Dan and David here at the FPS Prep Warehouse in Lake Orion, Michigan. We've recently undergone many changes over here and wanted to offer our continued inspection services at a newly updated rate and with some clear and concise changes that will ultimately help you make more profits and help us keep you informed throughout the entire process.
We've moved away from the generic "per order/unit" rate due to the differences between each liquidation order and how unique one can be from another. Whether it's 40 units or 140 units, it takes time to complete our 360 degree inspection of every unit that we receive (roughly 5 minutes per unit). For this reason, we've found that charging a flat hourly rate for liquidation inspections makes the most sense. During the transitional period of shutting down the service to the relaunch of the service, we received, inspected, and listed for three on going customers to get feedback on the new rate structure and inbound limitations to ensure consistent profitability. Well the data is in, our customers are able to maintain a solid 15-30% profit margin on their purchase. The better liquidation lots you purchase and the better you vet the lots before buying them, the more profit you will make.
360° INSPECTION AND PREP PROCESS
We've found that a quality inspection takes an average of 5 minutes per unit. This includes, but is not limited to:
---> Testing the device or item (within item and warehouse capabilities).
---> 360 degree overlook for damage, missing parts, or anything that would otherwise limit the unit from selling.
---> Current pricing market research on Amazon.com and eBay.com.
---> All Amazon units are prepped for FBA according to Amazons requirements including any labeling, poly bagging, and bubble wrap necessary. Shipments are created within your seller central and the items are boxed and shipped to your Amazon account.
---> eBay items are tagged with your unique SKU, photographed in house, and descriptions are written for the eBay listings to go live. Once this step is complete, your manifest is then sent to another member of our staff to complete the eBay listings. These listings will be live for 30 days initially. After the first 30 days, we will contact you with a count of your current eBay inventory and see if you'd like to keep it live for another 30 day increment. The monthly fee for us to maintain your eBay inventory and keep up on your listings is $59/month. This is a flat monthly fee which covers the storage for your units along with the resources that it takes to respond or otherwise communicate with potential buyers. We answer questions daily from incoming inquiries in order to get your items sold as quickly as we can!
OVERALL AMAZON AND EBAY INSPECTION PARAMETERS AND EXPECTATIONS
---> Any Amazon bound units found to be priced below $10 AFTER the 30% discount from current new price will be discarded. Our experience and data allow us to determine this price threshold for listing items from liquidation lots on Amazon.com.
---> Any eBay bound units found to be priced under $20 AFTER the 30% discount from current "new/used" price will be discarded. Our experience with low dollar items is, between fees and shipping charges there is no real value in selling these items.
---> You may elect to have these low dollar or "trash" units shipped to you at your expense. This option will be given at checkout for placing your inspection order, this decision needs to be made during the checkout process and before your manifests arrive at our warehouse for inspection, otherwise they will default to being discarded upon inspection.
---> Your inspection will typically begin within 21 days upon arrival. Our current capacity is limited and therefore we are limiting the number of members allowed to join. Once current capacity is reached, we will close the program off to new members.
EBAY SALES TIMELINE OF EVENTS
eBay sales are paid out during the first week of the month, but run 60 days behind from the listing date. This is due to the 30 day eBay return policy that is in place. We must wait out that period because we do not pay out on returned items. The items are usually returned due to a defect that our warehouse is unable to physically test or bring to light during the inspections process so we are unable to split proceeds of a return due to the refunds given and the shipping that has already been paid for. When an item is returned we pick up the tab on shipping both ways.
Your eBay payout will be 50% of the Net Proceeds after all Shipping fees, eBay fees and Paypal fees are deducted. Example being, item sells for $50. Shipping costs $8, eBay fees are 10% and Paypal fees are 3%. Net proceeds are $35.50 which you then get 50% of that amount equaling $17.75. All of these details are broken down on your monthly payout sheet per item which you may already be familiar with. If not, it will come in the form of an email attachment along with note on what your current eBay inventory looks like and whether or not you're going to maintain the $59/monthly fee or opt to have your items shipped back to you. If you choose to have your items shipped back to you, your listings will be removed and packed for shipment, you will be billed for the actual shipping charges of your items coming back to you. Should you choose not to ship them back or fail to respond in a timely manner ie..2-3 days we will donate or discard your items as we deem appropriate.
