Sales Taxes
The US-based online stores may permit you to source items (e.g. online arbitrage) you may have to pay sales tax. However, you can save money by enrolling in a pre-school in a state with no sales tax or with the lowest rate. How? Deliver your goods directly to the pre-center. If your inventory is in one of the four states that do not have sales tax (Delaware Montana New Hampshire Oregon), storage fees will likely be less than what you would pay in your home country. Rememberthat the sales tax in the US is anywhere from zero to just over seven percent. A prep center that is located in a state in which the sales tax is reduced by 2 or 3 percentage points could be a significant impact on the cost of your services.
Climate
If you are selling perishable items, such as food, the first question you need to ask any prep service is whether their storage and receiving facilities are climate-controlled. It is not a good idea to risk having your products to be damaged simply because they weren't stored in the proper conditions. This doesn't only apply to perishable products. The control of temperature is vital if you send stock to a hot region or one with highly variable weather. If the conditions of the climate are not managed properly, items can spoil or be affected by damp.
Storage Facility
FBA preparation is the primary responsibility to prepare your inventory for FBA. However more sellers are currently using prep centers to organize their inventory. It is because of two reasons. The first is that this can be less expensive than storing your entire inventory in an Fulfillment Center. Based on the speed of their sales sellers keep their inventory at their prep center and then transfer stock to FBA. This implies that a seller who delivers 10,000 units of inventory to their prep center every month and sells about 1,000 units per month will only be able to send 1,000 units to FBA every month. The remainder of the stock will be stored at the prep center. Amazon's suspension policy is the other reason. Your stock will be placed in the Fulfillment Center if it is suspended. You will have to pay per piece to get the item back. The item might take some time. Then, you (or your prep center) must examine the contents of your FBA inventory in your Plan of Action. Then, you'll need to have your inventory returned to FBA, repackaged, labeled and sent back to FBA after you are reinstated. This is a costly process that sellers wish to reduce by keeping their stock at the Prep Center and sending smaller quantities. If you opt for this method, ensure your prep service will quickly change inventory. It's also essential to inquire whether they have insurance. Your inventory should be insured against theft and fire.
Processing Time
The speed with the rate they prepare your inventory is a key aspect to consider when selecting an FBA preparation service. There are many variables that determine how quickly you'll need your inventory be prepared. For example, if you're holding stock at the prep center and bringing it in on the basis of the rate of sales (see earlier) you'll likely want them to finish the process in no more than 48 hours. Most prep companies have transparency regarding processing times and provide 24-48 hour guarantee. If the information you require isn't available, you should ask. If you don't expect your late-shipping rate to drop because the prep company is taking so long to process your inventory to FBA and you must make sure that you have the information. See the top Door to Door Delivery site for updates.
Inspection
It's worth checking whether your FBA preparation services also conduct inspections. While it's not a substitute for inspections of products by the manufacturer, it can be used as a supplement. Manufacturers aren't required to check shipments as they may lose more money if stock is returned. Imagine your manufacturer doing an inspection prior to shipping. They examine 10,000 units and 20% of the items. There's a high chance that when your FBA preparation service checks the inventory, they'll be able discover other issues that your manufacturer missed. Danny McMillan believes that most manufacturers don't look at their products very attentively because they're aware that rejects can result in increased costs and decreases in margins. Inspections by the company that prepares your food more vital.
In Summary
Transferring your FBA prep can make your business run more efficiently, but picking the wrong option could cause you to slow down more.The primary thing to remember is that you should not be afraid to ask questions - no matter how minor they might seem. Your prep service will need to develop relationships with you. If they do not respond when you ask questions it is a sign they might not be the best fit for you. You can also talk to other sellers. You can learn which the services they use for their preparation and, even more important is if there are any to avoid. If you're sending your inventory to someone else, you want to be sure it's secure.