Top Advice For Selecting An Amazon FBA Prep Service
There are numerous aspects to consider when choosing the FBA preparation service. They must be able of processing your inventory quickly and accurately. Each of the factors have a distinct weighting depending upon your business model or the speed of sales. Check out the most popular Amazon FBA Prep Service website for updates.Sales Taxes
If you purchase goods on the internet within the US (i.e. It is possible that you will be required to pay sales tax when you purchase your items from online stores in the US (i.e. It is possible to save money by choosing an office in a state with no sales tax or has low rates. How? You can ship your stock directly to the center for preparation. If your inventory isn't exempt from sales tax in any of the four states in America (Delaware Montana New Hampshire Oregon), then storage fees which are charged in the meantime you wait for new stock to be delivered to your state will be lower than what you would have to pay. Be aware that the sales tax in the US can range from zero to seven percent. It is possible to save money by selecting an office in a state with a lower sales tax than other states.
Climate
If you are selling perishable products, such as food or drinks, the very first question you must inquire of any prep business is whether their receiving/storage premises are climate-controlled. It's unacceptable for your products to be damaged because they weren't stored in the right conditions. This doesn't only apply to perishable items. If you're shipping stock to a particularly hot state or one with extreme weather fluctuations, climate control is equally important. If the weather isn't appropriately managed, your items might become damaged or lose their value.
Storage Facility
FBA prep centers' main purpose is to prepare your inventory to be sent to FBA. But, more sellers are turning to pre centers to store their inventory. There are two main reasons why sellers choose prep centers are to understand why. It is less expensive than keeping your entire inventory at Fulfillment Centers. Sellers store their inventory at their prep center and then ship FBA stock based on sales velocity. To break this down into a simpler way, if a seller is sending 10,000 units into their prep center and is selling around 1,000 units a month, they'll only be sending 1,000 units into FBA each month. The remainder of stock will be kept at the center. Another reason for this is Amazon's suspension policy. If your stock is suspended, it becomes trapped within Amazon's Fulfillment Center. In order to get the item back it will be necessary to pay per item and it might not arrive for a while. The Plan of Action will require your prep center or you to examine all inventory within FBA. Once you are reinstated, you will need to get your stock repackaged. Selling agents try to simplify this expensive process by sending smaller quantities of inventory to the Prep Center. If you're considering this approach, make sure your prep company will be able to replenish inventory quickly and on short notice. Also, ask regarding their insurance. Your inventory should be secured from fire or theft while they hold it.
Processing Time
It is important to consider how fast they can prepare your stock. There are many aspects that affect your speed requirements. If you store your stock in a pre-production facility and ship it out with respect to the sales speed (see above) You want them not to take longer than 48 hours turn your units around. Most prep services will be upfront about their processing times. They might also provide a guarantee of 24 to 48 hours. If you do not see this information, please inquire. It is not a good idea to have your late delivery costs to be affected due to the fact that your prep service is taking too long to get your inventory into FBA. Check out the top Door to Door Delivery site for details.
Inspection
It is important to inquire if your FBA preparation agency has inspections in place is a good idea. It is important to note that although it's not a substitute for inspections of products at the factory however, it could be used to supplement. Manufacturers do not inspect their shipments as closely, because if stock is rejected, it will cost them more. Imagine that your manufacturer checks the goods prior to shipment. There are 10,000 units in your factory and they inspect 20 percent. Your FBA prep company is likely to find other problems in your stock. Danny McMillan believes manufacturers don't examine their products as thoroughly as they should because they know that rejecting stock can cost them more and reduce their margins. This makes it even more important to have your prep service check your shipment.
In Summary
You can outsource FBA prep to help your business become more productive, but it could also slow your business. It is important to establish an rapport with your prep service. If they appear to be reticent when you ask questions this may be an indication that they are not the best choice. Speaking to other sellers could also prove useful. Speaking to other sellers could help you find out which prep firms they use and, most importantly the ones you should avoid. Since you don't want your inventory to be wasted, it is important to be sure that it's safe.