Every business is built differently, which means some are equipped to scale more quickly than others. There are several indicators businesses should monitor as time passes to guarantee they’re not sacrificing growth nor customer satisfaction. Below, we’ll highlight the top five signs that your business should consider outsourcing FBA prep and/or warehousing responsibilities in order to implement an effective and scalable future.
- STORAGE UTILIZATION:
A regular challenge for thriving businesses is the ability to maintain appropriate storage space. There is a fine line between having too little and too much space, which makes it difficult to maximize your cost per square foot. Utilizing an FBA Prep and Warehouse provider enables you to reduce expenses and time versus maintaining your own storage facility. - INVENTORY MANAGEMENT:
Startup businesses don’t need a high-tech inventory management system as they most likely only have a few SKUs to monitor. The dynamic of managing your inventory changes once your business grows. Maintaining hundreds, if not thousands of items is tricky without a Warehouse Management System (WMS). By outsourcing your warehouse and inventory management needs to a 3rd party provider you will be offered additional insights into your business while also creating more time to focus on development and growth. - TIME CONSTRAINTS:
It’s inevitable that time will become a precious commodity as your business grows. Owners, as they should, are often consumed with the growth and development of their company, which can have a negative impact on other business functions. Allowing a 3rd party Amazon FBA preparation and warehouse provider to manage the day-to-day prep, warehousing, inventory management, and your overall supply chain is becoming a common trend among the best Amazon sellers. Also, from a financial perspective, it can be advantageous to utilize an FBA prep service as this eliminates your need for packaging materials, labor, and storage facilities. A business’s ability to scale plays a major factor in success, which is why more and more Amazon FBA sellers are choosing to use prep and warehouse services. - FULFILLMENT AND SHIPPING DELAYS:
Preparing merchandise to sell on Amazon can be burdensome, particularly for a business that is rapidly growing. The ability to accurately prep your product is essential to your success. Any business not doing so will without a doubt face rejected products due to non-compliance with Amazon’s strict prep regulations. Such failures can be quite costly. Amazon FBA Prep services are well equipped and knowledgeable in fulfillment practices to safeguard your business from this type of event. Delayed transit days due to your merchandise’s proximity to Amazon Fulfillment Centers should be reviewed to validate that you’re not overpaying for transportation, nor delaying the time in which your product is in transit. Ideally, your product should be warehoused in a facility that’s near one of Amazon’s FBA centers. This will guarantee that you mitigate your transportation expenses while also getting your merchandise delivered more quickly. Ultimately, every business is different, so it’s important that you do your homework. - NEGATIVE CUSTOMER REVIEWS:
Are you receiving bad feedback from your customers? If so, this will have a major impact on your company’s reputation. In most cases, this can be linked directly to poor product inspection and preparation. The inability to ensure product integrity and Amazon prep compliance can seriously damage the public’s perception of your business. Every facet of the supply chain is of the utmost importance when it comes to maintaining a positive reputation.Also, the failure to properly manage a warehouse can be disastrous for end-user satisfaction if you’re unable to sustain adequate inventory levels. The more SKUs within your portfolio, the more challenging inventory management becomes, which is why it’s invaluable to use a proper WMS. Outsourcing preparation and warehousing to an experienced service provider won’t necessarily eliminate every issue, but it will drastically decrease the likelihood of such instances occurring while giving you a hands-free experience that allows you to focus on your company’s health.
FINAL RECOMMENDATIONS
As mentioned above, not all businesses should outsource their Amazon FBA prep and warehousing responsibilities. However, it’s important for your business to run a cost and time analysis to see if partnering with a prep and warehouse provider makes sense. Let us know if Stampede can help by clicking here. We have you covered from A-Z.
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