Good Suggestions For Deciding On An Amazon FBA Prep Service

There are many factors you should consider when choosing the FBA pre-service, such as the location they are in and how quickly they will process your inventory. Each factor has its own weighting, according to the sales speed and business model. See the recommended Amazon FBA Prep Service website for details.

Sales Taxes
The US-based online stores may permit you to source items (e.g. online arbitrage could mean that you'll have tax obligations if your goods are purchased from online stores in the US. But by using a prep center in a state with either zero sales tax or a low rate, you could save the money. How? How? By sending your inventory directly from the manufacturer to the prep center. If your product isn't exempt from sales tax in any of the four US states (Delaware Montana New Hampshire Oregon) the storage charges that are incurred as you wait for additional inventory to arrive in your state will be less than the amount you'd have to pay. The sales tax in the US ranges between zero and around seven percent. You can save money by choosing an office in a state with a lower sales tax than other states.

Climate
If you are selling perishable products, such as food or beverages, the first thing you should inquire of any prep business is whether their storage facilities are controlled by climate. It is not a good idea for your products to get damaged simply because they weren't kept in good condition. This doesn't apply to perishable items. The control of temperature is vital if you send stock to a very hot state or one with highly fluctuating weather. If climate conditions aren't managed properly your goods could deteriorate or turn damp.



Storage Facility
FBA prep centers' primary role is to prepare your inventory to be sent to FBA. But many sellers are turning to prep centres to store their inventory. Two main reasons sellers use prep centers are the reason. One reason is that it can be cheaper than storing all your inventory in the Fulfillment Center. Sellers maintain their inventory at their prep service and then transfer the FBA stock according to the sales rate. To put it into perspective, if a seller sends 10,000 units into their preparation center and is selling about 1,000 units per month, they'll only send 1,000 units to FBA each month. The center's prep will keep all the remaining stock. The second reason is Amazon's suspension system. If your stock is suspended, it is stuck in Amazon's Fulfillment Center. It costs you per item returned. It can take several weeks for it to arrive. In your Plan of Action, you (or your prep center) must examine the inventory you received from FBA. When you've been reinstated, you will need to have your stock repackaged. It's an expensive process that sellers attempt to cut down by keeping their inventory at the Prep Center and sending in stocks in smaller amounts. This is a good alternative if you wish to turn inventory quickly. It is also important to inquire about their insurance. Your inventory must be covered against fire and theft.

Processing Time
The speed with which they can make your inventory ready is an an important element when selecting an FBA preparation service. There are many factors that affect how fast you need your inventory to be prepared. If you've got stock in the prep center and you are bringing it in according to sales speed (see above) it is likely that you require them to ship units within 48 hours. A lot of prep centers are open about processing times. Some offer an assurance of 24 hours. If you aren't able to find this information, make sure you inquire, since you don't want to have your shipment rate to suffer because the prep service is waiting for their sweet time to get your inventory into FBA. See the best Door to Door Delivery site for details.



Inspection
In addition to labeling and packaging, it's important to inquire if the FBA prep service also conducts inspections. It is not a substitute for inspections of the product at the manufacturer's factory. But, it could supplement these. Manufacturers do not check their products very closely because it can result in stock rejections that result in higher costs. Imagine that your manufacturer conducts an inspection prior to shipment. They check 10,000 units, and 20% of the products. There's a high chance that the FBA prep services will discover problems in your stock which your manufacturer didn't. Danny McMillan believes that manufacturers typically don't examine their products too closely because they know that if they reject a product, it's going to cause more expense and eat away at their margin. This makes the inspection of your prep service even more crucial.

In Summary
While outsourcing your FBA preparations can help you make sure your company run more smoothly, it can also result in issues for your business. You'll have to develop an alliance with your prep provider, so if they are unresponsive when you inquire, this is an early sign that they might not be the best option. Speaking to other sellers could also be useful. Talking to other sellers can assist you in finding out what firms they prefer to use for their preparation and, perhaps most important the ones you should avoid. Since you don't want your supplies to be wasted, it is important to be sure that it's safe.