FBA Prep 101: Everything You Need to Know to Prepare Your Products for Amazon

Table of Contents

01   How Does FBA Prep Service Work?

02  What Are the Advantages of Utilizing an FBA Prep Service?

03  How Can I Optimize My FBA Prep Process and Reduce My Costs and Risks?

04  Does Amazon Offer a Prep Service?

05  FBA prep and FBA fulfillment

06  Selecting a 3PL to Support FBA Prep

How Does FBA Prep Service Work

FBA prep service works like this:

● You create a shipment plan in Amazon Seller Central telling Amazon how much inventory you will send in based on the storage limits your Seller Account has and selecting a shipping carrier. You can either use Amazon’s UPS account for reduced rates or your own account with another carrier if you choose.

● You send your products to the 3PL’s warehouse. You need to pack your products securely and label them clearly with your name and account number. You also need to provide the 3PL with an inventory list that includes the product name, SKU, quantity, weight, dimensions, etc.

● The 3PL preps your products for FBA according to Amazon’s rules and requirements. They label each product with a unique barcode that identifies the product and the seller. They also package each product in a way that protects it from damage and complies with Amazon’s packaging standards. They may also offer additional services such as quality control, kitting, bundling, etc.

● The 3PL ships your products to Amazon’s fulfillment centers following Amazon’s shipping and routing instructions. They use either their own carrier or Amazon’s partnered carrier program for discounted rates.

● Amazon receives your products and makes them available for sale on the Amazon marketplace. Amazon will pick, pack and ship your products to customers who order from you on Amazon. Amazon will also handle any customer service issues or returns.

What Are the Advantages of Utilizing an FBA Prep Service?

Time Savings

By leveraging an FBA prep service, you can reclaim a significant amount of time that would otherwise be spent on preparing your products for FBA. This time can be directed towards more critical tasks such as sourcing new products, marketing your brand, optimizing your product listings, and more.

Cost Efficiency

Utilizing an FBA prep service can result in cost savings across various areas, including warehousing expenses, packaging materials, shipping supplies, and labor costs. Additionally, you can avoid potential fees and penalties that Amazon may impose if your products fail to meet their standards or experience delays.

Sales Growth

Utilizing an FBA prep service can result in cost savings across various areas, including warehousing expenses, packaging materials, shipping supplies, and labor costs. Additionally, you can avoid potential fees and penalties that Amazon may impose if your products fail to meet their standards or experience delays.

Seamless Scaling

With the assistance of an FBA prep service, scaling up your business becomes a straightforward and rapid process. You won’t need to worry about running out of storage space or resources to manage your expanding inventory and order volume. Additionally, you can explore new markets in different countries and regions by tapping into Amazon’s global fulfillment network.

How Can I Optimize My FBA Prep Process and Reduce My Costs and Risks?

FBA prep can be a tedious and time-consuming task, especially if you have a large inventory or a variety of products. Therefore, you may want to optimize your FBA prep process and reduce your costs and risks by following some of these tips:

Plan ahead

Begin by meticulously planning your FBA preparation process well in advance, steering clear of any last-minute alterations or disruptions. Estimate your inventory levels, sales projections, shipping timetables, and other pertinent details. Communicate these plans effectively with your third-party logistics provider (3PL) or Amazon. Furthermore, adhere to Amazon’s guidelines and prerequisites for product preparation, scrutinizing each item for any defects or damages.

Compare options

It is crucial to assess various FBA preparation service alternatives and select the one that offers optimal value for your investment. Take into account factors like service quality, turnaround time, dependability, pricing, and the reputation and customer support track record of the service provider. Engage in negotiations regarding service terms and conditions, and explore any potential discounts or incentives that may be available.

Monitor performance

Continuous monitoring of your FBA preparation service’s performance is essential to ensure they meet your standards and expectations. Maintain real-time oversight of your inventory, orders, and shipments while vigilantly identifying and addressing any errors or issues. Gauge customer satisfaction and gather feedback to assess the prompt and secure delivery of your products.

