The concrete answer is this: in 2025, the best prep strategies for online arbitrage (OA) and wholesale sellers revolve around outsourcing to professional prep centers, using automation for labeling and tracking, and optimizing logistics through tax-free states like Delaware and Oregon. Sellers who combine these methods reduce costs, avoid Amazon penalties, and scale faster.
According to Jungle Scout’s 2024 State of the Seller report, more than 66% of Amazon sellers use Fulfillment by Amazon (FBA), and a large share rely on prep centers to manage labeling, bundling, and compliance.
At the same time, CBRE Research shows that warehouse rents in the U.S. have climbed more than 15% since 2022, making it more expensive than ever to handle prep in-house. The message is clear: in 2025, your prep strategy is not just about efficiency – it’s a competitive advantage.
Why Prep Matters More Than Ever
For both arbitrage and wholesale sellers, prep is the hidden engine that keeps the business running. Amazon enforces strict compliance rules: mislabeled or poorly packed inventory can trigger extra fees, delays, or even account suspensions. The stakes are high.
Online arbitrage sellers often source from dozens of different retailers, which means products arrive in mixed packaging, with inconsistent barcodes and condition levels. Wholesale sellers, on the other hand, may buy bulk shipments that need breaking down into smaller FBA-ready units.
Without a clear prep strategy, both models risk bottlenecks, rising costs, and inventory stranded at fulfillment centers.
That’s why more sellers in 2025 are shifting to professional prep centers and automation tools. Instead of wasting hours with bubble wrap and barcode printers, they focus on sourcing and scaling.
Strategy 1: Professional Prep Centers
The most reliable prep strategy today is outsourcing to professional Amazon prep centers. These facilities receive shipments, inspect items, polybag or bubble-wrap them if necessary, apply FNSKU labels, and forward everything to Amazon fulfillment centers.
The biggest benefit is consistency. Prep centers are designed around Amazon’s compliance standards, which means fewer errors and less risk of inventory rejections. Many centers now integrate directly with inventory management software, providing real-time tracking from supplier to Amazon.
Cost is a factor, but still favorable compared to DIY operations. Average prep costs in 2025 range from $0.50 to $2.00 per unit, depending on the service level and location.
Sellers also increasingly choose the Amazon prep center in states like Delaware, Oregon, and New Hampshire, where no sales tax is applied. This can save wholesalers thousands of dollars annually, especially when processing large orders.
Strategy 2: Automation and Labeling Tools
Technology is transforming prep. Instead of manually printing and applying labels, many sellers now rely on automated labeling and integration tools. Amazon’s “Stickerless Commingled Inventory” option can reduce prep time for wholesalers selling standard UPC-coded products, though it requires trust in other sellers’ product quality.
Third-party tools such as InventoryLab, ScanPower, and SellerAmp have also expanded their prep features. They allow sellers to create shipments, print barcodes, and track units from the moment of purchase. This reduces the chance of errors and cuts down on time spent fixing labeling issues later.
Strategy 3: Optimized Logistics for Arbitrage and Wholesale
Prep doesn’t stop at labeling – it’s about logistics too. In 2025, the most successful sellers are combining just-in-time prep with strategic warehouse locations.
For arbitrage sellers, this often means sending inventory directly from retailers to prep centers, skipping the home or office entirely. For wholesalers, the strategy might involve breaking bulk pallets into Amazon-ready cartons as close to the fulfillment network as possible.
Freight forwarding and cross-docking are also common. Sellers importing from China, India, or Vietnam often send containers directly to U.S. prep centers for inspection and redistribution. This shortens lead times and reduces storage costs compared to keeping goods in long-term third-party warehouses.
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| Strategy | Best For | Main Advantage | Risk/Cost Factor |
| Professional Prep Centers | OA and wholesale | Hands-free compliance, scalable | $0.50-$2.00 per unit |
| Tax-Free Prep Centers | Wholesale | Saves on sales tax in states like Delaware/Oregon | Limited locations, possible wait times |
| Automation & Labeling Tools | Wholesale & OA | Faster labeling, reduced errors | Software cost, learning curve |
| Direct-to-Prep Logistics | Arbitrage | Skips home handling, faster turnaround | Requires reliable suppliers |
| Cross-Docking / Freight Forwarding | Wholesale importers | Faster factory-to-FBA flow | Higher upfront freight fees |
[/su_table]
The Numbers Behind Successful Prep
The impact of strong prep strategies shows up in the numbers. Sellers who outsource to prep centers report 25-40% faster turnaround times compared to those who prep at home, according to a 2024 SellerBench study.
Jungle Scout data also reveals that over half of profitable Amazon sellers outsource some or all of their prep, freeing them to spend more time sourcing profitable products.
Meanwhile, wholesalers using tax-free prep centers can save anywhere from 4-8% on every order, depending on their supplier’s state of origin. For a seller moving $500,000 in annual wholesale orders, that translates into $20,000-$40,000 in tax savings – a significant margin boost in a competitive market.
Conclusion
In 2025, online arbitrage and wholesale sellers no longer treat prep as an afterthought. Instead, they view it as a core part of their profitability strategy.
By outsourcing to professional prep centers, leveraging automation, and taking advantage of tax-free states, sellers avoid compliance issues, save money, and scale with confidence.
The bottom line is simple: prep is profit. Sellers who ignore it end up stuck with extra fees, delays, and customer complaints, while those who embrace the best prep strategies in 2025 enjoy smoother operations and higher margins.
Whether you’re flipping retail deals or managing wholesale pallets, the right prep plan is what turns opportunity into sustainable growth.
