Sales Taxes
The US-based online stores may permit you to source goods (e.g. online arbitrage) you might have to pay sales tax. However, by choosing a prep center located in a state that has either no sales tax or with a lower rate, you may save cash. How? Deliver your goods directly to the pre-center. If the location is one of the four states that have no sales tax (Delaware, Montana, New Hampshire, Oregon), storage charges incurred as they wait for the next shipment to arrive will likely be lower than what you'd pay in your state of residence. Rememberthat the sales tax in the US ranges from zero to seven percent. It doesn't matter if the sales tax is two to three percent less in your state, it will be significant to your cost.
Climate
If you're selling perishable products (e.g. food) the first question to ask any prep services is whether they've got temperature-controlled storage facilities and facilities for receiving are. You don't want your products to get damaged because they weren't stored in good conditions. This is true for any food item that is perishable. If you're sending goods to a hot climate or a country with extreme weather fluctuations controlling the climate is just as crucial. If the conditions of the climate are not properly controlled, items can spoil or be affected by damp.
Storage Facility
FBA preparation is the primary responsibility to prepare your inventory for FBA. But more sellers are currently using prep centers to store their inventory. This is due to two factors. One reason is that it is less costly than storing all your inventory in the Fulfillment Center. According to their sales velocity sellers keep their inventory at their prep center and then transfer stock to FBA. For example, if a seller is able to sell 1,000 units per month and then sends 10,000 units to the prep centre. They will send only 1,000 units to FBA every month. The remainder of the inventory will be kept in the prep center. Amazon's suspension policy is the third reason. If your inventory is suspended, it becomes locked in Amazon's Fulfillment Center. It costs you per item to return it and can take several weeks for it to reach you. Your prep center or you will be required to examine the inventory placed in FBA as part of the Plan of Action. If you are reinstated, you'll then have to have your stock cleaned and labeled to send it back in. This is a very expensive process that sellers want to minimize by having their stock stored in the Prep Center and sending smaller quantities. If you are going to do this be sure that your preparation firm is able to quickly and efficiently transform stock. Inquire about their insurance. Stocks should be protected from fire and theft.
Processing Time
A key factor in selecting an FBA prep service is the speed at which they will prepare your inventory. There are many variables that affect how fast you'll need your inventory be ready. For example, if your sales speed requires you to have stock on hand at the prep center, you might expect them to get it ready within 48 hours. Most prep companies have transparency regarding processing times, and also offer 24-48-hour guarantees. If this information is not available, it is best to inquire. As you don’t wish for your late delivery rate to drop due to the fact that your prep service has to wait so long to receive your inventory to FBA, you need to make sure that you have the information. See the top Door to Door Delivery site for details.
Inspection
Alongside labeling and packaging it's important to inquire if your FBA prep service carries out inspections. It's not an alternative to inspections of the product at the manufacturer's factory. However, it may complement these. Because shipments are rejected as unfit for inspection, manufacturers won't examine them in a way that is too thorough. Imagine that your manufacturer performs preshipment inspections. Your company inspects 10,000 units. They also examine 20% of the items. The FBA prep service will likely find other issues that your manufacturer didn't notice when they go through your inventory. Danny McMillan believes that many manufacturers fail to inspect their products more closely than they ought to due to the fact that it increases the costs of shipping and lower their margins. This makes the inspection carried out by your prep service more crucial.
In Summary
Although outsourcing your FBA prep can help your company run more smoothly, it can also result in issues for your business. In order to build relationships, you will need to get to know the prep company. If they are unable to answer questions, it's a sign that they may not be the best option for you. It is helpful to talk with other sellers. It is possible to learn about the prep services other sellers use and which ones they prefer. You must ensure that your inventory is safe whenever you transfer it to another person.