In early May, I engaged an Amazon prep service that quickly became problematic for my business. I shipped over 400 units to their warehouse, but by early June, only about 100 units had been forwarded to Amazon. The remaining 300 units were unaccounted for in their warehouse until August. This appeared to be due to software issues and significant staff turnover.

My estimated business losses added up to approximately $9,500, including purchase cost of lost units. opportunity costs due to shipping delays and unexpected fees to get my inventory shipped to Amazon. I've reported my experience to the Better Business Bureau and other consumer protection organizations. I strongly advise new sellers to thoroughly research and check reviews before engaging with any prep service.

To maintain privacy, I won't name the company. They are a large company with warehouses across Canada, and their Amazon prep service in Canada operates out of London, ON. To be clear, this is NOT PrepEx, another London, ON-based company I later engaged and have been very satisfied with.

Red flags I encountered, which may apply to any prep service:

• Lengthy contract terms:

○ 12-month commitment

○ High per-unit fees

○ Minimum monthly order quantity requirements

Persistent issues:

• Problems with their software delayed my shipments

• Lack of transparency about internal issues

• Frequent changes in personnel handling my account

Unusual payment demands:

• Required full payment of invoices before releasing final shipment

In hindsight, I overlooked these warning signs due to time pressure. This was my fourth prep service since 2019, and none of the previous three had such stringent requirements or high fees.

To fellow sellers, especially new ones: Don't let urgency override due diligence. Take the time to thoroughly vet any service provider. I hope sharing my experience helps others avoid similar situations. Wishing you all the best in your Amazon selling journey.