Sales Taxes
If you source your goods from online retailers located in the US (i.e. online arbitrage could mean that you will have tax obligations if your goods are purchased from US online retailers. You can however save money by enrolling in a pre-school in a state without sales tax, or at an affordable rate. How? by shipping your goods straight to the center for preparation. You can send your stock directly to the center if it's located in one of the states with no sales tax (Delaware Montana New Hampshire Oregon). The costs for storage they incur while they wait for more inventory will arrive will be lower than the taxes you would pay in the home state. Remember, sales tax in the US can range from zero to seven percent. So, even choosing the right prep center in a state with a sales tax that's just two or three percent less can make a difference to the cost of your services.
Climate
If you're selling perishable items such as food items, it is best to ask the prep company if their warehouses and facilities are controlled in terms of temperature. You don't want your items to spoil because they weren’t stored in the proper conditions. This is not just for perishable products. If you're shipping stock to a particularly hot state or a state that has very changeable weather controlling the climate is just as crucial. If the weather conditions are not controlled properly the items could get damaged or be affected with damp.
Storage Facility
FBA preparation services are responsible for preparing your inventory for FBA. However these centers are becoming more and more popular among sellers who wish to store their inventory. There are two primary reasons why sellers are doing this. One reason is that it could be cheaper than storing your entire inventory in a Fulfillment Center. Sellers store their inventory through their prep company and then buy FBA according to their sales rate. Let's say that a seller sells 1,000 units per month and then sends 10,000 units to the prep center. They'll only send 1,000 units to FBA every month. The prep center will hold the remainder of their stock. Amazon's suspension policy is the third reason. It is possible to have your stock suspended, and it will stay in the Fulfillment Center. In order to get the item back, you will need to pay per item and it might not arrive for several weeks. You (or your prep center) will need to inspect the contents of your FBA inventory as part of your Plan of Action. To send your stock back into the FBA, you'll need to get it repackaged. Altogether this is expensive and costly. Sellers attempt to cut down by keeping their stock at the Prep Center and sending in stocks in smaller amounts. It is important to ensure that your prep service can be capable of turning inventory around quickly and with a quick notice if you choose to utilize this method. Ask about their insurance. This is crucial as you'll want your items to be secure from fire or theft.
Processing Time
One of the most important factors to consider when choosing the best FBA prep service is how quickly they can make your inventory. There are a variety of factors that determine how quickly you'll need your inventory be ready. You might need them to return units in 48 hours if you are holding stock at the prep center and are sending it based on the sales rate (see below). Most prep services will be upfront about their processing times. They may also offer a guarantee of 24 to 48 hours. If you are not able to find this information, you can ask. Your late shipment rate will not be affected if your preparation service takes too long to get your items into FBA. Check out the best Door to Door Delivery site for details.
Inspection
In addition to labeling and packaging, it's worth asking if the FBA prep service also conducts inspections. This does not replace the product inspections at the manufacturer's factory. However, it can supplement these. Manufacturers won't inspect shipments more closely than they ought to because they are charged with the cost of rejecting the stock more. Imagine that your manufacturer performs preshipment inspections. They inspect 10,000 units and 20% of the items. Your FBA prep company will most likely discover additional issues in your inventory. Danny McMillan believes manufacturers don't often inspect their shipments thoroughly enough since they are aware that rejecting stock can result in more costs and lower their margins. The prep service you use should examine your shipment.
In Summary
You can outsource FBA preparation to make your business more productive, but it may also slow your business. Your prep service will need to build an association with you. If they don't respond to your questions, it's a sign that they might not be the best fit for you. Speaking with other vendors could be useful as well. This will allow you to learn about the prep services that they use, and what ones to avoid. Since you don't want your supplies to go to waste it's important to make sure it is safe.