Various factors need to be considered before picking an FBA prep service. The efficiency and performance of your FBA service provider has a direct impact on your Amazon rating and determines whether the e-commerce giant will continue to provide you with a sales channel.
Let’s take a look at what you’ll need to consider as an online seller:
Price
It shouldn’t come as a surprise that price is one of the most crucial factors you need to think about before you hire an FBA service provider.
Firstly, ask the FBA prep service provider whether they charge per month or per item. Monthly charges are better suited to sellers that distribute large amounts of goods; per-item charges make more sense for sellers that sell small volumes infrequently.
The packaging process will affect the price the FBA service provider will offer; most providers charge slightly more when using polybags and bubble wrap. You’ll also have to ask about storage fees and minimum unit requirements.
Bear in mind that the lowest price shouldn’t be a determining factor when choosing FBA services. A customer that receives a damaged product due to poor packaging will ask for the product to be replaced, which will cost you extra money.
Location
If you run a private label company, then you’re probably expecting bulk orders from places like China. In this case, you’ll need to find out what ports your shipments come in from and choose a prep center near it; this saves you time and transportation costs.
Retail arbitrage sellers can find prep services near their facilities, so it’s easier for them to source stock.
Don’t make the mistake of looking for a prep center near an Amazon Fulfillment Center, though, because you’ll probably be shipping to different Amazon warehouses.
Sales Taxes
Sellers who source from online retailers may be charged sales tax, but you can be exempted or save on sales tax if you choose a prep center located in a state that either offers low tax rates or doesn’t charge sales tax at all.
In these states, the storage fees that you’ll be charged while your prep center waits for more inventory will be substantially lower than what you’d have to pay in your home state.
FBAPrep4U provides comprehensive FBA preparation services that include inspection of goods, preparation of items, inserting details in the Seller Central account, and devising a shipping plan before sending all goods to Amazon’s fulfillment centers.
Contact us for more information by calling our FBA Prep Center at 614-392-8850.