/ By TJ China Freight / China Freight News • Delivery • FBA • International • sea freight forwarder

What is the Difference Between Amazon FBA and FBM?

Many sellers will ask, what does Amazon do? Setting up a store on Amazon involves a lot, like choosing the right delivery method for your product. You can choose the appropriate delivery method when you deliver, generally divided into fba and fbm. Today I will explain to you what is the difference between amazon fba freight forwarder and amazon fbm freight forwarder?

  1. Different delivery methods
    FBA: fulfillment by amazon That is, the seller needs to prepare the goods to the Amazon warehouse in advance. After the buyer places an order, Amazon is responsible for sending the goods stored in the Amazon warehouse to the buyer in advance.
    FBM: fulfillment by merchant refers to the delivery of goods by the seller. Amazon is only a platform for merchants, and merchants need to use international express services to deliver goods to consumers.
    2. The delivery time is different
    in FBA. Since the seller stores the goods in the Amazon warehouse before the buyer places the order, the buyer can directly deliver the goods when Amazon places the order, which greatly shortens the delivery time and greatly improves the ranking of similar names, so the sales will be safer. Most of FBM is shipped from Amazon seller’s warehouse, and there are many uncontrollable factors in terms of timeliness. However, since this is shipped directly from the seller’s warehouse, the seller has control over the selection, packaging and quantity of the goods. This greatly reduces the error rate of the product.
    3. Advantages and disadvantages
    of FBA No matter how small your item is, FBA sellers can offer various shipping methods. We can choose the fastest way. Especially when you invite your Amazon Prime customer to work with you with free 2-day shipping. Amazon customers know what they want and are willing to spend, and according to Amazon data, the average customer is willing to buy FBA-shipped items. It’s not just shipping service, good customer service is the reason these customers sign up for Prime FBA is a way to keep smaller sellers away from fierce competition, your products will rank higher and give your products a chance to be seen by customers Buy.
    The main disadvantage of FBA is the cost. Amazon pays sellers a monthly warehouse fee. FBA is very expensive for items that sell less. The solution to cost is to use the Amazon Inventory Health Report, which shows the status of inventory on the shelf.
    4. Advantages and disadvantages of FBM
    One of the advantages of FBM is that sellers can be sure that their packaging is safe. However, Amazon Forum sellers have to deal with selection, packaging, shipping, and customer service. These tasks are time-consuming and difficult. Many people will use both FBA and FBM to decide which shipping method sells better. Sometimes both have the same advantages. For example, if a specific packaging method or buyer has no requirements for shipping speed, FBM is a good choice.
    1) Express first journey: four major express, DHL, UPS, FEDEX, TNT (recommend that the number of tickets is small, the sellers who are just starting out have strict requirements on the timeliness, and the single ticket is controlled at 200KG express channel can be selected internally)
    2) Air + first delivery : US UPS double-clearance package tax.
    Service introduction: US UPS double-clearance tax package, air transport from Hong Kong/Mainland to Los Angeles (LAX), express customs clearance, after customs clearance is completed, UPS will deliver to the warehouse.
    The advantages of Amazon’s double-clearing tax package service in the United States:
    ①Low price, truthful declaration, and double-clearing tax package.
    ②Air plus special line mode, the aging is fast.
    ③ Terminal UPS delivery, no appointment, stable aging.
  2. After fully understanding the differences between Amazon fba and fbm, Amazon sellers will formulate different delivery plans based on the actual situation of the product, comprehensively considering the advantages and disadvantages of different delivery methods. On the other hand, during the operation, the seller can pay attention to the latest development of the small side, which is helpful for operation and planning.
/ By tjchinafreight ivy / FBA

Shipping from China to Amazon FBA

This is probably one of the most common questions I hear right now: How do I ship my shipments from China to Amazon FBA?

While it's not terribly difficult to ship products from China to an Amazon warehouse, it's also slightly more complicated than requiring your supplier to put a UPS label on the product and send it to a single Amazon warehouse. In this article, I will discuss the different ways to send products to an Amazon FBA fulfillment center.

 The Amazon logo seen at Amazon campus in Palo Alto, California. 
 The Amazon logo seen at Amazon campus in Palo Alto, California. 

Your choice: Direct to FBA or with a third party logistics company (3PL)

Shipping your products to Amazon FBA really boils down to two options: you can ship your items directly from China to an Amazon FBA warehouse, or you can ship to yourself or a 3PL before shipping to Amazon FBA.

1. Shipping directly from China to Amazon FBA - Pros and Cons

Pros – China to Amazon FBA

  • Faster shipping time. The time for the product to arrive at the warehouse is greatly reduced. The easier it is for your product to get to the warehouse, the faster you can start selling on Amazon.
  • Save the middleman cost. You can save yourself the trouble of paying someone to check your product.

