When is it right to outsource your prep? The 'it's cheaper' justification

Continuing our series of posts that presents the most common considerations about why outsourcing prep to an Amazon fulfilment centre is the right thing to do. Our aim is to help you make the important decision about when it is right for you!

HOW MUCH DO I ACTUALLY COST?

Do we ever really stop to consider this when starting out in our new business venture? Or actually at any point since? Are you inclining your head and looking up right when you are reading this (to the creative side)? That means you are thinking about it and probably haven’t yet given this question due consideration. In which case…. read on! We hope this will give you a different perspective!

THE ‘IT’S CHEAPER’ JUSTIFICATION

However your journey started as an Amazon seller you will probably have leapt in at the deep end and started on a steep learning curve (standing there looking at the water before you take that ‘leap’ you have no real idea about how deep the water is). This has probably included learning all about Amazon fulfilment services, shipping to Amazon FBA and everything in between.

IT’S CHEAPER WHEN YOU START

How to prep and ship closely follows sourcing and buying on your new journey. If you have ‘trained up’ ahead of time you may make different decisions starting out but most of us normally begin to create a space in our home for the ‘prepping and shipping’ believing it’s the cheaper option (making those savings when starting out!). But is it really?

There will ALWAYS be a cost associated with Amazon fba prepping services. Even from day one It’s taking someone’s time and effort and for that there is a cost. Is that your cost? Your time? Your effort? Do you know how much that cost is?

BY THE HOUR

Consider this simple perspective - your average Prep Assistant gets paid a little over minimum wage. For the purpose of this exercise we’ll assign an hourly rate of £10.50. Let’s compare this with other really important elements of running your successful business. Look at these average hourly rates for.…..

• Strategic business planning - £150 - £300

• Managing your accounts £25 - £35

• Design/copywriting - £50 - £100

• Sourcing and buying products to sell - £25.00.

…..and the list goes on!

Amazon sellers come from all walks of life and we all have different skills to bring to the table BUT if you want to run a successful business you will need to develop important missing skills very quickly to help support that. This is why ‘strategic business planning’ attracts such a good hourly rate. Because it’s hard, it’s specialist and possibly not something many of us have had prior experience of.

TIME IS PRECIOUS

It’s a pretty simple perspective really. Ask yourself…Are you getting true value for every hour you spend in your business? Are you prepping or are you spending that time applying or developing your expertise in building the business?

We know which we would choose. We’d rather be worth £150 ph than £10.50 any day! Outsourcing your prep to make room for that growth is an important ‘next step’ for most of us. Also one that can be made at a very early stage of your Amazon journey.

So ‘What do I actually cost?’ - that’s up to you!

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