When selecting an FBA prep company, there are many factors to consider. This includes the location they are in and the speed at which they process your inventory. Each factor has a different weighting, based on the business model and your sales speed. Have a look at the recommended Amazon FBA Prep Service site for updates.

Sales Taxes
You may have to pay sales tax if you purchase goods on the internet from US sellers (i.e. online arbitrage) you could be required to pay sales tax. However, by choosing a prep center in a state with either zero sales tax or a low rate, you could save the money. How? You can ship your stock directly to the prep centre. If your inventory is in one of the four states without sales tax (Delaware Montana New Hampshire Oregon), storage fees are likely to be lower than what you'd have to pay in your country of origin. Sales tax rates in the US can vary between zero and seven percent. You can save money by choosing the right prep center in a state that has lower sales tax than the other states.

Climate
Ask your preparation service if the temperature control can be used for perishable goods like food items. It is not acceptable for your items to get damaged simply because they weren't stored in the proper conditions. This doesn't apply to perishable products. The control of climate is equally important when you're shipping stock to extremely hot states or states that have highly unpredictable weather. If the climate isn't handled properly, your goods could get damaged or be affected by damp.



Storage Facility
FBA prep services are primarily responsible to prepare your inventory for FBA. However the prep centres are getting more popular among sellers to store their inventory. They do this because of two main reasons. The first reason is that it is cheaper than storing all your inventory at a Fulfillment Center. Based on their sales speed the sellers keep their inventory in their prep center, and then move the stock to FBA. That implies that a seller who delivers 10,000 units of inventory to their prep centers each month and is selling around 1,000 units per month would only be able to send 1,000 units to FBA each month. The prep center is where they store the remaining stock. Amazon's suspension policy is the second reason. The Fulfillment Center will hold your inventory until it is removed. To have the item returned you must pay for each item, and it might not arrive for a few weeks. In your Plan of Action, you (or your prep center) must examine the inventory you received from FBA. When you get reinstated, you'll need to get your stock repackaged and labeled in order to send it back in. This is a costly procedure that sellers would like to minimize by having their stock stored in the Prep Center and sending smaller quantities. If you plan to follow this route be sure that your preparation company can quickly and efficiently turn around stock. Ask about the insurance they offer. This is important because you want your stock to be protected from theft or fire.

Processing Time
It is crucial to think about how quickly they will prepare your inventory. Your need for speed can depend on many variables. If you have stock at the prep facility and are sending it in based upon sales velocity (see above) You will probably need them to send units within 48 hours. Prep services generally provide upfront processing times, and some even offer a 24 or 48-hour assurance. If you don't see this information, please ask. Don't want your late shipping rates to be affected because your prep service is taking too long to bring your inventory in FBA. Have a look at the recommended Door to Door Delivery site for updates.



Inspection
It's important to determine if you FBA prep services also carry out inspections. It's not an alternative to inspections of the product at the manufacturer's factory. But, it could help the inspections. Manufacturers don't check shipments too close, since if a product is rejected, it will cost them more. Imagine your company conducting an inspection before shipping. You have 10,000 units and they inspect 20% of the goods. The FBA preparation service is likely to find other issues that your supplier didn't see when they go through the inventory. Danny McMillan believes manufacturers don't always inspect shipments closely enough since they are aware that rejecting stock can increase their costs and decrease their margins. This makes the inspection carried out by your prep service even more important.

In Summary
Transferring your FBA preparation can help your business run smoothly , however choosing the wrong service can make things more difficult more.The most important thing to keep in mind is that you should not be afraid to ask questions - regardless of how small they appear. You'll have to develop relationships with your prep provider If they're indifferent when you ask questions, this is an early warning that they might not be the best choice. Speaking with other vendors could also prove useful. It's possible to discover what preparation services they use and the ones they use. When you're sending your stock to someone else, you must ensure it's secure.