Since most of the foreign trade is served by sea transport, foreign trade insurance issues are addressed through the marine system.

Within its framework, insurance is carried out for ships, transported goods and liability insurance for ship owners.

Due to the active development of container transportation, an independent type of marine cargo insurance has appeared.

What is marine cargo insurance?

Marine cargo insurance is a type of property insurance.
It secures goods while in transit against loss or damage.
Such issues can arise from dangers associated with the navigation of the sea waterways.

The most known marine cargo insurance conditions are published by London Institute of Underwriters (Clause “A”, B”, and “C”).

What is a marine cargo insurance policy?

If you or your supplier decided to use marine cargo insurance, you have to finalize this agreement.
The marine insurance policy is issued only when the contract has been finalized and it would be legal documents of evidence of the contract.

The form of marine insurance policies has been taken from pretty old times.

The Marine Insurance policy covers the loss or damage to property caused due to:
1.Natural disasters like cyclone, earthquake, lightning, etc.
2.Man-made disasters like theft, violence, and piracy of ships.
3.Collision, overturning or derailment of land conveyance.
4.Sinking or stranding of ships.
5.Expenses such as survey fees, forwarding costs, and reconditioning costs.

What does marine cargo insurance cover exactly?

The Marine Insurance policy covers loss, partial or total destruction of cargo in the following cases:

Significant natural disasters including earthquake, tornado, storm, etc.

Malicious destruction or theft of goods by people.
Acts of war.

Collision, overturning or derailment of land transport.
Sinking or stranding of ships.

Financial costs such as survey fees, forwarding costs, and reconditioning costs.

Marine cargo insurance covers your goods for any loss or damage while in-transit on the ocean.

Where can I purchase marine cargo insurance?

You can buy an insurance policy from special insurance companies that are involved and specialized in the insurance of sea cargo.

You can find these companies in two ways:

1. search them yourself using Google;

2. Ask the carrier company that will be involved in the transportation of goods for specific recommendations.

The second option is preferable, as the company knows the nuances and specifics of your cargo.

• What is marine cargo insurance?

Who needs marine cargo insurance? Why is marine cargo insurance necessary?

Both buyer and seller, as well as other secondary parties in international trading, have to be interested in marine cargo insurance.

It helps to secure your financial contributions from unforeseen issues.

What are the main terms and definitions for marine cargo insurance topic?

There are some key terms which you have to understand before applying for marine cargo insurance.

Cargo. These are goods, merchandise or commodities of every kind that may be carried on a vessel. This happens generally under a bill of lading

Bill of lading. It is a document for goods which the supplier gives to the shipper before transportation. Bill of lading is also a contract between the carrier and the shipper, which sets forth the terms and conditions under which the merchandise will be carried.

Theft. It means the disappearance of the cargo unit with clear evidence that it has been stolen.

Demurrage. This term refers to compensation per day or per hour for earnings which are lost as a result of the delay.

Actual total loss. Actual (absolute) total loss refers to the loss of insured goods due to the following reasons:

1. Complete loss or destruction of goods.
2. Goods have been damaged very badly.
3. Irretrievable deprivement (goods are not damaged, but they can’t be transported to the owner because of theft, capture, etc).

Deviation. The deviation is a situation where a vessel proceeds from the port of departure to the destination, by an unusual or improper course. Some marine cargo policies contain a clause by which parties agree to cover the insured interest in case of deviation and connected losses.

Invoice. An invoice is a commercial document which sets forth the terms and conditions of the sale of goods. It contains the list of sold goods, their quantity, the price per unit, the party or parties to whom the goods are sold. Depending on the terms of sale, the charges for freight, insurance and other services performed can be also mentioned in the invoice.

There are a lot more terms and conditions in the insurance topic.

You can check the vast majority of them visiting this helpful page.

Also, you can check other marine cargo insurance definitions later in our guide.

How much does marine cargo insurance cost?

The best insurance option for small business owners is insurance through a carrier company.

This usually costs $.60 per $100 of the shipment’s insured value.

Examples of cargo insurance companies for small business:

• CoverHound
• Insurance 321

The amount of cargo insurance rate usually consists of two components: a percentage of the cargo value and the cost of delivery.

The average percentage of the delivery cost in the insurance market is 60%.

Marine insurance vs cargo insurance: what is the difference?

Marine insurance is a broad definition, which includes various types of insurances.

Hull insurance. Insurance issued by shipowners. It covers costs in the case of damage to the ship (ship’s hull and all furniture).

Machinery insurance. This insurance type covers damage to the machinery components of the vessel. To receive payment for this type of insurance, an inspection by a specialist is needed.

Protection. Covering risks which are connected with ownership of the vessel.

Indemnity. Covering risks which are related to the hiring of the ship. E.g. Cargo-related claims.

Cargo insurance. This insurance type provides protection to merchant vessels’ corporations. It helps to avoid losing money in the form of freight in case the cargo is lost in an accident.

As you can see, cargo insurance is a separate type of marine insurance.

What is the connection between the letter of credit and marine cargo insurance?

A letter of credit is a promise by a bank on behalf of the buyer to pay the seller a specified sum in the agreed currency.

Marine cargo insurance is commonly required as a fact to issue a letter of credit.

Making so, the bank secures various risks, such as damage and delays.

The bank collects a fee ranging from 1 to 8% of the transaction, depending on its value and complexity.

What are the main exclusions in the marine cargo insurance contract?

Marine cargo insurance doesn’t provide any coverage in the following cases:

1. Loss or damage to cargo due to intentional negligence.
2. Damage to cargo due to delay.
3. Damage due to improper packing.
4. Damage to cargo due to the use of chemical, biochemical or electromagnetic weapons.
5. Loss or damage to cargo due to radioactive exposure.
6. Financial default of cargo owner.

There are less common reasons when an insurance company refuses to cover the damage.

They are negotiated in each particular case and regulated privately.

What are the main types of marine cargo insurance policies?

There are two main types of marine cargo insurance policies:

All risk policy. This type of coverage provides one of the broadest insurance with a wide range of protection against external factors. It can cover most types of physical losses and damages as a result of external influence.

Named perils policy. Unlike the all-risk policy, named perils type covers only the losses caused by the perils specifically named in the policy. It is generally more limited. This policy can include:

1. Vessel collision.
2. Vessel sinking.
3. Derailment.
4. Bad weather.
5. Non-delivery.
6. Fire.
7. Earthquake.
8. Theft, etc.

Also, marine cargo insurance policies can be distinguished in the open and limited policies.

Open marine cargo insurance covers the cargo from shipping point to final destination.

There is no kind of expiration date, also, such policy covers all freight, regardless of value.

Premiums are paid upon receipt of goods.

Please, always pay close attention to the details of your policy and clarify any doubts you may have with your insurance provider before signing the document.

What is the general average in the case of marine cargo insurance?

General average is a maritime concept that can be both beneficial and frustrating for you as a buyer.

Under general average, all losses caused during an unforeseen problem at sea are to be divided among owners of the surviving merchandise on the same vessel.

For example, as an owner of a survived cargo, you’re obliged to pay financial compensation to the owner whose goods have been damaged or lost.

On the other hand, if your goods would be lost, you’ll get the compensation from the owners of survived cargo.

This option might be specifically included in the insurance contract.

Marine cargo insurance subrogation: what is it?

Subrogation means substituting of one creditor for another.

