Sales Taxes
There is a chance that you will have to pay sales tax when you purchase items online from US sellers (i.e. You may be required to pay sales tax when you purchase your items from online stores 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 can save the cost. How? by delivering your inventory directly to the center for preparation. If it's located in any of the states that have zero sales tax (Delaware, Montana, New Hampshire, Oregon), the storage costs incurred while they wait for more inventory to arrive will likely be less than what you'd be paying in your home state. Be aware that sales tax in US can vary from zero to seven percent. You can save money by choosing a prep centre located in a state that is subject to a lower sales tax than the rest.
Climate
It is important to inquire with your prep service if the climate control is available for perishable goods like food items. It is not a good idea for your items to be damaged simply because they weren't stored in good condition. This does not only apply to perishable goods. The control of climate is equally important when shipping goods to states that are extremely hot or states with extremely variable weather. If the conditions aren't managed correctly your items could spoil or be damaged by damp.
Storage Facility
FBA prep services are primarily responsible for getting your inventory ready for FBA. However the prep centres are getting more popular among sellers who wish to store their inventory. This is due to two main reasons. One reason is that it could be cheaper than storing your entire inventory in a Fulfillment Center. Sellers maintain their inventory at their prep center and then ship FBA stock based on the speed of sales. To put it into perspective into a simpler way, if a seller is sending 10,000 units into their prep center and is selling around 1,000 units a month, they'll only send 1,000 units into FBA every month. The remainder of the inventory will be held in the prep center. Amazon's suspension is the other reason. If your inventory is suspended, it becomes locked in Amazon's Fulfillment Center. If you want to return the item it will be necessary to pay per item and it may not be delivered for a while. Your Plan of Action will require you or your prep center to examine all inventory within FBA. Once you're reinstated, you'll then have to get your stock packaged and labeled to send it back in. It is an expensive processthat sellers attempt to minimize by keeping their stock in a Prep Center and submitting smaller quantities. If you opt for this method be sure that your prep service can quickly turn inventory around. It's also crucial to inquire about their insurance. Your inventory should be insured against fire and theft.
Processing Time
When choosing an FBA prep service, the speed they can prepare your inventory is key. There are many variables that affect how fast you need your inventory to be ready. If you store stock at the pre-production center and ship it out with respect to the sales speed (see above), then you need them to take no longer than 48 hours get your units back to you. Prep centers typically provide an estimate upfront of processing times, while some may offer a 24or 48-hour guarantee. If you're unable to see the information provided, please inquire. Your late-shipping rate won't be affected if the prep service takes too long to get your items into FBA. See the most popular Door to Door Delivery site for more.
Inspection
It's worth checking whether you FBA prep services also perform inspections. While this does not replace product inspections at your manufacturer’s factory, it could be supplemented. Manufacturers don't inspect their shipments very closely because it can cause stock rejections which cost them more. Imagine that your company conducts a pre-shipment inspection. Imagine that you've got 10,000 units, and that they go through 20% of your goods. There's a good chance your FBA team will spot difficulties with your stock after examining it. Danny McMillan believes that manufacturers typically don't examine their products too carefully because they are aware that if they reject a product and subsequently returned, it will cost them more and reduce their margins. This is why it's important to have your prep service inspect your shipment.
In Summary
You can outsource FBA prep to help your business become more efficient, but it can also slow down your business. Your prep company will need to develop an association with you. If they aren't responsive to your questions, it is a sign they may not be the best fit for you. Talking with sellers from other companies is a good idea. You can find out which prep services they are using and, even more important, if there are any issues to avoid. Because you don't want your stock to be wasted it's important to make sure it is safe.