Fulfilment by Amazon (FBA) is Amazon's fulfilment arm. If you're selling on Amazon, FBA can help streamline the selling process.
However, it comes with certain conditions. All your packages, for instance, have to be labelled and packaged in accordance with FBA's guidelines. Non-compliance can result in penalties and returns – neither of which are good for business.
In your early days of online selling, you may find this administrative burden light on the shoulders. But the aim is to grow – and as you do so, you may find that DIY Amazon fulfilment prep becomes, well, unfulfilling.
In this article, we look at the advantages of outsourcing your Amazon FBA prep to a third-party logistics (3PL) company.
But first, let's take a closer look at the service itself.
How does FBA work?
Let's say you're an eCommerce business selling wire models of zoo animals. You decide that selling them through your website isn't enough – so you start to list them on online marketplaces, including Amazon.
FBA is a service provided by Amazon. You send your wire models to a fulfilment centre. Amazon stores them and, when an order comes in, takes care of fulfilment.
But there's a catch. You can't just put everything in a box marked "Amazon stuff" and send it off. You have to meet certain criteria. And these criteria are strict – if you fail to meet them, Amazon will send them back to you with the invoice still attached.
As a way of reaching new customers, using FBA can be worth the hassle. But if you're struggling to do it yourself and don't want to pay Amazon to do it for you, you can always outsource it to a 3PL.
What are the advantages of outsourcing to a 3PL?
The key advantage of outsourcing FBA prep to a 3PL is the key advantage of outsourcing in general: someone else does the work for you.
Anyone who runs a business knows all too well how many balls there are to keep in the air. Passing a routine task like FBA prep onto a third party frees you up to focus on other things: your products, your brand, your website.
A 3PL will receive your goods, inspect them, label them, ensure your shipments meet Amazon requirements and get them on the road for you. And unlike the average overstretched business owner, they've got the resources and manpower to do it quickly and seamlessly. (No mislabelling or other mistakes from them.)
When is the right time to outsource Amazon FBA prep?
Outsourcing isn't for everyone. It may be that you're finding the process entirely manageable – in which case, crack on! But here are three signs that it might be time for you to consider outsourcing.
1. It's eating up your time
Goodness knows there aren't enough hours in the day, especially when you're juggling business ownership with the rest of your life. You probably have a to-do list drilling holes in your soul each day.
In this situation, you probably won't want to prioritise printing labels and barcodes and checking that everything is in line with Amazon's byzantine regulations.
Getting a 3PL to do this for you means freeing up time and energy to focus on the bigger picture. Routine tasks are delegated and you're back doing what you're good at – coming up with new ways to make your business grow.
2. You're taking your eye off the ball
The early days of running a business can be like running a domestic kitchen. There's plenty to think about, but at the end of the day, you're on top of food preparation, hygiene and storage.
When your business starts to grow, it can be like transferring to a restaurant kitchen. At a certain point, you find yourself run ragged taking orders, making food and doing pot wash all by yourself. This is a recipe for burnout – but also for mistakes. Mistakes that could alienate customers and ensure they don't come back for seconds.
If you find that juggling FBA prep with everything else is leading to avoidable mistakes, consider partnering with a 3PL. You're way less likely to mislabel items and have to deal with returns and refunds.
3. You're unclear about Amazon's regulations
Prep your items for Amazon wrong and they'll be sent back to you without a refund. If you're running a business, you're more than capable of learning the guidelines: but is it the best use of your time?
Task management is all about prioritisation. Learning a new set of rules may be a time-sink as well as a headache.
What do you need from an FBA prep service?
As with all outsourced services, not any 3PL will do. You need to partner with a company that's well-located, affordable, reputable and able to scale with you.
Location is important. If your data reveals that your line of ponchos is selling best in Land's End, you don't want your 3PL to be in John o' Groats.
Outsourcing saves time first and foremost – but it should also save you money. If your 3PL isn't helping you to make a saving (or spend money to make money), look elsewhere.
Reputation matters. You wouldn't hand over responsibility for your marketing emails to a charlatan, so why the storage and fulfilment of your goods?
Finally, you need a 3PL that will help you keep up with demand by scaling without fuss. If you reach capacity and have to look elsewhere, you're adding an avoidable chore to your agenda.
Final thoughts
Outsourcing FBA prep can free up time, energy and headspace – those much-needed resources when you're trying to make your business grow. If you feel like a juggler running out of hands, it could be time to make the move.
Are you looking for a flexible, scalable
fulfilment centre to do your Amazon FBA prep? At Stowsafe Fulfilment, we do just that.
Get in touch today for a free, no-obligation consultation.
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