Sales Taxes
The US-based online stores might allow you to source items (e.g. If you purchase goods online (i.e., through online arbitrage) You may have to pay salestax. You can save money by using a prep centre in a state that has no sales tax or low rates. How? Sending your inventory directly to the processing center. If your stock is located in one the four states that do not have sales tax (Delaware Montana New Hampshire Oregon) Storage charges are likely to be lower than what you'd pay in your home country. Rememberthat the sales tax in the US ranges between zero and just under seven percent. It is possible to save money by selecting a prep centre in a state that has a lower sales tax than the rest.
Climate
You should ask your prep service if the temperature control can be used for perishable products such as food. You don't want your goods to become rotten because they were not stored in the proper conditions. This doesn't only apply to perishable items. The control of temperature is essential if you're sending stock to a hot region or one with very variable weather. If the weather conditions aren't managed appropriately, your products could spoil or become damp.
Storage Facility
FBA prep services' primary purpose is to prepare your inventory for be sent to FBA. But increasing numbers of sellers are turning to pre centres to store their inventory. Two main reasons sellers use prep centers are the reason. It can be more affordable than storing your entire inventory at Fulfillment Centers. Based on their sales speed, sellers store their inventory in their preparation center and then transfer stock to FBA. For instance that if a seller owns 10,000 units in their prep center and sells about 1,000 units per month, they will only send 1,000 units to FBA every year. The prep center will hold the remaining stock. Amazon's suspension culture is the second reason. If you get suspended your inventory is basically locked within the Fulfillment Center. You're going to have to pay per item in order to return it and it could not be delivered for a couple of weeks. Your Plan of Action will require you or your prep center to check all inventory at FBA. To send your stock back into the FBA, you'll need to get it packaged and repackaged. Selling agents try to make this a less expensive process by delivering smaller amounts of stock to the Prep Center. If you opt for this method, ensure your prep service will quickly change inventory. It's also crucial to ask whether they have insurance. Your stock should be covered against theft and fire.
Processing Time
A key factor in selecting the best FBA preparation service is how fast they can prepare your inventory. There are many variables which determine the speed at which you'll need your inventory be ready. For instance, if you're holding stock at the prep center, and then sending it to the center based on sales velocity (see above) you'll probably want the center to process your orders within no more than 48 hours. Prep services usually provide an estimate upfront of their processing times, and some may offer a 24or 48-hour guarantee. It is best to inquire about this information if you are uncertain. This is due to the fact that you don't want to have your late shipping rates caused by a prep service that takes too long getting your inventory in FBA. Have a look at the top rated Door to Door Delivery blog for info.
Inspection
You should also inquire about whether or not the FBA prep service is able to conduct inspections. It is important to note that this does not replace the product inspections that your manufacturer has at its factory, but can be used to supplement the inspections. Because the shipments aren't accepted as unfit for inspection, manufacturers won't scrutinize them in a way that is too thorough. Imagine that your manufacturer does an inspection prior to shipment. The manufacturer checks 10,000 units. They also inspect 20% of the items. There's a high chance that when the FBA preparation service checks the inventory, they'll discover other issues that your manufacturing company missed. Danny McMillan believes manufacturers don't always inspect shipments closely enough since they are aware that rejecting the stock will result in more costs and lower their margins. This is why it's important to have your prep service check your shipment.
In Summary
Although outsourcing FBA preparation can make your business more efficient, you should not be afraid to ask any questions, no matter how small. In order to build relationships, you will need to become familiar with your prep service. If they are unable to answer questions, it's a sign that they may not be the best choice for you. Contacting other vendors may be beneficial as well. Talking to other sellers can assist you in finding out what firms they prefer to use for their preparation and, perhaps most important, which ones to avoid. You must ensure that your possessions are secure whenever you transfer it to someone else.