How to use a prep centre to grow your Amazon business

In this blog, we'll answer three key questions you might ask when deciding whether to use a prep centre to grow your Amazon business:

1. What does an Amazon prep centre do?

2. How will a prep centre grow my Amazon business?

3. When should I start using a prep centre for my Amazon business?

Bonus: We've included a list of the best Amazon prep centres in the UK, all of whom work with sellers and will be ready to help grow your Amazon business.

What does an Amazon prep centre do?

An Amazon prep centre is a business dedicated to receiving and forwarding goods on behalf of another company. A prep centre can send goods directly to customers on your behalf, utilising the Fulfilled by Merchant (FBM) programme. Alternatively, a prep centre can ship your goods to an Amazon warehouse to enroll in the FBA (Fulfilled By Amazon) programme.

Prep centres are used by Amazon sellers looking to outsource the storage and shipping of goods to customers. For this reason, prep centres are popular with sellers without traditional retail premises or business locations.

Prep centres can repackage your Amazon goods:

Utilised by Amazon sellers to receive, check, store, and ship goods, prep centres may also repackage goods on behalf of a seller. For example:

• A reseller might purchase a bulk package of twenty toilet rolls and instruct a prep centre to separate the goods for resale as individual units.
• Conversely, a reseller might combine items to create a bundle of goods to be sold as one.

Prep centres can enable you to outsource packaging and shipping tasks, but they can also ensure products arrive in good condition.

Prep centres will help maintain the quality of your Amazon stock:

Quality control is critical for Amazon sellers.

• If you use the FBM (fulfilled by merchant) model, good packaging can help protect your account from returns and negative reviews.
• If you are using FBA (fulfilled by Amazon), your prep centre can ensure your inventory is shipped in line with Amazon's requirements, increasing the speed at which Amazon receives your goods.

To recap: Prep centres are an efficient means of outsourcing your packaging and shipping requirements for your Amazon reseller business.

Do I need to use an Amazon prep centre?

In short, no. However, when used efficiently, a prep centre can save you time and money in the long run.

You might be wondering if you can pack and ship goods yourself, then what is the benefit to using a prep centre? After all, you could improve your profit margin by undertaking this work and avoid the hassle of outsourcing it.

It's a fair consideration and one that many new or cash-strapped sellers will ponder when launching their Amazon business. If you are thinking about packing and shipping everything yourself, read on as we discuss the pros and cons of prepping and shipping your own Amazon inventory.

The pros and cons of prepping and shipping Amazon inventory yourself:

Prepping Amazon inventory yourself has two immediate benefits:

• It keeps your costs low and improves your return on investment
• It will help you to understand the ins and outs of shipping inventory to Amazon

Prepping Amazon inventory at home has some significant downsides:

• It is time-consuming and frustrating
• It takes over your house, which will soon be overflowing with stock and cardboard boxes
• It is a physical job and therefore unsuitable for sellers with mobility issues
• You must be at home for deliveries and UPS pick-up times

You might derive satisfaction from prepping a shipment. But you might quickly tire of the repetitive and laborious nature of packaging goods to send to the Amazon fulfillment centre.

How will a prep centre grow my Amazon business?

Partnering with an Amazon prep centre can save you time - and plenty of it. Increased efficiency in your business can help you to increase your productivity and your profits!

Scaling your business to a meaningful size will require you to think carefully about time management. This is particularly true if your Amazon business is a solo venture.

You will be solely responsible for everything your business needs; sourcing inventory, managing your Amazon account, completing administrative tasks, shipping products, taking care of finances - the list goes on.

Like any new business owner, you'll wear many hats on your journey to grow your Amazon business. As your inventory and turnover increase, so will your packaging and shipping requirements.

But if time is money, do you want to spend it faffing with gaffa tape and cardboard boxes?

Although crucial, this activity certainly isn't going to grow your business.

Rather than allow this process to become a burgeoning time sink, you could outsource this work and refocus your energy on sourcing more products for your Amazon business.

The pros and cons of outsourcing packaging and shipping in your Amazon business:

The pros of using a prep centre:

• You will instantly gain time that you can reinvest into growing your business
• You can now begin working with wholesalers who will only deliver to registered business addresses
• You will no longer have to store stock or packaging materials in your house
• You will be able to sell items with more niche prep requirements (liquids, pellets, fragile items, bundles, etc.)
• You will no longer have to wait at home for deliveries or the UPS driver

The cons of using a prep centre:

• You will need to communicate carefully and efficiently with your prep centre. Building a positive relationship with them is essential!
• You will no longer be able to check stock in person. Therefore if you make an incorrect purchase, a prep centre may overlook your mistake. Many prep centres will work with you to overcome this challenge - be sure to ask them how.
• You will need to carefully build your prep costs into your sale price. Software such as Profit Runner can help you do this accurately and efficiently.

