Yes, you can. You can run an Amazon business without holding any stock by utilising Amazon's fulfilment centres. When you scale your business you may look to outsource your prepping and storage to an Amazon Prep Centre which can provide you with the use of their warehouse and staff without any of the hassle.
As an Amazon seller, you may have wondered whether it's possible to run a successful FBA business without owning a warehouse. The short answer is yes – it is possible to run an Amazon FBA business without a warehouse, thanks to the emergence of FBA prep centres. In this post, we'll explore the benefits of using an FBA prep centre and how it can help you streamline your Amazon FBA business.
Use an Amazon FBA Prep Centre
What is an FBA Prep Centre?
An FBA prep centre is a third-party service that helps Amazon sellers prepare, pack, and ship their products to Amazon fulfilment centres. These centres are staffed with trained professionals who specialise in handling Amazon FBA shipments. They provide various services, including product inspection, labelling, bundling, and more.
Benefits of Using an FBA Prep Centre
Save Time and Money
One of the primary benefits of using an FBA prep centre is that it saves you time and money. Rather than spending hours preparing and packing your products yourself, you can outsource the task to an FBA prep centre. This frees up your time to focus on other important aspects of your business, such as product development and marketing.
Additionally, FBA prep centres can often negotiate better rates for shipping and handling, which can save you money in the long run.
Expertise and Experience
FBA prep centres are staffed with trained professionals who have experience in handling Amazon FBA shipments. They know the ins and outs of Amazon's rules and regulations and can ensure that your products are prepared and packed according to Amazon's standards. This helps you avoid costly mistakes and delays that can occur when trying to do it yourself. A good prep centre will also be much more efficient than you would be on your own. With multiple staff and a streamlined system in place your prep centre will be able to get your products sent out much quicker than you would be able to do at home.
Another benefit of using an FBA prep centre is scalability. As your business grows, you may find it difficult to manage the increasing volume of products that need to be prepared and shipped. FBA prep centres can help you scale your business without having to invest in your own warehouse or hire additional staff.
Dropshipping is a business model where the seller doesn't hold any inventory. Instead, the seller takes orders from customers and then sends the order details to a supplier. The supplier then ships the product directly to the customer.
Dropshipping is a popular option for Amazon FBA sellers because it eliminates the need for warehousing and inventory management. However, it's important to note that dropshipping can be a challenging business model, as it requires finding reliable suppliers and managing customer expectations and can often get you into account trouble.
Leverage Amazon's Multi-Channel Fulfilment (MCF) Service
Amazon's Multi-Channel Fulfilment (MCF) service allows sellers to use Amazon's fulfilment network to fulfil orders from other sales channels, such as their own website (Shopify) or other marketplaces such as eBay or Etsy.
Using MCF is a great option for sellers who want to expand their sales channels without the added costs of maintaining their own warehouse. However, it's important to note that MCF fees can be higher than FBA fees, and sellers must have their inventory stored in an Amazon warehouse to use the service.
Running an Amazon FBA business without a warehouse is possible, thanks to the many third-party services and solutions available. Using an FBA prep centre, dropshipping, or leveraging Amazon's Multi-Channel Fulfilment service are all viable options for sellers who want to focus on growing their business, rather than worrying about the logistics of warehousing and order fulfilment.