FBA is a one-stop logistics service provided by Amazon, including warehousing, picking and packing, delivery, payment, customer service and return processing. Its service process mainly includes 5 steps.
Generally speaking, it is necessary for Amazon sellers to choose FBA. In addition to saving labor and freight, it can also help improve the ranking of Listings and increase the probability of obtaining Buy Box, thereby increasing sales. The powerful logistics system gives Amazon an advantage in delivery timeliness, which is also the main link to improve user experience. In addition, if there are medium and bad reviews caused by FBA during the transaction, Amazon will also make corresponding handling.
However, although FBA has many benefits, there are also some difficulties that sellers must overcome.
1. Customs clearance issues
As we all know, Amazon FBA does not provide any customs clearance assistance. Therefore, if you choose FBA, the customs clearance issues in the destination country (region) are a headache for sellers. Because Amazon is not an “importer of record”, but only an “ultimate consignee”, they will not be responsible for the customs clearance of the seller’s goods. In addition, almost no seller can have their own branch companies in all Amazon FBA countries (regions) to do imports.
Customs clearance is a very important part of the FBA first leg. If it is not handled properly, the goods will face the embarrassing situation of being forced to return to the place of shipment by the customs of the destination country (region), and the return fee is expensive, generally 3 to 4 times the shipping fee, which greatly increases the additional cost.
Therefore, sellers can choose a professional customs clearance company, or hand it over to an experienced freight forwarding company in the FBA first leg. When sellers operating multiple sites choose to cooperate with freight forwarding companies, it is best to consider the coverage of the route range and customs clearance capabilities. If the freight forwarding company supports the FBA first leg of multiple sites and has strong customs clearance capabilities, it can save a lot of trouble and avoid risks.
2. First leg logistics channel selection
Currently, there are three main methods of Amazon’s first leg transportation, namely sea transportation, air transportation and express delivery. Of course, different methods are suitable for sellers with different characteristics. Sellers should choose the appropriate logistics channel based on costs and their own business conditions.
(1) Ocean Freight
Ocean freight is the most cost-effective mode of transportation. It is cheap and has few restrictions on the goods being transported. It is very suitable for mature sellers on Amazon. Usually, large sellers will place a large order at a time to ship together, or combine orders from several suppliers to ship together. If it is the peak season for transportation, the huge transportation volume of ocean freight can also show a considerable advantage.
Of course, choosing ocean freight also has certain disadvantages. For example, the transportation time is relatively long. It usually takes 25 days from China to the United States, and it is difficult to pass customs clearance on ocean freight in an individual’s name. Therefore, sellers who choose ocean freight are generally sellers who have sufficient time and are not afraid of the goods getting wet.
Currently, the main export methods of ocean freight are: full container export, bulk export, breakbulk ship export, and roll-on/roll-off ship export. The process of choosing ocean freight is: the seller prepares FBA goods and related documents, and then books, releases, trailers, declares, and releases the goods before express delivery to the Amazon FBA warehouse.
After shipping to the destination port, there are many ways to deliver to the FBA warehouse, including local express delivery, truck delivery, Amazon self-pickup truck delivery, and full container warehousing.
(2) Air transport
Air transport is fast. After choosing air transport, the seller picks up the goods from the domestic airport and sends them to the destination. The goods are then distributed to Amazon’s FBA warehouse. It is a fast transportation method, but of course the cost is relatively high, and there will also be tariff issues. When choosing air transport, sellers should pay attention to the fact that the goods being transported cannot violate air transport regulations and import and export requirements.
Air transport is suitable for sellers who have reached a certain volume of goods and have urgent sales needs.
(3) Express delivery
Express delivery is a common choice for most sellers. Express delivery means that the goods can arrive at the Amazon warehouse as soon as possible, and the goods can be put on the shelves very quickly. It is a relatively practical logistics method. Of course, the price of express delivery is also relatively high. It is suitable for sellers with small shipments, small goods, replenishment, and those who want to try out the sales of new products.