Great Ideas For Picking An Amazon FBA Prep Service

When choosing an FBA prep service, there are many factors to consider. These include the location they are in and how fast they can handle your inventory. Each aspect has its own weighting, dependent on the speed of sales and business model. Have a look at the most popular Amazon FBA Prep Service blog for updates.

Sales Taxes
If you purchase goods online within the US (i.e. It is possible that you will be obliged to pay sales tax if you purchase your goods from online stores in the US (i.e. It is possible to reduce costs by using a prep centre in a state that has no sales tax, or with low rates. How? by shipping your goods straight to the center for preparation. If the stock is in one of the states without sales tax (Delaware Montana New Hampshire Oregon) Storage charges will likely be less than the amount you'd pay in your home country. Remember that the US has sales taxes ranging from zero to seven percent. It is possible to save money by selecting an office located in a state that is subject to lower sales tax than the other states.

Climate
It is important to inquire with your prep service whether the temperature control can be used for perishable products such as food items. It is not a good idea for your goods to become damaged simply because they weren't kept in good working order. This doesn't apply to perishable products. The control of temperature is vital if you send stock to an extremely hot climate or a state with extremely fluctuating weather. If the weather isn't appropriately controlled, the items could be damaged or lose value.



Storage Facility
FBA prep services' primary role is to help you prepare your inventory for be sent to FBA. But, more sellers are turning to prep centres to store their inventory. These sellers do this for two primary reasons. The primary reason is that it's cheaper than stocking your entire inventory in Fulfillment Centers. So, sellers store their inventory using their prep services and then transfer their inventory into FBA in accordance with their sales speed. For example If a seller has 10,000 units of inventory in their prep center and is selling approximately 1,000 units per monthly, they will only send 1,000 units to FBA each year. The center's prep will retain all the remaining stock. Amazon's suspension policy is the second reason. Your inventory will be put in the Fulfillment Center if it is suspended. If you want to return the item you must pay for each item, and it could not be returned for a few weeks. As part of your Plan of Action, you (or your prep center) must inspect the inventory that you have in FBA. To send your stock back to the Prep Center, you'll have to have it packaged and repackaged. It's a cost-intensive process, which sellers try to reduce by keeping their inventory in the Prep Center and submitting smaller quantities. If you're going take this method, make sure your prep service will be able to replenish inventory quickly and at short notice. Also, you should ask about their insurance - you'll want your inventory to be secured against theft or fire when they hold it!

Processing Time
It is crucial to think about the speed at which they prepare your inventory. There are many factors that can affect the necessity to be quick. You might need them to return units in 48 hours if you're holding stock at the prep facility and transferring it in based sales speed (see below). Most prep services will be transparent about the processing time they will take. They might also provide an assurance of between 24 and 48 hours. If you don't see this information, please contact them. It is not a good idea to have your late shipping rates to be affected because the prep service you use is taking too long to process your stock into FBA. Have a look at the recommended Door to Door Delivery website for details.



Inspection
Asking if your FBA preparation agency has inspections in place is a good idea. It's not an alternative to inspections carried out by the manufacturer's factory. But, it could help them. Manufacturers do not inspect their shipments as carefully, as if the product is rejected, it will cost them more. Imagine your manufacturer performing an inspection before shipping. The manufacturer checks 10,000 units. They also inspect 20% of the products. There is a good possibility that when your FBA prep service looks through the inventory, they'll discover other issues that your manufacturing company missed. Danny McMillan believes many manufacturers don’t pay attention to deliveries because they're aware that rejects can lead to increased cost and less profit. This makes the inspection of your prep service even more important.

In Summary
You can outsource FBA prep to help your business become more productive, however it could also slow your business. Your prep company will need to build an association with you. If they aren't responsive when you ask questions it is a sign they might not be the best fit for you. It's also possible to speak with other sellers. It will help you find out which prep companies they utilize and, more crucially is, which ones to stay clear of. As you don't want to see your inventory to go to waste it's important to ensure its safety.