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How to build a winning Amazon aggregator fulfillment strategy

The Amazon brand aggregator market is expanding rapidly and becoming one of the top eCommerce opportunities for ambitious entrepreneurs. More than 90 businesses have signed up and they’ve raised nearly $15 billion to date.

However, the expansive nature of Amazon brands means managing operations can be challenging as their aggregator. Additionally, it’s easy to believe that managing countless dashboards, strategies, and suppliers is just the way things are in the market, but there’s a better way.

In this post, we’ll uncover the top problems Amazon aggregators face while scaling, managing Amazon aggregator fulfillment, and how MyFBAPrep can help you tackle these issues head-on for great returns.

Stressed out trying to manage multiple supply chains? Discover how MYFBAPrep simplifies operations for pain-free fulfillment.

Managing an Amazon aggregator’s fulfillment: The 4 big challenges and how to fix them

Managing Amazon aggregator fulfillment: 4 Top challenges and how to fix them

From attempting to replicate past successes to trying to accurately project each Amazon brand’s growth, scaling a profitable brand aggregator comes with its challenges. One of the most common areas brand aggregators encounter is fulfillment. Let’s take a look at some of these problems and how to resolve them:

1) Too many 3PLs, too little time

Managing operations in the early stages of your Amazon brand aggregator journey is time-consuming, but manageable, as you typically have a handful of brands.

However, many teams become so preoccupied with managing the brands on their books, that they don’t have time to prepare for the fulfillment-fueled storm ahead. Here’s where you unknowingly sign up for the looming deluge of ops-related tasks as an Amazon brand aggregator.

Each brand you add to your umbrella tends to come with a legacy of 3PL relationships, each with its own rules, procedures, and pricing. Not to mention the fulfillment requirement methods needed depending on the product.

Quickly, you can end up with 30+ 3PL relationships to upkeep. That’s 30 dashboards, 30 invoices, and 50+ meetings on a good month, assuming there are no fulfillment hiccups. This approach isn’t scalable and will drown you in admin instead of scaling your business.

How to resolve time issues:

  • Create 1-3 fulfillment strategies according to a product category, weight, or size.
  • Outsource all fulfillment tasks to one reliable full spec fulfillment provider.

2) You pay more for fulfillment than necessary

When your Amazon brands’ fulfillment channels and strategies are fragmented, it’s tougher to profit from economies of scale.

This setup can cause your Amazon brand aggregator to lose out on negotiating power and the most favorable deals from carriers, warehouses, and 3PLs.

Plus, you’ll drag down your brand aggregator’s margins as you pay more for fulfillment services.

How to fix overpayment issues:

  • Shop around for fulfillment services with the best quality and prices.
  • Once you’ve allocated a fulfillment strategy per brand, use an estimated total order volume of all the brands under that specific strategy for bargaining power.

3) Developing contingency plans becomes tricky

Having a disaster recovery plan is essential for every eCommerce business. However, it becomes more difficult to create contingency plans for each brand in your aggregators when they each have different fulfillment strategies.

Soon, this setup could leave some brands without a good backup plan, making your brand aggregator vulnerable.

How to reduce business vulnerability

  • Group brands within your business based on commonalities (e.g. products, categories, or territories) and create a backup plan for each group.
  • Forge a relationship with another dependable 3PL as a fallback plan in the event that your primary fulfillment service becomes inoperable.

4) Complexity breeds frustration

The more fulfillment strategies and services your team has to grapple with, the more you open your business to costly mistakes and stressful work environments.

Team morale and productivity can dip significantly, with costly knock-on effects like absenteeism and staff churn.

How to eliminate the complexity of fulfillment

  • Lean on tech tools wherever possible (e.g. managing stock, creating POs, ordering freight)
  • Outsource manual fulfillment tasks like prep and packing to an experienced service provider.

Say “no” to wearing multiple hats in your Amazon aggregator’s fulfillment. Team up with MyFBAPrep to streamline logistics.