Top tip: If you want to learn more about building your costs into your final sale price, read the Profit Runner blog: How to calculate shipping costs for Amazon FBA

When should I start using a prep centre for my Amazon business?

If you have yet to begin working with a prep centre, you might be wondering when to start.

It can be tough to gauge whether your business is ready to adopt another process and expense. This decision hinges on two considerations; cash flow and convenience.

The cash flow consideration:

Cash flow can be tight when starting your Amazon reseller business. It takes time to develop a steady flow of revenue from a new Amazon business.

• If you have little experience and a tight budget, paying for services before making sales can feel like a gamble
• If this describes your situation, you might want to consider prepping at home until you have generated enough sales and revenue to cover your prep costs

However, if you have enough capital to cover the upfront cost and wish to start as you intend to go on, reaching out to a prep centre might be a good idea.

• You'll be able to manage volume and scale more quickly, skipping the packaging and shipping learning curve
• But remember, you will need to ensure your product pricing accurately covers your costs (don't forget to try Profit Runner's free tool if you need help with this)

The convenience consideration:

Packing and shipping at home can consume both your space and your time. If your lifestyle or living arrangements don't allow for either, you might decide to work with a prep centre from the beginning.

• If you live in shared accommodation, a small living space, or perhaps you don't want to be surrounded by piles of stock and cardboard boxes, you may wish to start using a prep centre as soon as possible
• The same applies if you have mobility issues or don't have access to the ground floor - hauling stock up and down will make prepping at home unfeasible for you

Whatever you decide, outsourcing this crucial business activity is necessary if you hope to grow your Amazon reseller business.

The best Amazon prep centres in the UK:

We've compiled a list of prep centres across the UK and separated them by geographical location.

Hopefully, this list will help you complete your research and find a suitable prep centre to partner with your Amazon business.

Prep centres in the East of England:

Kings Park - Halstead, Essex

Blue 30 - Canvey Island, Essex

Easi Logic - Saffron Walden, Essex

Loading Center Logistics Ltd - Great Blakenham, Suffolk

We Prep FBA - Ipswich, Suffolk

The FBA Prep - Ipswich, Suffolk

Big Web Warehouse - Peterborough, Cambridgeshire

Prep centres in London:

Charles Kendall - South Kensington, London (Head Office)

Prime Prepments - Stanmore, London

Prep centres in the South East:

Regional Express - Southampton, Hampshire

Pro Prep Centre - East Grinstead, West Sussex

Haul and Store - Camberley, Surrey

E-Sell Trading Services - Milton Keynes, Buckinghamshire

Prep centres in the South West:

Easy Prep UK - Poole, Dorset

Adstral Fulfilment - Swindon, Wiltshire

Prep centres in the East Midlands:

Midlands Fulfilment - Ashbourne, Derbyshire

Walkerpack - Northhampton, Northhamptonshire

Prep centres in the West Midlands:

Fast Prep - Stirchley, Birmingham

FBA Ship UK - Garrett's Green, Birmingham

Uppfylla - Cannock, Staffordshire

FBA Prep - Wednesbury, West Midlands

Prep centres in Yorkshire & the Humber:

UK Prep Centre - Grimsby, Lincolnshire

Systemise Fulfilment - Scunthorpe, Lincolnshire

FA Prep UK - Scunthorpe, Lincolnshire

4 Corners Packing Services - Birstall, West Yorkshire

FBA Prep Lab - Leeds, West Yorkshire

Prep centres in the North West:

Fast Pack FBA - Manchester , Lancashire

Jiffy Hub - Manchester, Lancashire

Prime Prep Centre - Manchester, Lancashire

3P Logistics - Manchester, Lancashire

Best Prep UK - Carnforth, Lancashire

FBA Prep UK - Blackpool, Lancashire

Multi Channel Fulfilment - Aintree, Merseyside

Prep centres in Wales:

UK Pre Fulfillment - Cardiff

Joal Trading - Caerphill y

Prep centres in Scotland:

Green Fulfilment - Glasgow