Sales Taxes
If you purchase your goods on the internet within the US (i.e. It is possible that you will be required to pay sales tax when you purchase your products from online stores in the US (i.e. If you use a prep center that is not subject to sales tax , or has a low rate of tax, you can save money. How? Deliver your goods directly to the pre-center. You can ship your stock directly to the prep center if it's located in one of the states that have no 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 be lower than the tax you pay in your home state. You should know that sales tax in US can vary between zero and seven percent. It is possible to save money by selecting the right prep center in a state with lower sales tax than the rest.
Climate
If you're selling perishable products (e.g. food items) the first question you should ask about any preparation service is whether they have climate-controlled storage and receiving facilities. It is not acceptable for your goods to become damaged due to the fact that they weren't stored in the right conditions. This is not just for perishable items. Climate control is essential when you ship your stock to a very hot state or a place with extremely unpredictable weather. If the conditions of the climate are not controlled properly, items can spoil or be affected with damp.
Storage Facility
While the main function of an FBA prep center is to get your inventory ready to be sent into FBA increasing numbers of sellers are using prep centers to store their inventory. Sellers are using prep centers for two principal reasons. The first is that it's less costly than storing all your inventory in Fulfillment Centers. Based on the speed of their sales sellers keep their inventory in their preparation center, and then move the stock to FBA. If a seller is sending 10,000 units to their prep center and selling about 1,000 units per month, they will only be able to send 1,000 units per month to FBA. The prep center will hold the remaining inventory. Amazon's suspension philosophy is the third. Your stock will be placed in the Fulfillment Center if it is suspended. If you want to return an item, you'll need to pay per item. It might not be delivered for a while. The Plan of Action will require your prep center or you to examine all inventory within FBA. Once you are reinstated, you'll have to get your stock repackaged. Selling agents are working to simplify this expensive process by delivering smaller amounts of stock to the Prep Center. This is an excellent alternative if you wish to get inventory turned quickly. Ask about their insurance. Your inventory must be protected from theft and fire.
Processing Time
A key factor in deciding on the best FBA preparation service is how quickly they can prepare your inventory. The speed you require will depend on many variables. For example, if your sales rate requires that you have stock on hand at the prep facility, you may expect them to have it ready in 48 hours. Many prep services offer transparency on processing times, and also offer 24-48-hour guarantees. If you aren't able to find this information, make sure you ask, as you don't want your late shipping rate to be harmed because the prep service is taking their sweet time getting your goods into FBA. Have a look at the best Door to Door Delivery website for details.
Inspection
Asking if your FBA preparation agency conducts inspections is a good idea. It is important to note that although it's not an alternative to inspections at the factory however, it could be used to supplement. Manufacturers don't inspect shipments that close, since if a product is rejected, they will be charged more. Imagine that your company performs an inspection prior to shipment. They inspect 10,000 units, and 20% of the items. Your FBA prep service will likely uncover other problems that your company didn't know about while they review your stock. Danny McMillan believes that manufacturers often don't check shipments too closely because they know that if stock is rejected by the manufacturer, it's likely to cost them more money and reduce their margins. Your prep service should be able to inspect your shipment.
In Summary
The outsourcing of your FBA prep could help make your business run smoothly , however choosing the wrong service can make things more difficult more.The main thing to remember is that you should not be afraid to ask questions - no matter how minor they might seem. You'll need to establish an enduring relationship with and trust your prep company. If they are unable to respond to your inquiries, it might be a sign that they're not the best choice for you. You can also talk to other sellers. It's possible to discover what prep services other sellers use and which ones they prefer. After all, when you're transferring your inventory to another person, you'll want to ensure that it's going to be safe.