/ By TJ China Freight / Cargo • China Freight News • FBA • International

Definition of Shipping Incoterms 2023

Incoterms are international commercial terms that usually appear in international sales contracts defining the responsibility of all parts when its comes to the transportation and delivery of goods. They are widely used by businesses around the world and recognized by different countries.

Here are the common 11 incoterms, and each with unique terms and stages of the transfer of responsibility from the seller to buyer.

EXW – Ex Works or Ex-Warehouse: The seller is responsible for packing the products and making the goods available. The cargo is transferred to the buyer while the freight is still at the seller’s site. The buyer is then responsible for exporting, shipping, and importing the cargo to their destination.

FCA – Free Carrier: The seller is responsible for transporting the cargo to a defined destination within the seller’s country, usually a shipping terminal. Once the load has arrived at the designated destination, the shipment transfers to the buyer, the buyer then must pay the freight charges and fulfill the importing and delivery process. Depending on the named place, the cargo is either exported by the seller or the buyer.

FAS – Free Alongside Ship: The seller must manage the full export process of the cargo until the goods are alongside the ship or other mode of transport. Once alongside the ship, the risk is transferred to the buyer. The buyer is responsible for loading the cargo onto their desired vessel and shipping the goods to their final destination.

FOB – Free On Board: The seller must manage the full export process of the cargo, and load the products on the ship. Once the cargo has been safely loaded, the products transfer to the buyer. The buyer must pay for the freight costs that transport the goods to their destination and is responsible for all import costs.

CFR – Cost and Freight: The seller is responsible for transporting the cargo to the buyer’s port. Once the goods have arrived at the port, the responsibility transfers to the buyer. The buyer then must unload the cargo and import the goods into the destination country, followed by importing and delivering to the final destination.

CIF – Cost, Insurance & Freight: The seller is responsible for the costs to ship and insure the cargo to the buyers requested port. Once the goods arrive at port, the responsibility of the goods transfers to the buyer. The buyer then must cover the costs to unload, import, and deliver their shipment. CIF requires the seller to purchase freight insurance.

CPT – Carriage Paid To: The seller must ship and unload the cargo from the vessel at the defined place of delivery. Once the goods are unloaded, the cargo transfers to the buyer, who is then responsible for importing and transporting the freight to the final destination.

CIP – Carriage & Insurance Paid: The seller must cover the costs to ship and insure the cargo to the defined place of delivery. The shipment transfers to the buyer after the cargo is unloaded and delivered to the terminal.  After the goods are unloaded and delivered to the defined terminal, the shipment transfers to the buyer. The buyer must import and fulfill the remainder of the shipping process to move the goods to the final destination. CIP requires the seller to purchase freight insurance.

DAP – Delivered at Place: The seller must deliver the cargo to the final, defined destination. Once delivered the cargo transfers to the buyer. The buyer must unload the shipment from the truck. The buyer is also responsible for import duty, taxes, and customs clearance.

DPU – Delivered at Place Unloaded: The seller must deliver and unload the cargo to the final destination. Once the shipment is successfully unloaded at the buyer’s warehouse, the responsibility transfers to the buyer. The buyer is responsible for import duty, taxes, and customs clearance.

DDP – Delivered Duty Paid: The seller is responsible for delivering the cargo to the final destination, and paying the import duty, taxes, and customs clearance. Once the cargo arrives at the destination, the responsibility transfers to the buyer, who must cover the costs to unload the shipment. DDP is the only Incoterm that requires the seller to pay all duty charges.

When you are looking for a trusted China freight forwarder to help you arrange the cargo from China to your countries, TJ China freight co., ltd is always your best partner!

/ 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

Amazon will charge FBA merchants a 5% surcharge

April 14 (Reuters) - Amazon.com Inc said on Wednesday it will impose an average 5 percent fuel and inflation surcharge on merchants using its U.S. warehousing and shipping services in response to rising costs.

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

Amazon's first such surcharge

Starting April 28, Amazon will charge merchants for using its Fulfillment by Amazon (FBA) service, which includes loading, packing and shipping products.

Amazon said the surcharge is not permanent and is a mechanism widely used by supply chain suppliers. “Costs have risen significantly and we try to absorb costs to minimise the impact on our sales partners. In 2022, we expect a return to normality as Covid-19 lockdowns ease around the world, but fuel and inflation have brought further challenge."

"Amazon's competitors, FedEx and UPS, have fuel surcharges," Amazon said.
Amazon also highlighted that it charges a fuel inflation fee of 24 cents per unit, which is lower than what UPS and FedEx charge as of March 21, which charge 42 cents and 49 cents, respectively.

Stacy Mitchell says Amazon is taking advantage of the moment

While Amazon blamed the surcharge on inflation and rising fuel costs, Stacy Mitchell, co-chair of the antitrust group Institute for Local Self Reliance, criticized the company's statement Wednesday, saying Amazon was taking advantage of the timing.

"Amazon continues to increase the fees it charges sellers who rely on its platform. The new fees are a way to take more money out of the pockets of independent businesses and into Amazon's coffers," Mitchell said.

Amazon's third-party marketplace is an important part of its business. Independent merchants list millions of products on third-party marketplaces. It has about 2 million sellers, and more than half of the items sold on Amazon.com come from these sellers.

/ 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.

Shipping from China to Canada Amazon FBA
Shipping from China to Canada Amazon FBA

About shipping from China to Canada Amazon FBA

How to transport your cargo?

Air freight

Air freight from China to Canada
Air freight from China to Canada

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

Sea freight from China to Canada
Sea freight from China to Canada

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
/ 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.
/ 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.

/ 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.