Sales Taxes
If you buy your goods from online retailers located in the US (i.e. It is possible that you will be legally required to pay sales tax when you purchase your goods from online stores in the United States (i.e. You can save money by using an online prep center located in the state that has no sales tax or a low-rate. How? You can ship your goods directly to the preparation center. You can ship your stock directly to the prep center if it is located in one of the four states that have zero sales tax (Delaware Montana New Hampshire Oregon). The storage fees they pay while waiting for additional inventory to arrive are likely to be less than the tax you would pay in the home state. The sales tax in the US can vary between zero and seven percent. Even a two- or three percent decrease in sales tax could make a huge difference in your overall costs.
Climate
If you're selling perishable goods like food or drinks, the very first question you must ask any prep service is whether their receiving/storage facilities are climate-controlled. It is not a good idea to risk having your items to go bad because they were not kept in good conditions. This is not just for perishable goods. Controlling the temperature is crucial for those who are shipping goods to a hot state or one with very variable weather. If the climate isn't properly controlled the items could spoil or get damp.
Storage Facility
While the main function of an FBA prep service is to ensure that your inventory is ready for submission to FBA increasing numbers of sellers are turning to prep centres to keep their inventory. The two primary reasons sellers utilize prep centers are the reason. The first is that this is less costly than storing all your inventory in the Fulfillment Center. Based on the speed of their sales, sellers store their inventory in their preparation center and then transfer stock to FBA. This means that a seller who sends 10,000 units to their prep centers each month and sells around 1,000 units per month would only be able to send 1,000 units to FBA every month. The rest of the inventory will be kept in the center for prep. Amazon's suspension strategy is the second. Your stock will be placed in the Fulfillment Center if it is suspended. You'll have to pay for each piece to return the item. The item might not arrive for some time. Your Plan of Action will require your prep center or you to inspect all inventory in FBA. You will then need to get your stock returned to FBA, repackaged, labeled and sent back to FBA after you are reinstated. This is a costly process that sellers want to minimize by storing their inventory in the Prep Center and sending smaller quantities. If you decide to go this route make sure your prep company is able to quickly change the inventory. Make sure you inquire about their insurance. This is crucial as you'll want your items to be protected from fire or theft.
Processing Time
When selecting an FBA prep service, the speed they can prep your inventory is vital. There are many variables which can affect your need for speed. For example, if your sales velocity dictates that you have stock on hand at the prep facility, you may expect them to get it in the next 48 hours. Prep services usually provide an estimate upfront of processing times, while some may offer a 24- or 48-hour guarantee. If you're unable to access this information, ask. Your late shipment rate will not be affected if the prep service is slow in getting your inventory in FBA. Have a look at the top rated Door to Door Delivery website for updates.
Inspection
It is also advisable to inquire whether or not the FBA prep service can conduct inspections. It is important to note that although it's not a substitute for inspections of products at the manufacturer however, it could be used as a supplement. Manufacturers do not check their products very closely because it can cause stock rejections which can cost them more. Imagine that your manufacturer does an inspection prior to shipping. Imagine that you've got 10,000 units, and they go through 20% of the products. There's a high chance that the FBA prep service will uncover issues with your inventory which your manufacturer didn't. Danny McMillan believes many manufacturers don’t pay attention to deliveries because they're aware that rejections will lead to more cost and less profit. The inspections conducted by the company that prepares your food more important.
In Summary
Outsourcing your FBA prep can make your business run efficiently, but picking the wrong option could slow you down even more.The main thing to remember is that you should not be intimidated to ask questions - regardless of how small they might seem. To establish a rapport it is essential to learn about your prep service. If they don't respond to questions, it's an indication that they might not be the best option for you. Talking to other vendors can also prove useful. This will allow you to discover the services they employ, and what ones to be wary of. When you're sending your stock to someone else, you want to be sure that it's secure.