Good Hints For Selecting An Amazon FBA Prep Service

You must consider a range of factors when selecting an FBA preparation service. From their location to how quickly they can process inventory, Each aspect has its own weighting depending on the sales velocity and business model. Check out the recommended Amazon FBA Prep Service blog for more.

Sales Taxes
American online retailers may permit you to source products (e.g. Online arbitrage may mean that you will have be required to pay sales tax if your goods are purchased through US-based online retailers. You can however save money by using the services of a preschool in a state that does not have sales tax or at an affordable rate. How? Shipping your stock directly to the center for preparation. If the stock is in one of the four states that do not have sales tax (Delaware Montana New Hampshire Oregon) Storage charges will likely be less than what you would be paying in your country. Remember, sales tax in the US can range from zero to seven percent. A two or three percent decrease in sales tax can make an enormous difference to the total cost of your purchase.

Climate
If you're selling perishable items (e.g. food) the first question you should ask about any preparation company is whether their facilities for receiving and storage are climate-controlled. You do not want your goods ruined simply because they weren't kept in good conditions. This applies to any perishable item. Climate control is equally important when you're shipping stock to states that are extremely hot or states with extremely variable weather. If the conditions of the climate are not properly controlled, items can spoil or be affected by damp.



Storage Facility
FBA preparation is the primary responsibility for getting your inventory ready for FBA. But more sellers are now using prep centers as a way to keep 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. Sellers keep their inventory at their prep companies and stock up on FBA in accordance with their sales speed. To break this down, if a seller sends 10,000 units to their prep center and is selling around 1,000 units a month, they'll send 1,000 units to FBA each month. The prep center will store the remaining inventory. Amazon's suspension philosophy is the third. If your inventory is suspended, it becomes locked within Amazon's Fulfillment Center. It costs the customer per item returned. It can take several weeks for it to reach you. In your Plan of Action, you (or your prep center) will have to inspect the inventory you received from FBA. After you have been reinstated, you'll need to get your stock repackaged. Sellers attempt to cut back the expense of this process by keeping their stock in the Prep Center, and sending in smaller amounts. If you opt for this method make sure your prep company will quickly change inventory. Find out about their insurance. Your inventory must be protected against theft and fire.

Processing Time
The speed with that they will prepare your inventory is a key element when selecting the FBA preparation service. Your need for speed can depend on many aspects. If you've got inventory at the prep facility and are sending it in based upon sales velocity (see above) it is likely that you require them to ship units in 48 hours. Many prep companies are transparent about processing times. Some even provide a 24-48 hour guarantee. You should always ask for this information if you are uncertain. This is because you don't want your late shipment rates affected by a prep company which takes too long to get your inventory into FBA. See the most popular Door to Door Delivery website for info.



Inspection
In addition to labeling and packaging, it's important to inquire if your FBA prep service carries out inspections. It's not an alternative to inspections of the product at the factory of the manufacturer. However, it may supplement them. Manufacturers aren't required to check shipments as they may lose more money if stock is returned. Imagine your company conducts a an inspection prior to shipment. Imagine you own 10,000 units and they inspect 20% of the goods. There's a good chance your FBA team will spot issues with your inventory after examining it. Danny McMillan believes manufacturers don't always inspect shipments closely enough because they know that rejecting the stock will result in more costs and lower their margins. This makes the check performed by your preparation service even more critical.

In Summary
While outsourcing your FBA preparations can help you make sure your company run more smoothly, it can also cause difficulties for your company. To build a relationship, you will need to get to know your prep service. If they don't respond to questions, that is a sign that they may not be the best choice for you. It's also possible to speak with other sellers. This will allow you to discover the services they employ, and what ones to be wary of. Because you don't want your stock to be wasted, it is important to make sure it is safe.