Vicinity: Always look for a prep center near your suppliers because it will help you save time and costs in shipping.
Closeness to Amazon Fulfillment Centers: If you are doing your work near Amazon’s warehouses then you can speed up delivery times and evade the shipping costs.
Step 2: Evaluate geographic benefits.
You can benefit financially by looking for locations that offer tax benefits or lower operational costs.
Step 3: List your needs.
Inspection, labeling, and packaging are some of the services you need, additionally, photography or kitting are the specialized services that you might need. Prepare a list of services you need.
Step 4: Match the services Available
Prepare a list of prep centers available within your vicinity and compare the services offered by them.
Step 5: Evaluate the pricing structure
Different prep centers have varied pricing structures, some may charge a monthly fee or may charge based on per box or item. Also, some may have additional services or hidden fees for storage. Evaluate all of them.
Step 6: Calculate total costs
To estimate how much you’ll be spending on prep services, use your average monthly sales volume. After finding the exact amount, check the expenditure whether it is within your budget or not.
Step 7: Search online reviews
On social media, forums, and third-party websites search for reviews published online to estimate customer satisfaction.
Step 8: Ask for references
Enquire about references or testimonials from the prep center. Contact them to get an overview of their experiences.
Step 9: Conduct an interview
You probably have some questions that you might prefer to ask the potential prep center. A few questions to ask are provided below.
- How much is the turnaround time?
- With your product category do they have any previous working experience?
- What is the exact procedure utilized by them to handle defective and damaged items?
- Can they handle returns?
- What are their storage capabilities?
Step 10: Evaluate communication
Make sure that at regular intervals the prep center communicates with you. For a successful partnership, communicating clearly and quickly is crucial.
How Much is the Charge for their Services?
The cost of using an FBA prep center varies depending on the services you need and the type of prep center. As a common approach, you’ve to estimate a range between $0.80 to $1.00 per item which includes inspecting, labeling, and packaging. Also, some prep centers may charge storage fees which range between $0.60 to $ 2.00 per cubic foot per month, and setup fees which range between $40 to $250.
Ask The Potential Prep Center About Any Hidden Fees
You’ll not get all prep centers to be clear about their pricing structure. You should be aware of the below-discussed hidden charges.
- Setup Fees: To onboard new clients you’ll experience some prep centers charging an initial setup fee, which ranges between $40 to $250; a one-time charge.
- Storage Fees for Long-Term Acquirement: In the service offered by an FBA prep center, you’ll get a short-term storage package included, but extra fees get added with long-term storage.
- Fees with Rush Orders: If you want the prep center to minimize their standard turnaround time and process your items in a short time frame then you possibly would need to pay some extra dollars.
- Special Handling Fees: Additional handling charges may be added to items that are oversized, fragile, or need special packaging. If your product comes under any of these categories then you should enquire about that beforehand.
- Return Handling Fees: With return management that some prep centers offer comes additional expenditure. You should enquire about the same ahead of starting the business because it varies.
- Miscellaneous Fees: If labeling services are not part of the standard package offered by the prep center then you will need to pay for the same.
Mostly every one of the hidden charges is discussed above, but with proactive communication and diligence, you might develop a profitable partnership. You can safeguard yourself from unexpected expenditures and foster a trustworthy and transparent relationship with your prep center by reading the contract agreement carefully, asking questions about their working procedure, and requesting detailed price estimates.
Logistics and Operations
This section is designed to cover the basics of how to send your inventory to a prep center, their typical turnaround time, and whether prep centers handle returns and damaged goods.
How can you send your inventory to a prep center?
Generally, a straightforward process is followed to send your inventory to a prep center:
- Coordinate with the Prep Center: With your potential prep center, coordinate from the beginning to ship anything and get familiar with their guidelines for receiving.
- Create a Plan for Shipment: To create a shipment plan use your Amazon seller account, which asks you to provide various details, like prep center’s address (destination), quantities, and products.
- Inventory Shipping: When you take the necessary steps to send your products to the prep center, always use a reliable shipping service. You can also get discounted rates from some prep centers through partnerships with carriers.
Typical Turnaround Time To Process Your Order
As a seller, it is quite obvious that you’ll be curious to know about the turnaround of a prep center to process your items. Based on the services you need, to process your items the turnaround time of a prep center varies. Generally, you can expect your item to be prepared for shipment within 24 to 48 hours for standard services, like inspection, labeling, and packaging.
However, with the requirement of specialized services like bundling or kitting, the turnaround time may extend to 72 hours or more. To get an accurate estimate of the turnaround time you need to discuss your unique needs with the prep center.
Conclusion
By reading the complete article you will have an idea about the necessary questions you need to enquire about. Still, it is best to ask for recommendations from experts or the existing customers of the FBA prep center. We suggest that you lend your hand to us and allow us to satisfy you with our efficacious and cost-effective prep services.