Sales Taxes
Online retailers in the USA may allow you to source items (e.g. there could be sales tax due to internet arbitrage. It is possible to save money by using an office in a state with no sales tax, or with low rates. How? You can send your inventory directly to the prep centre. If the stock is in one of the states without sales tax (Delaware Montana New Hampshire Oregon), storage fees are likely to be lower than what you would have to pay in your country of origin. Be aware that sales tax in the US can vary from zero to just above seven percent. A two or three percent drop in sales tax can make a a big difference in the overall cost.
Climate
If you're selling perishable products like food the first thing you should ask any prep service is whether their storage and receiving facilities are climate controlled. The goods you sell should not be damaged because they were not kept in the proper conditions. This isn't just a matter of perishable products. The control of temperature is essential for those who are shipping goods to a hot region or one with very variable weather. If the conditions aren't managed properly, your goods could get damaged or get damaged by damp.
Storage Facility
FBA prep services are primarily responsible to prepare your inventory to go into FBA. However the prep centers are becoming more and more popular for sellers who want to keep their inventory. There are two major reasons for sellers to do this. It is less expensive than storing all your inventory in Fulfillment Centers. So, sellers store store their inventory with their prep service and then send stock into FBA according to their sales velocity. For instance that if a seller owns 10,000 units stored in their prep facility and sells about 1,000 units per month the seller will only be sending 1,000 units to FBA each year. The prep center will store the remaining inventory. Amazon's suspension policy is the second reason. It is possible to have your stock suspended, and it will stay in the Fulfillment Center. You'll have to pay per item to return it and it may not arrive for a few weeks. The Plan of Action will require you to review the FBA inventory. When you get reinstated, you'll then have to get your stock packaged and labeled to be able to ship it back. Selling agents are trying to make this a less expensive process by sending smaller quantities of stock to the Prep Center. If you decide to take this approach ensure that your prep business is able to swiftly and effectively change stock. Find out about the insurance they offer. This is crucial because you want your stock to be secure from fire or theft.
Processing Time
When selecting an FBA prep service, the speed at which they can prep your inventory is vital. There are many factors which can affect your need for speed. For instance, if keeping stock in the prep center, and then sending it in based on the speed of sales (see earlier) you'll probably need them to turn around units in less than 48 hours. Many prep companies are transparent regarding their timeframes for processing. Some offer an assurance of 24 hours. If you don't have this information readily available, ask. As you don’t wish for your late delivery rate to decrease due to the fact that your prep service is taking so long to process your inventory in FBA, you need to make sure that you have the information. Have a look at the top Door to Door Delivery blog for details.
Inspection
In addition to labeling and packaging, it's important to inquire if the FBA prep service also conducts inspections. It's important to know that this does not replace product inspections at your manufacturer's factory, but it could be used in conjunction with these. Manufacturers are not required by law to examine shipments because they can be liable for more losses if inventory is returned. Imagine that your manufacturer does a pre-shipment inspection. Imagine you own 10,000 units, and that they inspect 20% of the goods. There's a high chance that the FBA preparation services will find problems in your stock which your manufacturer didn't. Danny McMillan believes that most manufacturers do not examine their shipments attentively because they're aware that rejects can result in more costs and less margins. The inspections conducted by your company's prep team more crucial.
In Summary
The outsourcing of your FBA prep can make your business run more smoothly , however choosing the wrong one could slow you down even more.The main thing to remember is that you shouldn't be intimidated to ask questions - no matter how minor they appear. It is important to establish an rapport with your preparation service. If they seem dismissive when you ask questions or concerns, it could be a sign that they are not the right choice for you. Speaking with other sellers is also an option. It's possible to learn about the preparation services they use and which ones they prefer. It is essential to ensure the safety of your inventory, especially if you are sending it to another person.