Quick Jump
Meet Tom Wicky, Co-Founder and CEO of MyFBAPrep. Tom has built a company that makes selling on Amazon easy by handling all the storage and shipping details for sellers. In this interview, we'll discover how Tom and MyFBAPrep have changed the game for those looking to sell online and what plans they have for the future. Find out more about their work at MyFBAPrep.
Background and Company Origin
Can you provide a brief overview of your background and what inspired you to start your 3PL company?
I’m Tom Wicky, an entrepreneur with a long background in startups and management consulting including over two decades of senior management experience. During the early days of the Amazon FBA Marketplace, I started and grew two large Amazon businesses including a print on demand T-shirt business and a Top 100 grocery business. To enable those businesses we built a data automation platform that successfully created, managed and optimized over one million product listings on Amazon.
MyFBAPrep was built to fill a gap in the market helping large Amazon sellers scale by building the first national network of Amazon prep warehouses in the country.
What was the vision or mission that drove you to establish your own 3PL business? Could you share any unique or challenging experiences that motivated you to take the entrepreneurial leap into the logistics industry?
Our business plan was based on something that never existed before – an asset-light network of independently owned and operated warehouses stitched together by software, appearing as a single national network to customers. Much like AirBnB is the largest hotel operator in the world without owning a single hotel, we wanted MyFBAPrep to be the largest network of warehouses without owning a single warehouse ourselves.
Each of us co-founders are former Amazon sellers ourselves who were tired of the platform's heavy-handed policies and wanted to create change for other sellers experiencing the same roadblocks and lost revenues as we did. Through our research, we knew that logistics services for 3rd-party marketplace sellers on Amazon were very difficult to find and were marked by mom-and-pop shops that couldn’t scale. By building a nationwide network, we were able to spread out the volume of orders across multiple facilities. For the client, this meant they had instant scale, a single point of contact and a single invoice every month. This has remained our same vision today.
How did you come up with the name for your company, and is there a story behind it?
Our business has evolved from being strictly Amazon work to where it is today handling almost all ecommerce logistics needs. As a bootstrapped startup the name of the company was an early SEO play. The keyword-rich domain allowed us to rank quickly and early for most Amazon-related logistics queries which is where we started.
Company Growth and Milestones
Since the inception of your 3PL company, what significant milestones have you achieved in terms of growth and expansion?
MyFBAPrep has experienced rapid growth since our inception in 2018. We’ve expanded our warehouse network to include 85-million-square-feet of warehouse space globally, including in key international markets including Mexico, the United Kingdom, Europe and Canada. We’ve also been consistently recognized as the fastest growing company in the logistics and transportation industry by some of the world’s most notable publications including Financial Times’ (FT) The Americas' Fastest-Growing Companies 2024 list (#4, #1 in logistics and transportation), 2023 Deloitte Technology Fast 500 (#20, #1 in logistics & transportation), 2023 Inc. 5000 (#44, #1 in logistics & transportation) and Inc. 5000 Regionals: Southeast (#9, #24), among others.
Can you describe a defining moment or strategy that played a crucial role in scaling your business?
A defining moment in the scaling of MyFBAPrep was our strategic decision to differentiate ourselves by offering high-touch, white-glove customer service in an industry often criticized for poor service standards. Recognizing the frustration and challenges faced by clients in the logistics sector, we committed to a customer-first approach that prioritizes exceptional service and proactive support.
By implementing rigorous training programs, investing in top-tier customer relationship management tools, and establishing a responsive feedback system, we have been able to provide personalized, reliable, and consistently superior service. This focus has led to significant growth and expansion of our business. This commitment to excellence in service has solidified our company’s reputation and set us apart in a competitive market.
How have you managed to adapt and stay competitive in the ever-evolving logistics and supply chain industry?
In the dynamic ecommerce logistics industry, our ability to adapt quickly has been crucial for staying competitive. At MyFBAPrep, we’ve leveraged technology by investing in our proprietary SaaS-based platform, Preptopia, which utilizes advanced automation and data analytics to streamline our operations. We have also established strategic partnerships that broaden our capabilities and enhance our offerings. Our commitment to efficiency and customer satisfaction is at the core of everything we do, pushing us to consistently refine our processes and respond adeptly to the evolving market demands. This proactive approach has not only allowed us to thrive but also to deliver unmatched value to our clients, ensuring our continued relevance and success in the industry.
What sets your company apart from other 3PL providers, and how have you maintained a competitive edge?
One of the key frustrations in the eCommerce logistics sector is the difficulty in reaching a knowledgeable individual who can provide real-time updates on inventory. MyFBAPrep has revolutionized this aspect by placing white-glove customer service at the forefront of our operations. We provide each client with a dedicated account manager, acting as their eyes on the ground from the moment inventory departs our warehouse until it reaches its destination.
Our flexibility in handling fulfillment challenges sets us apart as well. MyFBAPrep does not shy away from projects, big or small. We create a custom solution for all of our clients based on their specific needs. Unlike typical 3PLs that aim to move inventory rapidly without addressing individual client needs, we engage closely with our clients to solve their unique problems. This approach has led some to liken MyFBAPrep to an ‘Emergency Room’ for enterprise-level eCommerce brands, where we diagnose issues and implement proactive, timely solutions.
Industry Insights and Advice
What are some trends and challenges you've observed in the logistics and 3PL sector over the years?
Trends:
- Technology: There’s been a significant shift towards using technology in logistics, including the adoption of IoT devices, automation, and advanced data analytics. These technologies enhance operational efficiency, improve real-time tracking, and better manage inventory.
- Sustainability: Environmental concerns are driving many logistics companies to adopt greener practices. This includes optimizing route planning to reduce fuel consumption, using electric or hybrid vehicles, and incorporating sustainable packaging solutions.
- Global Network Expansion: Many logistics companies are expanding their networks internationally to cater to the global marketplace. This trend is driven by the need to facilitate cross-border trade more efficiently and to support eCommerce companies looking to reach international markets.
Challenges:
- Supply Chain Disruptions: The logistics sector frequently faces challenges due to disruptions in the supply chain caused by geopolitical tensions, trade disputes, or global pandemics. These disruptions can lead to delays, increased costs, and logistical complexities.
- Omnichannel Compliance: As they expand into new markets and omnichannel marketplaces, logistics companies often struggle with varying regulatory requirements across different platforms and channels. Compliance with these regulations is crucial to avoid penalties and ensure smooth operations.
- Labor Shortages: A shortage of skilled labor often challenges the logistics industry, particularly in warehousing and trucking. This can lead to operational delays and increased costs as companies compete for available talent.
- Cybersecurity Risks: As logistics companies increasingly rely on digital technologies, the risk of cyberattacks has grown. These companies must invest in robust cybersecurity measures to protect sensitive data and ensure continuity of operations.
As we wrap up our feature on Tom Wicky, the Co-Founder and CEO of MyFBAPrep, it's clear that his fresh ideas and strong drive have pushed his company to impressive success in the logistics world. MyFBAPrep stands out by making warehouse services easy and scalable for businesses, similar to how AirBnB simplified hotel bookings. Under Tom's leadership, the company has mastered the challenge of growing globally while staying focused on customer needs. For any business looking to thrive in the fast-moving world of logistics, Tom and MyFBAPrep provide key lessons and motivation. To learn more about their innovative solutions and how they can help your business, check out MyFBAPrep.
