Amazon Warehouse vs. Third-Party Prep Centers: Which Fulfillment Option Should You Choose?

As an online seller, there are main two methods to store and ship your goods online: the Amazon warehouse vs third-party prep centers. And neither one, of course, is all good or all bad. This guide will make it easy for you to understand the distinctions and determine the best choice for your business.

Using the Amazon Warehouse

Typically, when you sell with the Amazon warehouse, your products are stored and shipped by Amazon. This can actually be a good option, since lots of people trust Amazon. They ship so many orders daily that they are able send products out quickly.

But there are a few drawbacks to the Amazon warehouse. The big drawback is that you have to pay Amazon fees for storage and shipping. These costs can pile up quickly, especially if you have a lot of items or if your products are large or heavy.

Using Third-Party Prep Centers

But, on the other side, using a third-party prep center can save you money and run your business well. Prep centers are third-party services that specialize in warehousing and logistics for online businesses. They tend to charge lower fees than Amazon and can provide tailor-made services that suit you.

The best thing about using a 3rd party prep center is how much money you can save in storage and shipping. These companies often charge less than Amazon, so you can keep more of your money. Plus, third-party prep centers can provide services tailored to your business, such as kitting, labeling and custom packaging.

Amazon Warehouse vs. Third-Party Prepping Centers

As you make your decision between the Amazon warehouse and a third-party prep center, consider your business needs. If you have a lot of orders and need a consistent way of shipping them, Amazon warehouse could work for you. But if you’re looking to save money and receive more personal service in some categories, a third-party prep center might be a better option.

Things to Think About

There are many other aspects to consider when comparing the Amazon warehouse with third-party prep centers. There are a few things you’ll need to keep in mind, the first one is the dimensions and weight of your products. If you’re selling big or heavy products, you may discover Amazon’s fees come out to be more than the fees of a third-party prep center.

Another thing about this is how many orders you’re getting. If you bear the brunt of a lot of orders, you might appreciate the amazon warehouse and it’s reliability. But if you have smaller orders and want to cut down on costs, a third-party prep center may be the better option.

Finding the Best Fulfillment Strategy

“What are you willing to compromise on to figure out the best way to ship?” she said. Think about things like the size of the product, how much you are ordering, your budget and the type of service you expect. Spend time researching alternative choices and don’t hesitate to ask fulfillment companies for more details.

Overall the Amazon FBA warehouse and third-party prep center both have their own pros/cons. If you think about each of your requirements properly, you will be able to select the best fit for your online business. Don’t forget shipping your products is a key part of your success so choose wisely!