On the surface, sending products to Amazon’s fulfillment centers might seem straightforward: pack your goods, label them, and ship. However, there’s a maze of requirements lurking beneath this simple checklist – from packaging and labeling protocols to rigid compliance rules. Oversights can be costly, leading to shipping delays, rejected inventory, added fees, or even account suspension.

In this blog post, we’ll cover the ten most common mistakes sellers make when shipping to Amazon FBA. By identifying and avoiding these pitfalls, you can streamline your supply chain, protect your Amazon seller account, and, most importantly, keep your customers happy.

Mistake 1: Choosing the Wrong Freight Forwarder

Many Amazon sellers, especially those just starting out, rely on their suppliers to handle shipping arrangements. While it might be convenient to let the supplier ship directly to Amazon’s warehouse, this approach has significant risks. Suppliers often lack specialized knowledge of Amazon FBA requirements and may ship the products incorrectly – leading to potential non-compliance, delayed deliveries, or unexpected additional costs.

Non-compliance with Amazon’s strict guidelines around delivery appointments, carton labeling, and packaging can create significant issues. Freight forwarders without specialized Amazon FBA knowledge may inadvertently violate these requirements, leading to potential complications. Delays are another risk, as missed delivery appointments or customs clearance hiccups can result in inventory stockouts, creating a ripple effect of lost sales and frustrated customers. Additionally, such errors often incur added costs, including re-labeling charges at the fulfillment center or unforeseen customs duties.

A reliable freight forwarder possesses several key features that ensure smooth and efficient shipping to Amazon FBA. Expertise in Amazon guidelines is paramount, as understanding delivery appointments and FBA preparation requirements helps avoid costly mistakes. Additionally, robust customs clearance management ensures that shipments move through international borders without unnecessary delays or complications. Timely deliveries and a commitment to preventing damage further establish a freight forwarder’s reliability. Moreover, choosing a logistics provider that offers comprehensive 3PL services and trucking to Amazon warehouses as part of an “All-in-One” solution can significantly streamline the shipping process, saving time and reducing errors.

How to Avoid

• Pick an Experienced Partner: Opt for a freight forwarder with proven expertise in Amazon-specific shipping protocols. Here’s a guide on how to choose the best freight forwarder to fit your business needs.
• Look for a “One-Stop-Shop”: Consider using a service like Unicargo, which offers end-to-end logistics solutions, from origin pickup to customs clearance to final-mile delivery at Amazon’s warehouse.
• Check for FBA Prep Services: Confirm whether your chosen partner can handle tasks like labeling, bundling, and packaging according to Amazon’s guidelines.

Mistake 2: Selecting the Incorrect Shipping Method

Choosing the wrong shipping method often stems from trying to minimize costs or from an unrealistic view of how quickly products need to reach Amazon’s fulfillment centers. FBA Sellers often opt for the least expensive ocean freight when a time-sensitive restock is actually needed, or they might overspend on express shipping for bulk inventory that doesn’t need to arrive overnight.

Misaligned delivery windows can pose significant risks to your operations. Choosing a shipping speed that does not align with your inventory needs may result in stockouts, which lead to lost sales and negatively impact customer satisfaction. On the other hand, if inventory arrives too early, you could incur high storage fees, unnecessarily inflating your costs.​​

Similarly, excessive shipping costs can also erode your margins. Opting for rapid shipping may seem like a solution but can become overly expensive, while slower, less costly methods might lead to delays and lost sales. Striking the right balance between cost and speed is essential for meeting your inventory demands effectively.​​

Air freight is an expensive yet fast option, making it ideal for urgent restocking. For larger shipments, ocean freight offers a more cost-effective solution, albeit with slower transit times. Planning your specific inventory requirements and weighing the trade-offs between cost and speed is key to selecting the most suitable shipping method.

How to Avoid

• Understand Your Restock Timeline: Review historical sales data, peak seasons, and supplier lead times to determine how fast your products really need to arrive.
• Compare Costs: Weigh the cost difference between air freight, ocean freight, and express shipping. Talk with your freight forwarder to identify the best solution to your specific needs.
• Use a Hybrid Strategy: In some cases, it may make sense to split shipments, sending a portion by air to cover immediate demand and the balance by ocean to save costs.

Mistake 3: Miscalculating Lead Times

In general, timelines are based on best-case scenarios – assuming production runs on schedule, customs clearance is immediate, and Amazon promptly checks in your inventory. The reality is that each stage can experience delays.

In reality, relying on overly optimistic timelines can lead to costly miscalculations. Delays in production, shipping, or Amazon check-in can disrupt your supply chain, causing missed sales opportunities or excess storage fees. Taking a proactive approach, such as building flexibility into your inventory strategy and accounting for potential disruptions, can further safeguard against unexpected challenges and maintain a steady flow of stock. Additionally, partnering with an experienced freight forwarder helps mitigate these risks by anticipating potential delays and ensuring smoother operations.

How to Avoid

• Build a Buffer: Factor potential delays into your calculations, whether it’s regional holidays or port congestion.
• Track Each Stage: Break down your timeline: production, shipping transit, customs clearance, last-mile delivery, and Amazon check-in.
• Use Projected Forecasts: Keep close tabs on your supplier’s typical production timelines and shipping partners’ transit times. Update your forecasts regularly.

Mistake 4: Ignoring Amazon’s Packaging and Labeling Rules

Amazon’s packaging and labeling requirements aren’t just guidelines – they’re mandatory rules. Not adhering to them can lead to inventory being rejected or delayed at Amazon’s fulfillment centers.

Incorrect Packaging

Sellers often lack familiarity with Amazon’s detailed packaging guidelines or attempt to cut corners to save on shipping costs. While using subpar packaging might reduce expenses initially, it frequently results in damaged goods or rejected shipments, ultimately costing much more. Poorly packaged items have a higher likelihood of arriving damaged, leading to negative reviews and increased return rates.​​

Additionally, Amazon may reject or repackage non-compliant shipments, leaving sellers responsible for any additional fees. Investing in proper packaging from the start ensures compliance, protects your products, and preserves your reputation.

Improper Labeling

Incorrect or missing FNSKUs, barcodes that aren’t scannable, or mixing SKUs in a single box can create major headaches at the fulfillment center. These labeling issues can lead to delayed check-ins, as Amazon will not process your inventory until all discrepancies are resolved. Additionally, sellers may face extra costs, such as re-labeling fees or the expense of having products returned. Ensuring compliance with Amazon’s labeling guidelines from the outset can save time, reduce costs, and maintain the flow of your supply chain.

How to Avoid

• Print and Verify Labels: Double-check that each item and carton has the correct FNSKU labels.
• Barcode Quality: Ensure barcodes are high-resolution and scannable – test them before shipping.
• Know Amazon Pallet Requirements: Adhering to Amazon’s pallet requirements to the letter is crucial for smooth processing at their fulfillment centers. Proper palletizing ensures efficient handling and minimizes the risk of delays or rejected shipments.

Mistake 5: Failing to Inspect Products Before Shipping

Cost-conscious sellers sometimes skip product inspections, assuming their suppliers have performed adequate quality checks. However, relying solely on the supplier’s word can lead to the shipment of defective or incorrect items.

Defective products can significantly harm your business, leading to increased return rates and a surge in negative reviews. Such outcomes not only affect customer trust but also trigger penalties from Amazon, which closely monitors defect rates. Consistently high defect rates can damage your account health and impact your ability to sell effectively on the platform.

How to Avoid

• Pre-Shipment Inspections: Conduct regular inspections – either by yourself if you’re local to the supplier, via a trusted third-party inspection service, or through a freight forwarder that offers inspection support.
• Create a Checklist: Verify product quantity, quality, labeling, and packaging compliance before shipping.
• Use Random Sampling: If it’s not feasible to inspect every product, do random checks or focus on SKUs with higher defect rates.

Mistake 6: Underestimating Shipping Costs

Sellers often focus on base freight costs alone and neglect the many hidden fees that can arise, such as customs duties, multiple warehouse fees, peak season surcharges, and more.

Unexpected shipping fees can have a significant impact on your business, quickly eroding profit margins and causing financial strain. Without adequate budgeting, unforeseen costs can strain your cash flow and disrupt operations. Planning ahead and allocating a sufficient budget for shipping expenses ensures smoother financial management and operational efficiency.​​

How to Avoid

• Get All-In Quotes: Request detailed cost breakdowns from freight forwarders and ask about potential extra fees (e.g., storage, demurrage, and customs exams).
• Factor in Seasonality: Be aware of peak seasons (like Q4 holiday rush) when freight rates and surcharges surge.
• Maintain a Healthy Margin: Always include a buffer in your product pricing to absorb unforeseen costs.

Mistake 7: Poor Inventory Management

Inventory management for Amazon FBA isn’t just about having the right amount of stock; it’s also about having full visibility and accurate demand forecasts.

Lack of Visibility

Many sellers rely solely on Amazon’s internal tracking or scattered spreadsheets. Without a centralized system, it’s challenging to track inventory from production to transit to the warehouse.

Misforecasting Demand

Sales forecasts that fail to consider historical trends, seasonal patterns, or the impact of marketing campaigns often lead to inaccurate demand predictions. Underestimating demand can quickly result in stockouts, causing a loss of valuable ranking and sales momentum. On the other hand, overestimating demand ties up capital in slow-moving inventory, leading to increased storage fees and the risk of obsolescence.​​

Accurately forecasting demand requires a balanced approach that takes into account past data, seasonality, and the potential effects of promotional activities, ensuring inventory levels are optimized to meet your customer needs while avoiding unnecessary costs.

How to Avoid

• Analyze Sales History: Look at last year’s sales data, factoring in any promotions or special events that might have skewed numbers.
• Adjust for Seasonality: Plan for spikes during holidays or key shopping events like Prime Day.
• Use Modern Tools: Unicargo’s digital freight forwarding platform provides you with the opportunity to make more informed decisions for inventory management and demand forecasting.

Mistake 8: Ignoring Regional Challenges and Seasonality

Global supply chains are riddled with potential slowdowns – from regional holiday shutdowns to peak season shipping congestion.

Regional Holidays (e.g., Chinese Blackout Days)

If you source products from regions with major holiday periods, such as Chinese New Year, it’s easy to overlook the production and shipping backlogs that can arise. During these holidays, factories typically close for extended periods, which can add weeks to your lead times.

Additionally, the rush leading up to these closures often pressures suppliers to prioritize speed over quality, leading to potential lapses in quality control. These factors can significantly disrupt your supply chain, causing delays and impacting the quality of your shipments.

How to Avoid

• Plan Ahead: Mark major holidays on your calendar and adjust production schedules accordingly.
• Maintain Open Communication: Stay in touch with your suppliers and freight forwarders about holiday schedules and potential delays.

Peak Season Shipping

During the holiday rush or promotional events, such as Prime Day, shipping rates often spike significantly, and carrier capacity becomes strained. These peak seasons bring challenges like skyrocketing costs due to surcharges, which can compress profit margins, and limited carrier space that risks delaying shipments if pre-booking arrangements are not secured. Managing these challenges effectively requires proactive planning, including securing carrier space in advance and building buffer stock to avoid last-minute premium rates or inventory stockouts.

How to Avoid

• Pre-Book Carrier Space: Partner with an experienced freight forwarder like Unicargo that can secure capacity during peak times.
• Build Buffer Stock: Ship well in advance of peak seasons to avoid premium rates and ensure you don’t stock out.

Mistake 9: Failing to Leverage Technology

Some sellers use manual spreadsheets for inventory management or rely solely on Amazon’s built-in tools. While these might work for smaller operations, they quickly become cumbersome as a business grows. Manual processes are more prone to human error, such as data entry mistakes, which can disrupt the entire supply chain. Additionally, without access to real-time data, sellers may struggle to react quickly to sudden changes in demand or shipping delays, further complicating their operations.

How to Avoid

• Adopt Software Tools: Look for solutions that automate tasks like demand forecasting, inventory tracking, and shipping documentation.
• Use Unified Platforms: Modern logistics providers offer integrated dashboards where you can book shipments, track cargo, and manage documentation – all in one place.
• Real-Time Alerts: Make sure your chosen system provides notifications about delays, stock levels, or any red flags that could impact your operations.

Mistake 10: Shipping Ineligible or Non-Compliant Items

Failure to carefully review Amazon’s restricted product list or adhere to regulatory requirements can lead to significant challenges when shipping products such as batteries, liquids, or hazmat items. Overlooking these rules increases the likelihood of non-compliance, which can severely disrupt your supply chain and customer satisfaction.

The risks of shipping non-compliant items are substantial. Amazon may reject entire shipments and impose return fees if even one restricted or improperly labeled product is identified. Repeated violations or severe infractions can escalate to account suspension or even permanent closure. Maintaining strict compliance with Amazon’s guidelines is essential to protect your operations and reputation.

How to Avoid

• Review Amazon’s Restricted Items List: Check the latest guidelines regularly; Amazon’s policies can change without much notice.
• Verify Product Condition: Ensure none of your goods are expired, damaged, or missing essential labeling (like product expiry dates or hazard labels).
• Consult an Expert: If you’re shipping any product that might be hazardous or regulated, speak with a freight forwarder experienced in specialized shipments.

Conclusion

Logistics is more than just moving goods from point A to point B. It’s about managing your supply chain strategically to optimize inventory levels, minimize costs, and deliver a superior customer experience. For Amazon FBA sellers, these ten errors represent just the tip of the iceberg. The reality is that successfully managing the complex world of FBA logistics requires not only attention to detail but also a trusted partner who can streamline operations and ensure compliance at every step.

Whether you’re new to the Amazon marketplace or a seasoned seller, partnering with an experienced logistics provider like Unicargo can make all the difference. With comprehensive services and a global reach, Unicargo simplifies the complexities of Amazon FBA shipping – from initial planning to final-mile delivery – allowing you to focus on growing your business with confidence and peace of mind.

Ready to streamline your Amazon FBA shipping?
Reach out to Unicargo today to discover how their tailored logistics solutions can help you avoid costly mistakes and take your operations to the next level.

The post 10 Common Mistakes to Avoid When Shipping to Amazon FBA appeared first on Unicargo.

For those aiming to grow their Amazon business, understanding the Fulfillment by Amazon (FBA) shipping process is not just beneficial – it’s absolutely necessary. This system has many rules, from labeling products correctly to meeting warehouse standards. Even small errors can cause expensive hold-ups or rejections.

While it might seem a lot to handle at first, you can avoid common mistakes and improve your supply chain efficiency by taking it step by step. Let’s look at how you can turn your FBA shipping strategy from a potential problem into a smooth operation that helps your business grow and ensures a seamless journey from your supplier to the customer’s doorstep.

Core Insights on FBA Shipping

Effectively managing the FBA shipping landscape requires sellers to understand its core components. This includes creating a solid shipping plan through Seller Central, accurately preparing and labelling products, and choosing the right shipping method. It’s also important to package items securely and keep good records for smooth customs clearance and delivery. It is paramount to be aware of Amazon’s policies and guidelines regarding FBA shipping.

Pre-FBA Inspection and Quality Control

Before your products make their way to Amazon’s fulfillment centers, implementing a thorough inspection and quality control process is a critical step. This can occur at your supplier’s location or through a trusted third-party inspection service. Ensuring that your products meet Amazon’s strict quality standards is essential for preventing issues down the line, such as customer returns, negative reviews, and potential account suspension. This step also ensures that items are packaged and labeled correctly, reducing the likelihood of delays or rejections during the shipping process itself.

Inventory Preparation for Amazon FBA

Preparing your inventory for Amazon FBA goes far beyond simply applying labels and stacking pallets. While those steps are fundamental, they represent just a fraction of a much larger, more intricate process. Successfully navigating the complexities of FBA requires a holistic strategy, one that recognizes the multitude of interconnected moving parts, all essential to a streamlined, efficient, and cost-effective operation. Effectively managing this process requires a comprehensive approach, recognizing that each stage, from initial product sourcing to final delivery, impacts your success. It is important to understand that succeeding with FBA involves more than just the basics.

Grasping Amazon FBA Labeling Rules

Proper labeling is essential for successful Amazon FBA shipments. Each product must have a unique FNSKU label, used by Amazon to track your items in their centers. Additionally, Box ID labels are required for efficient sorting and storage, and these must be generated through your Seller Central account and placed on every box.

