Sales Taxes
If you purchase your products from online stores in the US (i.e. If you purchase goods on the internet (i.e. or through online arbitrage) it is possible that you will have to pay salestax. But, you can save money by enrolling in the services of a preschool in a state with no sales tax or at the lowest rate. How? By shipping your stock straight to the center for preparation. You can send your stock directly to the center if you are within one or more of the four states that have zero sales tax (Delaware Montana New Hampshire Oregon). The storage fees they pay while waiting for the arrival of more stock are likely to be less than the tax you pay in your home state. It is important to know that sales tax in US can range from zero to just above seven percent. So, even choosing an office in a state with sales tax which is less than two percent 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 storage and receiving facilities are controlled by climate. You don't want your items to spoil due to not being stored in the correct conditions. This doesn't just apply to 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 managed properly, your items might end up rotting or becoming damp.
Storage Facility
FBA prep services' main purpose is to prepare your inventory so that it can be delivered to FBA. But many sellers are turning to pre centers to store their inventory. There are two main reasons for sellers to do this. The first is that this is less costly than storing all your inventory in a Fulfillment Center. Sellers keep their inventory at their prep business and buy FBA depending on their sales rate. For example, if a seller has 10,000 units of inventory in their prep facility and sells around 1,000 units per month, they will only send 1,000 units to FBA every year. The rest of their inventory remains at the center. Another reason is Amazon's suspension system. If your inventory is suspended, it becomes trapped within Amazon's Fulfillment Center. It costs you each item returned. It may take several weeks to arrive. Your prep center or you are required to check the inventory you have stored in FBA as part of the Plan of Action. To send your stock back in, you will have to arrange for it to be packaged and repackaged. The sellers are trying to cut back on the cost of this process by storing their inventory at the Prep Center, and sending in smaller amounts. It is important to ensure that your prep company is capable of delivering inventory quickly and on a short notice if you decide to go this route. Find out about the insurance they offer. This is crucial since you want your inventory to be safe from fire or theft.
Processing Time
It is crucial to think about the speed at which they prepare your stock. There are many factors that can affect your need to be fast. If you've got stock in the prep center and you are bringing it in on the basis of sales volume (see above), you will likely need them to send units within 48 hours. Most prep firms are honest about their processing times. Some offer a 24-48 hour guarantee. If you don't find this information, you should ask, as you don't want your late delivery rate to suffer due to your prep service are slow in getting your goods into FBA. Check out the top Door to Door Delivery site for more.
Inspection
It is worth asking if your FBA prep company performs inspections, in addition to labeling and packaging. You should note that while this can't replace product inspections at the factory however, it could be used to supplement. Manufacturers don't inspect shipments that closely, because if stock is rejected, it will cost them more. Imagine your company performs an inspection prior to shipping. They examine 10,000 units and 20% of the goods. There's a good chance that when the FBA preparation service checks the inventory, they'll to find other issues that your company didn't notice. Danny McMillan believes that many manufacturers don't inspect their shipments in the way they should since it can increase the cost of shipping and reduce their margins. This is why the inspection carried out by your prep service more crucial.
In Summary
Your business can run efficiently if you outsource your FBA prep. However, the wrong choice could slow your business further. It is essential to build an enduring relationship with and trust the prep company. If they don't answer your questions, they could be an indication they are not right for you. Speaking to other sellers could also prove beneficial. Talking to other sellers can assist you in finding out what firms they prefer to use for their preparation and, most importantly what ones to stay clear of. When you're sending your precious inventory to someone else, you'll need to make sure your inventory is safe.