Sales Taxes
If you purchase your goods on the internet in the US (i.e. Online arbitrage might be a reason to to pay sales taxes in the event that your items are purchased through US-based online retailers. If you use a prep center that is not subject to sales tax or has a low rate of tax, you could save the cost. How? by shipping your goods straight to the prep center. If your stock is not subject to sales tax in one of the US states (Delaware Montana New Hampshire Oregon) The storage costs that are incurred while you wait for more stock to be delivered to your state will be less than the taxes you'd need to pay. Sales tax rates in the US could range from zero to just under seven percent. You can save money by choosing an office located in a state that is subject to a lower sales tax than the other states.
Climate
You should ask your prep service whether the temperature control can be used for perishable products like food. The goods you sell should not be damaged simply because they weren't kept in the proper conditions. This applies to all perishable goods. If you're sending goods to a state that is particularly hot or one with extreme weather fluctuations, climate control is just as crucial. If the conditions aren't managed appropriately, your products could deteriorate or be damaged by damp.
Storage Facility
FBA prep is responsible for getting your inventory ready for FBA. But more sellers are making use of preparation centers to store their inventory. This is due to two reasons. One reason is that it could be cheaper than keeping all your inventory in an Fulfillment Center. Based on the speed of their sales the sellers keep their inventory in their prep center, and then move the stock to FBA. Let's say a seller sells 1,000 units per month and then sends 10,000 units to the prep center. They'll send 1,000 units to FBA each month. The remainder of the inventory will be kept in the prep center. Amazon's suspension philosophy is the third. Your inventory will be put within the Fulfillment Center if it is suspended. You will have to pay per piece to return the item. The item may not be delivered for a few weeks. Your Plan of Action will require you or your prep center to check all inventory at FBA. Then, you'll need to get your stock repackaged, labeled and shipped back to FBA when you get reinstated. Selling agents are working to make this a less expensive process by delivering smaller quantities of stock to the Prep Center. If you choose this route, ensure your prep service can quickly turn inventory around. Inquire about their insurance. The inventory should be secured from theft and fire.
Processing Time
The speed with which your inventory can be prepared is an important element to consider when selecting an FBA prep firm. Many factors can influence the need for speed. It could be necessary to return units in 48 hours if you're waiting for stock to be received at the prep facility and transferring it on the basis of the sales rate (see below). The majority of prep centers will be upfront about their processing times and provide a 24- or 48 hour assurance. If you don't have this information available, it is best to inquire. As you don’t expect your late-shipping rate to decrease because your prep company is taking so long to process your inventory to FBA, you need to make sure that you have the information. Have a look at the most popular Door to Door Delivery blog for details.
Inspection
Asking if your FBA prep agency conducts inspections is a great idea. It's important to know that this isn't a substitute for the inspections carried out by your manufacturer's factory, but can be used in conjunction with these. Manufacturers don't inspect their shipments very closely because it can cause stock rejections which cost them more. Imagine your manufacturer doing an inspection prior to shipping. There are 10,000 units in your factory and they inspect 20 percent. Your FBA preparation company will likely find other problems in your stock. Danny McMillan believes manufacturers don't always inspect shipments closely enough since they are aware that rejecting stock can increase their costs and decrease their margins. Your prep service should inspect your shipment.
In Summary
You can outsource FBA preparation to make your business more productive, however it may also slow your business. Your prep service will need to develop an association with you. If they aren't responsive when you have questions, it is a sign they might not be the right fit. You can also talk to other sellers. It is possible to find out what preparation services they're using and, even more important whether there are any to avoid. It is crucial to ensure the safety of your inventory, especially if you send it to someone else.