Sales Taxes
You may have to pay sales tax if you purchase goods on the internet from US sellers (i.e. You might be required to pay sales tax if you source your items from online stores in the US (i.e. If you use a pre-purchase center located in a state that has either no sales tax or a lower rate, you may save money. How? by delivering your inventory directly to the center for preparation. If the stock is in one of the states that don't have sales tax (Delaware Montana New Hampshire Oregon) Storage charges are likely to be lower than what you'd have to pay in your country of origin. Keep in mind that the US has sales taxes that range from zero and seven percent. Therefore, even choosing the right prep center in a state that has sales tax which is less than two percent could help lower the price.
Climate
If you are selling perishable items like food, the first question you need to inquire of any prep service is whether their receiving and storage facilities are controlled by climate. Your products shouldn't be damaged simply because they weren't kept in the correct conditions. This isn't just a matter of perishable products. Climate control is important when you're shipping stock to a hot climate or one that is prone to extreme weather. If weather conditions aren't controlled properly, your items might be damaged or get damp.
Storage Facility
FBA prep centers' primary function is to help you prepare your inventory for be shipped into FBA. But many sellers are turning to prep centres to store inventory. There are two main reasons why sellers are doing this. First, it is cheaper than having all your inventory kept at Fulfillment Centers. Sellers their inventory in their prep service and send inventory to FBA in accordance with their sales velocity. Let's say a seller sells 1,000 units per month, and then sends 10,000 units to the prep centre. They'll only send 1,000 units to FBA each month. The rest of their inventory remains in the center. Amazon's suspension policy is the third reason. The Fulfillment Center will hold your stock until you have it removed. If you want to return the item it will be necessary to pay for each item, and it might not arrive for a few weeks. You or your prep center will be required to inspect any inventory that was in FBA in the Plan of Action. Once you are reinstated, your stock needs to be repackaged and labeled prior to when you can return it. It is an expensive processthat sellers attempt to minimize by keeping their stock in a Prep Center and submitting smaller quantities. If you're considering this approach, make sure your prep company will be able to replenish inventory quickly and on short notice. You also need to inquire about their insurance policies - you'll want your inventory to be secure from theft or fire when they hold it!
Processing Time
A key factor in selecting the best FBA preparation service is how fast they are able to prepare your inventory. There are a variety of factors that can impact your need 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 on the basis of sales velocity (see below). Prep services generally provide upfront processing times and may even provide a 24- or 48 hour assurance. If you're unable to find the information provided, please inquire. Your late shipment rate won't be affected if your preparation service takes too long getting your inventory in FBA. See the top rated Door to Door Delivery blog for details.
Inspection
Alongside labeling and packaging, it's important to inquire if the FBA prep service carries out inspections. Although it isn't meant to replace inspections of your product at the manufacturer's factory, it could be supplemented. Manufacturers don't inspect their shipments in detail because it could lead to stock rejections that result in higher costs. Imagine that your manufacturer does an inspection prior to shipment. Imagine you own 10,000 units, and they inspect 20% of the goods. There's a good possibility that the FBA prep service will uncover issues with your inventory which your manufacturer didn't. Danny McMillan believes that many manufacturers fail to inspect their products more closely than they ought to because it will increase the cost of shipping and decrease their margins. Your prep service should inspect the shipment.
In Summary
You can outsource FBA preparation to make your business more productive, however it can also slow down your business. It is essential to establish a rapport with your prep service. If they appear to be reticent when you ask them questions, it could indicate that they're not the right choice. It can be helpful to talk with other sellers. You'll be able to find out which prep companies they employ and, more important the ones you should avoid. It is crucial to safeguard your precious inventory when you transfer it to someone else.