Amazon FBA Labeling Rules and Best Practices

Amazon’s strict labeling guidelines ensure smooth tracking, storage, and delivery. Non-compliance can result in delays, additional fees, or rejection of shipments. Key elements include:

Product Labels (FNSKU): Uniquely identify items in Amazon’s system and link them to your Seller Central account. These must:

• Be generated through Seller Central.
• Cover any existing barcodes.
• Be scannable, legible, and printed in high resolution (300 DPI or higher).
• Be placed on a flat surface, avoiding seams or edges.

Box Labels (Shipment ID/Box ID): Necessary for tracking individual boxes. These must:

• Be unique for each box and generated through Seller Central.
• Avoid placement on seams, edges, or areas covered with tape or plastic.

Pallet Labels: Required for larger shipments. Each pallet must:

• Have at least four labels, one on each side.
• Match the Box IDs of the contained boxes.

Always use high-quality adhesive labels on flat surfaces and verify them against your shipping plan to prevent issues.

Step-by-Step Quick Guide to Generate Amazon FBA Labels in Seller Central

1. Generating FNSKU Labels:

1. Log in to your Seller Central account.
2. Navigate to Inventory > Manage Inventory.
3. Locate the product and click Edit (from the drop-down menu).
4. Select Print Item Labels.
5. Choose label size (e.g., 63.5 mm x 38.1 mm for Avery labels) and quantity.
6. Click Generate Labels and download the PDF.
7. Print using a laser printer for optimal quality and durability.

2. Generating Box ID Labels:

1. Log in to your Seller Central account.
2. Go to Inventory > Manage FBA Shipments.
3. Select your shipment or create a new one via Send to Amazon.
4. Enter shipment details, including products, quantities, and box dimensions.
5. Finalize the shipping plan and go to Prepare Shipment.
6. Under Print Box Labels, select your label format (e.g., A4 or US Letter).
7. Click Print Labels for This Page and download the PDF.
8. Print and attach one label to each box.

For pallet shipments, ensure compliance with Amazon’s pallet labeling rules, placing labels on all four sides.

Double-check all labels before shipping. Errors or missing labels can result in additional fees, delays, or shipment rejection.

Understanding Amazon FBA Pallet Needs

Besides individual product labels, knowing Amazon’s pallet requirements is key to your FBA shipping process. Understanding these details is crucial to avoid expensive delays and rejections.

Amazon’s pallet rules include strict guidelines for size, weight, and type. Pallets must be standard 40″ x 48″ wooden pallets in good shape, with no broken parts or nails sticking out. Stack boxes securely, making sure they don’t hang over the edges, and wrap them well with clear stretch film. Only wooden pallets are accepted; plastic pallets are not permitted. Wooden pallets must also comply with ISPM-15 standards to prevent pest infestations

Amazon’s pallet requirements can vary by region – different centers may have different rules, so check the specific guidelines for the Amazon marketplace you are shipping to. To avoid common mistakes, don’t overload pallets beyond the 72-inch height limit or 1,500-pound weight limit. Always put necessary labels at eye level and on all required sides.

There are tools and services to help with pallet preparation, including Amazon’s Seller Central guidelines and third-party logistics services that can handle palletization for you, ensuring all rules are followed.

Developing a Shipping Plan in Amazon Seller Central

When you’re set to send your products to Amazon FBA, you need to create a detailed shipping plan within Seller Central. This plan will outline essential information about your shipment, including product details, quantities, and chosen shipping method. It is at this stage that you’ll decide between small parcel delivery for shipments under 150 pounds or less-than-truckload (LTL) shipping, which is more cost-effective for larger quantities or multiple pallets. While you have the option of using your own carrier, provided they meet Amazon’s requirements, many sellers opt for Amazon’s Partnered Carrier program due to its potential for lower rates and integrated tracking.

Selecting the Right Shipping Method

Choosing the right shipping method for your Amazon FBA inventory starts with making a shipping plan in Seller Central. Decide between Amazon’s Partnered Carrier program and third-party carriers, each with its own benefits. When dealing with third-party carriers, having a single point of contact can significantly streamline communication and simplify the process. This is especially true when coordinating multiple shipments, dealing with international logistics, or handling any issues that may arise.

Amazon’s Partnered Carrier program offers advantages like lower rates and easy tracking integration with your Seller Central dashboard. This option is great for domestic shipments and sellers who like a simple, automated process. The built-in tracking system makes it easy to watch your inventory’s journey to Amazon’s centers.

However, it’s essential to weigh the pros and cons. While the program offers convenience and potential cost savings, it may not always be the most cost-effective or flexible option, especially for larger or international shipments. It’s also important to ensure your products are packaged and labeled according to Amazon’s strict guidelines to avoid any issues or delays.

For international or larger shipments, third-party carriers might have better rates and flexible scheduling. Consider shipment size, destination, timing, and overall costs when deciding. If shipping from overseas, experienced freight forwarders can help with customs and international rules. A reliable freight forwarder will often provide a dedicated account manager, serving as your single point of contact to navigate the complexities of international shipping. They often offer extra services like consolidation and warehousing, which can be useful for managing your supply chain. This single point of contact can provide updates, answer questions, resolve problems, and generally make the entire shipping process smoother and more efficient.

Compare rates, transit times, and service levels across carriers to improve your shipping strategy. However, also factor in the value of having a dedicated contact person who understands your business and can provide personalized support.

International Shipping Considerations

For sellers venturing into international markets, understanding the nuances of cross-border shipping is vital. This includes being aware of Incoterms, which dictate the terms of trade between you and your supplier, especially concerning shipping responsibilities. Additionally, prepare for duties, taxes, and customs fees that may apply to your shipments. These costs can significantly impact your pricing strategy, so it’s crucial to account for them early on.

Dispatching Your Shipment to Amazon FBA Warehouses

Once your inventory is ready, sending it to Amazon FBA warehouses requires careful attention. Before sending products, create shipping plans in Seller Central, following Amazon’s guidelines for proper documentation and packaging requirements. Print and attach shipping labels accurately, guaranteeing each box has the correct label that matches your shipping plan.

When scheduling your shipment, you’ll need to decide between using Amazon’s partnered carriers or arranging your own transportation. Track your shipment closely once it’s in transit, keeping documentation handy in case any issues arise.

Common pitfalls to avoid include using incorrect box sizes, failing to secure heavy items properly, and mixing different shipments in the same box.

To guarantee a smooth delivery, double-check that all products are properly labeled with FNSKUs, boxes are sealed securely, and shipping labels are clearly visible.

If you’re using LTL (Less Than Truckload) shipping, schedule your delivery appointment in advance and ensure your carrier has all the necessary documentation.

Remember to keep copies of all shipping records and tracking numbers for your reference.

Dealing with Shipment Discrepancies and Insurance

Occasionally, discrepancies may arise between what you send and what Amazon reports receiving. In such cases, it’s important to have all your documentation in order to reconcile any differences. This might include providing invoices, packing lists, and proof of delivery. Additionally, consider the value of your shipment and whether it’s prudent to purchase shipping insurance. This can protect you financially in case of loss or damage during transit. Discuss liability with your carrier to understand who bears responsibility at each stage of the shipping process.

Understanding Costs and Fees in FBA Shipping

Shipping costs can add up when sending inventory to Amazon FBA. When you plan your shipment, consider various fees that affect your profits. These include shipping costs, monthly storage fees based on product size and time, and fulfillment fees for each item Amazon handles and ships.

To cut costs, try to get bulk shipping rates with carriers, especially for large quantities. Watch for hidden costs, like those from labeling errors, which can lead to extra charges for relabeling or return shipping.

Storage fees go up during peak seasons (October-December), so manage your inventory carefully. To save on shipping, combine shipments when possible, use the right packaging to prevent damage, and check product measurements in your listings.

Managing Returns in the FBA Program

Amazon handles most customer returns for FBA sellers, but it’s important to understand how this process works. You should be aware of the reasons for returns, any restocking fees that might apply, and your options for dealing with returned inventory. This might include having items returned to you, refurbished, or disposed of by Amazon. Keeping an eye on your return rate can also provide insights into product quality and customer satisfaction.

Common Questions About Shipping to Amazon FBA

Many sellers, especially those new to the FBA program, have questions about the shipping process. Here are some of the most frequently asked questions:

• Can my supplier ship products directly to Amazon’s fulfillment centers?

Yes, suppliers can ship directly to Amazon. They must adhere to all of Amazon’s packaging and labeling guidelines, and you’ll need to specify in your Seller Central shipping plan that the shipment is coming from a third-party supplier.

• How can I track my FBA shipments?

You can track your shipments directly through your Seller Central account. The tracking feature provides real-time updates on your inventory’s location and status.

• What should I do if a shipment is delayed or lost? 

If a shipment is delayed or lost, contact your carrier immediately to investigate the issue. Also, update your shipping information in Seller Central to reflect any changes or updates.

• Can I reuse boxes for my FBA shipments?

Amazon prefers new boxes for FBA shipments. However, you can reuse boxes if they are in pristine condition with all previous labels completely removed or covered. Ensure the box is sturdy and will adequately protect your products during transit and handling. Using old boxes with FBA labels may cause delays or rejection.

• Is it better to combine multiple shipments into one?

Combining multiple shipments can often save on costs and simplify tracking. However, you must follow Amazon’s requirements for case-packed versus individual products. Ensure your combined shipments are properly labeled and documented in your shipping plan.

• What happens if I make a mistake on my shipping labels?

Mistakes on shipping labels, whether it be the FNSKU, the Box ID, or the shipping label, can lead to delays, misrouting, or even rejection of your shipment. Always double-check all labels for accuracy before dispatching your shipment. If you discover an error, contact Amazon Seller Support immediately to see if the issue can be resolved before the shipment arrives at the fulfillment center.

Staying Updated with Amazon FBA Policies

Amazon’s FBA policies are subject to change, and staying informed is crucial for your business’s success. Regularly check Seller Central announcements and resources to keep up with any updates or changes to FBA requirements. This proactive approach ensures that you can adapt quickly to new policies, avoiding any disruptions to your business operations.

Advice for First-Time FBA Shippers

Starting with FBA shipping can seem hard, but there are ways to make it easier. When making your first shipment, double-check all details in Seller Central, especially product quantities and shipping labels, to avoid mistakes or delays.

Consider seasonal demand when planning your inventory shipments. During busy shopping times, allow extra time for processing and transit, and keep extra stock to avoid running out.

Before finalizing shipping labels, check that all products have the right FNSKUs and meet Amazon’s packaging rules. Organize your inventory well, keeping detailed records of what you send and when.

Calculate your shipping costs and FBA fees accurately to keep your profits, and think about starting with a smaller test shipment to get used to the process before expanding.

Exploring Advanced FBA Features

For sellers looking to further leverage the FBA program, exploring advanced features can offer additional benefits.

Multi-Channel Fulfillment (MCF) allows you to use your FBA inventory to fulfill orders from other sales channels, streamlining your logistics operations. The FBA Small and Light program offers reduced fulfillment fees for eligible small and lightweight products, making it an attractive option for sellers with such items. These programs can enhance your selling strategy and potentially increase profitability. Also, participating in FBA Subscribe & Save can encourage repeat business by allowing customers to subscribe to regular deliveries of your products.

Streamline Your Amazon FBA Shipping and Propel Growth with Unicargo

Managing the complexities of Amazon FBA shipping can be daunting, but it doesn’t have to hinder your business’s growth. While mastering Amazon’s rules, maintaining meticulous labeling standards, and optimizing your packaging is crucial, partnering with a reliable logistics expert like Unicargo is the key to truly streamlining your operations and achieving long-term success.

Unicargo stands out as a premier logistics provider, offering tailored solutions designed specifically to address the unique needs of Amazon sellers. Our Digital Freight Forwarding platform simplifies inventory management, provides real-time shipment tracking, and automates many of the tedious tasks associated with FBA shipping. This allows you to focus on growing your business rather than getting bogged down in logistical complexities.  Furthermore, customers working with Unicargo enjoy real-time tracking and shipment management 24/7 from any location on the globe, including API connection, online payment capabilities, and many other benefits that give you peace-of-mind.

By leveraging Unicargo’s expertise, you gain a strategic advantage in the competitive Amazon marketplace. Our team possesses an in-depth understanding of Amazon FBA requirements, international shipping regulations, and customs procedures. We work closely with our partners to develop customized logistics plans that optimize supply chains, minimize shipping costs, and ensure all products and goods reach Amazon’s fulfillment centers efficiently and on time.

Contact Unicargo today to explore how our tailored solutions can transform your FBA shipping from a potential bottleneck into a powerful engine for expansion.

The post A Comprehensive Guide to Shipping to Amazon FBA: Streamlining Your Supply Chain appeared first on Unicargo.

The holiday rush, Prime Day frenzy, back-to-school scramble – these peak seasons can either catapult your Amazon FBA business to new heights or leave you drowning in a sea of unsold inventory.

Successfully balancing these high-volume periods requires a strategic approach to inventory management.  In this guide, we’ll equip you with the knowledge and tactics needed to not just survive, but thrive during peak seasons, maximizing profits and building a robust brand.

Understanding the Ebb and Flow of Peak Seasons

Every e-commerce business has its own unique rhythm, and recognizing your specific peak seasons is the first step towards effective inventory management. While major shopping events like the holiday season and Prime Day impact nearly every seller, other peaks might be driven by seasonal changes, product-specific trends, or even your own marketing campaigns.

Dig into Your Data

Your past sales data is a treasure trove of insights. Analyze it closely to identify recurring spikes and understand the factors driving them. For example, if you sell swimwear, you’ll likely see a surge in demand during the summer months.

Look Beyond the Obvious

Don’t just focus on the big sales events everyone knows about. There’s more to peak seasons than Black Friday and Prime Day. Keep your eyes open for other factors that can boost your sales.

Watch for changes in the wider market. Are there new trends in your product category? Has a competitor gone out of business? These can all lead to unexpected sales spikes. Pay attention to what’s happening in the world, too. News events, viral social media trends, or even weather patterns can suddenly increase demand for certain products.

Also, don’t forget to consider Amazon’s own actions. Changes to their search algorithm or promotional strategies can have a big impact on your sales. Stay informed about any updates to Amazon’s policies or features that might affect your products.

Pro Tip: Set up Google Alerts for keywords related to your products and industry. This can help you spot emerging trends or news that might affect your sales before they become mainstream.

Forecasting Demand: Data-Driven Sales Predictions

Leverage Amazon’s suite of analytical tools to enhance your sales forecasting accuracy. Utilize Inventory Planning, Restock Inventory, and the Sales Dashboard to gain data-driven insights into future demand patterns.

Combine historical sales data with current market trends and seasonality factors to create more precise forecasts. Consider external variables such as economic indicators, competitor actions, and industry-specific events that may influence demand.

Implement a rolling forecast approach, regularly updating predictions as new data becomes available. This allows for more agile inventory management and reduces the risk of over or understocking.

Pro Tip: Develop multiple forecast scenarios (pessimistic, realistic, optimistic) to prepare for various outcomes. This strategy helps in creating flexible inventory plans that can adapt to changing market conditions.

Monitor key performance indicators (KPIs) such as sell-through rate, inventory turnover, and days of supply to continually refine your forecasting accuracy. Use these metrics to identify areas for improvement in your prediction models.

Remember, forecasting is an ongoing process. Regularly review and adjust your predictions to stay ahead of market fluctuations and maintain optimal inventory levels throughout peak seasons.

Strategic Stocking: Striking the Perfect Balance

With a reliable demand forecast, craft a strategic stocking plan that minimizes risk and maximizes profitability. The goal is to balance meeting customer demand and avoiding excessive storage fees.

Calculating Your Inventory Sweet Spot

Determine optimal inventory levels using this formula as a starting point:

Optimal Inventory = (Forecasted Daily Sales × Lead Time) + Safety Stock

Adapt this formula based on unique product characteristics and risk tolerance. For example, for trendy products with short lifespans, consider lower inventory levels to avoid obsolete stock.

Building a Safety Net with Safety Stock

Safety stock acts as a buffer against unexpected supply chain delays or demand surges. Calculate safety stock by factoring in:

• Demand variability: The degree of fluctuation in customer demand over time. Higher variability requires more safety stock to account for unexpected spikes.
• Lead time uncertainty: The potential for delays or inconsistencies in your supply chain. Longer or less predictable lead times necessitate increased safety stock.
• Desired service level: The percentage of customer orders you aim to fulfill immediately. A higher service level goal requires more safety stock to ensure product availability.

