Sales Taxes
If you source your goods from online retailers located in 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. You can however save money by using a pre-school in a state with no sales tax or with an affordable rate. How? Send your stock straight to the pre-center. If your inventory isn't exempt from sales tax in any of the four states in America (Delaware Montana New Hampshire Oregon) the storage charges which are charged as you wait for additional inventory to arrive in your state will be less than the taxes you'd need to pay. Taxes on sales in the US is between zero and less than seven percent. So, even choosing an office located in a state with a sales tax that's just two or three percent less can make a difference to the cost of your services.
Climate
If you sell perishable items, such as food or drinks, the very first thing you need to inquire of any prep business is whether their receiving/storage facilities are climate-controlled. It is not acceptable for your items to get damaged simply because they were not stored in the proper conditions. This doesn't only apply to perishable goods. Controlling the temperature is crucial when you're shipping stock to a hot region or one with very variable weather. If climate conditions aren't managed properly the items could spoil or turn damp.
Storage Facility
Although the FBA prep service's primary task is to prepare your inventory to be eligible for FBA Sellers are increasingly turning to prep facilities to keep their inventory. The two primary reasons sellers utilize prep centers are to understand why. It can be more affordable than storing all your inventory in Fulfillment Centers. According to sellers' sales velocity, they store their inventory in their prep service and then send it into FBA. Let's say that a seller sells 1,000 units per month and then sends 10,000 units to the prep centre. They'll only send 1,000 units to FBA every month. The prep center will store the remaining inventory. Amazon's suspension culture is the second reason. If you are suspended, your stock essentially becomes locked within the Fulfillment Center. If you want to return an item, you'll have to pay per item. The item may not be available for a while. In your Plan of Action, you (or your prep center) must examine the inventory you received from FBA. It is then your responsibility to have your inventory returned to FBA, repackaged, labeled and sent back to FBA once you have been reinstated. This is a very costly process that sellers wish to reduce by keeping their stock at the Prep Center and sending smaller quantities. If you decide to go this route, ensure your prep service is able to quickly change the inventory. Make sure you inquire for their insurance. This is essential as you'll want your items to be protected from theft or fire.
Processing Time
When choosing an FBA prep service, the speed they are able to prepare your inventory is key. The need for speed will be contingent on a variety of variables. It could be necessary to return your units within 48 hours if you're waiting for stock to be received at the prep center and are sending it on the basis of sales speed (see below). The majority of prep centers are upfront with their processing times and provide a 24- or 48 hour assurance. If you do not see this information, please ask. It is not a good idea to have your late shipping rates to be affected by your prep service takes too long to bring your inventory in FBA. Have a look at the most popular Door to Door Delivery website for details.
Inspection
Inquiring about whether your FBA prep agency has inspections in place is a great idea. Important to remember that FBA prep service cannot substitute factory inspections of products. However, they can assist them. Manufacturers won't inspect shipments more closely than they ought to because reject stock costs them more. Imagine your company is performing preshipment inspections. You've got 10,000 units, and they examine 20% of the items. The FBA prep company will likely find other problems in your stock. Danny McMillan believes that many manufacturers don't inspect their shipments in the way they should since it can increase the cost of shipping and reduce their margins. Your prep service should inspect your shipment.
In Summary
While outsourcing your FBA prep can help your business run more smoothly it could also create problems for your business. You'll need to build relationships with your prep service If they're dismissive when you ask questions it's an early warning that they might not be the right choice. Chatting with other sellers may also prove useful. It will help you know about the preparation services that they use and the ones they stay clear of. Because you don't want your stock to be wasted it's important to ensure its safety.