Sales Taxes
You may have to pay sales tax when you purchase items online from US sellers (i.e. If you buy goods on the internet (i.e. or through online arbitrage), you might be required to pay sales tax. It is possible to reduce costs by using the services of a prep center in a state with no sales tax or low rates. How? by shipping your goods straight to the pre-center. If you're located in one of the four states that have no sales tax (Delaware, Montana, New Hampshire, Oregon), any storage fees incurred while they wait for more inventory to arrive are likely to be less than what you'd be paying in your home state. Remember that the US has sales taxes ranging from seven and zero percent. It is possible to save money by choosing an office in a state with a lower sales tax than the rest.
Climate
If you are selling perishable products such as food items or drinks, the very first question you must ask any prep company is whether their storage premises are climate-controlled. It's not acceptable for your goods to be damaged because they were not stored in the correct conditions. This doesn't only apply to perishable products. If you are sending stock to a particularly hot state or a country with extreme weather fluctuations managing the climate is equally important. If conditions aren’t controlled properly the items could spoil or become damp.
Storage Facility
Although FBA prep centers are FBA prep service's primary task is to help you prepare your inventory for FBA Sellers are increasingly turning to prep facilities to store their inventory. There are two primary reasons for sellers to do this. First, it is cheaper than having your entire inventory stored in Fulfillment Centers. According to their sales velocity sellers keep their inventory in their preparation center, and then move the stock to FBA. That implies that a seller who sends 10,000 units of inventory to their prep centers each month and is selling around 1,000 units per month would only be able to send 1,000 units to FBA every month. The rest of their inventory will remain in the center. Amazon's suspension policy is the third reason. If you are suspended, your inventory is basically trapped in the Fulfillment Center. You'll have to pay per item to get it back and it may not arrive for a couple of weeks. The Plan of Action will require inspection of the FBA inventory. When you're reinstated, the stock will need to be repackaged and labeled before you can return it. This is a very expensive process that sellers want to reduce by having their stock stored in the Prep Center and sending smaller quantities. If you are going to follow this route ensure that your prep company can quickly and efficiently transform inventory. Find out about their insurance. Your inventory must be protected from fire and theft.
Processing Time
The speed with that they will make your inventory ready is an a key factor when choosing an FBA preparation service. Many factors can influence the need for speed. It could be necessary to return your units within 48 hours if you're keeping stock in the prep facility and sending it based on sales speed (see below). Prep services are generally open about processing times. They may also offer the promise of 24 to 48 hours. If you aren't seeing this information, please contact them. Don't want your late shipping costs to be affected due to the fact that your prep service is taking too long to process your inventory in FBA. See the top Door to Door Delivery website for updates.
Inspection
Also, you should inquire whether or not the FBA prep service can conduct inspections. You should note that while it's not a substitute for inspections of products at the manufacturer however, it could be used to supplement. Manufacturers do not check their products in detail because it could cause stock rejections which can cost them more. Imagine that your manufacturer conducts a pre-shipment inspection. Imagine that you've got 10,000 units, and they inspect 20% of your goods. Your FBA preparation company is likely to find additional issues in your inventory. Danny McMillan believes that many manufacturers don't inspect their shipments as closely as they should due to the fact that it increases the cost of shipping and reduce their margins. This is why it's important that you have your preparation service examine your shipment.
In Summary
Although outsourcing FBA preparation could increase the efficiency of your business but you should not be afraid to ask any questions, however small. In order to build relationships with your prep service, you must get to know your prep service. If they dismissively answer questions, it's a sign that they may not be the right option. You can also talk to other sellers. It will help you find out which prep companies they use and, even more crucially the ones you should be avoiding. After all, when you're transferring your inventory to someone else, you'll need to ensure it's going to be safe.