In some insurance contracts, including marine cargo insurance, subrogation is applied to recover the loss from the errant party.

It is a right of the person enduring the loss to legally pursue the guilty party.

If the loss is insured, and the insurer pays the amount of loss, the party receiving the benefit must forfeit the right to pursue the guilty party.

What are the key principles of marine cargo insurance?

Here are the main key principles which apply to a marine insurance policy.

The utmost good faith principle. All types of insurance policies rely on the principle of utmost good faith. It clearly states that at the time of filling the policy document, the applicant should disclose the correct information. Also, the applicant should not hide any material information needed for policy fulfillment.

The insurable interest principle. It is necessary for the buyer to have a clear interest in the subject for which the insurance is needed. It means that the buyer should be benefited from the safe arrival of goods and should suffer losses due to damage of goods. Sometimes, the buyer doesn’t have an insurable interest at the time of buying a marine insurance policy. However, he should expect to get such interest in the future.

The indemnity principle. In this principle, the buyer would be compensated only to the extent of the loss. It means, the person should not purchase marine cargo insurance to earn profits. In any case, the buyer (the policyholder) will not get more than the actual loss.

The causa Proxima principle. At the time of loss, the buyer of marine insurance has to look at the nearest or proximate cause. It would help in deciding the actual cause of loss if there were a series of causes which have attributed to the loss. If the proximate cause is insured, the marine insurance company has to settle the claim.

The loss minimization principle. The fact of marine insurance policy doesn’t mean the parties can act carelessly. The buyer and supplier must take all the steps to minimize all possible risks. The policyholder can’t behave irresponsibly during an accident just because the property is insured under marine cargo insurance.

What is the basis of valuation for marine cargo insurance?

The basis of valuation sets out how the cargo has to be valued if the insurance case arises.

The basis of valuation is needed to calculate the premium and the value of a loss against a policy.

Can marine cargo insurance be used for individuals?

Yes, marine cargo insurance can be used both by businesses and individuals.

How is the marine insurance premium for cargo calculated?

An insurance premium is the amount of money the buyer pays for an insurance policy.

In practice, marine cargo insurance premiums are calculated on a rate of X per $100.

For example, if you have a cargo valued at $15,000 and the rate is .25 per $100, you take $15,000/$100 = 150 X .25 = $37.50 in total premium due.

However, check the policy for a minimum premium: most insurance policies can have such figures.

How marine cargo insurance is related to customs clearance?

Some buyers might require insurance from delays, which arise due to customs clearance.

However, it is illegal to insure such things as customs clearance.

Actually, it is one of the main exclusions from rules of all-risk coverage policy.

What exactly Incoterms 2010 speaks of the marine cargo insurance?

The word “Incoterms” is short for international commercial terms.

Such terms tell the parties what to do with respect to carriage of goods from the seller to buyer, export and import clearance, the division of costs and risks between the parties.

Also, some Incoterms 2010 contain clauses about marine cargo insurance:

1. Cost and freight.
2. Cost, insurance and freight.
3. Free Alongside Ship.

Please, read out full Tj chinafreight guide if you want to learn more about the Incoterms 2010.

Does marine cargo insurance cover theft?

Yes, marine cargo insurance covers the loss, damage, or theft of commodities while in transit.

Marine cargo and inland transit insurance: how are these two differ?

People often confuse inland transit insurance and marine cargo insurance.

The truth is that they are really quite similar.

However, there are a lot of differences between the two insurances (three to be exact).

By definition. The inland transit insurance covers the insured goods when being transported by land. And the marine cargo insurance, as you may assume, is an insurance that protects the buyer from the loss of goods when they are transferred by sea.

By transportation. Obviously, the methods of transportation can make a difference when deciding about these two types of insurance. Basically, the inland transit insurance doesn’t cover the transport of goods by sea or air. But, if there is a waterway connection in your country the inland insurance can actually protect you from the maritime issues.

Does the HS code matter for marine cargo insurance?

You would have seen the HS code across many documentation connected with international trade.

HS Code stands for harmonized commodity description and coding system.

This is the common standard worldwide for describing the type of commodity.

In general, the vast majority of such commodities fit the general rules of insurance.

However, there are some products in HS classification which require special rules of insurance (such as hazardous materials, explosives, etc.)

The marine cargo insurance of such goods can cost you more than in the case of general commodities.

What do different forms of marine cargo insurance documents mean (proposal form, application form, claim form)?

A proposal form is a document completed by you as a buyer when applying for insurance.

You have to fill in information about the risk you are insuring e.g. the cost of your marine cargo.

An application form is practically the same as a proposal form: it is a document which you have to fill before applying for insurance.

A claim form is a document used for requesting payment from an insurance company when something happens with your goods.

What is the marine cargo insurance endorsement?

An insurance endorsement is an agreed addition to some kind of insurance contract.

It can change the terms or scope of the original policy: to add, delete, exclude or otherwise bring shifts to the coverage policy.

Does the FOB Incoterms have a marine cargo insurance option?

FOB (Free on Board) Incoterms do not oblige sides to pay for marine cargo insurance.

In the vast majority of the FOB practical cases, the buyer decides to pay for additional marine cargo insurance to secure his goods.

What is open marine cargo insurance?

The open cover is a marine insurance policy which covers all your shipment during the policy period.

Open cover insurance is most commonly purchased by companies that make frequent shipments.

Such broad coverage helps them to get rid of buying a new policy each time a shipment is made.

Marine cargo insurance cover note: what is it?

A cover note is a legal paper issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.

A cover note is different from a certificate of insurance or an insurance policy document.

A cover note features the name of the insured, the insurer, the coverage, and what is being covered by the insurance.

What is the difference between a marine cargo insurance broker and agent?

Even though agents and brokers perform practically the same functions, there is still a slight difference between these two professions.

First of all, the insurance agents represent only one insurance company, while brokers can represent multiple insurance companies.

Thus, brokers are free to offer a wider range of products to their clients.

It would be right to say that agents work for the insurance company while brokers work for their clients.

Secondly, the difference lies in the licensing process.

Both agents and brokers have to obtain needed education in order to get the license.

These licenses are different for the broker and agent.

Also, such persons are obliged to periodically confirm their knowledge and pass additional exams.

Can I use marine cargo insurance for domestic deals?

Yes, you can use the marine cargo insurance in the case of domestic trade.

Please, head back to the question “Marine cargo and inland transit insurance: how are these two differ?” if you want to learn more about the domestic use of the marine cargo insurance.

Which companies can provide marine cargo insurance?

Each insurance company has to obtain the license before starting the actual work.

The license is given in accordance with the type of commodity which the insurance company wishes to cover in the future.

Each country has different requirements for entities who want to obtain an insurance license.

What is ocean marine cargo insurance?

Ocean marine insurance is a special type of the marine cargo insurance, which protects your cargo from issues in open ocean.

Tj chinafreight offers an assortment of ocean marine policies that can cover any aspect of your marine operations.

Our flexible coverages are backed by a team of ocean marine specialists who can help you get the right insurance for your individual circumstances.

What is the capacity of the marine cargo insurance market?

As you can see from the graph below, marine cargo insurance is the biggest part of the marine insurance market.

What is the future of marine cargo insurance?

The future of marine cargo insurance is tightly connected with the maritime shipping market.

So long as we are using such type of transportation, the need in marine cargo insurance will be a thing.

Are there some disadvantages of marine cargo insurance?