The Overstocking vs. Stockout Dilemma

Overstocking ties up capital and increases storage fees, while stockouts result in lost sales, damaged seller rankings, and customer frustration. To mitigate these risks:

1. Prioritize best-selling products
2. Maintain leaner inventory for slower-moving items
3. Regularly review and adjust inventory levels based on real-time data

Leveraging Amazon’s Inventory Management Tools

Utilize Amazon’s tools to optimize inventory levels:

• Inventory Performance Index (IPI): Monitor overall inventory health
• Restock Inventory Report: Identify products needing replenishment
• Inventory Age Report: Track slow-moving stock

Implementing Just-in-Time (JIT) Inventory Strategies

Just-in-Time (JIT) inventory management is a crucial strategy for Amazon FBA businesses to minimize excess stock while ensuring product availability. This approach reduces carrying costs, increases flexibility, and optimizes cash flow. Effective implementation of JIT for an Amazon FBA business requires several key components.

Cultivating strong supplier relationships is essential, involving open communication channels, shared sales forecasts, and negotiation for priority status. Optimizing order frequency and quantity is another critical aspect, shifting from large, infrequent orders to smaller, more frequent replenishments. Negotiating favorable terms for these smaller orders and utilizing Amazon’s sales velocity data helps fine-tune order timing and quantities.

Streamlining supply chain logistics is crucial, utilizing Amazon’s Partnered Carrier Program and exploring direct factory-to-FBA shipping options. Implementing real-time inventory tracking systems aids in monitoring stock levels across the supply chain. Leveraging technology for inventory management is vital, involving investment in software that integrates with Amazon’s API, setting up automated reorder points, and using predictive analytics to anticipate demand fluctuations.

Developing contingency plans is necessary to mitigate supply chain disruptions. This includes identifying backup suppliers, maintaining a small safety stock of best-selling items, and creating a risk assessment matrix. Continuous improvement and analysis are essential, involving regular review of JIT performance metrics, post-peak season analyses, and staying informed about emerging technologies and best practices.

Balancing JIT with seasonal considerations is crucial, requiring adjustments during peak seasons to account for higher demand and potential shipping delays. This may involve temporary increases in safety stock levels for high-demand products and developing a seasonal JIT calendar aligned with product cycles and Amazon’s key shopping events.

Diversifying Fulfillment Methods

A strategic mix of fulfillment methods balances risk and maximizes efficiency during peak seasons:

• FBA (Fulfillment by Amazon): Ideal for fast-moving products, leveraging Amazon’s vast logistics network for rapid delivery.
• FBM (Fulfillment by Merchant): Suitable for larger or slower-moving items, providing greater control over inventory and reducing FBA storage fees.
• 3PL (Third-Party Logistics) services: Offer additional flexibility and scalability during peak seasons. 3PL providers like Unicargo specialize in:
• Customized warehousing solutions to accommodate seasonal inventory fluctuations
• Advanced inventory management systems integrated with Amazon’s platform
• Efficient order processing and shipping to meet Prime delivery standards
• Value-added services such as kitting, bundling, and custom packaging
• Multi-channel fulfillment capabilities for sellers expanding beyond Amazon
• Scalable workforce to handle sudden spikes in order volume
• Strategic warehouse locations to optimize shipping times and costs
• Expertise in navigating Amazon’s complex fulfillment requirements

Partnering with a 3PL provider allows Amazon sellers to maintain inventory control while benefiting from professional logistics expertise, potentially reducing overall fulfillment costs and improving customer satisfaction during critical peak seasons.

Inbound Shipping: Streamlining Your Amazon Warehouse Arrivals

Efficient inbound shipping processes are crucial for maintaining optimal inventory levels during peak seasons.

Lead Time Management: Accurate forecasting requires consideration of production time, shipping duration, and Amazon’s receiving process. Build in buffer time during peak seasons to account for potential delays. While Amazon’s Restock Inventory tool offers suggested restock dates, partnering with a comprehensive logistics provider can provide more precise predictions.

Strategic Shipping Route Selection: Fast-moving items during peak periods often benefit from expedited shipping options. Air freight is optimal for high-value or urgently needed products. For large-volume sea freight shipments, container optimization is key to cost reduction.

Integrated Preparation and Labeling Services: Amazon offers FBA Prep and Label Services, but these can be costly and may introduce additional complexities. Unicargo provides comprehensive supply chain management, including:

• Amazon-compliant product preparation
• FBA-specific labeling and packaging
• Inventory consolidation and optimization
• Direct integration with Amazon’s systems for seamless inbound shipment creation

Single Point of Management: Centralizing your entire supply chain with a single provider like Unicargo offers numerous advantages:

1. Streamlined communication and problem-solving
2. Consistent quality control across all processes
3. Optimized inventory flow from manufacturer to Amazon fulfillment centers
4. Real-time visibility into your entire supply chain
5. Reduced costs through economies of scale and process efficiencies
6. Expertise in navigating Amazon’s complex inbound shipping requirements

By leveraging a full-service logistics partner, you can focus on core business activities while ensuring the inventory arrives at Amazon’s warehouses efficiently and in compliance with all FBA standards.

Inventory Placement and Distribution: Strategic Deployment for Maximum Impact

Where your inventory is located within Amazon’s fulfillment network can significantly impact your ability to meet demand efficiently and cost-effectively.

Amazon offers two primary options for inventory placement:

• Distributed Inventory Placement (Amazon decides where to store your inventory) and
• Inventory Placement Service (you choose a single fulfillment center).

Pro tip #1:  Distributing your inventory across multiple warehouses can help you reduce shipping times and costs, especially if you’re selling to customers across a wide geographic area. You can leverage Amazon’s Multi-Channel Fulfillment or explore using third-party logistics providers for even greater flexibility.

Pro tip #2: Balance Storage Costs and Delivery Speed:  Storing inventory closer to your customers can lead to faster delivery times, but it often comes at a higher storage cost. Analyze the trade-off carefully and consider using nearshore warehouses for faster replenishment during peak periods.

Monitoring and Adjusting: Staying Agile in a Dynamic Environment

Effective monitoring is crucial for making informed decisions in Amazon inventory management. Real-time inventory tracking, utilizing Amazon’s API and AI-powered forecasting tools, enables swift responses to stock level changes and demand fluctuations. This proactive approach helps prevent stockouts and overstock situations.

Key Performance Indicators (KPIs) are essential for gauging inventory health:

1. Inventory turnover rate
2. Sell-through percentage
3. Days of supply
4. Stock-outs frequency
5. Return rate
6. Aged inventory percentage

These KPIs provide a comprehensive view of inventory performance, efficiency, and potential issues. Inventory turnover and sell-through percentage indicate how quickly products are selling, while days of supply helps in planning reorder timing. Stock-outs frequency highlights potential lost sales opportunities, and return rate can signal product quality or listing accuracy problems. Aged inventory percentage helps identify slow-moving stock that may require attention.

Regular performance reviews, including weekly inventory audits during peak seasons, allow for timely adjustments to reorder points and safety stock levels. This ongoing analysis helps maintain optimal inventory levels and reduces carrying costs.

Proactive problem-solving strategies, such as developing rapid response plans for stockouts and establishing relationships with backup suppliers, ensure business continuity in the face of unexpected challenges.

Leveraging machine learning and predictive analytics can further enhance inventory management by anticipating demand shifts and identifying emerging trends. This data-driven approach enables more accurate forecasting and helps maintain a competitive edge in the dynamic Amazon marketplace.

Managing Slow-Moving and Excess Inventory: Turning Deadstock into Opportunity

Inevitably, some products will perform below expectations.  Effectively managing slow-moving and excess inventory is crucial for minimizing losses and freeing up valuable warehouse space.

1. Identifying Underperformers:  Regularly review your Inventory Age report and establish performance thresholds. Flag products that consistently fall below these benchmarks.

2. Liquidation and Removal Strategies:  Amazon’s liquidation program offers a way to quickly sell off excess inventory at a discounted price.  For products that are no longer profitable, consider removing them from FBA or disposing of them responsibly.  Unicargo also handles “removal” services when working with them.

3. Optimizing Storage Fee Management:  Be mindful of Amazon’s long-term storage fee deadlines (February 15 and August 15).  Plan to remove or liquidate items before these dates to avoid hefty fees. The Inventory Health report can help you identify products at risk of incurring long-term storage fees.

Leveraging FBA Programs: Powering Your Peak Season Performance

Amazon offers a suite of programs that can significantly streamline your inventory management and enhance your profitability during peak seasons.

Key Programs:

• Small and Light:  This program offers reduced fulfillment fees for eligible small and lightweight items, making them more competitive.
• Pan-European FBA: Ideal for sellers looking to expand into European markets, this program allows you to manage inventory centrally across multiple European marketplaces.
• FBA Subscribe & Save: This program caters to products that customers purchase regularly, providing a more predictable demand pattern and potentially reducing your inventory management burden.

Evaluate the costs and benefits of each program in relation to your specific product catalog and business goals. Ensure your products meet the eligibility criteria before enrolling.

Pro tip: Consider starting with a small selection of products to test a program’s effectiveness before committing fully.

Conclusion: Continuous Improvement for Peak Season Domination

Optimizing your FBA inventory management for peak seasons is an ongoing journey of learning and refinement.  By implementing the strategies outlined in this guide, you can manage these high-stakes periods with confidence, maximizing your sales potential and building a sustainable and profitable Amazon business.

Remember that inventory management is not a one-size-fits-all endeavor. Continuously analyze your performance, adapt to changing market conditions and Amazon policies, and don’t hesitate to seek expert guidance when needed.  With the right approach, you can transform peak seasons from a period of stress into a time of unprecedented growth and opportunity.

And as you refine your peak season strategies, consider partnering with experienced logistics providers like Unicargo. Their comprehensive supply chain solutions and Amazon-specific expertise can help you seamlessly address the complexities of inventory management, allowing you to focus on growing your business and capitalizing on peak season opportunities. Perhaps a short consultation with one of our experts can kickstart your roadmap to cost savings and efficiency. Simply drop a line 😉

The post Smart FBA Inventory Solutions for Peak Seasons: Avoid Overstocking & Stockouts appeared first on Unicargo.

For established brands and ambitious Amazon sellers, a robust supply chain is not a luxury—it’s the bedrock of sustainable growth.  As your sales volume climbs, the intricacies of FBA prep can quickly morph from a manageable task into a significant bottleneck, hindering your ability to capitalize on opportunities.

This guide transcends basic prep advice. We delve into advanced strategies to optimize your FBA workflow and equip you with a framework for selecting the ideal prep provider—a partner who fuels your expansion. With a fine-tuned prep process and a trusted ally in your corner, you can ensure your products arrive at Amazon fulfillment centers primed for success, freeing you to focus on what truly matters: strategically scaling your e-commerce enterprise.

Elevating Your FBA Prep Game: Mastering the Essentials

As an experienced Amazon seller, you’re well-versed in the fundamentals of FBA prep. However, are you maximizing efficiency and minimizing the risk of costly errors that can eat into your margins? Let’s explore some expert-level strategies:

1.  Labeling Mastery: Avoiding Costly Pitfalls

Labeling errors can bring your operation to a grinding halt, resulting in shipment delays, unnecessary fees, and, most importantly, frustrated customers. Here’s how to avoid common labeling pitfalls and streamline your process:

• Barcode Optimization:  While ASINs are essential, are you leveraging the full potential of barcode types for maximum efficiency?
  • Prioritize Manufacturer Barcodes: Whenever feasible, utilize manufacturer barcodes like UPCs (Universal Product Codes) and EANs (European Article Numbers). Amazon favors these for their streamlined inventory tracking and order fulfillment processes.
  • Strategic FNSKU Deployment: Leverage FNSKU (Fulfillment Network Stock Keeping Unit) barcodes for products with multiple variations or to distinguish your inventory from commingled stock. This is particularly crucial for building a distinct brand presence and protecting your product’s integrity.
  • Counterfeit Mitigation with TAC: For high-value items susceptible to counterfeiting, consider implementing Transparency Authenticity Codes (TAC).  This adds a layer of security that not only increases customer trust but also deters fraudulent returns, protecting your brand reputation.
• Labeling Best Practices:
  • Beyond Compliance: Don’t just meet the bare minimum. Incorporate your brand logo, essential product information, and any necessary warnings or instructions directly on product labels. This elevates your brand presentation and enhances the customer experience.Multi-Pack Precision: Selling multi-packs? Use unambiguous “Sold as Set” or “Do Not Separate” labels to ensure your products remain together throughout the entire fulfillment journey. This simple step prevents customer service issues and potentially negative reviews stemming from separated items.
  • Fragile Item Fortification: Ensure fragile items are clearly designated using specialized fragile labels or stickers that adhere to Amazon’s requirements. This minimizes the risk of damage during handling, reducing costly returns and preserving your profit margins.

Pro Tip: Manual labeling can be a time-consuming bottleneck. Invest in a thermal label printer for enhanced speed and efficiency. Many models integrate directly with your Seller Central account for a seamless and streamlined workflow.

2.  Strategic Packaging: Beyond Simple Protection

Strategic packaging extends beyond simply safeguarding your products during transit to Amazon’s warehouses. It’s a multifaceted approach that directly impacts your shipping costs, minimizes damage risk, and can even elevate the customer unboxing experience, fostering brand loyalty.

• The Right Box for the Job:
  • Exceeding Minimum Standards:  Don’t compromise on box strength. Opt for boxes with a higher weight capacity than you anticipate needing to prevent bursting or damage during transit. Double-wall corrugated boxes are a robust choice for heavier items or those demanding extra protection.
  • The Art of Cushioning: Never underestimate the importance of proper cushioning. Aim for at least 2 inches of padding on all sides of your products.  Consider using a combination of cushioning materials like bubble wrap, air pillows, and packing peanuts for optimal protection, tailoring your approach to product fragility and box size.
  • Shipment Security: Secure your shipments with high-quality packing tape. Reinforce edges and seams with extra tape for added durability, especially for heavier items or those susceptible to rough handling.
• Expanding Your Packaging Arsenal:
  • Poly Bag Proficiency:  Poly bags offer a cost-effective solution for small, lightweight items that don’t require extensive cushioning.  However, ensure you’re utilizing poly bags that meet Amazon’s specific requirements for thickness, size, and labeling to avoid compliance issues.
  • Case-Packed Efficiency: Shipping case-packed products? Maximize efficiency by adhering to Amazon’s requirements for units per case (up to 150) and optimizing your case-packing configuration. This strategic approach ensures cost-effective shipping and minimizes storage fees.

Pro Tip: Don’t settle for a one-size-fits-all approach. Experiment with different box sizes and packaging configurations to determine the optimal balance that minimizes dimensional weight—a key factor in shipping costs—while ensuring your products are adequately protected.

3.  Navigating the Shipment Plan Labyrinth

Creating a shipment plan in Seller Central might seem straightforward, but even seasoned sellers can encounter pitfalls that lead to costly delays and logistical headaches.

Before finalizing your shipment plan, ask yourself these critical questions:

• Inventory Accuracy is Paramount: Am I absolutely certain that all intended items are accurately accounted for in this shipment? Is my inventory synchronized across all sales channels to eliminate the risk of overselling and potential damage to my seller metrics?
• Fulfillment Center Optimization: Have I strategically selected the most advantageous fulfillment center for each shipment?  Factors to consider include proximity to your customer base, potential for expedited delivery times, and variations in fulfillment fees between different centers.
• Labeling Precision: Is every single label, from the FBA shipment ID to individual product labels, accurate, legible, and correctly placed? What robust systems can I implement to prevent labeling errors that could lead to processing delays, unnecessary costs, or even product rejections?

Outsourcing your FBA prep to a specialized provider can alleviate these logistical burdens and significantly reduce the risk of errors. Here’s how a strategic partnership can benefit your business:

• Error-Free Inventory Management:  Expert prep providers meticulously verify your inventory against your shipment plan, ensuring that every item is accounted for. This minimizes the risk of stockouts, prevents overselling, and ensures a smooth fulfillment process.
• Strategic Fulfillment Center Selection: Leverage the provider’s in-depth knowledge of Amazon’s fulfillment network and their data-driven insights to choose the most efficient fulfillment centers for your products. This strategic approach can potentially reduce shipping times, lower your overall fulfillment costs, and improve delivery speeds for your customers.
• Guaranteed Labeling Accuracy: Experienced providers have sophisticated systems and processes in place to ensure all labels are printed correctly, adhere to Amazon’s stringent requirements, and are applied securely. This meticulous approach minimizes the risk of issues during the fulfillment process, preventing costly delays and potential rejections.

