Shipping from China to Amazon FBA - How to do it?
The
tricky part of shipping
from China to Amazon FBA comes in after you have completed your
order and it has gone through the inspection process. That part is when you are
swamped with all the confusing shipping terminologies, and you don't know where
to go from there.
This article will provide you a
comprehensive guide that discusses the different intricacies and methods of
shipping alongside the pros and cons of the different methods.
The
Three Possible Methods of Shipment
Note that the transportation cost, time
and intricacies vary from method to method. Hence, it is advised for you to do
your homework in regards to your budget and schedule properly and thoroughly.
The first of these methods is:
Express
This is the most convenient and
quickest method of transportation for a comparatively smaller quantity of goods
usually less than 1000lb’s. This is done through a courier company, which means
they will be overseeing all customs related issues. Courier companies like DHL,
FedEx, UPS and more carry out these services.
Shipping costs are charged by express
companies relative to either the dimensional weight or real weight of the
product whichever exceeds the other. The delivery cost that companies charge
however is not a constant value and may vary for instance FedEx usually charges
$6-$7 per kg. Your average express company like FedEx, however, will not ship
products that contain batteries, liquid or powder.
In order to ship such
products, one would have to resort to a regulated products shipping express that
usually charges up to 100% more than normal express companies. Shipping through
express companies generally costs more per kg than other methods of shipping.
However, it takes less time this way.
For instance, the
FedEx International Priority delivery service for emergencies takes 2-3 working
days while the International Economy delivery service takes 4-5 working days.
Sea
Freight
With regards to sea and air shipping,
there are two pricing terms you need to know about. The Freight on Board or
(FOB) and the Ex Works or (EXW). The FOB pricing quote can, for instance, mean
that the supplier will let the goods remain at the factory after he/she is done
with them.
An EXW pricing quote can mean the
opposite whereby the supplier will have to deliver the finished goods to the
nearest port. There are three transportation steps within this. The product is
transported from the supplier's warehouse to the port, from the port in China
to the port in the US and from there to your address. Two freight forwarders,
one operating from the the US and one from China carry out this process.
You can either find your own Amazon
freight forwarder or have your supplier find one for you. The cost of shipping
from the sea is the least of all the three methods. However, it is also the
most complicated method with all the customs clearance, import/export issues.
Hence, a freight forwarder is
recommended to cater to these issues. The cost of shipping from the sea is
variable and changes from month to month and region to region. For instance,
the cost of shipping
from China to Amazon FBA & Western U.S is less than Eastern
U.S. The two different types of shipments are:
Less
than Container Load (LCL)
The most widely used ocean shipment is
the Less Than Container Load shipment or LCL. If the shipment is less than 18
cubic meters, it is an LCL shipment. This means that your shipment will be
sharing containers with other products.
Full
Container Load (FCL)
If your shipment is more than 18 cubic
meters, then it is likely to be an FCL shipment, which is usually shipped to an
Amazon warehouse straight away without having it unloaded. There are various
container sizes available if one wants to make an FCL shipment.
Container Size
|
Topmost Capacity
(Meters)
|
Internal Dimensions (Meters)
|
Door Dimensions (Meters)
|
Maximum Cargo Weight (Varied by
Carrier and Mode)
|
Standard 20’
|
33.18m³
|
Length= 5.89m
Width= 2.33m
Height= 2.38m
|
Width= 2.33m
Height= 2.28m
|
21,727 kg
|
Standard 40’
|
67.67m³
|
Length= 12.01m
Width= 2.33m
Height= 2.38m
|
Width= 2.33m
Height= 2.28m
|
26,780 kg
|
High Cube 40’
|
76.4m³
|
Length= 12.056m
Width= 2.347m
Height= 2.684m
|
Width= 2.34m
Height= 2.58m
|
26,330 kg
|
High Cube 45’
|
86m³
|
Length= 13.56m
Width= 2.35m
Height= 2.70m
|
Width= 2.34m
Height= 2.58m
|
25,610 kg
|
Although cheap, sea
freight is time consuming due to a number of factors. Seasonal behaviors and
obstacles at ports may negatively impact shipping time. The average time of
transportation from China to Amazon warehouses is 30 days if the warehouses are
located in West U.S and 40 days if they are located in East U.S.
Air Freight
If your cargo is more
than 200 kg, it is recommended to use a freight forwarder. For less than 200 kg
you can go through your supplier since freight forwarders are too expensive for
shipments less than 200 kg. Products that are shipped by airfreight will be
charged relative to their dimensional weight.
The airfreight costs
almost the same as express shipping although it may take a few days more. The
time is dependent on the chosen flight. The cost of airfreight shipping
fluctuates and is variable due to things like the exchange rate between USD and
CNY changing. You also have to consider customs intricacies, and import/export
fees of China and the U.S. Whether or not air shipping is better or worse than
sea shipping is dependent on the weight and volume of the order.
