Everyone marvels about the merits of running an Amazon business, but not everyone is open about its drawbacks, especially concerning inventory management. While Fulfillment by Amazon (FBA) takes the load off the business owner’s shoulders by taking care of storage, packaging, and shipping items, they can’t do much about managing the inventory.
When you’ve hit low on stocks and encounter trouble fulfilling orders, it’ll be detrimental to your business. The best course of action, then, is delegation. You may want to outsource your fulfillment tasks to an FBA prep to help your business run smoothly.
Understandably, it can be daunting to rely on an outside entity to handle such a crucial part of your operations. Should you decide to enlist the help of an FBA prep service, it’s vital that you first consider important factors before you choose one.
This guide can help you pick the FBA prep service that’s best for your business.
Why consider outsourcing FBA prep
When you choose to run an Amazon business, it’s either you manage everything yourself, pay Amazon to handle it for you, or delegate operations to a prep service. The first option can leave you frustrated, especially when you’re new in the business, while the second may cost you more than you anticipated.
Now, if you choose to let a prep service manage your inventory, you’re essentially letting experts take care of the job. You’re allowing people who know their stuff to handle your business. In short, you’ll be in good hands.
Amazon enforces a lot of rules when it comes to managing inventory. When you attempt to do it yourself, you can expect to waste a lot of time studying, inspecting stock, acquiring boxes, printing labels, finding space to store items, and so much more. It’s a time-consuming process, and unless you have an assistant, you’ll be tackling the heavy workload on your own. You’re taking time away from growing your business and sourcing new offerings.
You’ll be better off delegating to an FBA prep service since they have a deep understanding of the rules and the processes, lowering the risk of your items being rejected. You’ll also be saving on both time and money since you don’t have to use your own resources.
Tips for choosing an FBA prep service
There are a lot of things you need to take into consideration when deciding on an FBA prep service, but ultimately, it all boils down to two things: the cost and the storage facility.
Every business wants to cut down on overhead spending, so the FBA prep you ultimately choose should give you the best bang for your buck. Find out how they charge for their services, whether it’s monthly payments or a per-item basis. Going for monthly terms is recommended, especially if you’re dealing with large volumes of inventory.
Another factor that goes into the price is the packaging. Some places charge extra for providing packaging materials, while others already include it in the fees. You’ll want to know how they go about the packaging process to ensure that you’re not coughing up more money.
As for storage, it may be cheaper for you to store your inventory in prep centers rather than Amazon’s fulfillment center. The prep service will only send stock to Amazon when the demand calls for it. This proves to be cheaper as Amazon tends to penalize businesses who have their stocks in limbo for so long. You may end up paying fees per item you want to have returned and then pay again to have your stock repackaged. You’ll want to choose an FBA prep service capable of turning around inventory quickly, as well as have insurance so you can be protected against unexpected incidents like fire and theft.
Hiring an FBA prep service can help you focus more on growing your business. If you want a top-notch service that can give you peace of mind, get in touch with us.