It is hard to mention the disadvantages of marine cargo insurance.

The only thing which comes in mind is the fact that you have to pay premiums for the insurance policy.

However, it is an insignificant cost, if you think of the level of security which you get eventually.

What is the legal status of marine cargo insurance?

There is no single law which describes the standards of marine cargo insurance.

In practice, courts and insurance companies use international practices and their domestic laws when deciding about some kind of insurance case.

When applying for some kind of policy, you have to figure out laws of which country will be used in the case of danger to your goods.

How does marine cargo insurance work for the buyer? What are the steps to get insurance compensation?

Once you’ve bought the marine cargo insurance, you can be sure in the security of your goods.

The process of getting the insurance compensation is called the claim procedure.

If the situation when you need to make a claim under the policy arises, you can follow the next steps:

• in the case of loss or damage to the cargo, you have to immediately inform the insurance company;
• a surveyor will check the mentioned loss or damage;
• after this, the claim form is created, which contains all the proofs and witnesses needed to make the claim;
• for a missing package, the insured party has to provide a monetary claim to the insurance provider and get an acknowledgment for it;
• if the insurance company finds your case as an appropriate, it would approve the claim.

Also, the insurance company can reject the claim in some cases.

If you are not satisfied with the decision of the insurance company, you can approach the court of law with your case.

Can I use Tj chinafreight services to get the needed marine cargo insurance?

Tj chinafreight can become your trusted freight forwarding company, which means that we can provide not only transportation and customs services but also good insurance coverage for our clients.

Choosing us, you get the best options to secure your goods while in transit.

Also, Tj chinafreight insurance partners can customize a marine cargo insurance program depending on your needs to include:

1. International and domestic cargo coverage.
2. Warehousing and storage insurance.
3. Warehouse to warehouse insurance.
4. Protection for a high-value cargo.

International transportation is a tough thing, so you have to use various tools for effective logistics.

One of the simplest of such tools is a standard shipping pallet, which is used to store and protect cargo.

Without further ado, let’s jump straight into the topic of preparing pallets for your next shipment.

What is a shipping pallet?

Pallets are flat constructions used in cargo container ships for supporting goods or containers.

Products are piled on top of these structures.

Why you need pallets for shipping?

There are six main reasons for using pallets in shipping.

Reason 1. With pallets goods move and handle become much easier

The forklift and the pallet together can be used very effective while storing and moving goods.

These two simple technologies provide the easiest way to move product around a loading dock or some kind of warehouse.

The better part of shipping pallets is constructed to be lifted and moved by a forklift.

As you may assume already, floor loaded freight is much more difficult and time-consuming to move without certain equipment.

Reason 2. Some companies won’t ship your cargo without pallets

Pallets are part of the standard shipping method in almost every freight company.

With their help, it is fast and easy to unload trucks and containers.

Freight that is stacked on the floor without pallets is more likely to shift in transit and often requires additional protection.

That is why the vast majority of carriers don’t provide floor loaded freight option to their clients.

If you have to ship floor loaded goods, make sure to reach out to your logistics provider beforehand.

Reason 3. It is easier to track and count palletized goods

Smart management of capacity and inventory is a must for any warehouse, and pallets help to achieve this goal.

With their help, it is easy to separate goods into units for effective count and track.

Pallets are used in various inventory systems such as pallet barcode scanners.

Doing so, the warehouse staff can efficiently monitor stock as well as manage shipments by the barcode IDs on the shipping pallets.

Reason 4. Pallets make available various storage possibilities

Many helpful innovations in storage became available because of shipping pallets.

The forklift can easily pick up and place shipping pallets on high shelves, opening up a huge amount of storage possibilities.

Modern warehouses are able to store products two, three or even more shelves high with a smart slotting process.

Without shipping pallets, a lot of labor hours is needed to place and remove your goods from high shelves.

Note: the warehouse owner has to be sure that your pallet dimensions fit his warehouse’s storage capacities.

Reason 5. For some goods, shipping pallets can provide needed air circulation

Items like fresh produce need to be stored in special ways so they can breathe.

That is why the gaps on the bottom of a standard pallet are vital for properly storing such goods: they provide that space needed for air currents to get in and out.

If you’re shipping items that need air circulation, pallets offer this benefit in a way that most other cargo organization methods can’t.

Reason 6. The vast majority of shipping pallets are reusable

The better part of shipping pallets can be used multiple times.

If you consider yourself as a person who cares about the environment, committing to recycling or reusing your pallets is a great place to start.

What are the most important tips for using shipping pallets?

It is not so easy to effectively use pallets while shipping your cargo.

Here are some useful tips which you can use when preparing your freight.

1. The shipping pallets have to be suitable for the size of the container. If they somehow exceed such limits, the shipping company won’t process your cargo.
2. You have to pay attention to the pallet load and superposition. If the cargo is too heavy for pallets, it can be easily damaged during transportation.
3. Some countries’ laws require the use of fumigation or plywood shipping pallets. Such pallets are secured from insects and other environmental effects.
4. If you stack pallets in several layers, the height of one layer should not exceed 1.1 meters (43 inches). In other cases, the load will be too extensive and the whole construction can break eventually.
5. The height of pallets for air transportation should not exceed 1.5 meters (59 inches), while the width should not exceed 2.4 meters (94.5 inches). Due to the special construction of aircrafts the requirements for cargo shipping are more strict than in the case of sea/air delivery.
6. For especially heavy goods, the iron or thick wood shipping pallets should be used. The shipping company won’t process your extra heavy cargo if you don’t use corresponding pallets.
7. The products on the pallet should not exceed the size of the pallet. Another reason why your delivery can be banned by the shipping company.
8. Never use pallets with broken boards or protruding nail heads. This can lead to traumas and damage to goods.
9. Use all the accessible surface of the pallet. It would be more secure and effective to store goods horizontally than vertically.

There are also other nuances about shipping pallets which will be discussed in this FAQ as well.

How does pallet shipping work?

The delivery with pallets involved follows the next steps:

• placing goods or containers on a pallet;
• securing them using strapping, stretch wrap or shrink wrap;
• transporting goods to their final destination.

Simple as that!

What are the types of shipping pallets?

There are two main types of shipping pallets: stringer and block pallets.

Stringer pallets have three long pieces of wood (a stringer) to support the sides and middle, made of parallel boards.

The parallel pieces for block pallets are supported by blocks on the sides and middles of each edge.

Block pallets are commonly known as four-way pallets since they are the same orientation no matter which way they are carried.

They are generally used for heavier shipments because they provide more support for the platform.

We’ll discuss four-way pallets and their features later in this FAQ.

Also, pallets can be distinguished in different types due to the materials used for their manufacturing (e.g. wooden pallets, aluminum pallets, etc.)

What is a step-by-step process for preparing shipping pallets?

Let’s have a look at the step-by-step instructions for palletizing your freight for UPS worldwide express freight, LTL shipments, and air freight.

1. Select pallets. When choosing pallets, select between materials, size, load capacity, etc.
2. Stack your goods on the pallet. There are several key recommendations for the right packaging which is discussed in the separate question of this article.
3. Attach shipment to the pallet. Use strapping or banding to secure your shipment and stretch wrap (use a minimum of 60 gauge, five revolutions recommended) to prevent pieces from getting lost or separated from the load.
4. Label Shipment. Label each pallet with telephone numbers and complete address information including postal code of the shipper and the consignee.

