Sales Taxes
American online retailers might allow you to source products (e.g. It is possible that you will be legally required to pay sales tax if you source your items from online retailers in the US (i.e. If you use a prep center that isn't subject to sales tax or is a low-cost source of tax, you could save cash. How? How? By sending your stock straight from the manufacturer to the preparation center. If your stock is not exempt from sales tax in any of the four US states (Delaware Montana New Hampshire Oregon) the storage charges which are charged in the meantime you wait for new stock to be delivered to the state you reside in will be less than what you would have to pay. Sales tax in the US can range from zero to around seven percent. A prep center in a state in which the sales tax is lower by two or three percentage points can have a dramatic impact on the cost of your services.
Climate
If you sell perishable goods such as food items, the first question you need to ask any prep service is whether their receiving and storage facilities are controlled by climate. It's not acceptable for your items to become damaged due to the fact that they weren't stored in the correct conditions. This does not only apply to perishable goods. The control of temperature is vital if you send stock to a very hot state or a state with extremely fluctuating weather. If the climate conditions are not managed properly products can get damaged or be affected by damp.
Storage Facility
FBA prep is primarily responsible to prepare your inventory for FBA. However , more sellers are currently using prep centers to store their inventory. This is due to two factors. The first is that it's less expensive than stocking all your inventory at Fulfillment Centers. So, sellers store their inventory using their prep services and then transfer inventory to FBA in accordance with their sales velocity. For example If a seller has 10,000 units stored in their prep center and is selling approximately 1,000 units per monthly, they will only send 1,000 units to FBA every year. The prep center is where they store the remaining inventory. The second reason for this is Amazon's suspension culture. If you are suspended, your stock essentially becomes trapped within the Fulfillment Center. In order to return an item you'll need to pay per item. The item may not be available for a while. You (or your prep centre) will need to inspect your FBA inventory as part of your Plan of Action. In order to send the stock back into the FBA, you'll need to have it packaged and repackaged. The sellers attempt to cut down on the costs of this procedure by keeping their inventory at the Prep Center, and sending in smaller quantities. If you opt for this method be sure that your prep service can quickly turn inventory around. Make sure you inquire for the insurance they offer. This is essential because you want your stock to be safe from theft or fire.
Processing Time
It is essential to take into consideration the speed at which they prepare your inventory. There are a variety of factors that can impact your need for speed. For example, if your sales velocity dictates that you keep stock in the prep center, you might expect them to get it ready in 48 hours. Prep centers typically provide an upfront estimate of their processing time, and they may also offer a 24or 48-hour promise. If you can't see this information, make sure you make a request, because you don't want to have your shipping rate to be harmed because your prep service are slow in getting your items to FBA. Have a look at the top Door to Door Delivery blog for more.
Inspection
Alongside labeling and packaging it is worth inquiring whether the FBA prep service conducts inspections. It's not an alternative to inspections carried out by the manufacturing facility of the manufacturer. However, it can help these. Because the shipments aren't accepted and rejected by manufacturers, they don't want to scrutinize them in a way that is too thorough. Imagine that your manufacturer checks the goods prior to shipment. Your company inspects 10,000 units. They also inspect 20% of the items. Your FBA prep service will likely discover other issues that your supplier didn't see while they review your inventory. Danny McMillan believes that many manufacturers don't inspect their shipments in the way they should since it can increase the cost of shipping and reduce their margins. Your prep service should inspect your shipment.
In Summary
You could outsource FBA preparation to help your business become more efficient, but it may also slow your business. It is important to establish an alliance with your prep provider and if they're dismissive when you ask questions it's an early sign that they might not be the best choice. It's a good idea to speak with the other vendors. It will help you determine which prep services they utilize and, more crucially, which ones you should stay clear of. It is important to make sure that your items are safe when you send it to a different person.