4.  Staying Ahead of Evolving Packing Requirements

Amazon is constantly refining and updating its FBA packing requirements. Failing to stay informed of these changes can lead to unexpected delays, costly penalties, or even product rejections at the fulfillment center.

Maintaining Compliance: Key Considerations:

• Prohibited Items Vigilance: Regularly review Amazon’s most up-to-date list of prohibited items. This list can change frequently, so incorporate regular checks for updates into your workflow, especially when adding new products to your inventory.
• Hazardous Materials Expertise:  If your business involves hazardous materials (even seemingly benign products can fall under this category), exceeding the minimum requirements is not optional. Partnering with a prep provider with proven experience in handling hazardous materials can provide invaluable peace of mind and prevent costly compliance issues that can disrupt your business.
• Expiration Date Management: Implement a rigorous system for tracking expiration dates, particularly for perishable goods. Ensure your inventory arrives at fulfillment centers well before expiration dates to avoid automatic removal and disposal by Amazon, which can lead to significant financial losses.

Pro Tip: Explore prep providers who offer product inspection services as part of their comprehensive offering. Their expert inspection can identify potential compliance issues before your products reach Amazon, saving you valuable time, protecting your profit margins, and eliminating a great deal of potential frustration.

Identifying Your Ideal FBA Prep Partner: A Strategic Framework

Choosing the right FBA prep provider is not simply about delegating a task; it’s about forging a strategic partnership with a company that understands the intricacies of your business, helps you navigate the complexities of Amazon’s ever-changing landscape, and is dedicated to supporting your growth objectives.

Here are the essential factors to consider when evaluating potential partners:

1. Experience That Matters: Don’t settle for a provider with limited experience. Seek out a partner with a proven track record of success, particularly with businesses of similar size and scope to your own. Inquire about their experience handling your specific product types and the depth of their knowledge regarding Amazon’s policies and requirements.
2. A Tailored Service Offering: Your FBA prep needs are unique to your business. Look for a provider that offers a comprehensive suite of services that can be customized to your exact requirements. This includes:
   1. Flexible Labeling and Packaging Options: From basic FBA labels to custom branding, specialized packaging for fragile items, and kitting or bundling services, the right provider will offer the flexibility to meet your specific product needs.
   1. Value-Added Services: Do you require assistance with product inspection, repackaging, labeling corrections, or adding marketing inserts? Ensure your chosen provider can accommodate these requests efficiently and cost-effectively.
   1. Storage and Fulfillment Solutions: If you require storage space for your inventory before it’s shipped to Amazon, seek a provider that offers secure warehousing options and can seamlessly integrate their services with your overall fulfillment strategy.
3. Prioritizing Turnaround Time:  In the fast-paced world of e-commerce, speed and efficiency are critical to your success. Partner with a provider renowned for its quick turnaround times without compromising accuracy or the quality of service. Key questions to ask include:
   1. Clear Processing Timeframes: How quickly can they receive, prep, and ship your inventory to Amazon’s fulfillment centers? Obtain specific timeframes to assess their efficiency.Capacity Management: Do they have the capacity to handle your current volume and accommodate your projected growth, especially during peak seasons when order volumes surge?
   1. Transparent Lead Times: What’s the typical lead time from placing a prep order to when your shipment is ready for dispatch to Amazon?  Clear communication on lead times is crucial for planning and maintaining optimal inventory levels.
4. Demanding Pricing Transparency: Don’t be caught off guard by hidden fees.  Obtain detailed quotes from multiple providers that include a transparent breakdown of costs for all services. Pay close attention to:
   1. Flexible Pricing Models: Do they offer per-unit pricing, tiered pricing based on volume, or customized pricing packages tailored to your business needs? Negotiate a pricing structure that aligns with your budget and growth strategy.
   1. No Hidden Fees: Are there additional charges for services like fragile labeling, special handling of oversized items, or returns processing? Eliminate surprises by ensuring you understand all potential costs upfront.
   1. Minimum Order Quantities: Do they have minimum order quantity (MOQ) requirements? Verify that their MOQ aligns with your current business volume and projected growth trajectory.
5. Strategic Location: The physical location of your FBA prep provider, especially their proximity to your target Amazon fulfillment centers, directly impacts your shipping costs, delivery times, and ultimately, your bottom line. Choose a provider with a strategic footprint that aligns with your business needs. Considerations include:
   1. Minimizing Shipping Costs: Opting for a provider situated near your most frequently used Amazon fulfillment centers can significantly reduce transportation costs. This becomes increasingly important as your sales volume scales.
   1. Faster Delivery Times:  Shorter shipping distances translate to faster delivery times for your customers, which leads to increased customer satisfaction, improved seller feedback ratings, and potentially, increased sales conversions.
   1. Enhanced Communication and Responsiveness: Being geographically closer to your prep provider facilitates smoother communication, faster resolution of potential issues, and more responsive customer support.
6. Embracing Technology for Seamless Operations:  In today’s digitally driven landscape, choose a provider that leverages technology to streamline operations, provide real-time transparency, and integrate seamlessly with your existing systems. Look for:
   1. Real-Time Inventory Visibility:  Demand access to online dashboards and tools that enable you to track your inventory levels at the prep provider’s facility, monitor the status of your prep orders in real-time, and track shipments to Amazon’s fulfillment centers.
   1. Seamless Integration with Amazon Seller Central: A robust technology platform that integrates seamlessly with your Seller Central account automates data transfer, reduces the potential for manual errors, and provides real-time updates on your inventory and shipment statuses.
   1. Proactive Communication Channels: Opt for a provider that offers multiple communication channels such as email, phone, and live chat. They should provide proactive updates on your orders, timely alerts about potential delays or issues, and readily available customer support to address any questions or concerns you may have.

Unicargo: Your Strategic FBA Prep Partner

At Unicargo, we provide a comprehensive suite of FBA prep and supply chain solutions carefully designed to empower Amazon sellers to scale efficiently, compliantly, and cost-effectively.

What distinguishes Unicargo as your strategic FBA prep partner?

• Unmatched Amazon Expertise: As early adopters of the FBA program and proud members of Amazon’s Solution Provider Network (SPN), we possess an in-depth understanding of Amazon’s intricate requirements.  Our commitment to staying ahead of policy changes ensures your business remains compliant and competitive.
• End-to-End Supply Chain Solutions: Our services extend far beyond basic FBA prep. We offer a complete ecosystem of logistics solutions, including domestic and international freight forwarding, secure warehousing, expert customs brokerage, and a full range of value-added services specifically tailored to the evolving needs of ecommerce businesses.
• Global Reach, Local Expertise: With strategically positioned warehouses and offices spanning three continents, we provide a truly global solution backed by local market knowledge and language expertise. This ensures we navigate the complexities of international shipping and compliance with ease, giving you a competitive edge.
• Technology-Driven Efficiency and Transparency:  Our intuitive online platform puts you in the driver’s seat, granting you complete control and visibility over your supply chain. Effortlessly track your shipments in real-time, receive proactive alerts about potential issues, access detailed reporting to optimize your operations, and additionally, it will assist you in appointment scheduling with Amazon’s final destination warehouse so you don’t get hit with road/trucking expenses due to miscommunication.

Consider partnering with Unicargo if you’re seeking:

• A long-term strategic ally who understands the unique challenges of scaling an Amazon business and is genuinely dedicated to your success.
• Flexible and scalable solutions that adapt to your evolving business needs, from small-batch shipments to high-volume fulfillment, ensuring you have the support you need at every stage of your growth.
• Transparent pricing, efficient operations, and a customer-centric approach that prioritizes your satisfaction and provides peace of mind.

Ready to streamline your FBA prep and unlock your business’s full potential? Contact Unicargo today for a free consultation and a personalized quote tailored to your specific requirements.

The post Scaling Your Amazon Empire: Choosing the Right FBA Prep Partner appeared first on Unicargo.

For e-commerce businesses and Amazon sellers, choosing the right fulfillment solution can be a make-or-break decision. Third-party logistics providers (3PL) offer flexibility and customization, while Amazon’s Warehousing and Distribution (AWD) program boasts deep integration with the Amazon marketplace.

This guide provides a head-to-head comparison of 3PL and AWD, breaking down their pros and cons, pricing structures, and key considerations like inventory control and flexibility. By the end, you’ll have the insights you need to choose the best fulfillment strategy for your business, whether you’re prioritizing control, cost-efficiency, or seamless Amazon integration.

Understanding 3PL and Amazon Storage

Here’s a breakdown of both options.

Third-Party Logistics Provider (3PL)

A 3PL or third-party logistics service provider is a company that helps e-commerce sellers with tasks related to getting products to customers and/or to a marketplace warehouse, i.e. Amazon Fulfillment Centers across the globe. It handles receiving, transloading, storing, packing, and shipping orders and is great for FBA sellers who sell on different platforms like Amazon (or other marketplaces) and need cost-effective and flexible solutions.  

Here’s what 3PL services include:

1. Warehousing – apart from storage, obviously, 3PLs can receive your goods and transform them into what’s needed before the next step- going to final destinations, such as an Amazon Fulfillment Center. In some cases, if they can fulfill themselves and make sure the goods are delivered to the final customer/s (D2C).
2. Inventory Management – They keep track of how much inventory stock you have, so you don’t run out or have too much of it sitting around.
3. Order Fulfillment – When someone buys something from you, the 3PL prepares, and ships the order, taking care of packaging & labeling, and choosing delivery services, whether it be for B2C- going to the final consumer, or in case of B2B- going to a final warehouse destination.
4. Transportation – Choosing who will deliver your items, bargaining for competitive prices, and ensuring your products get where they need to go, efficiently and on time
5. Real-Time Tracking – professional 3PLs must offer their customers the capability to track their goods in real-time.
6. Reverse Logistics – Some 3PLs also offer reverse logistics services, which means they deal with returns, refurbishment, waste services, and recycling items for their clients. This saves you time and unnecessary costs.
7. Value-Added Services – Some 3PLs provide bonus services like bundling multiple items, customizing packaging, or handling delicate or temperature-sensitive products.

Fulfillment By Amazon (FBA) and Amazon Warehousing & Distribution (AWD)

Fulfillment By Amazon (FBA) is a 3PL service by Amazon to take care of the fulfillment process for products you sell on their marketplace. Here’s what FBA offers:

1. Storage – Amazon stores your inventory in their fulfillment centers all over the country.
2. Order Fulfillment – When someone buys your product, Amazon gets it ready and sends it directly to them.
3. Customer Service – Amazon deals with any questions or issues customers have about orders, like delivery or returns, although with limitations
4. Returns Processing – If a customer wants to send back something they bought through Amazon, Amazon handles the return process for you.

Like FBA, Amazon Warehousing & Distribution (AWD) is also Amazon’s 3PL solution for e-commerce sellers. Its primary aim is to assist brands facing problems with FBA storage limits and running out of stock, which can hurt sales.

AWD provides a long-term storage solution for FBA sellers, helping them avoid stockouts by automatically replenishing inventory directly into Amazon’s fulfillment centers and network. It also lets e-commerce sellers combine their inventory from different places into one big pool.

Then, Amazon can send it out to customers all over the world, whether they’re buying online or in stores. However, AWD is quite different from FBA because it offers extra perks to e-commerce sellers and also comes with certain restrictions such as:

1. Automatic Inventory Handling – Sellers don’t have to handle inventory themselves as Amazon’s system automatically orders and moves inventory from suppliers to their warehouses. This helps FBA sellers by taking away the hassle and time to be on top of the process.
2. Product Handling Limits – AWD can handle certain types of products with specific size and weight limits, but it can’t process packages with multiple different items.
3. Product Restrictions – AWD has rules on what products can be stored and sold. It can’t handle items like perishables, bulky goods, or hazardous materials. Some products, like shoes and jewelry, aren’t supported either.

Though, there are some similarities between AWD and FBA as well such as:

1. Inventory Replenishment – AWD offers automatic inventory replenishment, but just like with FBA, sellers can still manually send bulk shipments to restock their inventory.
2. Labeling Policy – There’s no difference in how sellers need to label and pack bulk shipments for FBA or AWD. The process remains consistent.
3. Amazon Prime Benefits – Products sold through AWD and FBA are eligible for Amazon Prime.

Pros and Cons of 3PL and Amazon Storage

Once you understand the difference between a 3PL and AWD program, the next step is to learn the pros and cons of both services. Looking at their advantages and disadvantages helps you discern which choice gives you the right combination of features, cost, and control for your fulfillment needs.

3PL Pros

3PL offers flexibility, control, and customization for businesses. Here’s a detailed overview of these points:

1. Flexibility in Storage Options and Fulfillment Services

You’re not stuck with just one storage option. A 3PL can give you different choices like storing products in big batches, putting them on pallets, or keeping them in a special environment with controlled temperature.

They can also tailor how they handle your orders to fit what you need. Whether it means receiving prelabeled and prepacked goods and simply transferring them according to scheduled dropoff locations, or re-labeling, re-packing, palletizing them, and getting them ready according to specific requirements, such as by Amazon marketplace (or other marketplaces)

Unicargo’s All-in-One service offers competitive pricing and ongoing support as you expand your product range. We ensure all packaging meets Amazon’s regulations.

2. Multi-Channel and Multi-Geography Fulfillment

A 3PL service like Unicargo provides a very flexible solution due to its boot-on-the-ground on a global level.  Owning and operating key warehousing solutions in several continents and operating domestic trucking in the U.S. gives its customers operational efficiency that translates into time savings, and increased efficiency. 

Unicargo is part of Amazon’s Solution Provider Network (SPN), making us the ideal choice for FBA sellers globally. Our strategically located regional offices ensure efficient handling of your cargo from start to finish, no matter where you are.

3. Customizable Solutions Tailored to Your Business Needs

A 3PL doesn’t offer one-size-fits-all solutions. They’ll talk with you to figure out your business needs. Then, they’ll make a plan to help you optimize cost and efficiency. For instance, if you’re an Amazon FBA seller, selling cosmetics globally requires a deep understanding of importation regulations, including government approvals, special packaging, and staying compliant with MocRa regulations.

4. One-Stop Shop for Fulfillment

For FBA sellers, dealing with inventory, sending out orders, and keeping up with Amazon’s rules can be really challenging. Moreover, dealing with multiple companies for shipping, storing, preparing, and trucking goods to Amazon’s fulfillment centers can be a nuisance.

Each company has its own rules, which can lead to inconsistencies in fulfillment. That’s where a 3PL like Unicargo offers a one-stop shop for fulfillment. We can handle everything in one place.

From storing your goods near Amazon’s centers to packing them according to Amazon’s rules and delivering them to the right place we cover all.

You’ll have one dedicated team and one manager for your shipping account, providing a single point of contact and making communication easier. Our team can adjust to your specific needs, whether it’s more space, handling seasonal fluctuations, or expedited shipments. Managing your freight, warehousing, and trucking under one roof is a rare service.  Unicargo is one of the few freight and logistics companies offering all three under one place.

3PL Cons

Although 3PLs can be really helpful for B2B, there are some points to watch out for. You might have to do a lot of research, and there can be hidden costs or confusing prices. Sometimes, a 3PL might seem cheap at first, but it ends up costing more than you thought- if you don’t do your homework properly. Here are the downsides of a 3PL service, explained in more detail:

1. Requires Research and Effort to Find the Right 3PL Partner

Choosing a 3PL can be overwhelming since they all offer different services and prices, so finding the right one for you takes time. First, you’ll need to do some research.

This means looking at their websites, reading reviews online, and asking for quotes. You might also need to hold meetings with a few of them to learn more. Then, you need to figure out if they can actually do what you need.

Not every 3PL can handle every type of service, kind of product or the amount of orders you expect. You also need to make sure their technology integrates with your existing e-commerce platform and they have warehouses in the right places for your customers. All of this process is very time-consuming and takes a lot of effort, and planning

2. Potential for Higher Costs Compared to FBA

Using a 3PL service might end up costing more than using FBA if the pricing isn’t clear. Sometimes, sellers don’t understand the price list as 3PL pricing can be complicated, with different fees for storing, packing, shipping, and extra services.

Sellers might not realize that some fees are charged per item or order, or that charges can change based on the weight or size of the package. Also, some 3PLs don’t clearly explain all the costs upfront. It’s up to the seller to ask questions and check the price list carefully beforehand.

