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Things You May Be Interested In About Amazon FBA

What does Amazon FBA refer to?

The full name of Amazon FBA is (Fulfillment by amazon), which literally means fulfillment by Amazon. In fact, this service launched by Amazon is very simple, that is, the seller will prepare the goods in advance to the warehouses built by Amazon around the world. When a seller has an order , Amazon performs follow-up work such as packaging, labeling, shipping, and customer service on behalf of the seller.
That is to say: after a foreign buyer places an order, if the goods are shipped in China, the timeliness will be very poor, and the buyer may not receive the goods for more than a week. In order to improve the service quality and level, you can use the FBA freight forwarderservice provided by Amazon, and according to the sales forecast, first ship the goods to foreign countries in large quantities by sea, air or international express, and then enter the Amazon FBA warehouse. In this way, once a foreign buyer places an order, it can be shipped directly from the FBA warehouse. For example, after an American buyer places an order, the goods will be sent directly from the American FBA warehouse. This is equivalent to the domestic express delivery in the United States, and the timeliness and quality are improved promote!
“FBA first journey”. FBA first journey refers to domestic shipments (by sea, air, international express… …) Until the goods enter the Amazon FBA warehouse, the period of logistics and transportation that can be put on the shelves for sale, as well as a series of related businesses such as customs clearance and tax payment.

(1) Sending the goods to Amazon, that is, the first step of FBA sellers is usually the only step that needs to be operated by themselves when doing FBA. Sending the goods from their own warehouse to Amazon’s warehouse requires labeling and other operations.

(2) Amazon Warehouse Commodities. After the goods arrive at the Amazon warehouse destination, the seller needs to register the goods with Amazon and store them in the Amazon warehouse for short-term storage.

(3) Amazon picking and packaging. When the seller receives the customer’s order, Amazon will sort out the seller’s goods from the inventory according to the order and pack them, waiting for delivery.

(4) Products delivered by Amazon Amazon will be responsible for the delivery of products from the FBA warehouse, and will also be responsible for the consumer’s return/exchange activity requirements.

Should you choose a freight forwarder from China or the country of your destination?

Regardless of the mode of transportation from China to the country of your destination, it is always best to choose a freight agent from China because the Chinese freight forwarder has the advantages of language and geography, becoming the ideal choice for overseas transportation. This will make the shipping process faster, will save you time, and the shipping price will be cheaper than your country’s shipping agent. In the shipping process, you will also need a Chinese warehouse for storage and preparation.

An experienced Chinese freight forwarder will have these abilities: he will be fluent in Mandarin and Cantonese; it will have a thorough knowledge of the Chinese business culture, experience in managing Chinese suppliers, category and sourcing process experience, quality control experience, audit experience, and logistics experience. Local forwarders (from the country of your destination) will often have to contact another agent in China to handle the picking, preparation, storage, and customs clearance, which will lead to higher costs and time.

November 8, 2022 / 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?

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.
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.

May 23, 2022 / By tjchinafreight ivy / Shipping

Fulfillment by Amazon (FBA) vs. Dropshipping

If you've ever purchased anything on Amazon, you probably opted for same-day or one-day delivery at some point, even if the item wasn't sold by Amazon. After all, as the world's largest retailer, Amazon prides itself not only on the variety of products on its site, but also on its fast delivery.

But have you ever wondered what happens behind the scenes when shopping on Amazon? According to Statista, Amazon's main source of revenue is the online sales of its electronics and other products. The second is third-party seller revenue.

Third-party sellers on Amazon

The world's largest retailer has more than 2 million third-party sellers registered on its online platform. In fact, it is estimated that more than 47% of items shipped by Amazon are sold by third-party sellers.
More and more businesses are building and growing their wealth on Amazon. In trade and commerce, like it or not, there is always a very important aspect to deal with: logistics.

Fulfilled by Amazon or Dropshipped

Given these advantages, it's no surprise that most third-party sellers on Amazon use its Fulfillment by Amazon (FBA) service. With FBA, sellers' products are eligible for Amazon's Prime and Super Saver Shipping. They can also take advantage of Amazon's customer service experience, which all translates to more sales when competing with non-FBA sellers.

However, not everything that glows is gold. Amazon's FBA also has its disadvantages, and many sellers often choose to handle this part of the logistics themselves. In other words, direct fulfillment.

If you are a third-party seller who chooses direct fulfillment, you may need to hire an outside service to help you manage the logistics part. As the demand has increased over the past decade, direct or other implementations have become more popular and advanced. Technology is obviously a big help when it comes to managing the entire process, tracking individual shipments, and inventory in warehouses. For most people, the dream right now is to reach Amazon Prime levels, where, for example, when you preorder, you know the shipment will arrive at your door on a given date. And it actually delivered on that date.

April 15, 2022 / By tjchinafreight ivy / FBA

Shipping from China to Canada Amazon FBA

Shipping is a big topic for Amazon sellers and can be complex or simple. If you are an Amazon seller and need to import your products from China to Canada, then you need to ship your products from China to Amazon FBA.
This can be really difficult, especially if you just imported from China.

