Free Advice For Deciding On An Amazon FBA Prep Service

When selecting the right FBA prep company there are numerous factors to consider. They include the location they are in and how fast they can handle your inventory. Each factor is weighted differently in accordance with the model of business and the speed at which sales are made. Have a look at the recommended Amazon FBA Prep Service site for details.

Sales Taxes
If you buy your products on the internet in the US (i.e. online arbitrage) you could be required to pay sales tax. However, by choosing a prep center in a state where there is either zero sales tax or a low rate, you could save money. How? What can you do? Send your products directly from the manufacturer to the prep center. If the inventory is located situated in one of four states without sales tax (Delaware Montana New Hampshire Oregon) The storage costs they charge while waiting for the additional inventory to be delivered will likely to be lower than the tax that you would pay in your the state where you live. Remember that the US has a sales tax of between zero and seven percent. It doesn't matter if the sales tax is anywhere from two to three percent lower in your state, it will nevertheless add a significant amount to your cost.

Climate
If you're selling perishable goods such as food items or drinks, the first thing you should inquire of any prep business is whether their storage facilities are controlled by climate. You don't want your items to be damaged simply because they weren't stored in good working order. This doesn't only apply to perishable goods. Climate control is important for those who are shipping goods to a hot state or one that is prone to extreme weather. If climate conditions aren't managed properly your goods could deteriorate or turn damp.



Storage Facility
Whilst the primary job of an FBA prep center is getting your inventory ready for submission to FBA increasing numbers of sellers are turning to prep centers to store their inventory. Sellers are choosing prep centers for two principal reasons. One reason is that it is cheaper than keeping all your inventory in a Fulfillment Center. Sellers keep their inventory at their prep business and replenish their stock of FBA in accordance with their sales velocity. To break this down into a simpler way, if a seller is sending 10,000 units to their prep center and is selling around 1,000 units per month, they'll only be sending 1,000 units to FBA each month. The remainder of stock will remain in the center. The other reason for this is Amazon's suspension policy. If your stock is suspended, it is stuck within Amazon's Fulfillment Center. It will cost the customer per item to return it, and may take several weeks to arrive. The Plan of Action will require that you inspect the FBA inventory. After you have been reinstated, you'll have to get your stock repackaged. It is an expensive processthat sellers attempt to minimize by keeping their stock in a Prep Center and submitting smaller quantities. If you're going take this approach, make sure the prep service you choose to use is able to turn inventory around quickly and at short notice. You also need to ask about their insurance - you'll want your stock to be protected against theft or fire while they are holding it!

Processing Time
One of the most important factors to consider when deciding on the best FBA preparation service is how fast they can make your inventory. There are a variety of factors which determine the speed at which you need your inventory to be prepared. If you've got inventory at the prep facility and are sending it in based upon sales velocity (see above), you will likely want them to deliver units in 48 hours. Prep services usually provide an estimate upfront of processing time, and some might offer a 24-houror 48-hour promise. If you do not see this information, do not hesitate to inquire. You don't want your late shipment costs to be affected due to the fact that your prep service takes too long to process your inventory into FBA. See the best Door to Door Delivery website for more.



Inspection
Alongside labeling and packaging, it's worth asking if the FBA prep service conducts inspections. It's not an alternative to product inspections at the factory of the manufacturer. But, it can supplement the inspections. Manufacturers do not inspect shipments very closely because it can lead to stock rejections that can cost them more. Imagine your company is performing preshipment inspections. You have 10,000 units and they inspect 20% of your goods. It's likely that the FBA preparation services will find problems in your stock that your manufacturer did not. Danny McMillan believes many manufacturers aren't paying attention to the shipping because they are aware that the rejections can result in increased cost and less profit. This makes the preparation service's inspection more crucial.

In Summary
Your business can run more easily if you contract out your FBA preparation. However, the wrong choice could slow your business further. It is essential to build an enduring relationship with and trust your prep company. If they are unable to answer your questions, it might be a sign that they're not the right fit for you. Speaking with other sellers is an excellent idea. It's possible to learn about the preparation services they use and which ones they prefer. If you're sending your inventory to someone else, you want to be sure it's secure.