Best 3 Factors to Consider While Deciding Third-Party Prep Service
Best 3 Factors to Consider While Deciding Third-Party Prep Service
When it comes to choosing an FBA prep service, there are several aspects to consider. Further, it may range from costs to processing time or more. Depending on your business strategy and sales velocity, each factor has a distinct weighting.
In this article, we have discussed the top 4 factors that you need to consider while choosing a third-party prep service. Lets’ start.
Costs
When it comes to picking an FBA prep service. Then, the pricing will be the most important factor to consider for most sellers. Furthermore, while it should not be your sole consideration, it is understandable that you want to receive the greatest offer possible.
The primary thing you should inquire about is whether the prep service charges you on a monthly or per-item basis. Moreover, monthly payment is more likely to appeal to high-volume sellers. But, a per-item price is more likely to appeal to low-volume sellers who will be shipping merchandise in on a more infrequent basis.
In addition, you’ll also want to know what’s included in the packaging procedure. For example, charges for bubble wrap and poly bags, and more.
Eventually, it’s also helpful to know how much storage costs are. And, if there’s a minimum number of units you have to send in at any one time.
Storage
While the primary function of an FBA prep service is to prepare your inventory for shipment to Amazon. Furthermore, there is a significant increase in the number of sellers who are storing their inventory in prep centers.
Furthermore, there are two basic causes for this behavior on the part of merchants. The primary factor includes that it may be less expensive than having all of your inventory stored at a fulfillment center. As a result, sellers keep their inventory with their prep service and send products to FBA according to their sales velocity.
Simply put, if a seller submits 10,000 units to their prep center but only sells 1,000 units each month. Then, they will only send 1,000 units to FBA each month. The rest of the stock will be kept at the prep center.
The second factor is Amazon’s suspension culture. Furthermore, your merchandise is effectively stuck in the Fulfillment Center if you are suspended. Moreover, you’ll have to pay for each item to get it returned, and it might take a few weeks to arrive. You further will need to inspect the inventory you have in FBA as part of your Plan of Action.
Make sure to get your stock wrapped and labeled in order to ship it back in once you’ve been reinstated. Overall, this is a costly procedure that sellers are attempting to avoid by holding their product at a Prep Center and shipping in fewer volumes of merchandise.
If you go this route, make sure your prep company can turn inventory around quickly and on short notice. You should also inquire about their insurance; you’ll want your merchandise to be secured from fire and theft while it’s in their possession!
Processing Duration
The speed with which an FBA prep firm can prepare your inventory is a major consideration when choosing one. Several things may influence your urge for speed.
Most prep businesses are fairly forthright about their turnaround periods, and some even offer a guarantee of 24 or 48 hours. Furthermore, if you don’t see this information, inquire; you don’t want your late shipment rate to suffer because your prep service is taking their time getting your product into FBA.
Inspection
In addition to labeling and packaging, find out if your FBA prep provider performs inspections. Furthermore, it’s crucial to remember that this isn’t a replacement for factory product inspections. But, it can be used to enhance them.
Manufacturers don’t scrutinize shipments too closely because rejecting goods cost them more money.
Assume your supplier does a pre-shipment inspection. You have 10,000 units, and 20% of them are being inspected. When your FBA prep service goes through the stock, there’s a strong chance they’ll find more issues that your manufacturer overlooked.
We hope this article helped you in the best possible way. Good Luck!
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