Optimize packaging

Optimize your packaging procedures to align with FBA preparation requirements, safeguarding your products against damage and aligning with Amazon’s packaging standards. Employ suitable packaging materials, such as boxes, polybags, bubble wrap, etc., while eschewing any superfluous or excessive packaging that could increase the weight or dimensions of your products. Each product should feature a unique barcode to facilitate identification of the product and seller.

Risk Mitigation

Take proactive measures to reduce the inherent risks associated with utilizing FBA preparation services, ensuring that you shield yourself from potential losses or liabilities. Secure insurance coverage for your products, safeguarding against damage or loss during transit or storage. Be prepared to initiate claims for compensation or reimbursement as warranted. Additionally, adhere to all applicable laws and regulations governing your products or markets, including taxes, customs regulations, safety standards, and more.

Does Amazon Offer a Prep Service?

Yes, Amazon does offer its own FBA prep service. However, for most Amazon sellers, the costs and turnaround times associated with Amazon’s FBA preparation services are often deemed impractical. In fact, the majority of FBA businesses opt to avoid this option because it typically does not scale as effectively as using an FBA prep service.

If your products arrive at Amazon’s warehouse and still require preparation, whether or not you can utilize Amazon’s prep services depends on your specific circumstances. Nevertheless, even if you can use them, there are challenges involved, including substantial penalty charges and an increased risk of late deliveries. If your products are already well-prepared, you can avoid these issues. This is yet another reason why most FBA sellers prefer to collaborate with a dedicated prep service.

FBA prep and FBA fulfillment

FBA Prep and FBA Fulfillment are two separate processes in the Amazon selling ecosystem. Here are the differences between the two:

FBA Prep

• Involves preparing products for shipment to Amazon’s warehouses.
• Includes sorting, packaging, labeling, and ensuring that the products meet Amazon’s guidelines.
• Can be done by the seller themselves or by using a third-party FBA Prep service.
• FBA Prep services can handle everything from climate-controlled storage to logistics and forwarding on-demand.
• The benefits of using an FBA Prep service include saving time, reducing costs, and ensuring that products are prepared correctly.

FBA Fulfillment

• Involves preparing products for shipment to Amazon’s warehouses.
• Includes sorting, packaging, labeling, and ensuring that the products meet Amazon’s guidelines.
• Can be done by the seller themselves or by using a third-party FBA Prep service.
• FBA Prep services can handle everything from climate-controlled storage to logistics and forwarding on-demand.
• The benefits of using an FBA Prep service include saving time, reducing costs, and ensuring that products are prepared correctly.

In summary, FBA Prep focuses on preparing the products for shipment, while FBA Fulfillment takes care of the entire order fulfillment process, from storage to delivery. Sellers can choose to handle both processes themselves or outsource them to third-party services, depending on their business needs and scale.

Selecting a 3PL to Support FBA Prep

For most 3PLs that cater to e-Commerce businesses and companies, providing FBA prep support is considered an additional service. This is because FBA prep is a labor-intensive and time-consuming process to facilitate your sales. As a result, a typical 3PL would prefer to assist with FBA and handle inventory management for your other sales channels to help you contain costs.

At DIDADI Logistics Tech, we collaborate with numerous companies that incorporate FBA as one of their smaller sales channels. We excel in appropriately packaging and preparing goods for shipment to Amazon’s warehouses. However, for non-FBA items, we offer enhanced warehouse efficiency, controlled and predictable cost structures, reduced shipping expenses through our established accounts, and guarantees regarding accuracy and shrinkage. Delivering this level of quality not only ensures customer satisfaction but also enhances your brand’s presence beyond being solely associated with Amazon.

If FBA serves as your primary or exclusive sales channel and requires substantial support, it might be advisable to seek out a specialized 3PL that focuses on FBA prep. They will be well-equipped to keep your operations compliant and prevent fees associated with improper shipments.