Sales Taxes
Online retailers in the USA may allow you to source products (e.g. There may be sales taxes due to internet arbitrage. However, you can save money by using the services of a preschool in a state that does not have sales tax or at a low rate. How? You can ship your goods directly to the preparation center. You can send your stock directly to the prep center if you are in one or more of the states that are tax-free or have zero sales tax (Delaware Montana New Hampshire Oregon). The storage fees that they have to pay as they wait for the arrival of more stock will likely be lower than the tax you pay in the home state. It is important to know that sales tax in US is anywhere from zero to just above seven percent. It doesn't matter if the sales tax is two to three percent lower in your state, it can still make a significant difference in your expenses.
Climate
If you're selling perishable goods like food or beverages, the first thing you should inquire of any prep business is whether their warehouses and receiving facilities are climate-controlled. You do not want your items to go bad because they were not kept in the right conditions. This isn't just for perishable products. If you are sending stock to a hot climate or a state that has very changeable weather controlling the climate is equally important. If the weather conditions aren't managed properly, your items might spoil or become damp.
Storage Facility
FBA preparation services are responsible for preparing your inventory for FBA. However these centers are becoming more and more popular for sellers who want to store their inventory. These sellers do this for two main reasons. The first is that it is cheaper than storing all your inventory at the Fulfillment Center. Based on their sales speed the sellers keep their inventory at their prep center and then transfer stock to FBA. To put it into perspective, if a seller sends 10,000 units into their prep center and is selling around 1,000 units per month, they'll send 1,000 units into FBA each month. The prep center will hold the rest of the stock. The second reason is Amazon's suspension culture. If you get suspended your stock is essentially trapped in the Fulfillment Center. If you want to return an item, you'll have to pay for each item. The item may not be available for a while. You (or your prep center) must examine the contents of your FBA inventory in the Plan of Action. You will then need to get your stock repackaged, labeled and shipped back to FBA after you get reinstated. The sellers are trying to cut down on the costs of this process by keeping their inventory at the Prep Center, and sending in smaller amounts. If you plan to follow this route ensure that your prep business is able to swiftly and effectively change stock. It is also important to ask about their insurance coverage - you'll need your inventory to be protected against fire or theft while they are holding it!
Processing Time
One of the most important factors to consider when deciding on the FBA prep service is how quickly they are able to prepare your inventory. There are many factors that will affect the speed you require. If you store stock in the center for pre-production and ship it out according to sales volume (see above) Then you'll want them not to take longer than 48 hours to turn your units around. Most prep companies offer transparency on processing times and offer 24 to 48 hour timeframes for guarantees. If you can't see this information, be sure to make a request, because you don't want your late delivery rate to suffer due to your prep service are taking their sweet time getting your goods to FBA. See the most popular Door to Door Delivery website for info.
Inspection
In addition to labeling and packaging, it's important to inquire if the FBA prep service carries out inspections. It's not an alternative to inspections of the product at the factory of the manufacturer. However, it may complement the inspections. Because the shipments aren't accepted and rejected by manufacturers, they don't want to inspect them in a way that is too thorough. Imagine your company is performing preshipment inspections. You've got 10,000 units, and they examine 20% of your goods. The FBA prep firm is likely to find other problems in your stock. 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 it's important that you have your preparation service examine your shipment.
In Summary
You can outsource FBA prep to help your business become more productive, but it may also slow your business. It is important to establish an rapport with your prep service. If they appear disinterested when you ask questions this may be an indication that they are not the best choice. Chatting with sellers from other companies is also an excellent idea. You can find out which prep services they are using and, more importantly whether there are any issues to stay clear of. When you're transferring your inventory to someone, you must ensure it's secure.