How My FBA Prep removes the hassle of fulfillment for brand aggregators

How MyFBAPrep removes the hassle of fulfillment for brand aggregators

Find yourself struggling to manage your Amazon brand aggregator’s fulfillment? There’s a simple solution. Team up with a reliable, experienced, and affordable prep and fulfillment provider. MyFBAPrep ticks all of these boxes above and more. Below, we’ll outline how we can help you get ahead in the Amazon brand aggregator niche.

Agile fulfillment no matter your business’ size

Big eCommerce companies using a fixed fulfillment strategy can quickly lose flexibility as they scale. Such rigidity makes it difficult to gain a competitive advantage from strategic positioning, like distributing stock across territories.

With MyFBAPrep, you can tap into multiple locations based on current market demand, to gain maximum agility and boost your fulfillment’s profitability. For example, our company has 6 million square feet across 50+ warehouses globally, allowing us to accept and prep your items as close to their final destination as possible.

In addition, MyFBAPrep provides VIP access to the world’s best 3PLs that can scale with your brands like SEKO, Ryder, and Maersk. Typically only brands clearing millions of orders per month have access to this setup.

With MyFBAPrep’s expansive client base and business network, it allows us to leverage economies of scale to secure these game-changing deals for our merchants.

Simplify fulfillment to reclaim time

Another benefit we provide merchants is warehouse consolidation into one easy-to-control network. We’ll streamline your process down to one invoice and one dashboard, making managing fulfillment swift and painless while saving time and energy.

For example, if you decide to keep multiple 3PL partnerships, we can absorb them and manage them within the MyFBAPrep ecosystem. You’ll also have the option to branch out to the big 3PL players to build a new, profitable supply chain system.

Use our Amazon knowledge to gain a competitive edge

Without extensive FBA expertise and experience, many 3PLs make costly mistakes. Soon you could find yourself with a hefty bill or worse, without an Amazon account.

MyFBAPrep stays updated on Amazon’s ever-changing rules and platform product requirements, from its specific pallet type specifications to shipping box size limits and IPI score requirements.

As a result, our actions will keep your brands within Amazon Terms of Service and avoid getting in Amazon’s bad books (which, trust us, is somewhere you don’t want to be). Also, our processes and knowledge allow us to get items into FBA quickly, maximizing selling time and avoiding stockouts.

High-quality fulfillment without breaking the bank

My FBA Prep is on a mission to provide high-quality fulfillment services that don’t destroy margins. We believe in keeping our processes and pricing simple and transparent. Many aggregators are used to getting 3 pages of invoices per 3PL, not to mention those unexpected charges.

To give you an idea, we quote prep and fulfillment services based on just three things:

  1. How many cartons do you intend to send in per month, for example, for inspection, counting, or dock-to-stock?
  2. Quantity of product you want to store in our warehouses?
  3. How many cartons you’d like us to send out per month, for example, outbound out to Amazon and omnichannel fulfillment?

Spot growth opportunities with tech-powered fulfillment

At MyFBAPrep, we understand your supply chain’s success relies heavily on your tools to operate it. That’s why we offer access to our trademarked solution, Preptopia.

Preptopia will take the pressure off your team to achieve growth targets for each brand within your aggregator. For instance, you’ll have access to this information for each on one easy-to-digest dashboard. Here are just a few ways Preptopia can help your Amazon brand aggregator get and stay ahead of the pack:

  • Understand each brand’s inventory and order statuses
  • Identify scaling opportunities
  • Calculate profits with ease
  • Make sending goods to Amazon a seamless process

Build a lucrative Amazon aggregator headache-free

Whether you’re in the beginning stages of scaling an Amazon brand aggregator or have many years under your belt, your fulfillment strategy is a defining factor in your success.

Build a simplified ops strategy to handle every stage from product manufacturing to fulfillment so your business can support brand acquisitions at scale. Ensure the method you choose has opportunity spotting built into it, so your business always has the finances lined up to help it thrive.

Soon managing multiple supply chains and strategies will be a walk in the park. Your team will have more time to focus on business scaling tasks, positioning you to take your Amazon brand aggregator market by storm.

Don’t settle for chaotic fulfillment strategies and services. Build your winning ops strategy with MyFBAPrep.

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