Everything You Need to Know About Amazon FBA Prep Service

As an Amazon seller, managing the selling process, from product sourcing to sales, involves various steps. Packaging and labeling, though seemingly minor, are crucial, especially for FBA sellers. Without proper packaging and labeling, Amazon fulfillment centers may reject your products.

Options for Packaging and Labeling

You have two options: Amazon FBA Prep Service and Prep Centers. Here’s how each works:

Amazon FBA Prep Service

FBA Prep Service is an Amazon service that assists with packaging. To use this, set up your seller account by selecting “Amazon prep” under the “Who Preps” field. If you prefer to do it yourself, choose “Merchant” and refer to Amazon’s packaging tutorials.

For beginners, we recommend signing up for FBA Prep Service as Amazon has specific packaging criteria for different product categories, which can be time-consuming to learn.

Labels Service

FBA Prep Service handles packaging, but you’ll need the Labels Service for labeling. Amazon will apply barcodes for $0.55 per item. You can also label products yourself by selecting “Merchant” under “Who Labels.” Make sure to notify your preference in your shipping plan.

Prep Centers

Prep centers are third-party companies that specialize in logistics, including FBA prep services. They follow Amazon’s packaging and labeling policies and manage the required FBA processes for your products. Fees vary by company, and additional costs may include stocking and shipping.

To coordinate shipments, prep centers need limited access to your Amazon seller account. Create an assistant account for them, ensuring they only have restricted access.

Benefits of Using Prep Centers

Prep centers are beneficial when you have an established system with a manufacturer or supplier. Goods can be sent directly from the manufacturer to the prep center, saving you time and ensuring compliance with Amazon’s requirements.

Why Compliance Matters

Amazon’s strict packaging and labeling policies mean noncompliance could result in charges or inventory rejection, causing financial and time losses. Using FBA Prep Service or a prep center ensures your products meet these requirements.

FBA Prep Service Fees and Updates for 2024

Here are the updated 2024 fees and important changes:

• Standard-Size Products: Fees for standard-size products will decrease by $0.20 per unit on average.
• Large Bulky Items: Fees for large bulky items will decrease by $0.61 per unit.
• Storage Fees: Monthly storage fees for standard-size products will be reduced by $0.09 per cubic foot from January to September 2024.
• Aged Inventory Surcharge: Effective February 15, 2024, the surcharge for inventory stored between 271-365 days will increase.
• Low-Inventory-Level Fee: Starting April 1, 2024, a new fee will apply for consistently low inventory levels relative to unit sales.
• Inbound Defect Fees: From March 1, 2024, fees will apply for shipments that don’t adhere to the planned shipment locations and timelines.

Conclusion

For novice sellers, we recommend signing up for the FBA Prep Service and Labels Service to save time and focus on other aspects of your online store. Once you have an established system, consider using a prep center to handle logistics. If you’re looking for a reliable prep center, we recommend Beta Prep Centers.