Sales Taxes
If you buy your products online within the US (i.e. You might be required to pay sales tax if you source your items from online retailers in the United States (i.e. You can however save money by enrolling in a pre-school in a state without sales tax, or at a low rate. How? How? By transferring your stock straight from the factory to the pre center. If your inventory isn't exempt from sales tax in one of the US states (Delaware Montana New Hampshire Oregon), then storage fees that you pay while you wait for more inventory to arrive in the state you reside in will be less than the amount you'd have to pay. Sales tax rates in the US can vary between zero and seven percent. A two or three percent decrease in sales tax can make a a big difference in the total cost of your purchase.
Climate
If you are selling perishable items such as food items, the first question you need to ask any prep company is whether their receiving and storage facilities are climate controlled. You don't want your goods to go bad because they were not stored in the right conditions. This does not apply to perishable items. The control of temperature is crucial if your stock is going to unsteady or hot conditions. If the conditions of the climate are not controlled properly products can get damaged or be affected with damp.
Storage Facility
The primary function of an FBA prep service is getting your inventory ready for submission to FBA More and more sellers are turning to prep centres to keep their inventory. They do this because of two main reasons. The first is that this could be cheaper than keeping all your inventory in the Fulfillment Center. So, sellers store store their inventory with their prep service and send stock into FBA in accordance with their sales speed. To put it into perspective into a simpler way, if a seller is sending 10,000 units into their prep center and is selling around 1,000 units per month, they'll send 1,000 units into FBA each month. The prep center is where they store the remaining stock. Another reason is Amazon's suspension culture. Your inventory will be put within the Fulfillment Center if it is suspended. In order to get the item back you must pay for each item, and it might not arrive for a while. Your prep center or you will be required to examine any inventory that was placed in FBA as part of your Plan of Action. Once you are reinstated, your inventory needs to be labeled and repackaged before you can send it back. This is a very expensive process that sellers wish to cut down on by storing their inventory in the Prep Center and sending smaller quantities. You should ensure that your prep company is capable of delivering inventory in a hurry and on short notice if you decide to use this method. Also, ask regarding their insurance. You want your stock safe from fire or theft as they keep it.
Processing Time
One of the most important factors to consider when selecting the best FBA preparation service is the speed at which they are able to make your inventory. There are many factors which determine the speed at which you'll need your inventory be prepared. For instance, if you're holding stock at the prep center, and then sending it to the center based on the rate of sales (see above) you'll probably want them to finish the process in no more than 48 hours. Many prep services have transparency regarding processing times, and also offer 24-48-hour guarantee. If you don't find this information, make sure you ask, as you don't want your shipping rate to be harmed because the prep service is slow in getting your items into FBA. Check out the top Door to Door Delivery blog for info.
Inspection
It is worth asking if your FBA prep firm inspects products as well as labeling and packing. Important to remember that FBA prep services can't replace factory inspections. However, they could complement them. Manufacturers may not inspect their products in the way they should since rejecting stock costs them more. Imagine your company performing an inspection before shipping. There are 10,000 units in your facility and they're able to inspect 20 percent. There's a high possibility that when your FBA preparation service checks the inventory, they'll be able to pick up other problems that your manufacturing company missed. Danny McMillan believes that manufacturers often don't check shipments too close because they're aware that if stock is rejected by the manufacturer, it's likely to cost them more and cut into their profit margin. Your prep service should inspect your shipment.
In Summary
Although outsourcing your FBA preparations can help you make sure your business run more smoothly, it can also cause problems for your business. 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. Contacting other vendors may also prove useful. It will help you determine which prep services they use and, even more crucially the ones you should be avoiding. It is important to make sure that your possessions are secure whenever you transfer it to someone else.