New Facts For Deciding On An Amazon FBA Prep Service

When choosing the right FBA prep service There are a variety of factors to consider. These include where they are located and the speed at which they handle your inventory. Each aspect is weighed differently, according to the sales speed and the business model. Check out the recommended Amazon FBA Prep Service blog for more.

Sales Taxes
There is a chance that you will have to pay sales tax when you purchase items online from US sellers (i.e. If you buy goods on the internet (i.e., through online arbitrage) You may be required to pay sales tax. You can however save money by enrolling in an elementary school in a state that does not have sales tax or with a low rate. How? You can ship your stock directly to the prep centre. If your stock is located in one of the four states without sales tax (Delaware Montana New Hampshire Oregon), storage fees will likely be less than what you would be paying in your country. It is important to know that the sales tax in the US is anywhere from zero to just above seven percent. Thus, even if you choose the right prep center in a state that has sales tax that is less than two percent can make a difference to the cost of your services.

Climate
If you're selling perishable items (e.g. food items), the first question to ask any prep services is whether their facilities for receiving and storage are climate-controlled. You don't want your products to get damaged just because they weren't kept in good condition. This doesn't only apply to perishable items. Climate control is also important when your inventory is heading to a hot or unstable state. If the climate isn't properly controlled, your items may spoil or become damp.



Storage Facility
The primary function of an FBA prep center is to ensure that your inventory is ready for submission to FBA, more and more sellers are using prep centers to store their inventory. There are two main reasons for sellers to do this. It can be more affordable than storing all your inventory in Fulfillment Centers. So, sellers store store their inventory with their prep services and then transfer their inventory into FBA according to their sales velocity. If a seller sends 10,000 units through their prep service and selling about 1,000 units each month, they'll only send 1,000 units each month to FBA. The center's prep will hold the remainder of the inventory. Amazon's suspension policy is the third reason. If you are suspended, your inventory is basically stuck within the Fulfillment Center. If you want 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 your FBA inventory in your Plan of Action. After you have been reinstated, you'll have to get your stock repackaged. This is a costly procedure, and sellers attempt to minimize by keeping their inventory in a Prep Center and submitting smaller quantities. You must ensure that the prep service can be capable of delivering inventory quickly and on a quick notice if you choose to use this method. You also need to ask about their insurance coverage - you'll need your inventory to be secure from fire or theft when they hold it!

Processing Time
The speed at which they can prepare your inventory is an important element when selecting an FBA preparation service. There are many factors which can affect your need for speed. For instance, if holding stock at the prep center and sending it in on the basis of the rate of sales (see above) you'll probably want them to turn around units in less than 48 hours. Prep services usually provide an estimate upfront of processing times, and some may offer a 24or 48-hour guarantee. If the information you require isn't available, you should ask. Since you don't want your late shipment rate to increase due to the fact that your prep service has to wait so long to receive your inventory to FBA and you must ensure you are able to access it. Have a look at the top rated Door to Door Delivery site for more.



Inspection
It's worth asking your FBA prep company inspects products as well as labeling and packing. It is important to note that although it's not a substitute for inspections of products by the manufacturer, it can be used to supplement. Manufacturers do not inspect their shipments as close, since if a product is rejected, it will cost them more. Imagine that your manufacturer does an inspection prior to shipping. There are 10,000 units in your factory and they inspect 20%. Your FBA prep service could discover other issues that your supplier didn't see as they examine your inventory. Danny McMillan believes that most manufacturers do not examine their shipments attentively because they're aware that rejects can result in increased costs and decreases in margins. This makes the inspection performed by your preparation service more crucial.

In Summary
Your business will run more efficiently if you outsource your FBA prep. However, the wrong choice could slow your business further. Your prep service will need to establish an association with you. If they aren't responsive when you ask questions it's a sign that they might not be the right fit. Talking to other vendors can also prove useful. You can find out which prep services they are using and, more importantly is if there are any that you should stay clear of. After all, when you're transferring your inventory to another person, you'll want to make sure your inventory is safe.