Location – Where is the prep center located? Is it near the Port of Entry for your Import shipments? Is it near your wholesale supplier? Sometimes it makes sense to use multiple Prep Centers in order to save money on inbound shipping charges.
Tax Free – Is the prep center located in a tax free state? This allows you to have Online Arbitrage (OA) orders shipped without paying sales tax. Some retailers do not allow you to use your Reseller Certificate, so this is a way to eliminate the Sales Tax that your state may charge when orders are shipped to you. Many times, the tax savings will more than pay for the Prep services. Wholesale and Import shipments should not incur any sales tax.
Prep Time – How long it takes to prep & ship your items once everything has arrived. Keep in mind that shipping times to the Prep Center may vary, so you will want to know how long will it take to complete your shipment to Amazon after the entire order has been checked in at the Prep Center.
Wholesale – Larger Shipments of similar items that are purchased from manufacturers and distributors. Setting up wholesale accounts usually requires a Tax ID number, business bank account, and credit references.
Imports – Bulk shipments direct from the overseas manufacturer that are usually shipped on pallets. Depending on the size of the order, it may arrive by plane or cargo ship. Usually requires a broker or agent to handle US Customs and transportation from the Port of Entry.
RA – Retail Arbitrage – Finding items in retail stores that can be resold elsewhere for a profit. Some Prep Centers allow you to drop off or ship items to them that were purchased at local retail stores. Some Prep Centers do not handle RA processing due to the additional labor involved in removing price tags and labels.
OA – Online Arbitrage – A form of Retail Arbitrage that involves finding items online that can be resold elsewhere for a profit. Sometimes these items are also available in the retailer’s stores. Many online retailers offer free shipping for orders that reach a minimum price level.