Sales Taxes
You may have to pay sales tax if purchase items online from US sellers (i.e. Online arbitrage may mean that you will have tax obligations when you purchase your products through US-based online retailers. If you use a pre-purchase center in a state where there is either no sales tax or a low tax rate, you can save the money. How? Sending your inventory directly to the center for preparation. If your stock is located in one of the states without sales tax (Delaware Montana New Hampshire Oregon) Storage charges will likely be less than what you would be paying in your country. Sales tax rates in the US could range from zero to just under seven percent. Even a two- or three percent drop in sales tax could make a huge difference in the overall cost.
Climate
If you sell perishable items like food or drinks, the first question you must inquire of any prep business is whether their storage facilities are climate-controlled. It isn't a good idea for your products to spoil because they weren’t stored in the proper conditions. This is true for all perishable goods. Controlling the temperature is crucial if you send stock to a very hot state or a state with extremely unpredictable weather. If the weather conditions are not properly controlled products can get damaged or be affected with damp.
Storage Facility
FBA prep services are responsible for getting your inventory ready to be placed in FBA. However, prep centres are getting more popular among sellers to store their inventory. There are two main reasons sellers are doing this. The first is that this is less costly than storing your entire inventory in the Fulfillment Center. So, sellers store their inventory in their prep services and then transfer inventory to FBA in accordance with their sales speed. That implies that a seller that sends 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 rest of the stock will be kept at the prep centre. Amazon's suspension policy is the third reason. If you get suspended your stock essentially becomes locked within the Fulfillment Center. You're going to have pay for each item to get it back and it could not be delivered for a few weeks. You or your prep center will be required to examine the inventory in FBA in your Plan of Action. Then, you'll need to get your stock packed, labeled, and shipped back to FBA after you have been reinstated. It's a cost-intensive procedure, and sellers attempt to minimize by keeping their stock in the Prep Center and submitting smaller quantities. It is important to ensure that your prep company is capable of turning around inventory in a hurry and on very short notice should you choose to utilize this method. Ask about the insurance they offer. This is important since you want your inventory to be safe from theft or fire.
Processing Time
How quickly your inventory can be prepared is a crucial element to consider when selecting an FBA prep firm. The need for speed will be contingent on a variety of factors. For example, if sales rate requires that you have stock on hand at the prep center, you might expect them to have it in the next 48 hours. A lot of prep centers offer transparency on processing times and offer 24-48 hour guarantee. Always ask for this information if you are unsure. This is due to the fact that you don't want to have your late delivery rates affected by a prep company that is slow in getting your inventory in FBA. Check out the most popular Door to Door Delivery website for details.
Inspection
Asking if your FBA preparation agency conducts inspections is a good idea. You should note that while it's not a substitute for inspections of products by the manufacturer however, it could be used as a supplement. Manufacturers don't inspect shipments that close, since if a product is rejected, they will be charged more. Imagine that your manufacturer conducts a pre-shipment inspection. They inspect 10,000 units and 20% of the goods. There's a good possibility that the FBA preparation services will find issues with your inventory that your company did not. Danny McMillan believes that many manufacturers fail to inspect their products in the way they should because it will increase the costs of shipping and lower their margins. This makes it even more important to have your prep service examine your shipment.
In Summary
Your business will run more efficiently if you outsource your FBA preparation. But, choosing the incorrect service can slow your business even further. It is important to establish a rapport with your prep service. If they appear disinterested when you inquire about their services this could be a sign that they are not the best choice. Talking to other vendors can also prove useful. It will help you discover the services they utilize and the ones they be wary of. You want to ensure that your inventory is safe when you send it to another person.