Sales Taxes
If you purchase your products from online retailers located in the US (i.e. You may be obliged to pay sales tax if you purchase your items from online retailers located in the US (i.e. It is possible to cut costs through an online preparation center that is located in states where there is no sales tax or a lower rate. How? by shipping your goods straight to the prep center. You can ship your stock directly to the center if you are within one or more of the states that have no sales tax (Delaware Montana New Hampshire Oregon). The storage costs that they have to pay as they wait for additional inventory to arrive will be lower than the tax you have to pay in the state you reside in. Rememberthat the sales tax in the US can range between zero and just under seven percent. A prep center that is located in a state in which the sales tax is less than 2 or 3 percentage points could be a significant impact on your costs.
Climate
If you are selling perishable items such as food items, the first question you need to inquire of any prep service is whether their storage and receiving facilities are climate-controlled. You don't want your goods to become damaged simply because they were not kept in good working order. This applies to any food item that is perishable. Controlling the temperature is essential in the event that your inventory is headed to an unstable or hot state. If the weather isn't appropriately controlled, the items could be damaged or lose their value.
Storage Facility
FBA prep is responsible for getting your inventory ready for FBA. But more sellers are now using preparation centers to keep their inventory. It is because of two main reasons. The first reason is that it's cheaper than keeping all your inventory in a Fulfillment Center. Sellers store their inventory with their prep services and then transfer stock into FBA in accordance with the speed at which they sell. This means that a seller who sends 10,000 units to their prep center each month and sells around 1,000 units per month would only send 1,000 units to FBA each month. The prep center is where they store the remainder of their stock. Amazon's suspension philosophy is the third. If your stock is suspended, it is stuck in Amazon's Fulfillment Center. You'll have to pay per item to return it and it may not arrive for several weeks. As part of your Plan of Action, you (or your prep center) will have to inspect the inventory you had in FBA. In order to send the stock back into the FBA, you'll need to get it repackaged. Sellers are trying to cut down on the cost of this procedure by keeping their stock at the Prep Center, and sending in smaller quantities. If you choose this route, ensure your prep service can quickly turn inventory around. Make sure you inquire about their insurance. This is important because you want your stock to be protected from fire or theft.
Processing Time
It is crucial to think about the speed at which they prepare your inventory. There are a variety of factors that affect how fast you'll need your inventory to be prepared. If you have stock in the prep center and you are bringing it in on the basis of sales volume (see above), you will likely want them to deliver units within 48 hours. A lot of prep centers provide transparency about processing times and offer 24 to 48 hour timeframes for guarantees. It is best to inquire about the information you need if uncertain. This is because you don't want to have your late shipping rates caused by a prep service that takes too long getting your inventory in FBA. Have a look at the recommended Door to Door Delivery site for more.
Inspection
It's worth asking your FBA prep firm conducts inspections in addition to labeling and packaging. While this does not replace product inspections at your manufacturer’s factory, it may be added. Because shipments are rejected as unfit for inspection, manufacturers won't inspect them to the extent that they would like. Imagine that your manufacturer performs a preshipment inspection. Imagine you own 10,000 units and they check 20% of your goods. The FBA prep service could uncover other problems that your company didn't know about when they go through your stock. Danny McMillan believes many manufacturers don’t pay attention to shipping because they are aware that rejects can lead to increased costs and lower margins. This is why it's important that you have your preparation service check your shipment.
In Summary
Your business will run more smoothly if you outsource your FBA preparation. However, the wrong service could slow down your business even further. It is important to establish an rapport with your preparation service. If they appear disinterested when you ask questions, it may be an indication that they are not the right choice. You can also talk to other sellers. It's possible to learn about the prep services other sellers use and the ones they use. It is important to make sure that your possessions are secure whenever you transfer it to a different person.