How big are shipping pallets?

The Grocery Manufacturers Association (GMA) is an international organization which represents the world’s largest companies connected with food, consumer products, and beverages.

This association influences the consumer packaged goods industry around the globe.

Its specialists suggest standard pallet dimensions to be 48″ x 40″ (121 cm x 101 cm).

Such shipping pallets are generally known as GMA pallets.

The next most common pallet dimensions are 42” x 42” (106 x 106 cm) and 48” x 48” (121 x 121 cm) respectively.

Please keep in mind that these are the average figures, and different shipping/storing companies can use shipping pallets with unusual dimensions.

What is a four-way shipping pallet?

Four-way shipping pallet is a huge construction, which includes top deck boards, stringers or stringer boards and blocks, as well as bottom deck boards.

When constructed with blocks, the pallet is known as a true four-way entry pallet and can be entered from each side by various lifters and power jacks.

Four-way shipping pallets provide great strength when required for heavy loads and are generally more robust than two-way pallets.

However, they are quite difficult to repair compared with the two-way type.

How can I protect my palletized shipment from damage?

It is not hard to keep your goods from damage while they are shipped on pallets.

Here is some helpful advice to do so:

1. Use stretch wrapping (it is a quite effective way to keep all units of a shipment in one place).
2. Use load protectors (layers of corrugated fiberboard or heavy paperboard that help to evenly distribute the weight of shipments that can be stacked upon one another).
3. Use corner and edge boards (boards increase vertical sustainability of cargo, prevent damage to edges, and stabilize the load).

What is a flush shipping pallet?

The flush pallet is a pallet built with the boards and stringers or blocks flush along the sides of the pallet in the standard style.

All edges of such pallet are square.

Where can I get shipping pallets?

In the better part of shipping cases, the supplier is a party which has to pack the goods before starting the delivery process.

However, not all companies can provide such services.

Moreover, if you want to buy goods from separate suppliers and pack them as one cargo unit, you have to find the third party which will help you pack altogether.

This is the situation where Tj chinafreight specialists can easily help you.

As your trustful freight forwarding agent, we can make sure that your goods will get to you in one piece.

Please keep in mind that Tj chinafreight charges additional fees for packaging and stacking goods on pallets.

What are shipping pallets made of?

The vast majority of pallet market is presented with wooden pallets.

The two most common wood types used for making pallets are southern yellow pine and oak.

Also, you can find metal, cardboard and plastic pallets on the market.

How to disassemble wooden shipping pallets?

There are various methods on how to take apart shipping pallets.

Let’s have a closer look at one of them.

Step 1. Choose the pallet which has no visual wear out signs

Although the damaged pallets might be easier to pick apart, the wood is more likely to be damaged after the procedure.

Step 2. Put on some safety goggles, work clothes, and gloves

Please, never neglect your safety while disassembling wooden shipping pallets.

Step 3. Put the pallet up in the way that it would be securely clamped to a surface

It would be much easier to make out the pallet if it would stand steadily.

Step 4. Find the two main vertical pieces of wood on the pallet

The smaller horizontal slats (usually two-by-fours), should be nailed to these pieces to create the top surface of the pallet.

Step 5. Unfasten the nails connecting two-by-fours

You should use some special tools to perform this step (such as a crowbar or saw).

Step 6. Continue disassembling the horizontal bars of the pallet

Please, watch the video below if you want to learn more about the pallets disassemble process.

https://youtu.be/PzIHqsBwy6w

How are shipping pallets treated?

Why are the pallets shipped overseas marked “HT”/”MB”?

Most of the shipping pallets in the world are treated with pressure and heat while manufacturing.

Such shipping pallets are marked with “HT” sigh.

Also, shipping pallets can have an “MB” mark, which means that they are fumigated with the neurotoxin and carcinogen methyl bromide.

The above-mentioned procedure is needed to secure wooden blocks from insects.

How to dispose of shipping pallets?

First of all, many manufacturers offer return programs so you can simply contact them and arrange the delivery.

In the better part of countries, you can sell used pallets. There are a lot of pallet recycling companies who can buy your shipping pallets.

Let’s mention that shipping pallets are very popular for repurposing. You can use scrap materials from pallets in a billion ways.

Are cardboard pallets good for shipping?

Cardboard pallets are much lighter than wood or plastic constructions.

On average, each cardboard pallet weighing less than 10 kg (22 lbs).

As you may assume, this is the main reason why you can easily handle such pallets.

Also, the lightness of cardboard pallets can help you to reduce shipping costs.

Cardboard pallets are safer than others because there is no risk of damage or injury due to nails.

On the other hand, cardboard pallets are not as robust as wooden structures.

That is why you can’t use cardboard pallets for extra heavy cargo movement.

What are the recycled shipping pallets?

Some types of shipping pallets can be effectively recycled.

As an example, the wooden pallet can be disassembled for scrap wood, turned into yard mulch, or used as boiler fuel.

What is the difference between a pallet and a skid?

A skid is a single-deck loading platform which has no bottom deck.

It is a low-profile structure which stands on pedestals attached to the deck.

Skids were quite popular in shipping before the creation of the modern pallet.

How much weight can a shipping pallet hold?

A standard pallet can withstand up to 4.600 lbs (2086 kg) of weight.

The shipping pallet weight is between 30-48 lbs (13.5-21.8 kg).

How high can you stack a pallet for shipping?

If you decide to palletize your cargo, the shipping boxes would be stacked on a pallet in a pattern that allows the most boxes to fit within a reasonable set of dimensions.

According to the international rules, they should be stacked up to five feet high, but not exceed sixty inches total.

What are the racks for shipping pallets?

The racking system is a handling storage system created to store goods on pallets in horizontal rows and on multiple levels.

Such shelf is made up of horizontal cross beams that attach to vertical upright frames.

This helps to effectively support palletized material that can be easily accessed by forklifts.

One of the most popular types of pallet racking is “teardrop” pallet rack.

Additional tools like wire decking, column protectors, row spacers, storage bins, racking protectors and safety guards are often used in addition to pallet rack.

How much do shipping pallets cost?

Wood pallets are the most popular type of construction, accounting for roughly 95% of the market.

Logically, pricing for wooden pallets might vary in different countries because of material and manufacturing costs.

As an example, in the USA, the two-way pallet recent pricing has been in the $11.25-12.50 range.

Four-way pallets, on the other hand, cost more, around $25.

If you are shipping from China, you need to understand the FCL shipping and LCL shipping.

Some times, you can save a lot of money if you find the best shipping solution between the FCL and LCL shipping.

Not every time, when your goods not enough for one full container, you have to choose LCL shipping.

Some times, FCL shipping cost even less than the LCL shipping. So check our FAQ guide and to be the expert for this meaning.

What is LCL shipping?

LCL in full refers to Less than Container, it refers to a situation where an importer or exporter has to share the space in a container with another importer or exporter.

In LCL shipping, the goods are marked with a symbol to help identify your goods.

The marks are also used to classify the goods based on how fragile they are, for example, the color red or orange is used for dangerous cargo.

How is it different from FCL shipping?

LCL is different from FCL shipping because you do not have to pay for the whole container space, whereas in FCL, you pay for the whole container.

FCL refers to Full Container Load.

There is a fixed rate for using the whole container regardless of whether your goods fill it up or not.

There are different types of containers available for FCL shipping.

Which is Best? FCl or LCL?