If you are shipping a
comparatively lighter product, which takes, up less space, then air shipping is
viable. On the contrary for larger products that take up a lot of space, sea
shipping is feasible.
The Three Possible Processes of Shipment
Shipping Directly from China to Amazon
In order to ship
directly from China, it is essential for you to direct your Chinese supplier to
prepare your goods completely in accordance with FBA guidelines. This is a more
viable option for shipments from express and air since they are more expensive.
The process of directly shipping the order to Amazon is simple.
- You create your shipment and make sure that you are only shipping to one FC (Fulfillment Centre) in case of sea shipping.
- Make your supplier attach barcodes to each item individually alongside carton labels to every master carton and pallet labels to each side of a pallet (in case shipping of shipping pallets.
- Arrange a door-to-door service from China with the help of your freight forwarder.
Shipping to Amazon through a Middleman
Certain prep shipping
companies act as third parties to these shipment processes. The third-party
logistics company take hold of your shipment from China, and either they ship
it to Amazon from you or store it in a warehouse. They help with the shipment
process and simultaneously check the labels of the goods, and the first one is
the receiving fee, which is normally $1-$5 per carton or $10-$50 per pallet.
Then comes the
pick/pack fee, which is for shipping the goods to Amazon FBA, which is normally
around $1-$4. If there are any labels like barcodes, a labeling fee is charged
which is usually $0.1-$0.25. Lastly, there is the storage fee, which has a
varying price. Both of these methods
have certain pros and cons as outlined in the following table.
Direct to Amazon
|
Using Middleman
|
|
Upsides
|
|
|
Downsides
|
|
|
When
should you use a middle-man?
It is recommended to use a middle-man
if you are launching the business and it's your initial shipment to China. In
other cases, if you have financial troubles associated shipments sent from
China save funds.
When
to Ship Directly?
In the scenario that you need to have
your products reach Amazon as soon as possible due to a time constraint, direct
shipping is viable. Since direct shipping is significantly less expensive than using
a middle-man, it allows for a longer association with your supplier.
Shipping
to your home first
Another possible option is shipping to
your home first. The most important benefit you gain from this is lessening the
likelihood of getting bad reviews with regards to the quality of your product.
This is because you will be able to inspect the quality of the product yourself
and make sure you don't have your listing closed due to bad reviews.
If any quality problems are discovered,
it is also possible for you to have them fixed with the help of your family,
which reduces the labor cost of having it fixed by a third-party company, who
often don't have the resources to fix them. This, however, is only a feasible
option if someone resides within the U.S.
Why is it beneficial to Outsource Custom Clearance?
Custom clearance
procedures are complex and very delicate since a single mishap can delay the
entire shipment. In order to bypass this hassle, it is recommended to use a
customs broker. The most important reason for outsourcing customs clearance is
that it allows you to communicate directly with the freight forwarded in case
of an issue instead of the supplier. The suppliers often times don't clearly
know about the intricacies of customs clearance.
Since customs
verifications vary from product to product, the process is complicated further,
and hence a customs broker will save you the trouble. In the case of imports of
toys and electronics, it is plausible to have your own compliance certificate
since it won't cost a lot.
However, if you are
importing expensive products, for instance, mobile phones or hoverboards etc.,
you need to have a specific kind of compliance certificate. Noncompliance of
the certification can result in a fine of up to 15.5 million dollars.
Miscellaneous Details
- When shipping it is important to make sure your products are wrapped in some sort of casing, so they aren't dusted. It is also important to stuff the cartons and pad them so that fragile items if any don’t break or get damaged due to contact with each other
- It is recommended to ship via pallet right from the originating point if your shipment is fragile. If it isn't palletized it stateside.
- You can track your shipment from Amazon Seller Central.
- It is advised to buy freight insurance since your cargo will be traveling a long way before arriving which increases the risk of damage. Simultaneously almost 50% of freight claims are denied by carriers. In case of damage, more expenses might come forth if the carriers deny liability and you take the option to sue.
- Make sure all your shipping documents, for instance, Bill of lading and commercial invoice are complete and available.
Conclusion
Conclusively it is
important to understand that shipping from
China to Amazon FBA is an extensive and intricate process that requires
for you to really pay attention to detail. This is to say that the smallest of
mishaps can result in your shipment being delayed and hence you incurring
further expenses.
Furthermore, there
are specific situations where specific ways and methods of shipping are more
viable. For instance, for a startup business shipping through a middle-man is
more viable while shipping via sea is more viable for higher volume products
that take up a lot of space.
However, it is not
possible for one to establish one specific way of shipment as the most feasible
since all of them are dependent on the financial conditions, time constraints
and business model of a specific firm.
Comments
Post a Comment