Great Info For Deciding On An Amazon FBA Prep Service
It is important to consider a range of factors when selecting the FBA prep provider. From their location to how quickly they process inventory. Each factor is weighed differently, dependent on the speed of sales and business model. Check out the most popular Amazon FBA Prep Service website for updates.Sales Taxes
If you buy your products online in the US (i.e. There could be sales taxes due online arbitrage. But by using a prep center in a state with either zero sales tax or a low tax rate, you can save the money. How? What can you do? Send your products directly from the manufacturer to the prep center. You can send your stock directly to the center if you are within one or more of the states that have no sales tax (Delaware Montana New Hampshire Oregon). The storage costs they pay while waiting for more inventory will arrive will be lower than the taxes you have to pay in the state you reside in. You should know that sales tax in the US can range from zero to seven percent. A prep center located in a state in which the sales tax is lower by two or three percentage points can be a significant impact on your expenses.
Climate
If you are selling perishable products such as food, you should first inquire with the prep service whether their warehouses and facilities are climate controlled. You don't want your goods to spoil because they weren’t stored in the proper conditions. This doesn't apply to perishable products. Controlling the temperature is crucial for those who ship goods to a very hot state or a place with extremely fluctuating weather. If the conditions aren’t properly managed, items may become damaged or lose value.
Storage Facility
Although the FBA prep service's main function is to prepare your inventory to be ready for FBA sellers are increasingly turning to prep facilities to keep their inventory. It is because of two main reasons. It is first, it's cheaper than having your entire inventory kept at Fulfillment Centers. Based on the speed of their sales, sellers store their inventory in their prep center before transferring the inventory to FBA. To break this down into a simpler way, if a seller is sending 10,000 units to their prep center and is selling about 1,000 units per month, they'll send 1,000 units into FBA each month. The prep center will hold the remaining inventory. Amazon's suspension policy is the third reason. If you get suspended your stock essentially becomes stuck within the Fulfillment Center. If you want to return an item, you'll have to pay for each item. It may not arrive for several days. Your prep center or you will be required to examine the inventory you have stored in FBA as part of your Plan of Action. If you want to return your stock in, you will have to arrange for it to be packaged and repackaged. The sellers are trying to cut back on the cost of this procedure by keeping their stock at the Prep Center, and sending in smaller quantities. You must ensure that the prep company is capable of turning around inventory quickly and with a very short notice should you choose to utilize this method. Also, you should ask about their insurance policies - you'll want your inventory to be protected against fire or theft when they hold it!
Processing Time
It is important to consider how quickly they will prepare your stock. There are a variety of factors that determine how quickly you'll need your inventory to be prepared. For example, if your sales velocity dictates that you hold stock at the prep center, you could anticipate them to have it in the next 48 hours. Prep services generally provide upfront processing times and may even offer a 24 or 48-hour guarantee. If you're not able to access this information, ask. Your late shipment rate will not be affected if the prep service is slow in getting your items into FBA. Have a look at the top Door to Door Delivery site for more.
Inspection
Inquiring about whether your FBA prep agency conducts inspections is a good idea. Important to note that FBA prep services can't replace factory product inspections. But, they could complement them. Manufacturers may not inspect their products more closely than they ought to because they are charged with the cost of rejecting the stock more. Imagine that your company performs a preshipment inspection. You've got 10,000 units, and they examine 20% of your goods. There is a good chance that when your FBA prep service goes through the stock, they're going discover other issues that your manufacturing company missed. Danny McMillan believes that manufacturers often don't check shipments too carefully because they are aware that if stock is rejected by the manufacturer, it's likely to cause more expense and cut into their profit margin. This makes it even more important to have your prep service inspect your shipment.
In Summary
Your business can run more smoothly if you outsource your FBA preparation. But, choosing the incorrect service can slow your business even further. You will need to establish an enduring relationship with and trust the company you choose to work with for your preparation. If they are unable to answer your questions, it might be a sign that they are not right for you. Contacting other vendors may be useful as well. Speaking to other sellers could assist you in finding out what prep firms they use and, perhaps most important the ones you should avoid. In the end, if you're sending your precious inventory to someone else, you'll need to make sure you're sending it in a safe manner.