ORDER AND PAYMENT FOR INSPECTIONS
---> When you win an auction or purchase a liquidation lot, we will ask that you go to our website to place your order (link provided after the signup process) - We need 1 order per lot arriving and if there are multiple manifests for that lot, please provide them all! This order form puts you in the queue for inspections. We don't invoice for any inspection services until your inspection starts.
------> When placing your order, the information provided at checkout is REQUIRED or we cannot begin your inspection within the allotted timeline. If you do not have a manifested lot, that's alright but just know that it will take a bit longer. We do recommend to have a manifest but again, not required.
---> Once your products begin the inspection process, you will get a shared link via email from our warehouse staff. That is to say you will get an actual email, written by a human, sent to you with a link directly to your inspection worksheet. Here you can watch the entire process unfold while our inspectors work through your items.
---> We do require a $59/month subscription that covers the eBay item storage, upkeep and maintenance of your listings and inventory as mentioned above under "Inspection and Prep Process" - The link to sign up will be provided after you've completed the form at the bottom of this email.
---> Please know that our capacity is limited and is the reason we are only opening this program to a select few customers. It will continue to be limited while we scale the service to accommodate more members. Our current cycle of inspections are first come first serve with weekly unit limitations to keep it fair to all members. So it is imperative that you place your order as soon as you have purchased your lot.
---> Currently we know that capacity allows us to accept NO MORE THAN 500 units per consolidated shipment per customer per week. This will ensure that we don't create a bottleneck and cause a back log for the entire 360° Inspection Service.
---> Over the last 8 months, we've learned a bit about how these liquidation lots turn out. The average percentages of products and where they end up are roughly 1/3 to Amazon, 1/3 to eBay, and 1/3 are too low for profit or trash due to condition. That's not to say you won't send us an order where almost all of the items go to Amazon. We've seen it swing in both directions. Example: 75 units sent in, 60 go to Amazon, 10 go to eBay, 5 go in the trash. On the other hand, we've had orders with only 15 larger scale units come in, 12 went in the trash 1 went to Amazon and 2 to eBay. Please Note: There are also many times where items are not received at all, or they are manifested incorrectly in which we would add that item to bottom of the manifest list that you provide for us. If this happens, you will end up with lines in your file which indicate the item was "missing" because if it was manifested incorrectly, we don't have a way to know exactly what happened when the order was filled at the liquidation place that you purchased from. Sometimes they run across broken units as they are loading the boxes and inevitably they get tossed and the manifest isn't updated. We've experienced this ourselves and many of the past customers have seen it as well. We just want to be as up front about these possibilities before hand. If the item says "MISSING" in your working file, it was either not present upon inspection, or it was manifested wrong so we couldn't identify it. It is then added to the bottom of your shared document.
Alright, I know that was LOOOOOONG winded. I think we covered everything. If we didn't or you have any questions, PLEASE send us an email and we'll clear up any confusions. I probably misspelled a couple of things as well so feel free to call the grammar and spelling police.
If you'd like to begin the process for sending in liquidation products, we need you to first fill out the form below so that we are able to gauge how much interest there is in this continued service. You will be contacted by us within 24 hours after completing the form so that we can start the signup process.
Thanks for making it to the end here. If you submit the form above, we will reach out within 24 hours to move onto the next step!
Dan and David
FPS Prep Warehouse
Lake Orion, MI
This monthly subscription service allows for our warehouse to be able to provide you with the following services which pertain to your products that are listed on eBay:
There is no limit to the storage we provide or the number of orders per month we will fulfill when you are a subscriber. As long as your subscription is active, we will continue to provide these great services to you!
If for whatever reason you decide the subscription is no longer of value to you, simply unsubscribe and we will arrange to have the remainder of your inventory shipped to an address of your choosing at your expense.