About shipping from China to Canada Amazon FBA

How to transport your cargo?

Air freight

It will arrive at the Canadian FBA warehouse in about 10-12 days.
Moderate cost and fast speed.
The China-Canada section is shipped by air. According to the situation of the goods, the goods will be loaded in Shenzhen or Hong Kong, and UPS or FEDEX will complete the door-to-door delivery in Canada.
Delivery After Duty Paid (DDP) shipping, that is, we will handle customs clearance, pay import and export duties, and you just need to wait for the goods to be delivered to the Canadian FBA warehouse.
Mainly use LCL delivery.

Sea and Air

It will arrive at the Canadian FBA warehouse in about 20-25 days.
Moderate cost and moderate speed.
The China-Canada section adopts sea and air combined transportation. According to the situation of the goods, the goods are loaded in Shenzhen or Guangzhou, and UPS or FEDEX completes door-to-door delivery in Canada.
Delivery After Duty Paid (DDP) shipping, that is, we will handle customs clearance, pay import and export duties, and you just need to wait for the goods to be delivered to the Canadian FBA warehouse.
Mainly use LCL delivery.

Sea freight

About 40-45 days to Canada FBA warehouse.
Low cost and slow speed.
The middle and Canada section is by sea, and the goods are loaded in Shenzhen or Guangzhou according to the situation of the goods, and UPS or FEDEX completes door-to-door delivery in Canada.
Delivery After Duty Paid (DDP) shipping, that is, we will handle customs clearance, pay import and export duties, and you just need to wait for the goods to be delivered to the Canadian FBA warehouse.
Mainly use LCL delivery.

How do you package your shipments for shipping to Amazon FBA?

Amazon FBA is very strict when it comes to packaging, all of your items must meet established standards.
Knowing Amazon's packaging requirements will save you a lot.

Product packaging

Packaging deals with the materials used, packaging and how you protect your product.
You should pack the goods individually and each unit is contained in a secure package.
The usual preferred packaging materials for Amazon FBA include boxes, bubble wrap, and plastic bags.
Plastic bags must be clear and carry a suffocation warning.
For protection, use a 2" cushion between each item in the box.
The contents of the box should be compact without any movement when shaken.

Outer packaging

Amazon FBA specifies special packaging while emphasizing that shippers use appropriate materials and sizes.
According to Amazon's packaging requirements, the outer packaging material should be rigid and six-sided, such as a carton.
The dimensions of the outer package should be 6 X 4 X 1 inches.
Also, use a case that weighs more than 1 pound and no more than 50 pounds.
Using overweight cartoon packaging increases your shipping costs and associated risks.
For boxes over 50 lbs and 100 lbs, you should provide a label identifying the team lift and mechanical lift, respectively.
Assuming you import jewelry from China to Amazon FBA, your box should not exceed 40 pounds.

Documentation requirements

Commercial invoice and packing list required
Wooden products, such as wooden handicrafts, cosmetic brushes and other wooden products, must have a fumigation certificate. We can apply for a fumigation certificate, but it will incur additional costs and delays in shipping.
Asbestos or products containing asbestos require an import license.
Special products will be authorized according to customs requirements
If the item has customs clearance issues, be sure to provide the documents required by customs

Customs clearance and duties

Origin and destination paperwork for customs clearance
Customs excise duty applies to the U.S.
Provided on behalf of local US importers

April 15, 2022 / 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.

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.

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.

April 12, 2022 / By tjchinafreight ivy / FBA • Shipping

How to choose the FBA head journey

Buyers will be more inclined to products shipped by Amazon FBA, and sellers who choose FBA will increase the cost, and the cost will naturally be included in the product price. Whether logistics channels can be reasonably optimized has also become a key link in the product pricing market, affecting sales. Many sellers may have encountered a similar situation. Other sellers of the same product suddenly dropped their price, and the price was still greatly reduced. It's not the kind of activity that can go on for a long time. In this case, that's not the case. Loss in exchange for orders is likely to optimize logistics channels. Regarding FBA logistics channels, there are still many choices. You can choose according to your situation, so as to reduce the price of the product and win the price war.

1. Establish a FBA warehousing plan

If your product is already an FBA listing, all you have to do now is click Send Inventory; but if your product is still Merchant-Fulfilled (self-delivery), you need to change the product to FBA listing first; if you don't If you know if you need to change it, after selecting Send Inventory, Amazon will also prompt you to change it or not.

2. Prepare the products that will pass the FBA first journey (Prepare Products)

Every product that passes through the FBA first journey must be packaged as required, most of which can be packed in cartons, but some categories of products need to be packed in sealed plastic bags to avoid damage during transportation, or allow Dust runs in. At the same time, each product must be affixed with a UPC barcode (if it has joined the Amazon Brand Registry).

3.Review Shipment

Before this step, Amazon will provide the FBA warehouse address you should enter the warehouse, usually three, but sending to three warehouses will increase our logistics cost. If you do not want to enter so many warehouses, you can set the target warehouse.