Generally, FCL shipping is faster than LCL as they do not need to go through many stops.

Your goods are safer in FCL shipping as you’ll have more control over how your goods are handled.

Per cargo unit, FCL shipping is also cheaper than LCL though it might be better to use LCL if the shipments are very small.

In FCL shipping, there may be restrictions on the minimum volume you have to import or export.

It all depends on the size of your goods and the fragility.

How do I calculate an LCL import price?

LCL shipments are calculated by either measuring the weight of the goods or the cubic meter (Cbm).

If the cost as calculated by the weight of the goods is more than that of the volume (cbm), then the weight cost will be used.

If the volume cost is greater, the volume cost will be used.

How is the CBM calculated?

CBM is used when the total weight of the goods is not more than one ton.

To calculate the CBM, the length, width, and height of the goods are multiplied.

In a situation where the length of the product is 2.3 meters long, while the height is 1.4 meters with the width at 2 meters, then the volume can be calculated by multiplying the three– 2.3 x 1.4 x 2, which gives 6.44 CBM.

This CBM would then be multiplied by whichever rate the freight forwarder gives.

What is the FCL container size?

There are many types of container sizes in FCL for moving different types of products.

There is the 20- foot container for moving dry cargo, which has a length of 5.932 meters, with the width at 2.350m and the height at 2.410 m.

The cubic capacity of this 20-foot container is 33.6 CBM or 1166 Cubic ft.

The maximum payload is 18600 kg.

There is the 40-foot dry cargo container with a length of 12.043m, a width of 2.336m and a height of 2.379m.

The CBM is 67/ 2366 cubic feet. The maximum payload is 27340kg.

There other dry cargo container types, see the image below:

There are also refrigerated FCL containers used for moving perishable goods.

Flat rack containers

Open Top containers

Tank Containers

These containers might have slight differences based on each country.

What is the FCL shipment procedure?

In FCL shipping, an empty freight container is picked up at the container yard, it is then moved to the shipper facility where the goods will be loaded onto the container.

After this, it will be transported to the loading port by either truck or rail after it will then be shipped.

The container then stops at the port of arrival from where it moves to the final destination.

What are Shipping Incoterms?

Incoterms in full stands for International Commercial Terms.

They are trade terms used in international and domestic trade fronts for the sale of goods and were developed by the International Chamber of Commerce.

To prevent problems or misunderstanding, these trade terms have been widely adopted by shippers, traders, and the government.

The shipping Incoterms include FCA, EXW, CIF, etc.

How can one find the best FCL and LCL shipping prices?

For LCL shipping, only work with a freight forwarder that has his own LCL container.

It will be cheaper this way as he does not have to pay a commission for the container.

To get the best FCL shipping prices, contact many providers and compare their prices with each other.

Go to the cheapest provider.

What are palletized LCL shipments?

Palletized shipments are goods placed on a wooden platform called a pallet.

The goods are placed on the pallet and wrapped with bands and foil to keep them together.

This is the best way to transport cargo as the goods will be protected.

What is Loose LCL Cargo?

Loose LCL cargo refers to goods that are stacked on top of each other during transportation.

Though loose loaded cargo will save space and cost, it is not a very safe way to transport goods.

How much will ship a full 20ft container cost?

Though the price varies depending on a number of factors, shipping a full 20ft container should normally cost about £1,000 to £2000.

How can one track goods in FCL shipping?

The movement of the goods in FCL shipping can be tracked by either checking the shipping line website or by contacting the shipping agent.

Is it possible to track goods in LCL shipping?

Goods can be tracked in LCL shipping through the container number/Bill of lading/booking number.

What are the types of tracking system

There is the standard container tracking system and there is the GPS container tracking system.

The Standard container tracking system observes the movement of the cargo once it goes through important ports and stops.

The GPS container tracking system shows where the container is exactly anywhere in the world.

If you are an Amazon seller and need to import your goods from China, then you need to ship your goods from China to Amazon FBA.

It can be really difficult especially you are new to importing from China.

So read our Ultimate FAQ Guide to get the benefit.

This is a FAQ guide for you to save cost and time, if you can not find the answer to your problem, do drop me an email, I will be there and wait for you.

How do I ship from China to FBA?

There are three ways to ship from China to Amazon FBA.

You can choose to ship from China directly to Amazon’s FBA.

This method is cost-effective and quicker than other options.

On the other hand, you can choose to ship to your home or use a middleman for inspection before shipping to Amazon.

This way you can ensure and guarantee that your products meet Amazon’s strict quality requirement.

Can I ship directly from Alibaba to Amazon FBA?

Yes, you can but can be very risky at times.

This is because of the uncertainty on the quality of the products which may not satisfy Amazon’s quality requirement.

So, you need to make sure your supplier satisfies all the quality requirements of Amazon before sending your products to Amazon to avoid rejection.

How much does it cost to ship to Amazon FBA?

The FBA charges two kinds of fees; Fulfillment fees and inventory fees.

Fulfillment fees prices range from $2.41 to $5 for standard size products while oversize fees range from $8.26 to $137.32 for small & special oversized products.

This fee covers all the handling, packaging, shipping of a product.

On the other hand, Inventory fees are charged monthly for warehousing.

Amazon FBA inventory fees for warehousing of standard size products range from $0.69 – $2.49 for every cube foot while oversize products warehousing is surprisingly cheaper with prices ranging from $0.48- $1.20.

How long does it take for Amazon to ship from China?

It takes 4 – 40 days, depending on the means of transportation.

If you use the express shipping method, it takes 4-7 days, while the Airfreight option takes longer and the sea freight usually takes 25-40 days.

Where do I ship my FBA inventory?

You ship to Amazon fulfillment center or warehouse.

To do this, you need to create a shipping order and here are some of the steps;

Go to your Amazon seller dashboard, check under the Inventory tab and click on the “manage FBA inventory.”

Then, click the checkbox to the left of your product listing and look for the “Action on 1 selected” and then click on the select “Send/Replenish Inventory.”

Proceed by clicking on “continue to shipping plan,” and after you’ve packaged and labeled your product according to Amazon requirement, you can complete shipment.

Can I ship my own products on Amazon?

Yes, you can if you use the Fulfilled by Merchant option (FBM) for your products fulfillment and shipment.

This means you handle everything involving your product.

How are Amazon storage fees calculated?

They are calculated based on a per cubic foot space, but Amazon reserves the right to determine the cubic feet your product occupies and in case of conflict; the Amazon law overrules all.

However, there is a monthly fee for the two types of products; standard product monthly price charge range from ($0.69 – $2.49 ) while oversized products monthly price charge range from $0.48- $1.20.

There is also an extra charge charged on products that have stayed at the fulfillment centers for over 180 days.

How do I ship goods to Amazon FBA in the UK from China?

There are three ways to ship goods to Amazon FBA UK from China; courier, air freight, and sea freight.

For smaller packages, it is advisable to use the courier service.

For bulk goods, sea freight is your best option, but it takes longer while the air freight is quicker but expensive.

Should I choose FBA or drop shipping?

For beginners, you should start with dropshipping as the cost of investment and risk lower as compared to Amazon.

However, if you are a seasoned seller, you might want to choose Amazon as the audience, and the profit margin is more significant than drop shipping.

Cost of shipping from China to Amazon FBA USA?

