Fulfillment by Amazon (FBA) is a trade off—Amazon gives you Prime status, with all its visibility in front of 101 million Prime members, if you cut your margins to the bone. But you pay through the nose for any dead stock storage or storage beyond its prescribed limits. There is a way out … outsource the storage to an affordable fulfillment center offering services called FBA Prep. Then, use that opportunity to build up selling platform alternatives to Amazon, starting with eBay and Walmart.
With FBA Prep services, a fulfillment company prepares shipments of inventory to go to Amazon warehouses, to keep the warehouses from running out, but under Amazon’s recommended inventory limit. Here’s how it works:
Find a third party logistics company (3PL) that specializes in FBA Prep.
Look for a company that provides clear, easy-to-understand pricing for FBA Prep services. And make sure they also don’t impose long-term storage fees, have order minimums or SKU maximums, so you don’t go from one set of penalty fees to another.
Your 3PL should have experience with Amazon labeling regulations. As with every step of its processes, Amazon has set, specific requirements. The labels on the cartons have a set of parameters, as do every item inside. And your fulfillment house should know these regulations.