The entire transportation process from the factory to the destination (Amazon FBA warehouse), including customs clearance and payment of tariffs, is called the FBA first leg. The first leg is more complicated to handle. How do sellers solve this problem?
The overseas FBA warehouses selected by Chinese sellers are generally concentrated in Europe, Japan, and North America. Sellers can choose different transportation methods (such as sea and air transportation) based on the addresses of these overseas FBA warehouses, the volume and weight of the goods, and time requirements.
FBA first leg transportation method
1. Air transportation method
(1) The process and time efficiency of air transportation.
The entire process of air transportation is domestic pickup → departure from domestic airport → air transportation to the destination port → delivery to the FBA warehouse in different areas. As we all know, air transportation is faster, but the cost will also be high.
(2) Costs involved in air transportation: freight and tariffs.
Among them, freight is the main cost. The freight costs are different when using different international logistics for delivery. Sellers can consult international logistics companies for specific fees. At the same time, international logistics companies will also calculate prices based on the volume and weight of the products at the specific address of the FBA warehouse.
FBA first-leg transportation through international logistics companies may also incur tariffs. Different countries have different tariff policies on import and export goods, and they will also be adjusted at different times. For example, the United States’s duty-free amount for overseas imported goods was originally US$200, but it was adjusted to US$800 from March 2016. As long as the declared value of the imported goods does not exceed US$800, no tariff will be incurred. The increase in duty-free amount is also a good development opportunity for Chinese sellers.
2. Ocean transportation
(1) Ocean transportation process and timeliness.
Ocean transportation involves customs clearance issues, which are difficult to pass in the name of an individual. Generally, it is in the name of a company. Ocean transportation export methods include full container export, bulk export, breakbulk export, and shipment export. The process is for the seller to prepare FBA products and related documents → book a space → release the space → arrange a trailer → arrange customs declaration → confirm release → express delivery to the FBA warehouse.
Compared to air transport, sea transport is more cost-effective, but the time efficiency is also very slow. It is reported that it takes at least 25 days from China to the United States. If you are a large seller and do not have too high requirements for time, and the products will not be damaged by moisture, you can choose sea transport.
(2) Costs and documents involved in sea transport.
The costs involved in sea transport include freight, taxes, customs clearance fees, cabin rent, container rent, etc. Of course, the seller can consult the customs clearance company for the specific operating costs. The customs clearance company will also calculate the price based on the specific address of the FBA warehouse and the volume and weight of the transported products. At the same time, due to the difference in goods, the customs clearance information required will also be different. Sellers need to prepare the documents in advance. The basic information includes bills of lading, contracts, packing lists, invoices, etc.
Before going through the FBA first leg, sellers can first understand the import policies and trade barriers of the country where the selected FBA warehouse is located, and make full preparations for the FBA first leg transportation.