Depending on which means of transport and the size of the product, it could cost as low as $2 for a standard product and as high $137 for an oversize product,

Combined with the means of transportation, the cost of shipping through Airfreight could be as high as $4000 while sea freight which is the cheapest cost around $1200.

How much does it cost to ship 3CBM (~100lbs) from China to an Amazon FBA warehouse in the USA, and what is the easiest way?

Depending on the means of transportation, it could cost around $200 – $530.

To calculate this, you could use the shipping forwarder calculator.

How much does air shipping to Amazon FBA cost?

Airfreight is quite expensive, and it could cost as high as $4,000.

Air shipping weight calculation is calculated by multiplying the Height, Width, and Length divided by 6,000.

 How do you Send Inventory to FBA as a Non-US resident?

To send Inventory to FBA as a non-us resident, you need to have an Amazon account and enroll in the FBA program.

To do this, you need to have a business registered in the United States using a registered Agent.

Also, the business should have a legal address as well as a FEIN with the IRS.

What is Amazon FBA Private Label?

Amazon FBA private label is a product not manufactured for a seller by a manufacturer but sold under the brand label of the seller’s company and fulfilled by Amazon.

 How to save money shipping to Amazon FBA?

One significant way to save money shipping to Amazon FBA is to ship from the manufacturer to Amazon via sea freight.

It eliminates middlemen/agent fees although you have to pay the Amazon freight forwarder to help you get a customs broker and break your shipments.

How to track your shipping from China to Amazon FBA

Depending on what means of transportation used to ship your product, you can either visit the website of the sea or airline company.

Then, input details like the tracking number of your air waybill on the airline’s website while in the case of sea shipping companies,

you input such information like your Shipping Company Name, Container Number, B/L( Bill of Lading) Number or Vessel Booking Number according to your shipping company request.

How to send stock directly from China to Amazon Fulfillment centers?

You can send stock directly using a freight forwarder or shipping companies that specialize in sending stock to FBA.

They help cover custom clearance, shipping, and delivery to Amazon Fulfillment centers, but you must make sure that your products are well prepared, packaged, and labeled according to Amazon’s specification.

How to choose forwarder in China for Amazon Delivery?

To choose a forwarder to facilitate successful delivery of your product to an Amazon fulfillment center, you need to pick a helpful forwarder who can maintain communication, has knowledge of the Amazon business, and most importantly has a warehouse.

What are the significant risks for Amazon sellers shipping from China?

Some of the major risks for amazon sellers shipping from China include but are not restricted to; Ban by Amazon due to failure to meet quality guidelines, fake or counterfeit goods, lousy customer reviews, etc.

What shipping company do you use for shipping from China to Amazon?

Any shipping company certified by Amazon FBA with excellent customer service.

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

Amazon FBA is strict when it comes to packaging, and all your goods must meet the set standards.

Understanding Amazon packaging requirements would save you a great deal.

Product Packaging

Packaging involves the materials used, the wrapping, and how you protect your products.

You should wrap the goods separately, and each unit contained within a single secure package.

The materials commonly preferred by Amazon FBA for packaging include boxes, air bubble films, and poly bags.

The poly bags must be transparent with a suffocating warning attached to them.

For protection, use 2 inches of cushioning between each item contained in the box.

The content of the box should be compact without any movement when shaken.

Outer Packing

Amazon FBA specifies special packing while emphasizing that shippers use proper material, and sizes.

According to Amazon’s packaging requirements, outer packaging material should be rigid, and six-sided such as a carton.

The size of the outer packing should measure 6 X 4 X 1 inch.

Also, boxes used should weigh more than 1lb and not exceed 50lb.

Packaging using overweight cartoons can increase your shipping costs and associated risks.

For boxes exceeding 50lb and 100lb, you should provide a label that indicates Team lift and Mechanical Lift, respectively.

Suppose you import jewelry from China to Amazon FBA, your packaging boxes should not exceed 40lb.

How do you Label Goods for Shipping to Amazon?

Proper labeling is critical when shipping to Amazon FBA because it will enable your products to reach the right customer and sell quickly.

All the boxes used in the packaging must have a unique FBA label printed from the shipping queue.

Product labels must have a scannable barcode.

Note that Amazon has its specifications for barcode labels on products.

You can find them here: Amazon product barcode requirements.

As long as your product differs in any manner, for example, in color, they must all have a unique FNSKU printed on them.

How to put the Amazon Label on your Product?

Packaging and labeling go beyond understanding what Amazon requires. Your label must be in the right place.

You have three options for labeling your products for fulfilment to Amazon.

They are:

Labeling through your Chinese Supplier

As part of your trading agreement with the supplier, you can request them to label the goods as per your specifications.

Because Amazon is strict in labeling, you should work closely with your supplier.

The supplier should understand what is required and update you periodically.

Before shipping, ensure you are satisfied with the labeling.

Label it by Yourself

Labeling goods yourself means that you first ship them to your warehouse and label them before sending the goods to Amazon FBA.

This method can be expensive, and you should only consider it if you have extra cash to spend.

Labeling through a Third-party Company

Labeling through a 3^rd party service company is useful.

This is because most 3^rd party agents specialize in Amazon FBA, and they understand the labeling requirements.

When using a 3^rd party service, you will have to facilitate shipping the goods from your supplier to the 3^rd party’s warehouse.

They will label the products as per Amazon’s requirements before loading them for shipping to the relevant FBA site.

China 3^rd party agents are way cheaper than those overseas.

It would save you a lot of money if you find a capable one in China to do the label then fulfill your order to the required FBA warehouse.

What can I do if my Goods are Lost after Arriving at the Amazon Warehouse?

Although minimal, there are chances that your products may get lost or misplaced after delivery to an Amazon FBA warehouse.

In this case, you don’t have to panic as Amazon has laid down steps through which shippers can trace their products.

The steps are as follows:

Contact Amazon Customer Service

Amazon handles many goods, and it may be that the goods are just missing from your platform but not from the store.

Or they could be lost or stolen.

The best remedy for this is to contact Amazon customer care to help investigate the issue and provide a solution.

Prepare your Delivery Receipt

Many things can happen to your products once they reach the Amazon Warehouse.

Remember, a dozen other traders are delivering their products as well.

Providing a delivery receipt will show that, indeed, your goods were delivered and received at the Amazon warehouse.

This way, it is easy to resolve cases where products go missing or lost as there is proof of delivery.

Provide Product Invoice

An invoice is vital if Amazon agrees that they are responsible for your product loss.

You can get the invoice showing the value of the purchased goods from China.

Amazon will use the invoice to compensate you according to the value of your goods.

But this is only, after it has been proven that you indeed delivered the goods to the Amazon warehouse where goods went missing.

How do you Choose a Supplier in China for your Amazon FBA Products?

The choice of supplier, their products, and the prices they offer will define the profits you make shipping from China to Amazon FBA.

Getting a supplier from china is challenging, and sometimes it involves a lot of risks.

The following points can help you choose the right supplier for your products.

Price

Just because a supplier offers lower prices doesn’t mean they assure you profits.

It would help if you looked at their product quality, the terms of sale, MOQ requirements, and location to determine if they are right for you.

Also, ensure that the prices offered have no hidden charges.

The right supplier should offer you genuine prices that, after including all other costs of delivering to Amazon FBA, you should have the right profit margin.

Products

You are competing with numerous other suppliers in Amazon FBA dealing with the same products.

Customers always compare the quality of products supplied before making a purchasing decision.

