Are you an Amazon FBA seller?
If you are, then you know that sourcing products is already a time-consuming process. Then you still have to put together shipments, inspect them and ship them off. Added up, it amounts to a lot of work.
But what if there was a way to get someone else to pack up and ship your products to Amazon? Fortunately, there is.
FBA prep and pack services do just that. They receive, inspect, label, and ship for you.
If you have ever wondered how to streamline the process of selling on Amazon, and save time and money while doing so, then keep reading. You’re about to find out just how FBA prep and pack services can change the way you do business.
First, however, let’s take a look at what FBA is and why you’d want to go that route.
More About FBA
The Way FBA Works
The FBA process is really quite simple. To sell your product through Amazon and allow them to send it to your customers, you first need to pack your products according to their guidelines and send it to an Amazon fulfillment center. Amazon will then unpack your product, store it at the fulfillment center, and make it searchable and purchasable as “fulfilled by Amazon” (or Prime) on the Amazon website.
When a customer purchases the product, Amazon packs the product, ships to the buyer, and provides customer service to the buyer.
What FBA Costs
There are currently a couple of different fees involved with FBA. The first is the fulfillment fees, which covers picking, packing, and shipping the order, plus any customer service required, and also managing product returns.
The other fee involved is the storage fee, for physically storing the product at the fulfillment center. The amount of this fee is contingent on the time of year and size of the product.
Lastly, as with any product sold on Amazon (i.e., whether Amazon fulfills the order or the seller does), FBA sellers pay a referral fee on each unit sold. This fee depends on the category the product belongs to and is calculated using a percentage of each unit’s total price.
The Pros and Cons of FBA
FBA has its pros and its cons.
So, what are some of the benefits of using FBA for your business? The first is that you will have access to Prime customers, meaning that your products will be eligible for free 2-day-shipping. This is a big deal considering that customers with Prime memberships typically spend three times more than the average Amazon customer.
Another significant benefit is that you will have the world’s largest retailer handling all packing and shipping, as well as product returns.
There are a few things you’ll want to consider before using Amazon’s fulfillment services. The first is that Amazon has strict receiving guidelines for product fulfillment. If any of these guidelines aren’t met, you run the risk of your inventory being refused, destroyed or even being fined for noncompliance (which is where prep and pack come in so handy).
By handing your order fulfillment duties over to Amazon, and allowing the product to be sold through their retail website, Amazon will reap the benefits of customer loyalty, rather than loyalty to your company.
Another thing to consider is Amazon’s long-term inventory storage fees. When units sit for longer than six months, they are subject to semi-annual storage fees.
The Power of FBA
It’s hard to overemphasize the power of using FBA services for your business. Selling through Amazon can have a dramatic positive impact on sales while relieving you of the burden of order fulfillment and customer service.
Now that you understand how the Amazon FBA program works, let’s dive into FBA prep and pack services and how a third-party warehouse can streamline the whole process for your business.
The Benefits of an FBA Prep and Pack Service
It ‘Fulfills’ Amazon’s Requirements to the Letter
Amazon’s packaging and prep requirements are highly detailed.
All products need a scannable barcode. Boxed units over a certain size must pass a 3-foot drop test. The poly bags for items must conform to other requirements as well, including a warning label if the opening is larger than a certain size.
Each requirement depends on the product, its size, fragility and more. When you don’t fulfill these requirements, Amazon will hit you with fees to do it for you.
An FBA prep center prepares multiple shipments every day. It’s all they do, so you know they know Amazon’s requirements like the back of their hand.
Product Quality Is Assured
Inspecting products for faults is necessary for all sellers who want to keep their reputation intact. It lowers the chances of more frequent returns. However, it’s a time-consuming process.
Using an FBA prep and pack service means you have someone in your corner to help ensure quality. You can even hire them to do a complete inspection of all your products for you before shipping them off to Amazon.
It Saves Money
The pricing for the FBA prep and pack service is fully customizable. Whether you require kitting, labeling, or bundling, you’ll get charged only for what you need.
Also, these services buy their materials in bulk. So the amount they charge for packing materials is low. Depending on the service you use, you may not even be charged for receiving or inspecting.
Their warehouse could also be strategically placed close to an Amazon warehouse. This saves you plenty compared to what you would spend on shipping on your own.
It Saves Effort and Time
No matter what they sell, everyone would like their turnaround time to be quicker. Many sellers take too long to get a shipment out once a shipping plan is created. An FBA service can save you valuable time.
Then, that time you formerly spent on prepping and shipping can be used to grow your business. Or you can spend it sourcing more items.
If your store is large enough, you have to factor in hiring workers to help pack and ship. The effort to train them shouldn’t be underestimated.
Could Your Online Store Use FBA Prep and Pack?
The best time to overhaul your FBA process is right now. The Amazon prep and ship services we provide could save you time, money, and headache. Click here for answers to any questions you might have regarding our prep and pack, white label, and order fulfillment services. Get in touch to see how we can help.