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Prep center vs DIY - breaking down the math
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Anonymous Hustler
5 months ago
I see this question a lot so I wanted to share my analysis. I do wholesale and currently prep about 500 units/week.
DIY Prep Costs:
- Supplies: ~$0.30/unit
- My time: 3 hours/day at $25/hour = $75/day
- Shipping to Amazon: $0.50/unit average
- Total: ~$0.95/unit + time
Prep Center Costs:
- Prep fee: $1.00-1.50/unit
- Receiving fee: $0.25/unit
- Shipping to Amazon: included or $0.40/unit
- Total: ~$1.50-2.00/unit
My conclusion:
If you're doing under 200 units/week, DIY makes sense. Beyond that, a prep center frees up massive amounts of time.
I switched to a prep center 6 months ago and used that extra time for sourcing. My revenue went up 40% because I could find more deals.
The hidden benefit: Prep centers catch issues (damaged products, wrong quantities) that I was missing when I was doing it myself.
DIY Prep Costs:
- Supplies: ~$0.30/unit
- My time: 3 hours/day at $25/hour = $75/day
- Shipping to Amazon: $0.50/unit average
- Total: ~$0.95/unit + time
Prep Center Costs:
- Prep fee: $1.00-1.50/unit
- Receiving fee: $0.25/unit
- Shipping to Amazon: included or $0.40/unit
- Total: ~$1.50-2.00/unit
My conclusion:
If you're doing under 200 units/week, DIY makes sense. Beyond that, a prep center frees up massive amounts of time.
I switched to a prep center 6 months ago and used that extra time for sourcing. My revenue went up 40% because I could find more deals.
The hidden benefit: Prep centers catch issues (damaged products, wrong quantities) that I was missing when I was doing it myself.
2 replies
Replies (2)
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Anonymous Hustler·5 months ago
This analysis convinced me. Ive been DIYing at about 300 units/week and the time cost is killing me. That point about using freed up time for sourcing is key - time spent prepping is time NOT finding new profitable products. Any prep center recommendations?
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Anonymous Hustler·5 months ago
Been using a prep center for 2 years now. The hidden benefit Marcus mentioned about catching issues is huge. Theyve saved me multiple times from sending in damaged inventory that would have resulted in returns or negative reviews. Worth every penny at scale.
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