They might have minimum fees or add extra charges for things like fuel or handling large items. This can eat into a seller’s profits and cause problems with cash flow, especially for new businesses.

Amazon Storage Pros

Amazon Warehousing and Distribution (AWD) offers huge benefits because it’s closely linked with the Amazon store. Here are the major advantages you’ll get with this service:

1. Seamless Integration with the Amazon Marketplace

If you’re an FBA seller, you can link your FBA stock with AWD. This lets you keep your items in AWD for a long time while still getting FBA perks. It helps you cut storage costs, lower shipping fees, and improve your store’s overall efficiency.

You can also use AWD for MCF orders, which means you can fulfill orders from places like Amazon, your own site, or eBay using your FBA inventory. Amazon will handle picking, packing, and shipping for these orders.

Besides, AWD works directly with your Seller Central account. It automatically syncs your inventory levels across AWD and FBA, so you don’t have to update it manually.

For example, if you sell candles, you can store your inventory in bulk at AWD.  When your FBA stocks get low, AWD will automatically send more to the FBA center.

2. Access to Amazon’s Vast Fulfillment Network

With AWD, FBA sellers can make use of Amazon’s huge network of storage and distribution centers. For instance, there are over 175 of these centers where products are stored and over 25 centers where items are sorted for delivery, across North America.

This makes it easier and quicker for sellers to get their products to customers compared to using regular storage options. When customers order from Amazon, the system sends their order to the closest FBA center with the item. This is done irrespective of whether the product will come from AWD or the FBA center.

For example, someone in California orders your lavender candle, and the closest FBA center is out of stock. AWD will send the candle from Nevada to the FBA center. This makes sure the order is fulfilled quickly. You do need to verify this is an available service and make sure there you’re not getting charged an arm and a leg for it.  Reading the small print in contracts is recommended.

In addition, when you add new products to AWD, they show up in Amazon listings right away. This prevents delays and ensures customers can find them sooner.

Amazon Storage Cons

Like 3PL, Amazon Storage also comes with certain drawbacks. Some that stand out are:

1. Limited Control Over Inventory and Fulfillment Process

Once your products are in AWD warehouses, you don’t have much control over how they’re treated. You can’t choose how they’re packed or prioritize certain items. So, if your product needs extra care because it’s fragile, Amazon’s handling might not be the best.

Even though you can check how much inventory you have online, you can’t physically check it yourself. This makes it hard to know exactly when to restock, which could lead to running out of stock or having too much.

For instance, if you sell something popular during certain times of the year, a delay in restocking could mean missing out on sales. Furthermore, Amazon deals with returns, and they might throw away damaged items without telling you, which means you might lose stock unexpectedly.  Plus, throwing them away or destroying them comes with additional cost.

2. Potential for Long-Term Storage Fees

If you keep your stock in AWD warehouses for a while, they charge you based on how much space it takes up. If something stays there too long (more than 180 days), they charge you extra. Let’s say you don’t sell as much of something as you thought you would.

If it stays in storage for a year, you might end up losing money because of the extra fees. Besides, if you need to take some stock out of AWD warehouses, they charge you for that too, depending on how many items you’re taking out.

This can cost a lot, especially if your goods are large or heavy. Suppose you have some products that are going to expire soon. If you need to get rid of it fast, taking it out of Amazon’s warehouses could cost you a substantial amount.

3. Dependence on Amazon’s Policies and Restrictions

Amazon can change the rules and fees for storing your products in their warehouses whenever they want.  For example, if Amazon decides they don’t want certain types of products in their warehouses anymore and yours is one of them, you’ll have to find somewhere else to keep them.

These changes can really affect your bottom line and profit margins. They might also set limits on how much you can store based on the Inventory Performance Index (IPI) or overall warehouse capacity.

If you go over these limits, Amazon might stop you from sending in more inventory stock. Let’s say you have a successful holiday promotion sale and suddenly sell a lot more than usual. If you hit Amazon’s storage limits, you might not be able to keep up with all the orders.

4. Limited Capacity of Sending Volume of Goods

AWD storage system isn’t great for suddenly receiving huge influxes of inventories. They might have rules about how much you can send in pallets or space. This could be a problem if you’re starting a new product line or if you sell a lot during certain times of the year.

If you have a ton of goods to store, you might need to find other places to keep it besides Amazon. For example, using a service like Unicargo for initial bulk storage in China before sending it to AWD could be a good idea.

It might be cheaper to store things in China than in the US, especially if that’s where you source your products from. Then, you can send smaller amounts to AWD bit by bit based on how much space they have and how much you think you’ll sell. This could help you save money on storage fees in both places.  Working with a global logistics company, such as Unicargo, provides you with this type of solution in China, even if you choose to send it directly to Amazon. Meaning, you can use them only for storage purposes, in China, and disburse them to Amazon slowly according to your inventory levels.

Pricing Comparison

Now that we’ve discussed the pros and cons of 3PL and AWD, let’s compare their pricing structures and requirements. So, you can pick the best choice for your budget and operational needs.

Comparing pricing also ensures optimal utilization of resources, maximizes efficiency, and ultimately contributes to the overall success of your business. Here’s a pricing comparison of 3PL and AWD:

Breakdown of Costs Associated with 3PL Services

1. Inbound Costs – These expenses are what you pay when your inventory arrives at the 3PL warehouse. They can include:

• Receiving Fee – This is a fee for the 3PL to unload and check in your items, either charged per item or pallet.
• Unpacking Fee – If you want the 3PL to unpack your boxes or pallets, there might be an extra charge for that.
• Freight Management – If the 3PL manages the transportation of your goods to their warehouse, there could be more costs for managing the transportation.

2. Storage – These costs are what you pay for keeping your inventory at the 3PL warehouse. Here’s what they might include:

• Storage Fee – This is a fee based on how much space your items take up in the warehouse. It could be charged per cubic foot, per pallet, or per item. And if you store things for a long time, the fee might go up.
• Minimum Storage Fee – Some 3PLs charge a minimum fee, even if you don’t use much space.

3. Outbound Costs – Outbound costs are what you pay to get customer orders ready and shipped out. Here’s what they might include:

• Pick Fee – This is a fee for finding and picking the items that are ordered from the warehouse.
• Pack Fee – This fee covers packing the items into boxes before shipping.
• Shipping Costs – The actual cost of sending the order to your customer. This is usually based on carrier rates and how much you’re shipping.

Tips for Achieving Transparency in 3PL Pricing

Just knowing about the main costs isn’t always sufficient. It’s crucial to communicate clearly and have a pricing plan that’s easy to understand when working with a 3PL provider. That’s why we’ve added some extra tips. By following them, you can feel sure about 3PL pricing and steer clear of surprise charges later on:

• Look beyond the main prices – Sometimes, what seems like a good deal upfront might have extra charges hidden in the details. So, always check carefully.
• Ask questions – If something isn’t clear about the fees, don’t be afraid to ask your 3PL service provider to explain. It’s important to know exactly what you’re paying for.
• Watch out for vague answers – If the 3PL isn’t clear about costs, it could be a sign of trouble. Find a provider who’s open about their prices and knows how to explain them thoroughly.
• Negotiate – You can often haggle on the price, especially if you’re dealing with a big order. So, talk about your needs and how much you plan to order to get a better deal.  Bigger volume is usually a driver for this.
• Understand the contract – Make sure you know about any minimum storage requirements, how you can end the contract and any extra fees that might pop up in special situations.
• Get quotes from different places – Don’t settle for the first offer. Get quotes and compare prices and services from a few different 3PLs before you finalize.  But going beyond pricing make sure you ask about service times and availability to attend to your ongoing needs.  Price alone does not mean efficient operations.

Overview of Amazon Storage Fees

Starting March 1, 2024, Amazon Warehousing and Distribution (AWD) has two types of charges:

1. Base rate – If you’re using your own transportation or carrier service to send shipments to AWD.

2. Integrated rate – If you’re using Amazon Global Logistics or the Partnered Carrier program for transportation to AWD.

• Upstream storage fees are charged monthly for all inventory sent to AWD, based on daily usage per cubic foot of space.
• Processing fees cover handling activities for AWD inventory, applied when inventory leaves AWD and is sent to Amazon’s Fulfillment Network/FBA.
• Transportation fees are charged per cubic foot for cases sent from the AWD center to Amazon Fulfillment Network/FBA.

AWD Requirements for Integrated Rate

• If You Use Amazon Global Logistics – You need to send at least one LCL or FCL shipment through this service to AWD in the last four months. They check eligibility on the 25th of the month for the next month’s charging.
• If You Use the Partner Carrier Program – You need to send at least one LTL shipment through this program to AWD in the last two months. They also check eligibility on the 25th for the next month’s charging.

AWD Requirements for Auto-Replenishment

AWD handles inventory replenishment into FBA for you. So, certain fees like low inventory level, storage utilization, and capacity overage fees don’t apply at the SKU level. This is when you auto-replenish 70% or more of that SKU to FBA through AWD over the previous 90 days.

Note: make sure to always check updates on Amazon Seller Central to avoid any surprises or discrepancies.

Factors Affecting Pricing for Both Options

Whether you opt for a 3PL or AWD, for storage and fulfillment, one thing’s for sure: how big and complicated your operation is what matters for the price tag.

Besides, your specific needs, along with technological advancements, and contractual terms, all factor into how much you’ll end up paying, no matter which route you choose. Have a look at the factors that affect pricing for both 3PL and AWD:

For 3PL:

1. Size and Complexity of Operations – This includes how many products you sell, how many orders you have, and how many warehouses you use. Bigger and more complex operations usually cost more because they need more resources and customization.

2. Geographic Scope – If you ship over a large area or internationally, it’ll cost more because the 3PL needs a bigger network and sometimes special transportation.

3. Services Needed – Basic services like warehousing and shipping are cheaper than extra services like kitting or labeling. The more you need, the more it’ll cost.

4. Technology – Some 3PLs have advanced Warehouse Management Systems (WMS) that make things more accurate and efficient.

5. Contract – Different contracts have different pricing. Some charge a fixed monthly fee, some charge per order, and some do both. It’s important to understand how the pricing fits your needs.

For AWD:

1. Storage Needs – AWD mainly stores bulk inventory for the long term. The more space you need, measured in cubic feet or pallets, the more it’ll cost.

2. Moving Inventory – AWD automatically moves products to fulfillment centers, but how often this happens can affect the price. If you need more frequent movements, there might be extra fees.

3. Location – Where your inventory is stored in AWD facilities can change the price. Costs might vary depending on the specific distribution center and how close it is to fulfillment centers.

4. Contract Terms – The details of your agreement with AWD, like how long the contract is and how much inventory you commit to, can impact the price. Amazon might give discounts for longer contracts or higher volume commitments.

Inventory Control and Flexibility

Knowing what inventory you have and where it is helps you avoid having too much or too little stock. Having too much ties up money and space, while having too little means lost sales and unhappy customers. Good inventory control makes the fulfillment process consistent, which directly affects your monthly gross sales.

You can find items quickly, pack orders faster, and make fewer mistakes. It also reduces the risk of running out of stock, spoilage (for things that go bad), and damage. When choosing between a 3PL and Amazon’s Warehousing and Distribution (AWD) program, consider how well they handle inventory control and flexibility:

Inventory Control Capabilities

• 3PL – Most 3PLs have advanced systems to manage inventory (WMS). These systems let you see stock levels, get alerts for low stock (not all), and make reports to understand inventory levels. However, the level of control you get over these systems varies with each 3PL.

• AWD – It also has inventory management features, but it focuses more on storing large amounts of inventory and moving it to fulfillment centers. You can see overall stock levels, but you might not have as much control over where specific products are placed or how they’re picked.

Flexibility in Storage Options and Fulfillment Strategies

• 3PL – Many 3PLs give you different storage options, like pallet racks, shelves for small items, or climate-controlled storage. You can pick what works best for you and often customize how orders are stored, prepared, and fulfilled

• AWD – It mostly does bulk storage for a long time. While you might have some choice in where your inventory is stored within their warehousing centers, there aren’t as many customization options.  Plus, Amazon limits the amount of goods you can have stocked in their warehouses at any given time, which creates a bit of a hassle in replenishments from your end

Unicargo: The Best All-In-One Solution

With Unicargo, you get a reliable partner for all your supply chain needs. We handle everything from international freight forwarding to global warehousing and fulfillment, as well as domestic trucking services in the US.

What You’ll Get with Us

1. Save Time and Effort – We’re your single point of contact for all logistics, simplifying communication and operations.  From pick up, in-between, and to final destination.

2. Enhanced Visibility – Track your shipments worldwide in real-time from origin to destination using our digital platform.

3. Improved Efficiency – We optimize your supply chain for cost-effectiveness and faster delivery.

4. Global Warehousing Network – We have warehouses strategically located in North America, Europe, China, and India. This ensures faster fulfillment and lower shipping costs.

5. Unified Inventory Management System (IMS) – Gain complete control over your inventory with our robust system, offering real-time visibility across all global warehouses.

Don’t leave your logistics and business operations at risk. Contact Unicargo today for a free consultation and discover how we can optimize your logistics and elevate your business.

And if you need a quick quote for an upcoming shipment, simply quote here.

The post 3PL vs. Amazon Storage (AWD Program) appeared first on Unicargo.

Related Posts

Get cost-effective and tailor-made freight solutions with an exceptional world-class customer service experience that will allow you to focus on your core business!

The post 9 Questions Every Successful Amazon Seller Asks Before Choosing Their Freight Forwarders appeared first on Unicargo.

Yet, for Amazon FBA sellers, international shipping means customs clearance hurdles, transit mishaps, product bans, and strict rules. It’s a real-time suck and more unpredictable than a soap opera with plot twists.

That’s where an experienced Amazon FBA freight forwarder is vital for handling these shenanigans. These experts ensure efficient global inventory movement by managing complex supply chains, diverse logistics, paperwork, payments, and customs brokerage.

In this article, we discuss the process of hiring a freight forwarder — covering costs, evaluating partners, crucial considerations, and must-have contract elements.

So, are you ready for seamless global FBA shipping? Jump right in!

Amazon Freight Forwarding Process: Key Takeaways

• Amazon Freight Forwarding (AFF) is vital for FBA sellers, acting as a middleman between sellers and Amazon’s fulfillment centers.
• AFF has two options: 3rd Party Freight Forwarding (3PL) and Amazon Global Logistics (AGL).
• AGL, Amazon’s in-house program, offers strategic benefits like quicker shipping and integrated services but has limitations.
• 3PL provides more flexibility and personalized services, making it suitable for diverse shipments.
• Choosing between AGL and 3PL depends on your business needs. Combining both can be beneficial to fill gaps and enhance efficiency in the supply chain.
• When hiring an Amazon freight forwarder, ask about their experience, rates, transit times, cargo insurance, customs clearance, end-to-end logistics, and customer service.
• When choosing a freight forwarder, consider factors like expertise, services offered, credentials, financial stability, tracking capabilities, delivery options, insurance coverage, and customer service.
• Research, request quotes, compare, negotiate, review insurance options, confirm communication channels, understand limitations, and sign a contract with clear clauses to ensure a successful partnership.
• Estimating AFF costs is complex, influenced by product types, weight, volume, origin/destination, chosen shipping method, and additional fees.

What Is Amazon Freight Forwarding?

Simply put, freight forwarding refers to managing the movement of goods, from negotiating rates with carriers to handling documentation and customs clearance. They might also bundle shipments, offer storage, and take last-mile delivery.

But what is a freight forwarder on Amazon?

Freight forwarders on Amazon are crucial for FBA sellers selling products on the big Amazon e-commerce platform. They act as a middleman between sellers and Amazon’s fulfillment centers. So, how does freight forwarding work for Amazon sellers in actuality?

How Amazon Freight Forwarding Operates?

Amazon freight forwarding involves coordinating transportation for inventory from the supplier/manufacturer to Amazon fulfillment centers. This includes negotiating and organizing shipments via ocean or air freight, handling customs clearance and documentation, and offering real-time tracking.

Services also include packing according to FBA guidelines, inventory management, and shipment insurance. Some freight forwarders also cover warehousing near Amazon centers to store the sellers’ inventory until it’s ready for shipment to Amazon fulfillment centers. Here’s a simple illustration of how an Amazon freight forwarder works:

You have two options in Amazon freight forwarding though: 3rd Party Freight Forwarding (3PL) and Amazon Global Logistics (AGL).

