Sales Taxes
You can source your goods online from US retailers (i.e. There could be sales taxes due online arbitrage. You can however save money by enrolling in an elementary school in a state without sales tax or at the lowest rate. How? You can ship your stock directly to the center for preparation. If the inventory is located in one of four states without sales tax (Delaware Montana New Hampshire Oregon), the storage fees they charge when waiting for the additional stock to arrive is likely lower than the tax you'd have to pay in your home state. Be aware that the US has sales taxes ranging from zero and seven percent. Therefore, even choosing a prep center located in a state with a sales tax that's two or three percent lower can make a difference to the cost of your services.
Climate
If you sell perishable goods, such as food, the first question you need to inquire of any prep service is whether their receiving and storage facilities are controlled by climate. It is not acceptable for your goods to get damaged simply because they weren't stored in the proper conditions. This doesn't just apply to perishable products. Controlling the temperature is crucial for those who ship goods to an extremely hot climate or a place with extremely variable weather. If conditions aren’t controlled properly your goods could deteriorate or become damp.
Storage Facility
Although FBA prep centers are FBA prep service's primary function is to prepare your inventory to be eligible for FBA sellers are increasingly turning to prep facilities to keep their inventory. It is because of two main reasons. The first is that it's less costly than storing all your inventory in Fulfillment Centers. Sellers maintain their inventory at their prep facility and then transfer the FBA inventory based on sales velocity. For example If a seller has 10,000 units in their prep facility and sells about 1,000 units per month, they will only send 1,000 units to FBA each year. The rest of their inventory remains at the center. Amazon's suspension is the second reason. The Fulfillment Center will hold your inventory until you get it removed. You'll have to pay per piece to get the item back. The item may take several weeks. The Plan of Action will require you or your prep center to check all inventory at FBA. In order to send the stock back into the FBA, you'll need to arrange for it to be transformed into a new package. The sellers attempt to cut back on the costs of this process by storing their inventory at the Prep Center, and sending in smaller amounts. If you plan to do this, make certain your prep firm is able to quickly and efficiently turn around the inventory. Find out for the insurance they offer. This is important since you want your inventory to be protected from theft or fire.
Processing Time
When selecting an FBA prep service, the speed at which they can prepare your inventory is crucial. There are many variables that could affect your requirement for speed. It is possible that you need to return units in 48 hours if you're keeping stock in the prep center and are sending it based on sales speed (see below). A lot of prep centers offer transparency on processing times, and also offer 24 to 48 hour timeframes for guarantee. If you do not see this information, do not hesitate to contact them. Don't want your late shipping rates to be affected by the prep service you use is taking too long to process your inventory into FBA. Check out the top rated Door to Door Delivery blog for details.
Inspection
It is important to inquire if your FBA prep agency conducts inspections is a good idea. It is important to keep in mind that FBA prep service cannot substitute factory inspections of products. However, they can complement them. Manufacturers won't inspect shipments in the way they should since rejecting stock costs them more. Imagine that your company performs an inspection prior to shipment. There are 10,000 units in your facility and they inspect 20 percent. There's a good chance your FBA prep team will find problems with your stock after going through it. Danny McMillan believes many manufacturers don’t pay attention to shipments because they know rejections will lead to more costs and lower margins. This makes it even more important to have your prep service examine your shipment.
In Summary
You could outsource FBA prep to help your business become more productive, but it may also slow your business. It is crucial to build an rapport with your preparation service. If they appear to be reticent when you inquire about their services, it could indicate that they're not the right choice. Contacting other vendors may be beneficial as well. This can help you learn about the prep services they utilize and the ones they avoid. When you're transferring your stock to someone, you must ensure it's secure.