Therefore, you should have a supplier with quality products that comply with both industry and Amazon FBA’s quality standards.

You can check the products’ quality by verifying the manufacturing process, conducting quality inspections, and asking for samples.

Generally, a through China quality control process for products you ship to Amazon FBA can put you ahead of your competitor’s.

Payment and Shipment Terms

If this is your first time dealing with a customer, avoid paying in advance.

The right supplier would expect at most 50% upfront and the rest after delivery.

When shipping to Amazon FBA, time is of the essence and allowing your supplier to handle the shipping will lead to many delays.

Besides, logistics are usually expensive when you choose to allow your supplier to handle shipping.

It is, therefore, essential to take charge of your consignment and handle them on your own.

That said, there are many ways to find the right supplier for your products when shipping from China to Amazon FBA.

You can find suppliers through recommendations, trade shows, e-commerce platforms such as Alibaba, and even through personal visits to china.

What Documents/Certification should I have to Ship to Amazon FBA?

When shipping from China to Amazon, you need the right paperwork and product certifications.

Otherwise, Amazon may close your listing on their site, and you may even encounter shipping difficulties to a lack of compliance and proper shipping documents.

To avoid all of the above scenarios, find out what Amazon requires you in terms of paperwork before shipping.

Also, find out which shipping and import documents you will need when shipping from China to avoid unnecessary trouble with customs.

All in all, some of the essential certifications that Amazon may require of you include:

• UL 2054 for all battery products to Amazon FBA
• UL 60950-1 for all laptop chargers and adapters
• ANSI/CAN/UL 2272 document for scooters, unicycles, and self-balancing personal transport.
• Safety data sheets for paint strippers.

For shipping from China to Amazon FBA, you will need the following shipping documents:

Bill of Lading

A bill of lading provides details about the movement of your goods from origin to destination.

It is a vital document that determines whether port officials release cargo to you or not.

The document comes in three main types that you need to differentiate for their specific I uses.

Commercial Invoice

A commercial invoice is vital in clearing your goods through customs.

It contains details about the products such as country of origin, the importer, supplier, unit value, and product description.

Telex Release

A telex report serves the purpose of a bill of lading and helps make your shipping to Amazon easy.

This is because the report allows for the release of goods before the original bill of lading is availed.

Other documents that you may need include:

• Certificate of origin
• Packing list
• Phytosanitary certificate
• Dangerous certificate
• Import license
• Fumigation certificate

Do you need Freight Insurance when Shipping to Amazon FBA?

When it comes to shipping, the risk is inevitable.

Your products will exchange hands several times, and you wouldn’t wish to incur the associated resultant losses.

Getting freight insurance can guarantee you up to 100% compensation depending on the insured risks.

You can get your goods insured directly from the supplier until they reach Amazon FBA.

Besides, freight insurance is inexpensive, about 1% of the total value of your shipment.

Which Incoterm should you use when Shipping to Amazon FBA?

Incoterm spells the obligation of the seller and the importer in the shipping process.

When shipping to Amazon FBA, you should use the FOB incoterm because it gives your freight forwarder more freedom.

They can easily plan for your cargo and improve delivery time.

You can use the EXW incoterm for air express method where the goods are under your care during delivery.

Should you do a Quality Inspection on your Amazon FBA Products?

Amazon emphasizes the need to provide quality goods for selling to customers.

Delivering low-quality goods puts your account at risk, and you wouldn’t want that.

Therefore, conducting quality checks is very important.

You can arrange quality checks while the goods are still with your supplier to guarantee quality before shipping.

When do I use Sea Freight to Ship my Products to Amazon FBA?

Sea freight is the best shipping method when your products are above 400kg.

It offers cheaper shipping costs as opposed to express or air transport.

If you have a small shipping budget, sea freight provides the best solution.

Besides, you can either book a Full Container Load (FCL) or Less than Container Load (LCL), depending on the volume of your products.

However, it would help if you were careful when transporting to Amazon through sea freight because of the time lag in transit.

You must plan appropriately and add some time buffer on the logistics.

What is the Import Customs Clearance for my Amazon FBA Products?

Customs clearance is mandatory for any importation to Amazon FBA centers.

In this case, the customs clearance process begins way before the products arrive on the importation country’s soil.

To ensure a smooth clearance process, ensure that all your import paperwork is in order.

Also, have the necessary budget for paying import duties and taxes.

Once all this is done, customs should easily permit your goods from China into the country.

Note that if your goods do not the import country’s requirements, they may be held at customs and not allowed entry.

To ensure that shipments from China to Amazon fulfillment centers pass all the requisite import requirements.

What is an Amazon FBA Shipping Plan, and How do I Create it?

Before your products are availed in the Amazon platform for selling, you must first create a shipping plan.

The plan informs Amazon of the specific items you wish to import from china for selling.

Creating an Amazon shipping plan involves;

• Managing your inventory. This involves selecting a list of products you want to ship to Amazon.
• Replenish inventory. Here you can either create a new shipping plan for new products or add to the existing plan if you have been shipping to Amazon.
• Complete the Ship form. This form contains information on the address where Amazon will pick your products.
• Confirming quantity. In this step, you will see all the products you have selected and the number of units per product.

Your shipping plan should provide information on who will prepare the products and how they will be labeled.

Can I Ship Hazardous Goods to Amazon?

Yes, you can ship all types of goods, including Hazmat products, to Amazon FBA.

The only consideration is ensuring the products all the requisite shipping requirements, including quality, safety, packaging, and labeling requirements.

For Amazon FBA, HAZMAT goods must be packed in corrugates with proper cushioning.

Also, they must be labeled as ‘Fragile’ on the package.

You should also provide accurate information about your products and Safety Data Sheets (SDS).

What are the Factors that Affect Shipping from China to Amazon FBA?

When shipping to Amazon FBA, you don’t want anything that delays your goods from reaching the FBA warehouse.

Some of these factors are unavoidable and include:

Quality Issues

This contributes to the highest number of delays and rejects by Amazon FBA.

The good thing is that you can avoid them.

You can invest in a good quality assurance team to monitor products before leaving your supplier’s premises.

Product Development

Product development takes time, especially when the new product you have requested is unique to the supplier.

To avoid the long delays in product delivery, you can opt to use a different supplier who already has your desired product ready.

Chinese Holidays

Shipping from China to Amazon is challenging during the Chinese New Year (CNY).

Many suppliers in china spend this holiday with their family members.

Fulfilling an order is impossible during this time.

Your only bet is planning for early shipments before the holidays begin in December.

Other holidays that can affect your shipping to Amazon, though not much, include National Week in October.

Basically, you should avoid shipping during peak seasons as, during these times, shipping tends to delay a lot.

When should I Palletize my Goods for Shipping to Amazon FBA?

A pallet is a platform that allows for the transportation of multiple cartons at once.

It makes transportation easy using folk lifts in short distances.

Amazon does not require the use of pallets for all goods being shipped to their warehouse.

However, some goods require pallets and include wooden pallets 40 by 48 inches.

Pallets are heavy and attract more charges while shipping.

Amazon recommends adding them once the goods have reached the destination.

Only those goods that are fragile require pallets pre-shipping.

Consider using the right pallet size and dimensions when palletizing goods for shipping from China to Amazon FBA.

Are all my Products Shipped to the same Warehouse when I Deliver them to Amazon FBA?

When you ship your goods from China to Amazon, they can be subdivided into three groups, each heading to a different warehouse.

