Sales Taxes
If you buy your products online in the US (i.e. Online arbitrage may mean that you'll have to pay sales taxes when you purchase your products from online stores in the US. You can reduce costs by using the services of a prep center in a state with no sales tax or has low rates. How? Send your stock straight to the center. If your product isn't subject to sales tax in any of the US states (Delaware Montana New Hampshire Oregon), then storage fees which are charged as you wait for additional stock to be delivered to the state you reside in will be less than what you would have to pay. Keep in mind that the US has sales taxes that range from zero and seven percent. A prep center located in a state where the sales tax is less than two or three percentage points can have a dramatic impact on the cost of your services.
Climate
If you're selling perishable items (e.g. food) the first question you should ask about any preparation service is whether they have facilities for receiving and storage are climate-controlled. You do not want your goods ruined simply because they weren't kept in good conditions. This isn't limited to perishable items. Controlling the climate is equally crucial when you're shipping stock to extreme hot states or states with highly variable weather. If the weather conditions are not properly controlled, items can spoil or be affected with damp.
Storage Facility
FBA prep centers' primary role is to prepare your inventory for be shipped into FBA. However many sellers are turning to pre centers to store their inventory. The two primary reasons sellers utilize prep centers are why. The first is that it's less costly than stocking all your inventory at Fulfillment Centers. Sellers store their inventory through their prep company and then replenish their stock of FBA in accordance with their sales velocity. This implies that a seller who sends 10,000 units to their prep center every month and sells about 1,000 units per month would only be able to send 1,000 units to FBA every month. The rest of the 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. You will have to pay per piece to get the item back. The item might take some time. You or your prep center will be required to examine the inventory in FBA in the Plan of Action. In order to send the stock back into the FBA, you'll need to arrange for it to be packaged and repackaged. Altogether this is expensive and costly. Sellers try to reduce by keeping their stock at a the Prep Center and sending in stock in smaller quantities. If you are going to follow this route be sure that your preparation company can quickly and efficiently change the inventory. Also, inquire regarding their insurance. Your inventory should be protected from theft or fire as they keep it.
Processing Time
When choosing an FBA prep service, the speed at which they can prep your inventory is key. Numerous factors could influence the need for speed. If you have stock at the prep facility and you're transferring it on the basis of sales volume (see above) it is likely that you want them to deliver units in 48 hours. Prep services usually provide an upfront estimate of processing times, while some may offer a 24or 48-hour guarantee. If you don't have this information available, it is best to inquire. Since you don't want your late shipment rate to decrease because the prep company takes so long to get your inventory into FBA You must make sure that you are able to access it. Have a look at the best Door to Door Delivery website for details.
Inspection
Alongside labeling and packaging it's important to inquire if your FBA prep service carries out inspections. It's not an alternative to product inspections at the factory of the manufacturer. But, it can complement them. Since shipments are often rejected as unfit for inspection, manufacturers won't examine them too closely. Imagine your company conducting a preshipment inspection. There are 10,000 units in your factory and they're inspecting 20 percent. The FBA prep service will likely find other issues that your company didn't know about while they review the inventory. Danny McMillan believes manufacturers don't always inspect shipments closely enough because they realize that rejecting stock will result in more costs and lower their margins. This makes the inspection of your prep service even more vital.
In Summary
Your business can run more smoothly if you outsource your FBA preparation. But, choosing the incorrect service can slow your business even further. It is essential to build the trust of the prep company. If they don't respond to your inquiries, it could be a sign they're not the right fit for you. Speaking with other sellers is a good idea. You will be able to identify the prep services they utilize and, more important is, which ones to stay clear of. When you're sending your precious inventory to another person, you'll want to ensure your inventory is safe.