Sales Taxes
You can source your goods on the internet from US merchants (i.e. online arbitrage) you may have to pay sales tax. It is possible to cut costs with an online prep center in a state where there is no sales tax or a low-rate. How? How? By sending your inventory directly from the manufacturer to the preparation center. If your stock is not subject to sales tax in any of the US states (Delaware Montana New Hampshire Oregon), then storage fees that you pay while you wait for more inventory to arrive in your state will be less than the taxes you'd need to pay. The sales tax in the US is between zero and less than seven percent. A prep center located in a state in which the sales tax is reduced by two or three percentage points could be a significant impact on your expenses.
Climate
If you sell perishable goods such as food items The first question you need to ask any prep company is whether their receiving and storage facilities are climate-controlled. It isn't a good idea for your products to become rotten due to not being stored in the proper conditions. This does not apply to perishable goods. Controlling the temperature is crucial for those who ship goods to an extremely hot climate or a state with extremely fluctuating weather. If the weather conditions aren't controlled properly, your items might end up rotting or becoming damp.
Storage Facility
FBA preparation services are responsible for preparing your inventory to go into FBA. However these centres are getting more and more popular among sellers to store their inventory. Sellers are choosing prep centers for two principal reasons. One reason is that it can be less expensive than storing your entire inventory in a Fulfillment Center. Sellers keep their inventory at their prep business and buy FBA depending on their sales speed. Let's say that a seller sells 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 prep center is where they store the remaining inventory. Amazon's suspension strategy is the second. The Fulfillment Center will hold your stock until you have it removed. If you want to return an item, you'll have to pay for each item. It may not arrive for a while. Your Plan of Action will require inspection of the FBA inventory. When you've been reinstated, you'll have to get your stock repackaged. This is a costly process that sellers want to reduce by storing their inventory at the Prep Center and sending smaller quantities. If you plan to take this approach be sure that your preparation company can quickly and efficiently change inventory. Also, ask regarding their insurance. Your stock should be secured from fire or theft when they store it.
Processing Time
A key factor in choosing the best FBA preparation service is how quickly they are able to prepare your inventory. Many factors can influence the need for speed. For instance, if you're keeping stock in the prep center, and then sending it in on the basis of the rate of sales (see above) you'll likely want them to finish the process in no more than 48 hours. Prep centers typically provide an upfront estimate of their processing times, while they may also offer a 24- or 48-hour guarantee. If the information you require isn't readily available, ask. If you don't want your late shipment rate to decrease because the prep company takes so long to get your inventory in FBA You must ensure that you are able to access it. Check out the most popular Door to Door Delivery blog for info.
Inspection
It's worth asking if your FBA prep company inspects products in addition to labeling and packaging. It is important to keep in mind that FBA prep services can't substitute factory inspections of products. However, they can complement them. Manufacturers do not inspect their shipments as closely, because if stock is rejected it costs them more. Imagine your company conducts a pre-shipment inspection. They check 10,000 units, and 20% of the products. Your FBA preparation service is likely to uncover other problems that your company didn't know about while they review your stock. Danny McMillan believes many manufacturers aren't paying attention to the shipping because they are aware that rejections will lead to more cost and less profit. The inspections conducted by your company's prep team more crucial.
In Summary
Although outsourcing FBA preparation could help your business run more efficiently however, you shouldn't be afraid to ask any concerns, no matter how small. Your prep company will need to develop an association with you. If they do not respond when you ask questions it is a sign they might not be the best fit for you. Talking to other sellers can also prove useful. You will be able to find out which prep companies they employ and, more crucially, which ones you should avoid. If you're sending your inventory to someone else, you must ensure it's safe.