4. Ready to send

If you choose a truck company for logistics, if you use express delivery, it is recommended to use UPS or FedEx, which is cooperated by Amazon. Amazon will provide a great logistics discount. Here you need to provide information on the contents, or you Does not provide direct sorting by Amazon (processing fee applies)

For example, if you have 10 boxes to be put into the warehouse, then you need to fill in one by one, which products are in each box, as well as the size and weight of each box, then you can calculate the payment to Amazon for this FBA head trip. cost of;

Next, you have 24 hours to cancel the first FBA trip. Amazon will automatically refund to your account. After the Amazon FBA warehouse receives the goods, you can check the relevant information on the inventory page in the background.

How to choose a reliable FBA first-way logistics?

FBA can provide express, air, sea, customs clearance, labeling, warehousing and other logistics services. At the same time, FBA can also provide different channel transportation methods such as double-clearance tax declaration by sea and double-clearance tax declaration by air. Sellers need to choose according to their own products, services and storage time.

When we choose the FBA Toucheng logistics company, we must first consider the dedicated line channel. From domestic delivery to the United States, it only takes about 13 days to arrive at the western port of the United States, which greatly shortens the sea transportation time. Generally, it can be signed and put on sale in about 18 days.

Logistics is very important for cross-border sellers. If you choose a bad FBA head-way logistics company, you may encounter the situation that the products cannot be put into the warehouse on time, the store is out of stock, or even the goods are lost. Therefore, we need a professional FBA head-way logistics company to ensure the timeliness and safety of our goods.

The above is about what Amazon's FBA first journey service is and how to choose a reliable FBA first journey logistics.

April 6, 2022 / By tjchinafreight ivy / FBA

What is the difference between overseas warehouse and FBA?

FBA, or Fulfillment by Amazon, means that sellers send products sold on Amazon directly to local warehouses. When a customer places an order, the Amazon system automatically completes the delivery.
Overseas warehouses refer to storage facilities established overseas. Cross-border e-commerce enterprises export goods to overseas warehouses in batches according to general trade methods. Once the order is placed, the item is delivered to the consumer.

Advantages of overseas warehouses

Faster delivery. It effectively reduces order response time by 50-70% compared to shipping from China. Additionally, it improves user experience and greatly reduces product turnaround time.

Reduce logistics costs. Through centralized delivery to overseas warehouses, local express delivery in the United States can reduce delivery costs by 30-50%.

FBA inventory adjustment is easy. For sellers, the overseas warehouse is the buffer warehouse of Amazon FBA, which is convenient and flexible to adjust the FBA inventory.

Disadvantages of overseas warehouses

Pay storage fees. The use of overseas warehouses requires payment of a certain fee, which is generally charged on a daily basis. And the cost of warehousing in different countries is also different, and sellers need to calculate the cost by themselves.

In stock. The premise of entering overseas warehouses is that sellers need to have a certain amount of inventory, which means that they need to stock up in advance, which will bring the risk of slow sales. And not suitable for sellers who sell special customized products.

Cash flow is inconvenient. Due to the large amount of stocking to overseas warehouses, the capital investment in stocking, logistics, warehousing, etc. is large, which can easily lead to a breakdown in the capital chain.

Sellers have high requirements for warehouse management data monitoring. Sellers need to monitor the detailed data of incoming and outgoing shipments, as well as putting on and off the shelves, otherwise it will easily lead to loss of goods or data mismatch. Some Amazon sellers responded that the inventory quantity did not match the actual number of products sold. Since Amazon has a complete warehouse management system, third-party overseas warehouses cannot guarantee that there will be no problems.

In essence, there is no difference between overseas warehouses and FBA. Both provide sellers with comprehensive warehousing and fulfillment services. However, there are obvious differences between the two in terms of service content and form.

1. The difference between service providers: FBA is Amazon's official warehouse distribution service, and after-sales service is provided by Amazon; overseas warehouses are provided by third-party service providers, responsible for the warehousing and distribution of sellers' products.

2. Different service forms. Once the seller has sent the goods to FBA, there is no need to deal with shipping related issues. The whole process from sorting to shipping is completed by FBA. The overseas warehouse is divided into two parts, first sorting and packaging in the warehouse, and then entrusting the local express company to complete the delivery service.

3. The service content is different. The service content of FBA is relatively simple, that is, it simply helps sellers deliver goods. The service content of overseas warehouses is more abundant. In addition to basic warehouse distribution, it also provides related services such as labeling and labeling, single-piece delivery, transit replenishment, quality inspection, and front-end logistics. For example, worry-free overseas warehouses can also realize customized services according to customer requirements.

4. Overall price difference. Combining all services, FBA is more expensive, while the overall cost-effectiveness of overseas warehouses is higher.

Other differences

Choose:

Amazon FBA warehouse has certain restrictions on the size, weight and category of products, so the choice is biased towards small, high and high-quality products

DH overseas warehouses have a wider range of choices than FBA warehouses.

Product:

FBA does not provide assembly services, and requires sellers to affix the outer box label and product label before entering the warehouse. If the product label is found to be damaged, it will be returned for repair.

DH overseas warehouses will provide sorting and assembly services before products are put on the shelves.

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