Sales Taxes
If you purchase goods online within the US (i.e. If you purchase goods on the internet (i.e. or through online arbitrage), you might be required to pay sales tax. But by using a prep center in a state where there is either zero sales tax or a low rate, you could save the money. How? Send your stock straight to the center. If your inventory is in one the four states that don't have sales tax (Delaware Montana New Hampshire Oregon), storage fees will likely be less than what you would have to pay in your country of origin. Taxes on sales in the US is between zero and less than seven percent. You can save money by choosing an office located in a state that is subject to lower sales taxes than the rest.
Climate
If you're selling perishable items (e.g. food) the first question you should ask about any preparation services is whether they've got facilities for receiving and storage are climate-controlled. Your products shouldn't be damaged simply because they weren't kept in the correct conditions. This isn't just for perishable products. The control of temperature is essential when you're shipping stock to a hot climate or one with very variable weather. If climate conditions aren't managed properly your goods could deteriorate or turn damp.
Storage Facility
While FBA prep centers are FBA prep service's primary function is to help you prepare your inventory to be ready for FBA, sellers are increasingly turning to prep facilities to keep their inventory. This is due to two main reasons. One reason is that it can be less expensive than keeping all your inventory in an Fulfillment Center. Sellers keep their inventory in their prep facility and then ship FBA stock based on sales velocity. To break this down into a simpler way, if a seller is sending 10,000 units into their prep center and is selling about 1,000 units per month, they'll send 1,000 units to FBA each month. The center's prep will keep all the remaining stock. The second reason for this is Amazon's suspension culture. If you are suspended, your stock essentially becomes trapped within the Fulfillment Center. The customer will be required to pay for each piece in order to have the item returned. The item may not arrive for a few weeks. You (or your prep centre) must inspect your FBA inventory as part of your Plan of Action. Then, you'll need to get your inventory packed, labeled, and shipped back to FBA once you have been reinstated. This is a very expensive process that sellers wish to minimize by having their stock stored in the Prep Center and sending smaller quantities. If you choose this route, ensure your prep service will quickly change inventory. Ask about their insurance. Your inventory must be protected against theft and fire.
Processing Time
The speed with the rate they prepare your inventory is a crucial aspect to consider when selecting an FBA preparation service. There are a variety of factors that affect how fast you'll need your inventory to be ready. For instance, if keeping stock in the prep center, and then sending it in based on the speed of sales (see above) you'll likely want them to finish the process within no more than 48 hours. Most prep companies have transparency regarding processing times and provide 24-48-hour assurances. If you're unable to see this information, ask. Your late shipment rate will not be affected if your prep service is slow in getting your inventory into FBA. Check out the most popular Door to Door Delivery blog for details.
Inspection
You should also inquire about whether or not the FBA prep service is able to conduct inspections. It is important to note that although this can't replace product inspections at the manufacturer, it can be used as a supplement. Manufacturers do not inspect shipments in detail because it could lead to stock rejections that can cost them more. Imagine your company is performing a preshipment inspection. There are 10,000 units in your warehouse and they check 20% of your goods. The FBA prep firm is likely to find additional issues in your inventory. Danny McMillan believes manufacturers don't always inspect shipments closely enough since they are aware that rejecting stock can cost them more and reduce their margins. This is why the inspection carried out by your prep service even more important.
In Summary
Your business can run efficiently if you outsource your FBA prep. However, the wrong choice could slow your business further. To build a relationship with your prep service, you must learn about the prep company. If they dismissively answer questions, that is a sign that they may not be the best choice for you. Talking with sellers from other companies is an excellent idea. It is possible to find out what preparation services they're using and, most importantly, if there are any issues to be aware of. It is crucial to safeguard your valuable inventory when you send it to someone else.