FBA Prep 101: Everything You Need to Know to Prepare Your Products for Amazon
If you are an e-commerce seller who wants to sell your products on Amazon, you might have heard of FBA, or Fulfillment by Amazon. FBA is a service that allows you to store your products in Amazon’s warehouses, and let Amazon handle the packaging, shipping, and customer service for you. By using FBA, you can access millions of Prime customers, increase your sales, and save time and money.
But before you can enjoy the benefits of FBA, you need to prepare your products according to Amazon’s strict guidelines and standards. This process is called FBA prep, and it involves several steps, such as labeling, packaging, shipping, etc.
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 outsource FBA prep to a third-party logistics company, or 3PL.
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.
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
Seamless Scaling
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
Monitor performance
Optimize packaging
Risk Mitigation
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 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.
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.