Weaknesses - Challenges

  • Amazon requires products to be shipped to different warehouses rather than a centralized location.
  • Shipping and duties must be paid to Amazon prior to arrival.
  • Products must meet the shipping and packaging and shipping requirements and standards established by Amazon.

The biggest advantage of dropshipping from China to Amazon is that it is faster and cheaper. If you ship directly from China, you can usually save 1-2 weeks of shipping time. You'll also eliminate hundreds or thousands of dollars in 3PL costs per shipment, depending on size.

The most annoying thing about shipping directly to Amazon is that depending on your product type, there is a good chance that Amazon will require you to ship your items to multiple FCs (fulfillment centers). This is especially true for bulky items.

Why use multiple FCs and how to avoid it?

Amazon typically requires you to ship bulky items to multiple FCs and/or if you mix shipments with items that require/don't prep.

How can you avoid shipping to multiple FCs?

  • Avoid combining oversized and standard-sized items
  • Avoid merging shipments that require preparation and those that don't
  • Turn on inventory placement
  • Using Amazon Dragon Boat (Amazon Global Fulfillment)

Unfortunately, if you're shipping oversized items, you may be stuck with multiple FC shipments, and it's difficult to ship directly to Amazon without opening the inventory placement.

2. The product can be shipped directly from China to yourself or a third-party intermediary

Amazon prime boxes and delivered to a front door of residential building during the COVID-19 pandemic.
Amazon prime boxes and delivered to a front door of residential building during the COVID-19 pandemic.

The benefits of using a middleman

  • Products are shipped from China in consolidated form.
  • You can check to make sure the product meets the quality requirements
  • Sales strategy still not disclosed to Chinese suppliers
  • Shipments are less likely to be rejected by FBA

Disadvantages of using a middleman

  • You have to pay someone to do it for you. or trouble doing it yourself
  • Shipments take longer to reach FBA
  • Need to do more with your product

You can simply ship the goods from China directly to yourself or use a third-party logistics company (3PL). 3PL will receive your shipment from China, then store it or ship it from you to Amazon. In addition to the other advantages of this shipping method, you can now use an Amazon-partnered carrier for small or less-than-truckload shipping, and it's very cheap.

In fact, using 3PL between the two is advantageous in almost every way, except time and money. These are all very important factors.

3PL may take 2-5 days to receive your inventory and prepare it. The shipping time from your 3PL to the designated Amazon FC also takes a few days. So more or less, using a middleman will add at least 1-2 weeks of delivery time to Amazon FBA.

When is there a middleman shipping?

In general, finding a middleman can be helpful in the following situations

  • This is the first shipment from China. Or you're just running a business.
  • Subscribe to FBA for the first time - China Amazon Fba
  • Consolidated shipments from China can help save some money if you're on a tight budget

Checklist: Sellers and Suppliers

Make sure you don't forget anything important when shipping to Amazon FBA.
In this way, you can use the following two checklists made for sellers and suppliers.

Seller List:

  • Check supplier's incoterms, unit price and MOQ (e.g. EXW, FOB, DDP, etc.)
  • Check the quantity of the order (pieces, components, etc.)?
  • Make sure you know the exact size and weight. Check with your supplier how many cartons there are and their total volume.

Which shipping method should you choose?

  • Calculate the shipping cost per unit by dividing the quote you get by the number of units.
  • Do you need storage services? (it will affect your unit cost)?
  • Build your list (no optimization needed, just get started) to be able to download your FNSKU and make it available to your facility.
  • Arrange a production date with the manufacturer. Sign a contract or agreement that mentions additional charges in case of delay.
  • Arrange pre-shipment controls with the inspection company. Enter into a contract or agreement that includes additional costs in the event of control failure.
  • Provide your suppliers with design samples for any desired customization of the product or its packaging. You may have previously received templates from suppliers.
  • Provide your supplier with the appropriate care label, country of origin label, or any other required label that must be included on the package.
  • Be sure to include carton markings. These are the text on the carton that mentions the country of origin, weight (lbs and kilograms), carton dimensions (cm and inches), number of units, and any safety
  • information on one side. On the other hand, the following information must be displayed: company name, product type, general information and destination.
  • Make sure you use the correct HS code to avoid hassles with customs.

Supplier list

  • The size of the carton cannot exceed 63.5 cm.
  • 6 kg is the maximum weight.
  • A carton can contain up to 150 units (one unit: the item itself and all components in its final packaging).
  • The FNSKU barcode must be on a white background.
  • Arrange a date with the inspection company, a date for pre-shipment control. Failed controls can turn into penalties, such as re-inspection costs at the expense of the factory.
  • Make sure any plastic bags carry a suffocation warning.
  • Make sure any type of label is spelled correctly.
  • Please provide the company with the exact production completion date. There may be some penalties for late completion.
  • The packing list and any commercial invoice must be provided to the company as early as possible.