Recommended Suggestions For Choosing An Amazon FBA Prep Service
There are many things to take into consideration when choosing the FBA pre-service. These include the location of their offices and how quickly they will process your inventory. Each factor has a different weighting based on your company's model and the speed at which sales are processed. Check out the top rated Amazon FBA Prep Service blog for updates.Sales Taxes
You can source your goods on the internet from US retailers (i.e. There could be sales taxes due to online arbitrage. However, you can reduce costs by choosing a pre-school in a state without sales tax, or at a low rate. How? by delivering your inventory directly to the prep center. If your stock is located in one the four states that don't have sales tax (Delaware Montana New Hampshire Oregon) Storage charges are likely to be lower than what you would pay in your home country. Sales tax rates in the US could range from zero to just under seven percent. Thus, even if you choose a prep center located in a state with a sales tax that's just two or three percent less could help lower the price.
Climate
You should ask your prep service whether the temperature control can be used for perishable goods such as food. It's not acceptable for your items to become damaged due to the fact that they were not stored in the proper conditions. This is true for any food item that is perishable. The control of temperature is vital if you send stock to a very hot state or a place with extremely unpredictable weather. If the conditions aren't managed correctly your items could spoil or get damaged by damp.
Storage Facility
FBA preparation is the primary responsibility for getting your inventory ready for FBA. However , more sellers are making use of prep centers as a way to organize their inventory. There are two primary reasons sellers are doing this. One reason is that it is less costly than keeping all your inventory in an Fulfillment Center. Sellers store inventory with their prep companies and buy FBA in accordance with their sales rate. For instance that if a seller owns 10,000 units in their prep facility and sells approximately 1,000 units per monthly and only sends 1,000 units to FBA every year. The rest of the inventory will be kept at the center. Amazon's suspension is the other reason. It is possible to have your stock suspended and it will remain in the Fulfillment Center. You will have to pay for each piece in order to have the item returned. The item might take a few weeks. As part of your Plan of Action, you (or your prep center) must inspect the inventory you had in FBA. You will then need to get your stock returned to FBA, repackaged, labeled and sent back to FBA when you have been reinstated. Selling agents are working to simplify this expensive process by sending smaller quantities of inventory to the Prep Center. If you plan to take this approach, make certain your prep company can quickly and efficiently transform the inventory. Also, you should inquire about their insurance policies - you'll want your inventory to be secured against theft or fire while they are holding it!
Processing Time
When selecting an FBA prep service, the speed they can prepare your inventory is key. There are many variables which can affect your need for speed. For instance, if your sales speed requires you to have stock on hand at the prep center, you could expect them to have it in the next 48 hours. Most prep services will be upfront about their processing times. They may also offer an assurance of between 24 and 48 hours. If you don't find this information, you should inquire, since you don't want your late delivery rate to suffer due to the prep service is waiting for their sweet time to get your goods into FBA. See the recommended Door to Door Delivery blog for info.
Inspection
In addition to labeling and packaging, it's important to inquire if your FBA prep service carries out inspections. It's important to know that this does not replace the inspections carried out by your manufacturer's factory, but it could be used to supplement the inspections. Manufacturers do not inspect their shipments as closely, because if stock is rejected it costs them more. Imagine your manufacturer doing an inspection prior to shipping. There are 10,000 units in your facility and they're able to inspect 20%. There's a high chance that when the FBA prep service goes through the stock, they're going discover other issues that your manufacturing company missed. Danny McMillan believes manufacturers don't always inspect shipments closely enough because they realize that rejecting the stock will cost them more and reduce their margins. Your prep service should inspect your shipment.
In Summary
Your business can run efficiently if you outsource your FBA preparation. But, choosing the wrong service could slow down your business further. You'll need to establish an enduring relationship with and trust your prep company. If they don't answer your questions, they could be an indication they're not the right fit for you. Speaking to other sellers could also prove beneficial. Speaking to other sellers could assist you in finding out what firms they prefer to use for their preparation and, most importantly, which ones to avoid. After all, when you're sending your valuable inventory to another person, you'll want to ensure you're sending it in a safe manner.