Amazon FBA Prep & Fulfillment Center
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Overview
Amazon FBA prep centers help Amazon sellers prepare products to meet Amazon's strict Fulfillment by Amazon (FBA) requirements, including labeling, poly bagging, bundling, and shipping to Amazon warehouses.
With 2+ million Amazon sellers and many requiring prep services especially for overseas products, prep centers generate revenue of $180,000-$550,000 annually with profit margins of 25-40% through per-unit prep fees and monthly storage.
The business requires warehouse space, prep equipment (label printers, poly bag sealers, inspection tables), and understanding of Amazon FBA requirements.
Services include product receiving and inspection, FNSKU labeling, poly bagging and bubble wrapping, product bundling and kitting, prep for various categories (hazmat, oversized, etc.), storage, and shipment creation to Amazon FBA centers.
Typical pricing is $1-$5 per unit for prep depending on complexity, plus storage fees.
Success factors include thorough knowledge of Amazon requirements, quality control to prevent Amazon rejections, fast turnaround times, and excellent communication with sellers.
Many prep centers specialize in specific product categories or offer additional services like product photography or listing optimization.
The business can start small and scale based on seller volume.
Marketing focuses on Amazon seller groups, YouTube channels, and providing excellent service to build word-of-mouth referrals.
With Amazon FBA remaining the primary fulfillment method for most sellers in 2025 and international sellers needing U.S.-based prep, FBA prep centers offer strong opportunities for entrepreneurs familiar with Amazon's ecosystem.
Required Skills
- Amazon FBA requirements and policies
- Product inspection and quality control
- Warehouse operations
- Labeling and packaging procedures
- Inventory management
- Amazon Seller Central navigation
Pros and Cons
Pros
- Growing Amazon seller market
- Lower investment than full 3PL
- Straightforward service offering
- Recurring monthly revenue
- Can operate from smaller warehouse
Cons
- Amazon policy changes impact business
- Quality control demands (strict Amazon requirements)
- Seasonal volume fluctuations (Q4 peak)
- Labor intensive prep work
- Competition from other prep centers
How to Get Started
- Learn Amazon FBA requirements thoroughly
- Secure warehouse space and prep equipment
- Set up processes for each prep type
- Create pricing structure for services
- Market to Amazon sellers in groups and forums
- Provide excellent service to build referrals
- Scale with additional staff and space as needed
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