Third-Party Warehouses

Third-party warehouses provide an attractive storage solution for two reasons:

1. Storage rates are less fickle in third-party warehouses, fluctuating less often.
2. They provide a local ship-from address that you can use when creating your shipment on Amazon.

You can use a third-party warehouse to feed your goods to Amazon’s FBA warehouses on an as-needed basis. This provides greater control over your inventory and some added insurance if your item doesn’t sell as expected.

Of course, if you’re sending a limited number of units, this “just in time” approach probably doesn’t apply. The trick, as with most things FBA, is to understand when to employ these resources.