When starting in Online Arbitrage (OA) or Retail Arbitrage (RA), processing your own packages seems manageable. You buy 20 items from Argos, peel off the price stickers, apply FNSKUs, tape boxes, and drop them off at the local UPS parcel point.
The Sourcing Trap
As your order volume grows to 500 or 1,000 units per month, you quickly hit a hard ceiling: time. Every hour you spend removing sticky residue, printing labels, and carrying boxes to your car is an hour you are NOT analyzing leads, finding discounted supplier deals, or negotiating distributor terms.
The Economics of Prep Outsourcing
At an average prep rate of just £0.52 to £0.60 per unit, outsourcing 1,000 units costs approximately £550. In exchange, you regain 30+ hours per month. If your sourcing time produces £50-£100/hour in gross profit, outsourcing prep yields a 300% to 500% return on investment.