Great Hints For Selecting An Amazon FBA Prep Service
There are several aspects to take into consideration when selecting an FBA preparation service, ranging depending on where they are located to the speed at which they process your inventory. Each one of these factors has its own weighting depending upon your business model or the speed of sales. See the best Amazon FBA Prep Service blog for info.Sales Taxes
Online retailers in the USA might allow you to source goods (e.g. There may be sales tax due to online arbitrage. If you choose to use a prep center that is not exempt from sales tax or is a low-cost source of tax, you will save the cost. How? by shipping your goods straight to the prep center. If your inventory isn't subject to sales tax in any of the four US states (Delaware Montana New Hampshire Oregon) the storage charges that you pay as you wait for additional stock to be delivered to your state will be lower than the taxes you'd need to pay. Sales tax in the US ranges between zero and just over seven percentage. It is possible to save money by selecting the right prep center in a state that has lower sales taxes than the rest.
Climate
If you sell perishable items like food or drinks, the first question you must inquire of any prep business is whether their warehouses and receiving premises are climate-controlled. You don't want your goods to spoil due to not being stored in the proper conditions. This is true for any food item that is perishable. Controlling the temperature is crucial for those who ship goods to a hot region or a state with extremely variable weather. If conditions aren’t controlled properly, your items may spoil or get damp.
Storage Facility
FBA prep centers' primary role is to prepare your inventory so that it can be delivered to FBA. However increasing numbers of sellers are turning to prep centres to store inventory. Sellers are using prep centers due to two primary reasons. The first is that it's less expensive than having all your inventory stored in Fulfillment Centers. Based on their sales speed the sellers keep their inventory in their prep center before transferring the inventory to FBA. This implies that a seller who delivers 10,000 units to their prep centers each month and is selling around 1,000 units per month will only be able to send 1,000 units to FBA each month. The prep center will keep the rest of the stock. Amazon's suspension policy is the other reason. If you get suspended your inventory is basically trapped within the Fulfillment Center. In order to return an item you'll have to pay for each item. It might not be delivered for a few days. Then, you (or your prep center) must examine the contents of your FBA inventory in the Plan of Action. You will then need to get your stock repackaged, labeled and shipped back to FBA after you get reinstated. This is a very expensive process that sellers want to reduce by having their stock stored in the Prep Center and sending smaller quantities. You must ensure that the prep company is capable of delivering inventory in a hurry and on short notice if you decide to go this route. It is also important to inquire whether they have insurance. Your inventory should be insured against fire and theft.
Processing Time
The speed with the rate they prepare your inventory is a crucial aspect to consider when selecting an FBA preparation service. Your need for speed can be contingent on a variety of variables. If you have stock at the prep centre and you are bringing it in according to sales speed (see above), you will likely need them to send units in 48 hours. Most prep services will be upfront about their processing times. They might also provide the promise of 24 to 48 hours. If you don't see this information, do not hesitate to contact them. You don't want your late shipment rates to be affected by your prep service takes too long to get your inventory into FBA. See the most popular Door to Door Delivery website for more.
Inspection
Asking if your FBA prep agency conducts inspections is a great idea. It is important to keep in mind that FBA prep services can't replace factory inspections. However, they may help. Manufacturers don't check their shipments as closely as they should since rejecting stock costs them more. Imagine your company is performing an inspection prior to shipment. There are 10,000 units in your warehouse and they inspect 20% of the goods. It's likely that your FBA prep team will find difficulties with your stock when they go through it. Danny McMillan believes many manufacturers do not pay attention to their deliveries because they're aware that rejects can lead to higher costs and lower margins. This is why it's important that you have your preparation service examine your shipment.
In Summary
You can outsource FBA preparation to make your business more efficient, but it can also slow down your business. It is important to establish an rapport with your prep service. If they appear disinterested when you ask them questions this may be an indication that they're not the right choice. You can also talk to other sellers. It will help you identify the prep services they utilize and, more crucially, which ones you should stay clear of. It's important to ensure the safety of your inventory, especially if you are sending it to another person.