In this blog we are looking at the importance of using a prep centre and why it becomes a key part of scaling an Amazon FBA business. A lot of new sellers avoid prep centre’s because of the perceived cost, but in reality a prep centre is one of the biggest catalysts for growth.
My Experience Before and After a Prep Centre
I did not use a prep centre until about 18 months into my journey. The only reason was the cost per unit. I thought paying a prep fee would cut into margins too much. In reality, it held me back.
As soon as I switched to a prep centre, my business started scaling rapidly. My profits began increasing by 20 to 25 percent every single month. It allowed me to spend more, source more and get inventory into Amazon much faster.
A prep centre is the engine of the entire operation. It allows you to fully focus on sourcing, which is one of the main factors that separates a growing business from a stagnant one.
Why a Prep Centre Is Essential for Scaling
When volume increases, self prepping becomes a bottleneck. You end up spending hours every day:
- Opening boxes
- Checking items
- Removing labels
- Packaging
- Creating shipments
- Waiting indoors for parcels
- Dropping parcels off
- Handling returns and replacements
This becomes unsustainable once you begin scaling. You cannot grow if you are stuck prepping all day. Some people choose to get their own unit and hire staff. This can work, especially for wholesale and large operations. However, for online arbitrage, a prep centre is usually the most efficient route. It removes the need for premises, insurance, staffing, packaging materials and time spent prepping.
How to Choose the Right Prep Centre
Not all prep centres are equal. There are horror stories about slow turnarounds, lost stock and poor communication. Choosing the cheapest option is one of the biggest mistakes sellers make.
When selecting a prep centre, focus on:
- Reliability
- Strong feedback and reviews
- Fast turnaround times
- A proper client portal for submitting products
- Clear communication
- Accuracy and organisation
You should be aiming for same day or next day turnarounds. Anything slower will restrict your ability to capitalise on deals, especially during Q4.
A good portal is important because you need to track which products have arrived, what is being prepped, what has shipped and which ASINs need attention. This reduces confusion and helps maintain accurate stock flow.
Downsides to Prep Centre’s
There are downsides to outsourcing this part of the business.
- It becomes harder to physically track every item.
- Stock can go missing.
- Errors can happen.
- You lose direct control over prep quality.
These issues exist in any outsourced operation, whether it is prep, accounting or staff management. The benefits outweigh the drawbacks by a long way, but it is important to be aware of them.
Most problems can be avoided by choosing a reliable centre with a strong track record.
How to Handle Prep Centre Costs
One mistake people make is trying to calculate every single deal with the prep fee included at a per unit level. This becomes messy and overcomplicated when it comes to working out how many items fit in a box etc. It is better to treat prep as a monthly business expense and subtract it from your overall profits. This gives you a clearer financial picture at the end of the month.
Final Thoughts
A prep centre is one of the most important tools in an Amazon FBA business. When you reach a certain level of volume, self prepping will halt your growth. Outsourcing prep increases speed, increases output and frees you to spend more time sourcing, pricing and scaling.
If you choose the right prep centre, your business will move faster, run smoother and grow significantly quicker. For me, moving to a prep centre was one of the biggest turning points in my entire journey.
