Sales Taxes
You can source your goods on the internet through US merchants (i.e. Online arbitrage may mean that you will have tax obligations if your goods are purchased through US-based online retailers. However, you can reduce costs by choosing a pre-school in a state with no sales tax or with the lowest rate. How? You can deliver your items directly to the center for preparation. If the stock is in one of the states that do not have sales tax (Delaware Montana New Hampshire Oregon) Storage fees will likely be less than the amount you'd pay in your home country. Taxes on sales in the US ranges between zero and just over seven percentage. You can save money by choosing a prep centre in a state with a lower sales tax than other states.
Climate
If you're selling perishable goods such as food items or drinks, the very first question you must ask any prep service is whether their storage premises are climate-controlled. It's not acceptable for your items to get damaged simply because they were not stored in the proper conditions. This isn't just a matter of perishable products. Controlling the climate is equally crucial when you're shipping your stock to extremely hot states or states that have highly unpredictable weather. If the conditions of the climate are not controlled properly products can get damaged or be affected with damp.
Storage Facility
FBA prep services are responsible for getting your inventory ready to go into FBA. However, prep centers are becoming more sought-after for sellers who want to keep their inventory. This is due to two main reasons. One reason is that it can be less expensive than storing your entire inventory in the Fulfillment Center. Based on the speed of their sales sellers keep their inventory at their prep center and then transfer stock to FBA. This means that a seller who sends 10,000 units to their prep center every month and sells around 1,000 units per month would only be able to send 1,000 units to FBA each month. The rest will be stored in the prep center. Amazon's suspension is the second reason. The Fulfillment Center will hold your stock until you have it removed. To return an item, you'll have to pay for each item. The item may not be available for several days. Then, you (or your prep center) must inspect the contents of your FBA inventory in your Plan of Action. To send your stock back to the Prep Center, you'll have to get it repackaged. This is a costly process which sellers attempt to cut down by keeping their stock at the Prep Center and sending in inventory in smaller quantities. You should ensure that your prep company is capable of delivering inventory in a hurry and on short notice if you decide to use this method. It is also important to inquire about their insurance coverage - you'll want your stock to be protected against theft or fire when they hold it!
Processing Time
The speed at that they will prepare your inventory is an important element when selecting the FBA preparation service. There are a variety of factors that could affect your requirement for speed. If you keep your inventory in a pre-production facility and send it in according to sales volume (see above), then you need them to take no longer than 48 hours to turn your units around. The majority of prep centers will be upfront about their processing times. They may also offer the promise of 24 to 48 hours. If you do not see this information, you should contact them. You don't want your late shipping costs to be affected due to the fact that your prep service takes too long to process your inventory into FBA. Have a look at the top Door to Door Delivery site for details.
Inspection
It is important to inquire if your FBA prep agency has inspections in place is a great idea. Although this isn't a substitute for product inspections at your manufacturer’s factory, it may be added. Manufacturers don't inspect shipments that carefully, as if the product is rejected it costs them more. Imagine your company conducting a preshipment inspection. There are 10,000 units in your factory and they inspect 20%. Your FBA preparation service is likely to discover other issues that your supplier didn't see when they go through the inventory. Danny McMillan believes manufacturers don't often inspect their shipments thoroughly enough because they know that rejecting the stock will result in more costs and lower their margins. This is why it's crucial to have your pre service check your shipment.
In Summary
You can outsource FBA preparation to make your business more productive, but it can also slow down your business. Your prep service will need to develop a relationship with you. If they don't respond to your questions, it's a sign that they might not be the best fit for you. It's also possible to speak with other sellers. You will be able to identify the prep services they utilize and, more importantly, which ones you should avoid. It is crucial to ensure the safety of your valuable inventory when you transfer it to another person.