You Don’t Scale Amazon by Touching Boxes
Why smart sellers outsource prep before they ever lease a warehouse
If you're still taping boxes in your garage, you're not running a business; you're bottlenecking one.
Most sellers get this wrong:
They think scaling means hiring warehouse staff or renting a space.
But ask any high-volume seller how they scaled without burning out...
They used a prep center.
This article breaks down how to think about prep centers not as an expense, but as a scaling unlock that lets you reinvest time where it actually compounds: sourcing and strategy.
You Don’t Need a Warehouse, You Need a Process
Let’s be real: prepping from home works... until it doesn’t.
You’re drowning in labels.
Your living room is full of boxes.
And every hour spent taping is an hour you’re not analyzing profitable ASINs.
So what are your options?
Option 1: Get a warehouse.
- Now you're paying for rent, internet, insurance, staff, and equipment.
- You’ll need real volume (10K+ units/month) to justify it.
Option 2: Use a prep center.
- No warehouse, no team, no hassle
- Just product in, FBA-ready shipments out
George built his Amazon business from Australia selling in the U.S.
Prep centers weren’t optional; they were default infrastructure.
And they still are.
What a Good Prep Center Actually Does
A proper prep center is not just a box-forwarding service.
It’s your frontline logistics team.
They:
- Inspect shipments to make sure the right flavor, size, or unit is received
- Fix supplier errors before they hit your Amazon inventory
- Bundle, bubble-wrap, polybag according to Amazon’s rules
- Label ASINs and cartons with your FNSKUs
- Handle unfulfillable returns, assess what's recoverable
- Ship to Amazon, not just on time but correctly
That means:
- Fewer inbound issues
- Fewer customer complaints
- Fewer lost shipments
That’s not convenience. That’s margin protection.
Why “Ship Direct From Supplier” Is a Rookie Move
Yes, some suppliers will ship directly to Amazon for you.
But here’s what that looks like in practice:
- Wrong ASINs labeled
- Wrong items sent
- Lost $4,000 shipments that vanish for months
- One-star reviews for incorrect products
Maybe it works for one SKU.
But if you’re serious?
You use a prep center because they’re professionals.
Your supplier isn’t.
What Reasonable Prep Rates Actually Look Like
Here’s the standard:
- $0.60 to $1.00 per unit for basic prep
Extra for:
- Oversized items
- Multi-packs
- Bundles
- Bubble wrap or polybagging
Avoid:
- Monthly fees
- “Minimum volume” fees
- Charges for pallet loading/unloading, storage, etc.
Prep centers should get paid when they work, not when you don’t.
Location Matters More Than You Think
Your prep center’s ZIP code is a strategy decision.
If your suppliers are on the East Coast, use a New Jersey center.
If you’re West Coast? Avoid California — inbound times are brutal.
George uses:
- One prep center in New Jersey
- One in Utah (not California) for faster FC processing
Think of it like shipping lanes:
The faster it gets to Amazon and the cleaner it checks in, the faster you turn capital.
Negotiate With Your Prep Center Like You Do With Suppliers
Most sellers forget this:
Prep centers are B2B partners, not fixed-price vendors.
You can and should negotiate:
- “If I send 5,000 units/month, can I get a better rate?”
- “If I send 240 units of the same ASIN, can you drop it to $0.70/unit?”
Just like suppliers, good prep centers want loyal volume.
And just like suppliers, they’ll reward consistency with discounts if you ask.
What to Look For in a Serious Prep Partner
Here’s your short list:
- ✅ Easy shipment plan submission
- ✅ Open line of communication
- ✅ No friction in flagging errors
- ✅ Willing to advise on best practices
- ✅ Handles unfulfillable returns
- ✅ Willing to grow with you
- ✅ Doesn’t skip polybagging or Amazon compliance steps
This isn’t about the cheapest rate.
This is about protecting inventory, time, and customer experience.
Tax Considerations (for Online Arbitrage Sellers)
Quick note for OA sellers:
- Wholesale? No sales tax risk based on prep center location
- Online Arbitrage? You’ll pay sales tax based on where your prep center is
So if your prep center is in California, you’re paying 9–10% extra on retail value.
Plan accordingly or choose a state with no sales tax.
Pros & Cons: Why This Still Wins
✅ Pros
- No physical labor
- No warehouse rent or staff
- 100% focus on sourcing, analysis, and growth
- Fully scalable infrastructure
❌ Cons
- $0.60–$1.00 per unit cost
- Occasional shipment delay if they’re backed up
But even with the cost?
You’re buying back the time to run your business, not fulfill it.
Scale What Creates Margin. Outsource Everything Else.
You don’t scale by touching tape.
You scale by moving faster, testing more ASINs, deepening supplier deals, and reinvesting profits.
And you can’t do that with bubble wrap on your desk.
Prep centers aren’t a nice-to-have.
They’re your first infrastructure unlock as an operator.
If you're serious about growth, outsource the prep, and own the edge.