In this episode of The New Warehouse Podcast, Kevin chats with Kayvon Nazarian, CEO and Founder of ZonPrep. Together, they explore how Amazon FBA Prep Services are evolving, and why sellers need specialized partners. Nazarian began as a seller, giving him a firsthand view of Amazon’s rapid operational shifts.
ZonPrep now supports brands with kitting, bundling, labeling, and inbound consolidation tailored to Amazon’s strict requirements. As Amazon phases out internal prep options, sellers must rethink how they manage compliance, routing, and speed. This conversation shows how ZonPrep’s high-velocity model helps brands adapt and why infrastructure built for fast processing is becoming essential for modern growth.
A Warehouse Built for Speed, Not Storage
ZonPrep runs a true cross-dock operation designed for quick movement, not long-term storage. The building uses 40 dock doors and linear flow to push inventory straight through the process. As Nazarian explains, “Product in our building…is not making us money, and it’s not making our customer money.” Most items move in one to three days, freeing working capital and reducing delays.
Inside, 100–200 associates handle liquid bagging, kitting, bundling, and automated shrink-wrapping. This setup supports fast throughput across diverse SKUs. Nazarian notes, “Selling on Amazon has a whole set of unique challenges that other retailers don’t have.” Their layout reflects those demands, helping sellers meet Amazon’s tight inbound expectations without slowing down.
Why Inbound Consolidation Is Becoming Essential
Amazon’s routing changes require sellers to split shipments across multiple regions. That shift increases cost and complexity. ZonPrep solves this through high-volume consolidation. Nazarian explains, “We’re able to consolidate those hundred Yetis with a thousand shampoos or a thousand…things of dog food and send direct full truckloads to those facilities.”
This cuts costs and significantly reduces lead times. As Nazarian puts it, “we see sellers…shipping LTL to Amazon, and they’re spending 20 plus days in transit time getting their inventory into Amazon.” ZonPrep often brings this down to under six days, improving availability and reducing stockouts.
Their live-unload appointments also speed things up. “We’re able to…bypass that waiting area and get our trailers unloaded right away.” Sellers gain faster receiving and smoother forecasting as a result.
The Market Shift: Amazon Exits Prep, and Demand Surges
Amazon is phasing out its internal FBA prep service, pushing sellers toward third-party partners. Nazarian explains that “Amazon kind of… ceased offering FBA prep, which is really, really interesting.” The move aligns with Amazon’s automation strategy.
The short timeline has created urgency. “There’s been…a lot of brands have to make very quick decisions, and it’s a challenging operational decision to make in Q4 too.” As sellers scramble for solutions, demand for expert prep providers has surged.
Despite the shift, opportunity remains strong. Amazon continues to offer a massive reach for new and growing brands. As Nazarian says, “If you’re…on the fence…take your idea and let Amazon’s infrastructure take it to the moon for you.”
Key Takeaways on Amazon FBA Prep
- Amazon FBA Prep Services demand workflows built specifically for Amazon, not traditional e-commerce.
- ZonPrep pushes inventory through in 1–3 days, reducing storage costs and delays.
- Consolidation cuts inbound times from 20+ days to under six.
- Amazon’s exit from internal prep increases demand for expert third-party providers.
- Cross-dock layouts, live-unload access, and custom WMS tools help sellers stay compliant and fast.
- Specialized prep partners reduce risk across packaging, labeling, and routing.