3rd Party Freight Forwarding vs. Amazon Global Logistics

In 2020, Amazon Logistics brought in more than $80 billion in global revenue. On the other hand, the entire global 3PL industry raked in an impressive $961.8 billion during the same year.

Both 3rd Party Freight Forwarding and Amazon Global Logistics help you ship goods to Amazon. But they differ in who’s in charge and how much control you get. With 3rd Party, you hire another company to handle the transport from the manufacturer/warehouse to an Amazon fulfillment center.

A study found that 86% of Fortune 500 companies in the United States utilize 3PL providers for diverse logistics and supply chain functions. This percentage isn’t surprising because 3PLs are experts in handling global shipping regulations and securing optimal deals for both providers and shippers.

They cover all the steps in the supply chain and offer services like storing your goods, shipping them, and ensuring orders get fulfilled. Plus, they can throw in extras like packaging, assembly, and kitting.

On the other hand, Amazon Global Logistics is Amazon’s own shipping program. It links Amazon Marketplace Sellers, Amazon Business Sellers, Amazon customers, and Fulfilled by Amazon (FBA) services to global shipping options.

AGL ships your goods from China and Hong Kong to Amazon marketplaces or Warehousing and Distribution (AWD) spots. It’s an Amazon upstream bulk inventory solution for 3P sellers seeking extended storage and automatic restocking into FBA.

Sellers can join AGL and request a shipment via Seller Central, accessible in the US, UK, EU, and Japan. AGL is easy to use and connects seamlessly with your Amazon seller account. Amazon handles all the paperwork and logistics and is responsible for any lost or damaged shipments.

But is 3rd Party Freight Forwarding better than Amazon Global Logistics or not? Read the pros and cons of both services and decide by yourself.

Amazon Global Logistics

Upsides:

• It taps into Amazon’s vast network of global fulfillment centers, strategically placing your inventory near potential buyers. This results in quicker shipping and enhanced customer satisfaction.
• It offers a pickup service to collect cargo directly from the supplier/manufacturer.
• It offers up-to-the-minute inventory information and insights through the Seller Central dashboard. You can monitor stock levels, see reorder suggestions, and handle purchase orders all in one spot.
• Automated inventory restocking reduces the chance of running out of stock, resulting in fewer upset customers and missed sales chances.
• Easy integration with other Amazon services, such as FBA and MCF, can simplify your workflows and data management.

Downsides:

• If your inventory doesn’t come from China or Hong Kong, you can’t use AGL.
• Though initial costs might be lower, AGL fees can vary based on shipment volume and specific requirements. It’s not cost-effective for sellers dealing with products with high tariff rates.
• Smaller FBA storage limits could limit the quantity of inventory eligible for AGL.
• Lacks Delivered Duty Paid (DDP) services that many sellers commonly use.
• If you’re not a Limited Liability Company (LLC), Amazon can’t handle custom clearance for you.
• It is mainly designed for Amazon sellers, providing less adaptability compared to a 3PL that can manage broader distribution channels.
• You have limited control as you have to adhere to Amazon’s terms and services. This limits your control over certain logistics aspects and your ability to customize shipping, e.g.:

1. A less than 400 Inventory Performance Index (IPI) might lead Amazon to reduce your allowed storage space.
2. Individual accounts are allowed only a storage limit of 15 cubic feet.

• The expenses are relatively high compared to most 3PLs. While it offers competitive rates, negotiation flexibility may be restricted.
• It offers standardized services, making it less suitable for businesses with unique fulfillment needs or specific delivery requirements.

3rd Party Freight Forwarding

Upsides:

• You can pick from a range of providers offering different services and rates.
• It enables shipping from multiple locations (other than from only China and Hong Kong) to Amazon fulfillment centers globally. This provides sellers with more flexibility in sourcing.
• You gain greater control in selecting carriers, routes, and insurance options.
• It is the better choice for managing intricate supply chains and looking for personalized services and competitive rates.
• You get more freedom for personalized packaging and branding to maintain brand consistency.
• You’re not restricted to Amazon’s network, as you can pick the most cost-effective or fastest carrier based on your requirements. This is especially advantageous for large items or specific delivery needs.
• It provides tailored inventory management solutions, multi-channel fulfillment, and value-added services like kitting and assembly for your product needs and fulfillment processes.
• Depending on your volume and product, 3PLs might have lower storage fees than Amazon’s fulfillment centers.
• It can flexibly adjust its services to match seasonal changes or your business growth, eliminating the need for extra investments in infrastructure or staff.

Downsides:

• Finding a reliable 3PL partner experienced in shipping to Amazon is challenging. You’ll have to research, compare, and choose a dependable partner.
• Handling inventory and fulfillment with a 3PL usually involves using separate systems and syncing data, which adds complexity and increases the workload.
• You might have to manually oversee inventory restocking, risking stockouts if not handled proactively.
• According to the Amazon freight forwarder policy, you’re on the hook for lost or damaged shipments if you choose a 3PL for FBA shipments.

Which to Choose?

So, do you need a freight forwarder for Amazon FBA? Or will AGL be enough? Well, to answer your queries, it depends on your business needs and priorities. AGL could be more efficient for shipping high-volume shipments (bulky items with low weight) directly to your fulfillment centers.

It enables you to restock and sell your inventory swiftly and can be cheaper if you have a small business. However, if your products fall under a category with seasonal FBA storage limits, it isn’t the ideal choice. Moreover, items like groceries and refrigerated items won’t have temperature control during transport.

Besides, trying to time shipments precisely for the allowed storage seasons makes this approach costly. For such categories, opting for a 3PL is necessary.

According to a report, the global 3PL market is projected to expand at a CAGR of 5.30% between 2024 and 2032. It will reach a value of around $1,685.54 billion by 2032. In 2023, it hit almost $1061.95 billion in value.

                                    Source: expertmarketresearch.com

The growth of the 3PL industry is fueled by unprecedented challenges and complexity in the supply chain. That’s why many businesses seek a partnership with a 3rd party freight forwarder to streamline logistics and reduce operating costs.

A 3PL is ideal for diverse shipments, multi-channel fulfillment, or if you prefer customized solutions and flexibility in shipping options and carriers. It can offer economies of scale for small to medium-sized businesses and is perfect for shipping goods weighing over 200kg.

Or, if you anticipate business growth, you might require a 3PL that can grow along with you. But it’s wiser to combine both 3PLs and AGL to complement each other and fill in gaps if problems crop up with one. However, if you’re opting for an Amazon freight forwarder, you must know the cost of hiring one.

How Much Does an Amazon Freight Forwarder Cost?

So, how much does it cost to employ a freight forwarder? Honestly, it’s quite difficult to accurately estimate the cost and fees of Amazon freight forwarders due to multiple factors involved. The expenses can vary due to variables like product types, weight, volume, and seasonal fluctuations.

They also depend on the origin and destination of your shipment, with certain regions being more costly than others. But the most critical factor is the shipping method you choose. As a rough estimate, air shipment may cost around $5 per kilogram, and sea shipment is less than air transport, around $1 per kilogram.

However final costs vary based on the volume of total goods. Besides the primary shipping charges, freight forwarders might tack on additional fees such as:

• Fuel costs can differ depending on geopolitical tensions, war, etc.
• Customs clearance (tariffs + import duties + taxes (VAT in Europe and Bond in the USA) + fees charged by customs brokers).
• Cargo insurance (the rate depends on the product value and category, shipping route risks, and the distance to the destination).
• If you choose pickup, your freight forwarder will also charge for transporting your shipment. This fee depends on the distance between the origin and port – the farther, the pricier.
• If you choose a container to ship goods, you’ll have to pay container rent according to its size— 20 feet or 40 feet.
• You might incur a documentation handling fee for the freight forwarder preparing and processing necessary paperwork for your shipment. This typically ranges from $35 to $75 per shipment and covers paperwork management and administration for cross-border shipping.
• Your destination country might have extra expenses for controlled exports or getting documents legalized at embassies or consulates.

However, Amazon sellers using Fulfillment by Amazon can benefit from negotiating lower shipping rates with partnered freight forwarders like Unicargo. Besides, we maintain a strong connection with Amazon’s FBA teams for seamless communication and handling, even in unexpected situations.

What FBA Sellers Should Ask Their Amazon Freight Forwarder?

Once you have the pricing details, the next step is to know how to pick a freight forwarder for Amazon FBA. You must ask the following questions to evaluate potential freight forwarding partners for your business needs:

1. What is your experience with Amazon FBA shipping? Look for a freight forwarder with extensive experience shipping products to Amazon’s fulfillment centers. They should be familiar with Amazon’s requirements and shipping, labeling, and packaging guidelines for different regions.
2. What are your rates and fees? Request a detailed breakdown of rates and fees, including any additional charges for customs clearance, warehousing, and last-mile delivery. They should offer competitive and reasonable rates in the market.
3. What is your estimated transit time? Choose a freight forwarder offering reliable and fast transit times. Ask about factors that could affect delivery time to manage expectations effectively.
4. What is your cargo insurance policy? Opt for a freight forwarder that provides cargo insurance to safeguard products against damage or loss during transit.
5. Are you capable of working with smaller sellers? Seek a freight forwarder capable of providing customized solutions tailored to the unique needs of smaller sellers.
6. Do you handle customs clearance? Choose a freight forwarder with expertise in customs clearance, ensuring a smooth process involving documentation, compliance, and regulation adherence. They should be able to provide a customs bond to ensure the payment of duties and taxes, offering additional protection during transit.
7. Can you transport my goods from the destination port to an Amazon warehouse? Opt for a freight forwarder offering end-to-end logistics solutions, including transportation from the destination port to Amazon’s warehouse.
8. What is your customer service policy? Select a freight forwarder with strong customer service policies, including effective complaint handling, clear communication, and comprehensive support.

 Unicargo has been shipping to Amazon fulfillment centers and was actually the first in its landscape to cater to this niche- of Amazon Sellers- and understands their operations well for different regions. As part of Amazon’s solution provider network (SPN), we offer an optimal solution for Amazon FBA sellers worldwide. With strategically located offices and warehousing solutions in the U.S., China, India, UK, and Germany can efficiently handle cargo from origin to destination.

What Information Does a Freight Forwarder Need from the FBA Seller?

If you’ve readied the comprehensive set of questions for your Amazon freight forwarder, next, gather key info they need from you. Giving them the correct details ensures a smooth shipping process that plays a crucial role in the success of your Amazon FBA business.

• Product details – Share specifics like product type, quantity, weight, and dimensions to determine the suitable shipping method and carrier.
• Origin and destination – Provide locations for shipping and delivery to plan the most efficient route and transit time.
• Shipping terms – Clarify agreed-upon shipping terms, including incoterms, outlining seller and buyer responsibilities.
• Export documentation – Furnish required export documents such as:

• A detailed packing list: includes item identification and net and gross weights and is used to prepare bills of lading.
• The bill of lading: acts as proof of ownership when both the shipping company and the customer sign it.
• A commercial invoice: is given to the customer as a document for services provided, and customs duties are determined based on it.
• The export declaration document: provides information about exported goods and is submitted at the port.

• Customs clearance – Inform about customs clearance requirements, covering duties, taxes, fees, and compliance with regulations.
• Licenses – Export and import licenses and government documents make goods eligible for leaving or entering the country.
• Cargo insurance – Specify if you require cargo insurance. We highly recommend getting one!
• Certificate of Inspection – Amazon FBA has strict standards for sellers sending inventory to fulfillment centers. An inspection certificate ensures your products meet these standards, preventing issues and allowing for quality checks before payment.

After inspection, a detailed report is compiled, ensuring compliance with legal regulations. The inspection company you’ll hire will then issue a certificate you’ll have to give your freight forwarder. This helps speed up shipment release from customs.

How to Hire an Amazon Freight Forwarder?

Have you gathered the critical information an Amazon freight forwarder will need? That’s good. Move on to the next and the most crucial step i.e. learning how to choose a freight forwarder for your Amazon FBA shipping:

• Research – Explore freight forwarders specialized in Amazon FBA and experienced in international shipments. Search for those with favorable reviews.
• Request Quotes – Approach potential forwarders for quotes, sharing comprehensive shipment details like weight, dimensions, and destination.
• Compare Quotes – Evaluate received quotes from different forwarders, considering services, pricing, and reputation in your comparison.
• Negotiate – If a preferred forwarder emerges, engage in negotiations covering contract terms, service scope, pricing, and relevant particulars.
• Review Insurance Options – Talk about and make choices regarding cargo insurance. Grasp the coverage and liabilities involved.
• Confirm Communication Channels – Establish transparent communication lines for updates and problem-solving communication.
• Understand Limitations – Grasp any service limitations and what the freight forwarder doesn’t cover.
• Sign the Contract – Upon reaching an agreement, finalize by signing the contract. Ensure it encompasses service details, pricing, payment terms, and liability.

How Your Contract with an Amazon Freight Forwarder Will Look Like?

Before you enter into a contract with an Amazon freight forwarder, you must understand its structure and the documents you need.

The contract structure will include the following general clauses:

• Parties Involved – You (Amazon seller) and the freight forwarder.
• Services Provided – Outlines specific services like cargo consolidation, customs clearance, and door-to-door delivery.
• Rates and Fees – Specifies service costs, potential surcharges, and minimum shipment volumes.
• Payment Terms – Defines invoicing and payment schedules.
• Insurance – Details insurance coverage options and associated costs.
• Liability – Clarifies responsibilities in case of loss, damage, or delays.
• Term and Termination – Specifies contract duration and termination conditions.
• Confidentiality – Protects shared sensitive information.
• Dispute Resolution – Outlines the process for resolving disagreements.

Depending upon your contract, you may need additional clauses:

• Minimum Order Quantity (MOQ) – If you require a minimum shipment volume.
• Cargo Restrictions – Outlines prohibited or specially handled goods.
• Performance Guarantees – This may include guaranteed transit times or service levels.
• Technology Integration – Provisions for connecting systems with the forwarder’s platform.

To sign a contract with your Amazon freight forwarder, you’ll require the following documents:

• Business Registration Documents – Proof of business registration and legal entity status.
• Tax Identification Number – Tax ID number for relevant authorities.
• Product Information – Detailed descriptions, including HS codes and values.
• Insurance Requirements – Preferred insurance coverage level for shipments.
• Shipping Instructions – Specifics about origin, destination, delivery timeframes, and any special handling needs.

What are the Limitations to the Freight Forwarding Services?

While Amazon freight forwarders are valuable for international shipments, there might be some limitations to the services some of them provide. Therefore, you must consider where your potential freight forwarder draws the line before signing a contract with them. Here they are:

• Limited Liability – They might have limited liability for damage or loss. This means uninsured losses could be your responsibility. Review all insurance options and decide.
• Compliance and Regulations – Most forwarders don’t specialize in customs regulations, requiring separate engagement with customs experts for compliance. But, Unicargo has an in-depth knowledge of regulations, including FDA and PGA guidelines. We offer end-to-end compliance solutions without a separate engagement, covering everything from customs clearance to accurate product classification. Our experts assist businesses in avoiding bureaucracy, penalties, delays, and additional costs with duty and tax optimization, free trade agreements management, and risk mitigation.
• Product Restrictions – Goods with special handling needs may be excluded. Check the prohibited items list and discuss your product specifics.
• Value-Added Services – Additional services like labeling may not be included. So, inquire about extra costs for specific needs. However, at Unicargo, we offer value-added services like packaging, labeling, palleting, bundling, and kitting in complete compliance with Amazon’s requirements.

Our specialized team can manage barcodes, ASINs, FBA labels, and special packaging needs for safe transit and insert promotional materials into packages, enhancing your brand’s uniqueness. This all-in-one solution enables us to provide competitive pricing and ongoing support even as your product offerings expand.

• Technology Integration – Confirm if their technology aligns with your desired automation level for tracking and data exchange.
• Hidden Costs and Surcharges – Be wary of unexpected surcharges for factors like oversized cargo or specific destinations. So, review the contract thoroughly.
• Limited Control over Shipping – Forwarders often optimize costs by consolidating shipments, reducing your control over routing and carrier selection.
• Limited Customer Support – Support availability can vary. Some freight forwarders offer 24/7 assistance, while others have limited support hours or channels. Unicargo offers 24/7 customer service and has a customer-first approach that puts you in the center of attention.

