Sales Taxes
Online retailers in the USA may allow you to source items (e.g. Online arbitrage might mean that you'll have tax obligations in the event that your items are purchased from US online retailers. However, you can reduce costs by choosing a pre-school in a state with no sales tax, or at the lowest rate. How? You can ship your stock directly to the center for preparation. If your stock is located situated in one of four states with no sales tax (Delaware Montana New Hampshire Oregon) the costs for storage they charge for waiting for additional inventory to arrive will be likely to be lower than the tax that you'd have to pay in your the state where you live. You should know that sales tax in the US can range between zero and seven percent. It doesn't matter if the sales tax is anywhere from two to three percent lower in your state, it can still make a significant difference to your cost.
Climate
If you are selling perishable items like food, the first question you must inquire of any prep service is whether their storage and receiving facilities are climate controlled. Your products shouldn't be damaged simply because they were not kept in the correct conditions. This doesn't only apply to perishable products. The control of temperature is essential if you're sending stock to a hot climate or one that is prone to extreme weather. If the climate isn't handled correctly your items could spoil or be damaged by damp.
Storage Facility
FBA prep services' main purpose is to prepare your inventory for be sent to FBA. But, more sellers are turning to pre centers to store their inventory. Sellers are turning to prep centers for two main reasons. The first reason is that it is cheaper than storing all your inventory in the Fulfillment Center. Based on the speed of their sales, sellers store their inventory at their prep center and then transfer stock to FBA. To simplify this in terms of volume, if a seller has to send 10,000 units into their preparation center and is selling about 1,000 units per month, they'll only be sending 1,000 units into FBA each month. The prep center is where they store the remainder of their stock. Amazon's suspension policy is the second reason. It is possible to have your stock suspended and it will remain in the Fulfillment Center. You'll have pay for each item to have it returned and it could not be delivered for several weeks. The Plan of Action will require the prep center to examine all inventory within FBA. If you want to return your stock into the FBA, you'll need to get it transformed into a new package. Sellers are trying to cut down on the costs of this procedure by keeping their stock in the Prep Center, and sending in smaller amounts. You must ensure that the prep service can be capable of delivering inventory in a hurry and on quick notice if you choose to utilize this method. It is also important to inquire about their insurance. Your inventory should be insured against fire and theft.
Processing Time
The speed at which your inventory will be prepared is a key aspect of choosing an FBA preparation company. Many factors can influence your need to be fast. You might need them to return your units within 48 hours in the event that you are holding stock at the prep center and are sending it based on sales velocity (see below). Many prep services have transparency regarding processing times, and also offer 24-48-hour guarantees. If you're unable to access this information, you can ask. The late shipping rate will not be affected if your preparation service is slow in getting your inventory into FBA. Have a look at the most popular Door to Door Delivery blog for more.
Inspection
It's worth asking if your FBA prep company inspects products as well as labeling and packing. You should note that while it's not a substitute for inspections of products at the factory but it can serve as a supplement. Manufacturers may not inspect their products as closely as they should because they are charged with the cost of rejecting the stock more. Imagine your company conducting an inspection before shipping. Imagine that you've got 10,000 units and they go through 20% of the goods. Your FBA prep service will likely uncover other problems that your supplier didn't see as they examine the inventory. Danny McMillan believes that most manufacturers do not examine their shipments attentively because they're aware that rejects can result in increased costs and decreases in margins. The prep service you use should examine the shipment.
In Summary
Outsourcing your FBA prep can make your business run more smoothly but choosing the wrong service can cause you to slow down more.The most important thing to keep in mind is that you shouldn't be scared to ask questions, no matter how minor they might seem. You'll have to develop a relationship with your prep provider If they're indifferent when you ask questions This is a clear sign that they might not be the best option. Speaking with other sellers is also a good idea. Discussion with other sellers can aid you in determining which prep companies they use and, perhaps most important the ones you should avoid. It is essential to ensure the safety of your precious inventory when you transfer it to someone else.