Benefits of Using a Third-Party Warehouse vs Amazon Storage
- Prep Centre
- Mar 30
- 3 min read
Amazon FBA is designed for fast turnover, not long-term storage. Yet many sellers still rely on Amazon to store all their inventory—only to get hit with high fees, restock limits, and reduced flexibility.
A better solution? Use a third-party warehouse like FA Prep to manage your inventory outside of Amazon. You’ll cut costs, stay flexible, and take back control of your supply chain. Here’s a breakdown of why smart Amazon sellers are making the switch.
1. Lower Storage Fees

Amazon charges premium rates for standard and long-term storage—especially during Q4. The longer your products sit in Amazon’s warehouses, the more you pay.
Amazon storage fees (UK example):
Standard storage (Jan–Sep): ~£0.48 per cubic foot
Peak storage (Oct–Dec): ~£1.20+ per cubic foot
Long-term storage (over 271 days): even higher
✅ Third-party warehouse advantage:
At FA Prep, storage fees are typically cheaper and consistent year-round, even during peak seasons. This helps you avoid getting penalised for slow-moving inventory.
💡 Tip: Use FA Prep to store bulk inventory and send only what’s needed to Amazon—keeping your costs low and stock flowing efficiently.
2. Avoid Restock Limits
Amazon often imposes restock limits based on your IPI score (Inventory Performance Index). If you exceed them, you won’t be able to send in more inventory, which can lead to stockouts and lost sales.
✅ Third-party warehouse advantage:
With FA Prep, you can store unlimited inventory off-Amazon and drip-feed it into FBA as needed—bypassing Amazon’s restock limits entirely.
💡 Tip: Monitor your restock limits in Seller Central and use FA Prep to manage overflow.
3. Greater Flexibility & Control
When your inventory is at Amazon, you lose a lot of visibility and flexibility. If you need to reroute stock, adjust packaging, or bundle items, it’s not possible without removal orders (which cost time and money).
✅ Third-party warehouse advantage:
Make changes to products before they go to Amazon (e.g. relabel, repackage, bundle).
Control when and where your inventory is sent.
Easily reroute stock to different platforms (eBay, Shopify, etc.).
💡 Tip: FA Prep gives you real-time visibility of your stock and the ability to make changes on the fly.
4. Multi-Channel Fulfilment Ready

Amazon storage is only good for Amazon. If you’re selling through multiple channels, using Amazon’s storage can limit your options.
✅ Third-party warehouse advantage:
At FA Prep, your inventory can be used for:
Amazon FBA
FBM (Fulfilled by Merchant)
eBay, Shopify, TikTok Shop, or wholesale orders
💡 Tip: Centralise your stock at FA Prep and fulfil across multiple platforms from a single location.
5. Faster Response & Support
Amazon's support for inventory issues can be slow, and opening cases often feels like a black hole. When things go wrong, you're at their mercy.
✅ Third-party warehouse advantage:
With FA Prep, you get a dedicated point of contact, faster support, and actual humans you can talk to.
💡 Tip: Build a relationship with your warehouse team—they’ll understand your products and help prevent future issues.
6. Reduced Risk of Inventory Disposal

Amazon will dispose of your inventory if it’s unsellable or stored too long—often without warning. And removal orders? They take time and cost money.
✅ Third-party warehouse advantage:
FA Prep stores your stock for as long as you need, and you’ll never lose products due to time limits or automated removals.
💡 Tip: Keep slow-moving or seasonal inventory at FA Prep and only send it to Amazon when it’s ready to sell.
7. Better Cash Flow Management
Tying up all your stock in Amazon’s system can limit your ability to adapt or reinvest. With a third-party warehouse, you can order in bulk, store affordably, and send to Amazon as demand increases.
✅ Third-party warehouse advantage:
Order smarter from suppliers and take advantage of bulk discounts
Store excess inventory affordably
Restock on your terms based on real-time sales data
💡 Tip: This approach smooths your cash flow and improves profit margins over time.
Final Thoughts – Take Back Control with FA Prep
Using Amazon for long-term storage is expensive, restrictive, and risky. By moving your inventory to a trusted third-party warehouse like FA Prep, you unlock:
✅ Lower storage fees
✅ Freedom from restock limits
✅ Full control over packaging, prep, and dispatch
✅ Support for multi-channel fulfilment
✅ Faster response and better inventory security
🚀 Want more flexibility and fewer fees? Contact FA Prep today and streamline your storage strategy for Amazon FBA.
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