9 Factors to Consider When Choosing an Amazon Freight Forwarder

Look for the following factors when searching for an Amazon freight forwarder to ship your goods. These will ensure you choose the most suitable one for a seamless partnership:

1. Expertise – Opt for experienced Amazon FBA freight forwarders to avoid costly errors.
2. Multiple Services – Choose a firm offering additional services like packaging, labeling, storage, inventory management, and insurance.
3. Credentials – Request testimonials and reviews to verify the forwarder’s credibility.
4. Financial Stability – Research and ensure the freight forwarder is financially stable.
5. Desired Results – Check if they meet your requirements and can deliver services within your timeframe.
6. Product/Shipment Tracking – Look for a forwarder with an integrated real-time tracking system for shipment updates.
7. Delivery Options – Confirm the logistics firm’s international delivery capabilities and understand their delivery options, such as port-to-port or door-to-door. Check for additional costs associated with specific delivery options.
8. Insurance Coverage – Verify comprehensive insurance coverage to protect against shipping losses.
9. Customer Service – Ensure the company provides excellent customer service and prompt responses.

FAQs- Amazon Freight Forwarding

Does Amazon Allow FBA Sellers to Use Freight Forwarders?

Yes, Amazon permits FBA sellers to engage freight forwarders, a common practice for international shipments. However, it’s wise to opt for a freight forwarder when dealing with goods over 200kg, requiring tailored shipping solutions, or managing intricate supply chains.

Is There a Cost Difference between Amazon Global Logistics and other Freight Forwarders?

Yes, Amazon Global Logistics and other freight forwarders differ in costs. AGL offers ocean transportation and customs brokerage services for FBA sellers at reduced landed costs and competitive rates. In comparison, various freight forwarders may have distinct pricing structures which can be less or not. Therefore, you need to compare quotes from different companies.

Can I Use My Own Freight Forwarder with FBA, or Is Amazon Global Logistics Mandatory?

Using Amazon Global Logistics is not obligatory for FBA, and you can opt for your own freight forwarder. However, if you choose this route, you’ll need to hire a freight forwarder well-versed in the Amazon FBA shipping process. This will ensure your shipment aligns with Amazon’s requirements.

Can I Use Multiple Freight Forwarders for Different Shipments within My FBA Business?

Yes, you can use multiple freight forwarders for various shipments in your FBA business. However, it’s crucial to verify the reliability and expertise of each freight forwarder in managing international shipments.

Conclusion

As Amazon FBA shipping demand surges, businesses seek efficient global solutions. This, in turn, increases the need for freight forwarders to handle complex supply chains, customs clearance, strict regulations, and diverse logistics challenges.

However, unlike traditional freight forwarders, Unicargo offers digital solutions for faster, more efficient, and transparent Amazon FBA shipping. We’re your E-commerce logistics hub, covering freight forwarding, customs and compliance, warehousing, fulfillment, B2B/B2C distribution, cargo insurance, real-time tracking via our digital platform, and consulting.

Our value-added and Amazon preparation services are tailored to fulfill Amazon requirements and your business needs. We offer advanced fulfillment centers nationwide to ensure swift, cost-effective shipping. While our strategically located warehouses cut delivery times, lowering costs.

We directly integrate with Amazon FBA to seamlessly merge our services into your workflow. Our experts also simplify complex reverse logistics—managing returns, selecting couriers, and handling inquiries—no need to hire multiple companies to take care of your global shipping needs.

Optimize your Amazon FBA shipping with Unicargo today – your all-in-one solution!

Questions?  Feel free to contact us and inquire more with one of our experts. 

We’re here as your partner and share the same values and goals.

The post Navigating the FBA Supply Chain: Understanding the Amazon Freight Forwarding Process appeared first on Unicargo.

Sailing into the UK market isn’t just about crossing the pond. It’s more about dodging the regulatory reefs. If you’re an Amazon FBA seller eyeing the UK market, you need a registered UK company with VAT and EORI numbers and that’s just the tip of the iceberg. To navigate the tricky waters of Amazon FBA UK, you will need a well-versed and competent sailor by your side.

That’s where Unicargo comes, a seasoned freight forwarder for FBA shipping since the program’s maiden voyage. We can steer you through UK customs and taxes, ensuring your journey into the UK market is without hindrances. But that’s not all we provide.

So, read on to learn how Unicargo can chart your course to FBA success in the UK!

Key Takeaways

●     Amazon UK has seen significant growth, making it a lucrative market for e-commerce businesses, with sales doubling since 2018.

●     Expanding into the UK market with Amazon FBA presents challenges such as adjusting listings, understanding customs rules, and dealing with taxes.

●     Different shipment services, including Amazon’s Partnered Carrier Program (PCP), Small Parcel Delivery (SPD), Less Than Truckload (LTL), and Full Truckload (FTL), cater to various seller needs.

●     Amazon offers Standard Fulfillment by Amazon and Low-Price Fulfillment by Amazon services in the UK, each with its own benefits and requirements.

●     Sellers must adhere to specific packaging and labeling requirements set by Amazon FBA UK to avoid extra charges or inventory refusal.

●     Unicargo provides comprehensive 3PL services for FBA sellers, including streamlined prepping, efficient stock tracking, simplified shipping arrangements, and assistance with tax and legal considerations.

●     Understanding and complying with UK tax and legal regulations, like obtaining an EORI number and registering for VAT, are crucial for importing/exporting goods into the UK.

●     Selecting a reliable freight forwarder like Unicargo is essential for smooth FBA handling, fewer mistakes, better inventory management, and compliance with Amazon’s FBA shipping guidelines.

Overview of Amazon UK

Amazon has become more than just a place to buy things online in the UK. It is the second-biggest market for Amazon in Europe after Germany with sales doubling since 2018. From 2010 to 2023, Amazon’s sales in the UK went from about $4 billion to nearly $33.6 billion in 2023, showing incredible growth.

This increase in revenue can be attributed to the growing popularity of e-commerce shopping in the UK which now makes up 30% of its total retail. In 2024 alone, the online shopping market is worth about $280.55 billion in the UK. By 2029, it’s predicted to hit $750.80 billion, growing at a rapid rate of 21.76% each year.

This makes the UK a fertile ground for big e-commerce businesses that are looking for a cost and time-efficient way to expand their operations. With FBA, Amazon takes care of order management, delivery, and customer service.

This frees you up to focus on growing your business in the UK without needing extra warehouse space or staff. Amazon’s FBA service takes care of storing, packing, and shipping products to customers, along with offering round-the-clock customer support in different languages.

When you list products on FBA UK, they can also be Prime eligible, meaning customers get fast one-day delivery. However, expanding your Amazon FBA business into the UK market comes with several challenges that need attention. Here are some important things to keep in mind:

● Adjust Your Listings – Make sure your product descriptions and titles use British English. This helps your business connect better with the local audience, improve customer experience, and boost sales.

● Understand Customs Rules – Learn about the complexities of UK customs and importing to avoid legal issues and ensure your products meet UK import rules. Also, Amazon FBA UK has specific packaging and shipping regulations.

Meeting them helps with delays, and extra costs and fulfilling FBA requirements. For example, according to UK VAT rules, if you’re selling or planning to sell in the UK, you must register for UK VAT. Amazon will check to make sure your registration is valid.

● Deal with Taxes – Be aware of the UK’s complicated sales tax system. Understanding it is key to following the rules, planning taxes effectively, meeting tax obligations, making informed financial decisions, and avoiding penalties.

 For instance, if you bring in 10 tons of finished plastic packaging into the UK, you need to register for the UK Plastic Packaging Tax (PPT). This applies whether you’re importing it or making it here, within a year or even within a month.

● Handle Currency Conversion – Handling currency exchange rates and bank fees well is crucial for international business. Currency changes can affect your profits, but having a strategy in place can help protect against risks and unexpected market shifts.

Shipping to Amazon FBA UK

We already know now that Amazon UK is a booming online marketplace that draws sellers from all over because of its big growth and Prime perks. But to keep things running smoothly, sellers need to understand the details of shipping, how orders are handled, and the packaging rules that are specific to the UK market.

Types of Amazon FBA UK Shipments

Here are four types of FBA shipment services that Amazon allows in the UK:

●     Amazon’s Partnered Carrier Program (PCP) – It offers discounted rates with UPS for shipping small parcels to Amazon Fulfillment Centers in the UK from a UK destination. PCP provides better service, competitive pricing, and UPS tracking for your shipments.

● Small Parcel Delivery (SPD) – In SPD, Items are packed and labeled individually. It has a limit of 200 items when using an Amazon-partnered carrier and is a great choice for small to medium sellers on Amazon.

●   Less Than Truckload (LTL) – This involves stacking cases or boxes on pallets and is for sellers shipping a large volume of pallet shipments with oversized items (at least 150 lbs). LTL service is ideal for shipping LTL shipments inbound to Amazon Fulfillment Centers, allowing you to request pallet pick-ups without booking entire trucks.

●  Full Truckload (FTL) – In FTL, your inventory fills an entire truckload and goes directly to an Amazon FBA Fulfillment Center. It’s a cost-effective and efficient way to utilize truckload capacities, ensuring faster and more secure shipping without transfers during transit.

Types of Amazon Fulfillment Services in the UK

As an FBA seller in the UK, you get two types of Amazon fulfillment services as follows:

1.   Standard Fulfillment by Amazon

With Amazon’s Standard FBA service UK, you store your products in their UK fulfillment centers. They handle everything from picking and packing to shipping, customer service, refunds, and returns. There are further two types of Standard FBA services:

● Remote Fulfillment UK-EU – It was previously known as the European Fulfillment Network (EFN) between the UK and EU. Remote Fulfillment UK-EU allows you to sell across borders without sending inventory to the destination store or needing a VAT number.

● Ships in Product Packaging Discount (SIPP) – Ships in Product Packaging Discount, is a program where products are sent to customers in their original packaging, without extra Amazon packaging.

If products meet the program’s guidelines, they get reduced Fulfillment by Amazon fees for each item shipped. Amazon certifies products if their packaging fits the rules, or sellers can join the program by adjusting packaging to meet the guidelines.

2.   Low-Price Fulfillment by Amazon

Low-Price FBA is a service by Amazon for fast-selling, small, and light items priced at £10 (UK), or less, including VAT. This program offers lower fees compared to standard FBA for similar products when shipped locally.

Packaging, and Labeling Requirements for Shipping to Amazon FBA UK

When sending items to Amazon Fulfillment Centers in the UK, some products have specific requirements. Not following Amazon’s packaging and labeling guidelines may lead to them refusing or sending back your inventory.

As a seller, you might face extra charges or even lose the ability to send items to Fulfillment Centers in the UK. Therefore, you’ll need to follow the packaging and labeling requirements set by Amazon FBA:

●     Packaging Requirements

❖  Pallets – For shipping pallets in the UK, use wood pallets measuring 1000 x 1200 mm with 4-way access, meeting GMA grade B or higher standards. They can be stacked up to 1.8 meters high, or 3.0 meters for double-stacked pallets.

While non-stackable pallets sent to Amazon UK Fulfillment Centers must not exceed 120 x 100 x 180 cm (L x W x H). Overall, your cargo should not weigh more than 500 kg including the pallet.

❖  Boxes – Boxes should be rigid, six-sided containers with intact flaps. Make sure to pick the right sizes to prevent your items from bouncing around too much during processing and transit. Use appropriate containers like RSC (regular slotted box), B flute, ECT-32 (edge crush test), and 200BH (burst strength).

Boxes should not be wrapped in bags or stretch wrap, covered in packing tape, or have metal staples or plastic corner protectors. They also shouldn’t be made of wood or metal, or be tied with plastic straps or tape.

Furthermore, boxes containing standard-size items must be between 15.2 cm x 10.0 cm x 2.5 cm and 63.5 cm on any side. They should weigh between 0.15 kg and 23 kg. For boxes with a single oversized item, they can be up to 73.7 cm in size and weigh up to 30 kg.

Additionally, shipping items over 30 kg requires enrollment in the “FBA Heavy and Bulky” program. It allows a box limit of 150 cm in length and a girth of up to 3 meters.

❖ Poly Bags – They must be at least 1.5 mils thick, transparent, and completely sealed. A poly bag should fit the product well and not extend more than 7.5 cm beyond the product dimensions to avoid inconsistent package measurements.

●     Labeling and Barcode Requirements – Each box and pallet must have a unique ID label and pallet label, with clear shipping and tracking information visible. There should be four labels, placed at the top center of each side of a pallet.

Each item without a manufacturer barcode needs an FNSKU barcode as a unique identifier for a product. For instance, different sizes or colors should have different barcodes. Moreover, labels must be black and white, removable, and non-reflective.

They should generally be 8.4 cm x 10.2 cm (3 1/3 x 4 inches) in size. Boxes weighing over 15 kg should have a “Team Lift/Heavy Package” safety label on the top and sides.

For poly bags, the manufacturer or Amazon barcode should be scannable through the bag, or an external barcode label should be applied. If you sell items in various conditions like used-like new and used-good, each of them needs a different barcode. Moreover, barcodes must be scannable and easy to reach.

Don’t put them where they can’t be scanned, like on corners or curves. Also, don’t cover up product barcodes with FBA labels. Conflicting barcodes can lead to delays or lost inventory.

Unicargo’s 3PL Services for FBA Sellers

As an FBA seller, picking a trustworthy logistics partner is crucial for a smooth shipping process to Amazon Fulfillment Centers in the UK. Using a 3PL service like Unicargo can be smart as it’s cheaper than Amazon’s default FBA and offers more flexibility and value-added options.

Our 3PL services are designed to be a convenient solution for FBA sellers. We take care of everything, like storing, preparing, and shipping your products, as well as dealing with any problems that might come up with Amazon.

This saves a lot of time and effort for FBA sellers, and can also cut down on how much they spend on fulfillment. As an Amazon FBA seller, looking to expand your business in the UK here’s how our services can help you:

1.   Full Responsibility from Start to Finish

Unicargo takes care of everything from getting your products at our warehouse to preparing them for Amazon FBA and sending them to Amazon’s fulfillment centers.

You won’t have to handle different logistics tasks. If your shipments aren’t ready for Amazon, we can receive them, prepare and label them, and send them to Amazon. Sometimes, customers need temporary storage- before shipping to Amazon, and we can provide that too until they’re ready, both before shipment, i.e., in China, and thereafter in transit, whether it be transloading or doing all the prepping and labeling and repacking, including getting you appointments ahead of time with the final destination Amazon warehouse

2.   Streamlined Prepping

We can take care of labeling, bundling products together, and repackaging them to meet Amazon’s size and weight rules. This guarantees your items are set for Amazon’s fulfillment process as soon as they arrive, preventing costly delays and penalties.

3.   Splitting Shipments for Faster Delivery

Unicargo can receive all your products together and then divide them up to send to different Amazon Fulfillment Centers across the UK. This helps if you have popular items stored near customers for quicker shipping.

4.   Efficient Stock Tracking

We offer a system to keep track of your inventory levels in each Amazon center. This helps you optimize stock placement and fulfillment times for fast and efficient delivery.

5.   Simplified Shipping Arrangements

Our company has a carrier central account main account with major shipping companies, which lets us bargain for cheaper rates and book all shipments on your behalf. This could save you time and cut down on shipping expenses.

6.   Appointment Coordination

We handle scheduling appointments with Amazon’s warehouses to accept your deliveries. This makes sure your shipments are received smoothly and reduces any waiting times at Amazon’s warehouses.

7.   Purchase Order (PO) Validation Support

Unicargo could help you with any problems that come up with validating your purchase orders for Amazon FBA. Sometimes, these issues stop your products from being accepted by Amazon’s warehouses.

8.   Amazon Rejection Support

We can assist you in learning why Amazon didn’t accept your shipments and help you fix any issues preventing them from getting accepted. So, your products can be ready for fulfillment again.

Navigating Tax and Legal Considerations in the UK

Unicargo’s 3PL services extend beyond Amazon FBA UK prepping, shipping, PO validation, and rejection support. We can also advise and guide you in navigating tax and legal considerations like obtaining an EORI number, registering VAT, etc. in the UK. Here are the tax and legal regulations that are extremely important if you want to import/export to the UK:

1.   Obtaining EORI Number

An EORI number is a special code needed for businesses importing or exporting goods in the EU, including the UK. Usually, your business must have a place in the country you’re trading with to get an EORI number.

When your goods arrive in the UK, customs needs this number to clear them. Without it, they might not know who you are, and your shipment could get held up or taken away. It’s a tricky process to obtain an EORI number. But Unicargo can help you with the application, get your EORI number, and clear your FBA shipments quickly through UK customs.

