How do I know whether to use a prep center or my own warehouse to prepare products for Amazon? Which is more cost effective?
What are your long term goals? We wan’t to be as mobile as possible once our kids are grown and on their own, so I figure might as well get used to using a prep center from the start. A warehouse is going to have another layer of issues and expenses that a prep center just won’t have. This is why the TWF guys converted to prep centers. Do you want to run a warehouse or run your business?
Trent had some great insight into how to make the right choice between your own warehouse and a prep center in Episode 55 of the Daily Nugget.
To me makes no sense to have warehouse unless you doing over million dollars in sales. Cost of warehouse is going to be $500 to $2000 a month and will have to pay employees also unless going to be there all time. Plus spend time training employees and fixing problems. Spend extra .40 to .60 cent per item for prep center and spend time instead of warehouse looking for accounts. A lot more profitable spending time concentrating on finding accounts in my opinion. Think what twf did was smart idea.
I run a prep center in Atlanta and we generally ship in 24-48 hours, if Trent says its ok il post the link?
Ture, but if you turn your warehouse into a retail store like trent did. You will pick up so many brands that you would not have otherwise that the profit will far outweigh the cost. You gots to work somewhere.
Yes if could find warehouse to put store in would be worth it.