You’re probably wondering – what’s the cheapest way to do Amazon FBA prep? This process can get expensive, and the cost of preparing your products for Amazon FBA can quickly add up. However, there are ways to shrink these costs and maintain solid profit margins.
In this article, we are going to cover ways you can reduce FBA prep costs with running FBA prep in-house (not ideal) and with using an FBA prep service (most effective). By following these tips, you can save money and have more cash flow to reinvest back into your business.
Use this outline to skip to any section of this page:
- How much does FBA prep cost?
- Using Amazon’s FBA prep services
- Running FBA prep in-house
- Outsourcing FBA prep
- What’s the cheapest way to do Amazon FBA prep?
- Is there a way to reduce costs?
How much does FBA prep cost?
There is no one definitive answer to the question of how much FBA prep costs – but we go further into detail with how much does Amazon FBA prep cost here. The price of preparing your product for Amazon FBA will vary depending on a number of factors, including the size and weight of your product, the shipping materials you need, and the level of service you require.
However, as a general rule of thumb, each product will cost a small fraction of your margins to complete the FBA prep process (with different rates, depending on how you go about FBA prep).
We cover a few of the differences between doing FBA prep in-house vs. outsourcing to a 3rd party prep company here.
Overall, preparing and shipping your products to Amazon can be quite expensive – but if you plan carefully and use a reliable FBA prep option, you can avoid many of the costs and complications associated with selling products online (while also streamlining the FBA prep process, allowing you to focus on growing & scaling your business).
Using Amazon’s FBA prep services
The first option you might consider: is Amazon’s own FBA prep services worth it?
Unfortunately this is meant as a last resort option – since Amazon charges unusually-high fees for FBA prep (compared to the other 2 options below). This is because Amazon doesn’t have their FBA prep services built-out and perfected. Amazon focuses on storage, picking, and shipping – while most FBA sellers prefer other methods.
In fact, many sellers report Amazon’s FBA prep fees cutting into their profit margins and nearly reducing them down to zero. For many sellers, this makes Amazon’s FBA prep nearly unfeasible.
Running FBA prep in-house
When you are running your own FBA prep, you are responsible for every aspect of the process. This includes ordering supplies, preparing inventory for shipment, and dealing with customer service issues.
While this may be less expensive in the short term, it can be difficult to grow and scale your business. There are many companies that offer FBA prep services, which can take some of the burden off of you. This allows you to focus on expanding your business and increasing sales – since you can now focus on the growth activities of selling on Amazon (product sourcing, marketing, etc).
Outsourcing FBA prep
When it comes to preparing your products for Amazon FBA, most sellers prefer to use a service like ZonPrep FBA prep (assuming you have a reliable and trustworthy option). Not only does it save you time and energy, but it also doesn’t cost a lot of money.
In fact, since prep services specialize in FBA prep and offer relatively-cheap rates, this can be a great option if you’re short on time or simply don’t have the experience or knowledge to do it yourself.
The best part is that prep services take care of everything for you – from sorting and packing your products to labeling them correctly. All you need to do is provide them with your products and they’ll take care of the rest. This can be a huge relief, especially if you’re new to Amazon FBA and aren’t sure where to start.
Using a prep service is a great way to save time and money – while preparing your products for Amazon FBA. If you’re looking for a hassle-free solution, this is definitely it.
The bottom line is that outsourcing your FBA prep is often (for many Amazon sellers) the greatest lever to expanding & sourcing new products, developing marketing strategies, and driving more sales. It opens up more time to focus on your core business functions – making it easier to grow and scale your operation.
What’s the cheapest way to do Amazon FBA prep?
While doing FBA prep yourself will always be the cheapest way to do FBA prep… most sellers prefer to use an FBA prep center to outsource FBA preparations.
This means that you can focus on other aspects of your business while someone else takes care of the tedious task of getting your products ready for shipping. There are several prep services available, so it’s important to do your research and find one that fits your needs.
When choosing a prep service, you’ll want to consider the following factors:
- The cost of the service
- The turnaround time for orders
- Dedicated support
- The range of services offered
- The company’s experience and reputation
- Location and warehouse capabilities
Once you’ve chosen a prep service, you’ll need to provide them with your products and specifications. They will then take care of getting your products ready for shipping, which can save you a lot of time and hassle.
Is there a way to reduce costs?
Always seek-out discounts & bonuses for anything FBA prep – including sign-up deals with your new FBA prep service, or packaging materials if you choose to run FBA prep in-house.
Opting for FBA prep with Amazon won’t result in any cost savings – and as mentioned above, it’s a “no-go” for almost all sellers (due to significantly-higher fees compared to a 3rd party service or running FBA prep in-house).
However, in general… there are a few different ways to reduce your overall FBA costs. The first is to be strategic about the products you send in for fulfillment.
Make sure that you are sending in products that are likely to sell and have a high margin – ensuring that your costs are minimized and you are making a profit on each sale.
Another way to reduce your FBA costs is to be mindful of your shipping weights and dimensions. Make sure that you are only sending in products that fall within the weight and size limits for Amazon’s fulfillment program. This will avoid any unnecessary fees from Amazon – and you should always aim for small and lightweight products anyway (especially if they’re high-value items too, such as premium portable speakers that have small dimensions and weight).
Finally, consider alternate shipping methods. Your FBA prep service may be able to help you find a cost-effective shipping partner to deliver your inventory from supplier to prep center. However, make sure that the shipping time is comparable, as fast shipping speeds are a major factor that go into having success on Amazon (along with avoiding low inventory & stockouts).