2.    UK Company and VAT Registration Importance

If you’re registered and selling products in the UK, you’ll need to sign up for Value Added Tax (VAT). This is necessary when your total sales from all countries reach £85,000 over a year and because you’re storing goods in the UK.

Registering for VAT affects your profits as it allows you to deduct VAT from sales, potentially reducing your profit per item. However, being VAT registered also lets you reclaim VAT paid on certain business purchases which is called Postponed VAT accounting (PVA).

So, it’s important to calculate how VAT registration impacts your profit margins to ensure you stay competitive and profitable. PVA lets you report VAT on your VAT Return instead of paying it right away, which can help with cash flow when importing.

However, it can be complicated and needs careful tracking and reporting. That’s where Unicargo can assist you with setting up a PVA (VAT Postponement Account). Different products may have specific requirements for bringing them into the UK. Unicargo can advise on these requirements to prevent any problems. We can also assist with Amazon’s regulations for pallets and packaging, making sure your products are packed, labeled, palletized, and sent correctly according to Amazon’s strict guidelines.

3.   Commodity Specific Requirements

The UK has strict rules for importing goods. There’s a department called National Trading Standards (NTS) that handles various issues like copycat products and crimes. When Customs suspects a problem with goods, they ask NTS to check if they’re genuine and legally imported.

So, it’s crucial to research product regulations right from the start when choosing what to produce and ship to Amazon UK. Researching upfront can help you spot compliance issues early. This lets you adjust your product sourcing or make changes to meet UK rules.

Making sure your products comply at the start can also prevent customs issues as well. Compliant products are less likely to get held up by customs, saving you time and money. Moreover, accurate classification and value of goods is also necessary to know their applicable taxes and import duties.

Unicargo can be a helpful partner in this entire process as we know the ins and outs of UK customs rules. We keep up with changing compliance guidelines and can aid you in avoiding customs delays and penalties.

Our experts can identify potential problems with your products and direct you to resources for more info on compliance. We can also assist you with getting the right classification and value of goods to learn the correct import duties and taxes for your FBA UK shipments.

Choosing the Right Freight Forwarder for Your FBA Business

Choosing the right freight forwarder for your FBA businesses in the UK is vital to have a smooth shipping process. They act as your logistics partner, handling your goods from start to Amazon centers, making sure they’re compliant with Amazon’s FBA shipping guidelines. Here’s why the right freight forwarder matters:

1. Smooth FBA Handling – They know the in/out of Amazon FBA processes well, from labeling to packaging, customs clearance, and delivery. This means your shipments move smoothly and reach Amazon Fulfillment Centers faster, keeping your products available for customers all the time.

2. Fewer Mistakes and Delays – With expert guidance, you’re less likely to make costly errors like wrong labeling. These mistakes can cause delays or even rejection at Amazon, hurting your profits and customer happiness.

3. Better Inventory Management – A freight forwarder can sync with your FBA UK inventory system. This gives you real-time data to manage stock levels across different centers.

You’ll know exactly what to stock when avoiding shortages and keeping customers happy. Here at Unicargo, we think our expertise and comprehensive services make us the ideal choice for your FBA UK business.

Unicargo: A Case Study in FBA UK Expertise

Unicargo stands out as a freight forwarder with a successful history in the FBA UK market, for all global sellers. Here’s what makes us unique:

1. Pioneer in the Field – Unicargo was the First to partner with FBA sellers from the program’s start. In fact, we are part of Amazon’s Solution Provider Network (SPN). This gives us a deep understanding of FBA and allows us to offer tailored services for small to medium and large-sized businesses.

2. All-in-One Solution – Unicargo, as a global freight forwarder offers much more than just shipping goods from point A to point B.  We are probably one of the few global logistics companies to offer Sea and Air Freight along with strategic warehousing services (in the US, Europe, and China), along with self-owned domestic trucking services (in the US).  Providing you with a wider ecosystem offers our customers a one-stop-shop solution and one team handling all legs of your shipments.

3. Out-of-Box Approach – Unicargo doesn’t just provide standard freight forwarding services. Our proactive approach means we offer tailored solutions for different FBA shipping situations. We don’t believe in a one-size-fits-all approach. Instead, we take the time to understand your specific needs and suggest services that meet your unique FBA UK shipping needs.

With our experience and network of partners, we can find creative solutions to unexpected challenges. We’ll keep you updated throughout the shipping process and alert you to any potential issues early on, so you can resolve them before they become problems.  Furthermore, once you’re a customer, you can sign up for our digital platform and track your shipments in real-time, from anywhere in the world.  Visibility and Real-time Time Tracking are paramount to global sellers, shipping goods all over the world.

Step-by-Step Guide to Shipping with Unicargo

Once you’ve chosen Unicargo as your freight forwarder, here’s a step-by-step guide to how we can help you with Amazon FBA UK shipping:

1.   Building Your Shipping Plan and Optimizing for Cost and Efficiency

For shipping to Amazon FBA UK, you’ll need to build a shipping plan and ensure it’s optimized according to your budget and shipping schedule. The first step is to pick the items you want to send to Amazon.

Then, decide how many of each product you’re sending and pack them according to Amazon’s rules. At Unicargo, we know all about these details, so we make sure your products are packed and shipped according to Amazon’s rules.

Our experts also handle any special packaging needs you might have, like bundling items together or adding promotional materials to your packages, all while following Amazon’s guidelines.

Next, choose which Amazon FBA UK centers you’re sending your products to, considering where your customers are and what they’re buying. But make sure you know how large and heavy your packages are, and understand your overall shipping needs.

Depending on how quickly you need your shipment, decide if you’ll ship by air, sea, or land. Remember, to use the right materials to keep your goods safe during shipping.

2.   Requesting a Quote From Unicargo

Once you’ve got your shipping plan ready, reach out to Unicargo for a free quote. Fill out a form where you choose your shipping methods (air, land, or ocean), and you can pick more than one. Then, set your shipping route by providing details for the origin and destination.

The origin is where your products are located and the destination is Amazon fulfillment center(s) in the UK. Describe your cargo, including the number of packages, total weight/dimensions, and product categories for potential customs considerations.

Let Unicargo know if you need extra services like warehousing, multi-center fulfillment, assistance with UK VAT registration or PVA setup, D2C service, or reverse logistics. Finally, schedule your shipment by selecting a date.

3.   Preparing Your Shipments and Paperwork With Unicargo’s Guidance

Unicargo will ensure your products are packaged and labeled correctly for FBA UK. We can help you create a commercial invoice with accurate details like product descriptions, quantities, values, and HS codes for customs.

Our experts can help you prepare additional documents such as packing lists or certificates of origin. On top of that, you can access, manage, and organize all your shipment-related documents in one convenient location with our online portal.

4.   Tracking Your Shipments and Receiving Real-Time Updates

You’ll receive a tracking number after Unicargo books your shipments. You can then track your shipment in real-time around the clock using our online portal. This will help you in improving your operations continuously.

The dashboards cover every aspect of your shipment journey, from detailed information to an overall summary. You can easily switch between different views to check shipment statuses, transit times, exceptions, and other details with just a glance.

You’ll also get instant alerts about any issues or changes with your shipments. Furthermore, our experts will assist you in minimizing any disruptions to your logistics operations, getting you back on track swiftly.

Summary

In the UK, Amazon is a powerhouse for e-commerce, with sales skyrocketing over the years. As online shopping continues to surge, the UK market offers immense opportunities for businesses, especially if you’re eyeing Amazon’s FBA service.

However, expanding into the UK with Amazon FBA comes with its challenges. Ensuring your listings fit the British market, understanding customs rules, and handling taxes are crucial. Unicargo, a seasoned digital freight forwarder, offers comprehensive solutions to tackle these hurdles.

Our carrier partnerships secure cost-effective shipping rates and we handle everything from receiving your products to preparing and shipping them to Amazon’s fulfillment centers.

We can split shipments for faster delivery, and ensure efficient stock tracking, labeling, and customs clearance for smooth FBA handling, fewer mistakes, and better inventory management. Complying with UK tax and legal obligations is also convenient with Unicargo.

Moreover, to import and sell products through Amazon FBA UK you’ll need an EORI code and will have to register for VAT to adhere to tax and import regulations. Without them, Amazon won’t accept your products into their warehouses.

That’s because, without these, you’ll face problems with customs and taxes, which Amazon wants to avoid. Unicargo can manage your VAT registration, and facilitate EORI number, preventing customs delays and ensuring compliance with FBA UK regulations.

Our commitment to all-size FBA sellers is unparalleled. We offer an all-in-one solution, an out-of-the-box approach, and step-by-step guidance and ownership throughout the shipping process. With a global presence and a network of agents, Unicargo is the ultimate choice if you’re venturing into the FBA UK market.

Next Steps

Managing the complexities of FBA shipping into the UK requires careful attention to VAT registration, EORI numbers, customs regulations, and more. With Unicargo’s expertise, you can ensure smooth sailing for your shipments, avoiding delays and compliance issues. Our team of experts is here to help you every step of the way.

Request a personalized consultation with Unicargo’s specialists today to get tailored advice for your FBA business. You can also fill out a form for a free quote or reach out to us via our contact form with your inquiries. Start your journey towards successful FBA shipping into the UK with Unicargo by your side. Get in touch now!

The post How to Ship to Amazon FBA UK appeared first on Unicargo.

It might seem simple, especially if you’re already successful locally, but selling internationally comes with its own set of challenges. You’ll need to deal with additional regulations and face intense competition from established sellers in those regions. To help you succeed globally, this guide covers everything you need to know about selling internationally on Amazon. Let’s dive right in.

Which Marketplaces Can You Sell On?

As of 2024, you can sell to 21 international marketplaces. This includes:

• United States (Amazon.com)
• United Kingdom (Amazon.co.uk)
• Mexico (Amazon.com.mx)
• Canada (Amazon.ca)
• Spain (Amazon.es)
• Brazil (Amazon.com.br)
• Italy (Amazon.it)
• France (Amazon.fr)
• Germany (Amazon.de)
• Singapore (Amazon.sg)
• India (Amazon.in)
• Japan (Amazon.co.jp)
• United Arab Emirates (Amazon.ae)
• Saudi Arabia (Amazon.sa)
• Turkey (Amazon.com.tr)
• Australia (Amazon.com.au)
• Netherlands (Amazon.nl)
• Belgium (Amazon.com.be)
• Poland (Amazon.pl)
• Sweden (Amazon.se)
• Egypt (Amazon.eg)

Which Marketplace Should You Select?

Before you choose a marketplace, there are a few things to think about.

First, think about how much traffic the marketplace gets. As of 2024, the top marketplaces by number of monthly visitors are the USA with 3 billion, Germany with over 605 million, the UK with over 569 million, and Canada with 231 million.

Second, consider the different tax regulations and whether you can sell your products in the chosen country. Some countries have more extensive rules, so make sure you’re knowledgeable and prepared to comply.

Third, check the average income in the countries you want to sell in. This is measured by something called GDP PPP per capita. Generally, higher income means more online spending.

How to Sell Internationally on Amazon

Selling your products internationally is a good idea if you already have an established and successful product in one marketplace. But before you go global, make sure to do your research to confirm there’s also demand for your product in the new market.

Once you’ve confirmed demand, your next step is to find a reliable freight forwarding company. Look for one that has experience in shipping products specifically to Amazon’s fulfillment centers, as they have unique requirements for labeling, packaging, and appointment scheduling. Failing to comply could result in your products being rejected and sent back, with you bearing the full cost. 

Once you’ve handled this, it’s time to enroll in either NARF or Amazon’s Global Selling Program:

• NARF: If you’re operating your Amazon business in the US and want to expand into Mexico and Canada, NARF is a great option. This program allows you to sell in these markets while keeping your products in US fulfillment centers. When customers from these countries place an order for your product, Amazon will handle the cross-border shipping for you.

With NARF, you’ll also automatically get access to a tool called BIL (Build International Listings), which duplicates your US product listings onto Amazon Canada, and Mexico without you having to do anything.

To qualify, you need to have a Professional Selling account and a North American Unified Account, which you can set up by going to the “Upgrade to a Unified Account” page in Seller Central.

Selling in your local market is usually easier than selling overseas. If you’re new to a foreign market, here are some helpful tips to ensure success:

1) Be Aware of Each Country’s Regulations

When selling internationally, the first step is to understand the regulations of the country you’re targeting. In the EU or UK, for instance, there’s a long list of legal requirements you must meet. Here are a few examples:

• Register for VAT: VAT (Value Added Tax) is a mandatory tax on goods and services in the EU and UK. Registration procedures vary, but generally, you’ll need to fill out a form and provide necessary documents like business proof, ID, and financial records.
• Apply for an EORI Number: An EORI (Economic Operators Registration and Identification) number is essential for customs declarations. Before applying, check if your company already has one, especially if you’re VAT-registered. If not, you’ll need to provide detailed company information to the customs authority where you plan to import goods into.
• Ensure EPR Compliance: If you’re planning to sell in Germany or France, you’ll need to obtain an EPR (Extended Producer Responsibility) number from the appropriate PRO (Producer Responsibility Organization) to prove that your products, including packaging, are sustainable and recyclable. Common EPR categories cover products like batteries, electrical and electronic equipment, and furniture. Without this number, Amazon will suppress your listings.
• Get a WEEE Number: If your products are covered by the Waste Electrical and Electronic Equipment (WEEE) Directive, you’ll need a WEEE number to show your commitment to correctly handling and recycling electrical and electronic waste. To obtain this number, check if your products are covered under the directive and contact the appropriate authorities in the EU country where you plan to sell.

If you want to sell to other international marketplaces besides the EU and UK, you’ll need to comply with additional regulations specific to each country.

2) Use BIL to Duplicate Your Listings

If you have a Unified Account or Linked Accounts, BIL can be an extremely helpful tool to use. It helps duplicate your current listings onto the marketplace where you plan to sell. All you need to do is link the source market (i.e., where you’re currently selling) to the target market (i.e., where you want to sell).

Here’s how to set it up:

Step 1: Go to Amazon Seller Account > Inventory > Build International Listings > Get Started.

Step 2: Choose your source market or primary market.

Step 3: Select your target marketplaces.

Step 4: Select your pricing rules. You can choose from four different options:

• Same price as source marketplace
• Percent above source marketplace
• Percent below source marketplace
• Fixed amount above source marketplace

Step 5: Wait for Amazon to process your request. This can take up to 4 hours. You’ll receive an email once it’s done.

3) Translate and Adjust Your Listings

If you’re selling to a country where English is the primary language, find out if they use British or American English and adjust your copy accordingly. Also, use the vocabulary that locals are familiar with, especially if you’re selling products that may have different names in your target market. For instance, if you own a clothing brand in the US and want to enter the Australian market, instead of using American terms like “sweaters” or “pants”, use the Australian equivalents which are “jumpers” and “trousers”.

If you’re entering a market where English isn’t the main language, you’ll need to translate your listings to the local language there. While online AI tools can be helpful, it’s better to hire a professional translator to ensure your copy makes sense and includes the keywords you need in the target language.

4) Hire a Full-Service Amazon Agency

If the thought of going global is stressing you out, you can always consider hiring a full service Amazon agency like Enso Brands. With Enso Brands, you’ll have access to a team of experts who will guide you every step of the way. We’ll help duplicate your listings using BIL and choose the right program, whether that’s NARF or Amazon’s Global Selling Program. We’ll also optimize your listings for search visibility to boost sales internationally. Plus, we’ll keep an eye on your entire catalog to ensure it’s performing its best and make changes as needed to stay ahead of the competition.

Summary

Expanding your business internationally with Amazon Global Logistics is a great way to reach new customers across the world. To ensure success, make sure to choose the right international marketplace based on customer traffic and GDP per capita in that area. Also, consider using tools like NARF and BIL to easily manage your listings across different countries, and make sure you comply with each country’s regulations before you start selling there. Lastly, if you’re selling in a country where customers speak a different language other than English, make sure your product listings are in that language. This might mean hiring someone to translate them for you or using AI tools. If all of this seems overwhelming, you can always hire a full-service Amazon agency like Enso Brands.

The post Amazon Global Selling: An Advanced Guide for FBA Sellers on Selling Internationally appeared first on Unicargo.

The post The Ultimate Guide to Ship Full Container Loads to Amazon FBA appeared first on Unicargo.