It is important to take into account a variety of factors when selecting the FBA prep service. The location of their office to the speed at which they process inventory. Each factor has its own weighting dependent on the speed of sales and the business model. Check out the recommended Amazon FBA Prep Service site for more.
If you purchase your items online from US retailers (i.e. There could be sales tax due to online arbitrage. You can reduce costs with an online prep center located in states where there is no sales tax or a low-rate. How? You can ship your stock directly to the pre-processing center. If your inventory isn't subject to sales tax in any of the four US states (Delaware Montana New Hampshire Oregon), then storage fees that are incurred as you wait for additional inventory to arrive in your state will be lower than the amount you'd have to pay. Be aware that the US has a sales tax of between zero to seven percent. It doesn't matter if the sales tax is two to three percent less in the state you live in, it could still make a significant difference in the cost of your purchase.
You should ask your prep service if climate control is available for perishable goods such as food. You do not want your products to be damaged simply because they were not kept in good conditions. This isn't limited to perishable items. If you're sending goods to a state that is particularly hot or one with extreme weather fluctuations managing the climate is just as important. If the weather isn't appropriately managed, your items might become damaged or lose their value.
The primary function of an FBA prep service is to ensure that your inventory is ready for shipment to FBA increasing numbers of sellers are turning to prep centres to keep their inventory. Sellers are turning to prep centers due to two primary reasons. The primary reason is that it's less expensive than stocking all your inventory in Fulfillment Centers. So, sellers store their inventory in their prep service and then send their inventory into FBA in accordance with the speed at which they sell. To break this down in terms of volume, if a seller has to send 10,000 units to their prep center and is selling around 1,000 units per month, they'll only be sending 1,000 units to FBA each month. The rest of their inventory will remain at the center. Amazon's suspension is a second reason. Your product will be placed in the Fulfillment Center if it is suspended. To return an item, you'll have to pay per item. It might not be delivered for a while. Your Plan of Action will require that you inspect the FBA inventory. To send your stock back to the Prep Center, you'll have to arrange for it to be transformed into a new package. This is a costly process, which sellers try to cut down on by storing their stock in the Prep Center and submitting smaller quantities. If you opt for this method, ensure your prep service is able to quickly change the inventory. Also, you should inquire about their insurance policies - you'll need your inventory to be secure from fire or theft while they are holding it!
The speed with which they can make your inventory ready is an an important aspect to consider when selecting the FBA preparation service. There are many factors that could affect your requirement for speed. For example, if sales velocity dictates that you hold stock at the prep facility, you may expect them to have it ready within 48 hours. Many prep services provide transparency about processing times and offer 24-48-hour assurances. If you can't see this information, be sure to inquire, since you don't want to have your delivery rate to suffer due to your prep company is slow in getting your inventory to FBA. See the recommended Door to Door Delivery site for updates.
Inquiring about whether your FBA preparation agency conducts inspections is a great idea. You should note that while this can't replace product inspections by the manufacturer however, it could be used as an addition. Manufacturers do not inspect their shipments as close, since if a product is rejected it costs them more. Imagine that your company checks the goods prior to shipment. Imagine you own 10,000 units and they go through 20% of the goods. Your FBA prep service will likely find other issues that your company didn't know about as they examine your inventory. Danny McMillan believes that many manufacturers don't inspect their shipments more closely than they ought to due to the fact that it increases the cost of shipping and reduce their margins. Inspections by your prep company even more important.
Your business can run easily if you contract out your FBA preparation. However, using the wrong choice could slow your business even more. You will need to establish a relationship and trust with your prep company. If they don't answer your questions, it could be a sign they are not right for you. It's also possible to speak with other sellers. It will help you discover the services they utilize and the ones they avoid. You must ensure that your inventory is safe whenever you transfer it to a different person.