This can be expensive because the profit margin will reduce significantly per product.

To avoid this, you can set up a large shipment, say with 6SKUs and 20 units each.

However, this is not a guarantee that the shipments will go to the same warehouse.

Amazon strives to use smaller units of your inventory in different warehouses for easy delivery to customers.

How has Coronavirus Impacted Shipping to Amazon FBA?

Coronavirus has indeed left no tables unturned in the field of business.

Shipping from China to Amazon has been dramatically affected through:

Shipping Times

Many suppliers operating in china have had to cut on their workforce.

This has greatly affected the shipping time as there is less workforce to prepare your goods for shipping.

Additionally, the number of flights and vessels has also reduced, implying that getting a shipping slot is difficult.

As a result of Coronavirus, shipping time has increased, thus significantly impacting shipping to Amazon.

Shipping

If you want to become a real international trading pro, you have to achieve a clear vision of various terms, rules, laws, practices.

One of such practices is using Incoterms 2010 (International commercial terms) when deciding delivery obligations between parties.

In this article, we try to put under the microscope one of such Incoterms – CPT. Continue reading to learn more about this set of rules.

What is CPT in Incoterms?

CPT stands for Carriage Paid To.
It is one of the Incoterms 2010, which can be used by trading parties.

If you do not familiar with Incoterms concept, please, pay attention to our comprehensive guide on this topic.
So, Carriage Paid To contract states that the seller pays for the carriage of the goods to the named destination.

The named destination can be any place (warehouse, home, other facilities) in the country of the buyer.

Let’s find out how other terms of CPT contracts should be carried out.

Who is the carrier in the CPT Incoterms contract?

Carrier is basically any person or company who undertakes the performance of the carriage.

It can be made by rail, road, sea, air, inland transports, or by the combination of them.

Parties can use the services of several carriers.

Who pays for shipping under the CPT Incoterms rules?

If you look through the obligations of parties under the CPT Incoterms, you’ll find clear instructions about the payment responsibilities.

The seller is the party which has to pay for freight.

Also, he has to pay for all the costs of loading the goods and any charges for unloading at the place of destination.

What is the difference between CPT and DDP Incoterms?

DDP is an abbreviation for Delivered Duty Paid.

DDP has more obligations for the seller than CPT terms.

Under Delivered Duty Paid rules the seller has to perform all the procedures to deliver the goods to your doorsteps.

This includes freight costs, import/export customs fees, the carriage in the country of origin and destination, as well as fees connected with obtaining licenses, documents, and so on.

Basically, DDP terms are better for the buyer than CPT rules.

But, DDP sale contracts cost more as well.

What is the responsibility of the buyer and seller under CPT Incoterms?

In addition to obligations connected with costs of freight, under CPT rules the seller must:

1. Provide the goods and the commercial invoice following the sale agreement (as well as any other pieces of evidence of conformity which may be required by the contract).
2. Obtain any needed export licenses or other official authorizations.
3. Carry out all export customs formalities.
4. Pay all costs and duties needed to clear export customs.
5. Deliver the goods to the selected carrier (if there are multiple carriers, the seller is obliged to transfer the goods to the first one).
6. Provide the buyer with the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document).
7. Pay all fees connected with checking procedures (such as checking the quality, measuring, weighing, counting).
8. Provide packaging service which is required for the transport of the goods. Packages have to be marked in the appropriate way.

The buyer also has a strict set of obligations following the CPT rules.

Here are the most important of them:

1. Pay the prices connected with the contract of sale.
2. Obtain any needed import licenses or other official authorization and carry out all customs formalities for the importation of the goods.
3. Bear all risks of loss of or damage to the goods from the time they have been delivered to the carrier.
4. Pay all costs relating to the goods from the time they have been put into the custody of the carrier.
5. Pay all duties, taxes and other official charges connected with importation of the goods, as well as with transfer inside the country of delivery.
6. Whenever the buyer is obliged to determine the time for dispatching the goods, he must give the seller corresponding notice.
7. Accept the transport documents from the seller (e.g. an air waybill, bill of lading, etc.)
8. Pay the costs of pre-shipment inspection in the country of importation.
9. Pay all fees connected with obtaining the documents or equivalent electronic messages.

What is the difference between CPT and CIF Incoterms?

Both CPT (Carriage Paid To) and CIF (Cost, Insurance and Freight) are rules mentioned in the last edition of Incoterms (for the 2010 year).

The first and most important difference between CIF and CPT Incoterms lies in that the CPT terms can be used for all types of vehicles (road, rail, air, sea freight).

On the contrary, the CIF rules can only be used for sea and inland methods of transportation.

Also, the CIF Incoterms oblige the seller to pay for insurance, while CPT rules don’t have such clauses at all.

What is the difference between DAP and CPT Incoterms?

DAP stands for Delivered at Place.

Both DAP and CPT rules oblige the seller to deliver some products at a certain place in the buyer’s country.

However, there is still a significant difference between them.

They lie in the transfer of risks connected with loss or damage of goods.

In simple words, according to the CPT delivery terms, the risks of loss or damage to the goods pass after the seller transfers the goods to the carrier (i.e., loading the goods onto the vehicle/vessel).

According to the basis of DAP delivery, risks of loss or damage to the goods pass from seller to the buyer at the final point of destination.

Note: in practice, all responsibilities connected with the security of goods during the transportation lie on the carrier. So the Incoterms only decide which party has to regulate controversial situations with the carrier if such occurs.

What is the difference between CFR and CPT Incoterms?

Despite the common misconception, CFR means Cost And Freight (not Cost Of Freight).

CFR is very similar to the CIF rules, just without the insurance obligations for parties.

The first difference between CFR and CPT rules lies in the modes of transport which can be used.

As you already know, CPT terms apply to all modes of transport.

And the CFR Incoterms can be used only for sea or inland waterway transport.

What is the difference between CPT and CIP Incoterms?

CIP is an abbreviation for Carriage and Insurance Paid.

As you may assume, the CIP terms have clauses about insurance procedures, which is the main difference if you compare CIP and CPT rules.

So, under the CIP rules the seller is the party which is obliged to pay for the insurance policy.

Otherwise, CIP and CPT rules are the same.

What is the difference between FCA and CPT?

FCA is an abbreviation for Free Carrier.

Both FCA and CPT are rules of delivery introduced in the Incoterms 2010.

Free carrier rules state that the seller is obliged to transfer the goods to the carrier at the named place in the country of origin.

Such products have to be ready for export customs clearance.

When the goods are transferred to the carrier, the seller’s obligations under the FCA rules are considered as completed.

Does CPT Incoterms include insurance?

CPT Incoterms do not oblige parties to buy the insurance policy.

If the seller pays for insurance then this would be CIP Incoterms.

However, as a buyer, you can decide and pay for additional insurance even under CPT.

What kind of Incoterms were used before CPT?

The delivery conditions of CPT are a part of the Incoterms 2010 edition, which is the latest one and is relevant in 2020.

Previously, instead of the term CPT, the DCP (Delivered Costs Paid) delivery basis was used.

The first mention of DCP delivery rules was at Incoterms 1953.

What are the main challenges I’m facing while using CPT Incoterms?

As a buyer, to have to think of several important points while using CPT Incoterms:

1. Transfer of responsibility for your goods happens when the seller delivers the goods to the carrier. From this point, if some issues with your products occur, you have to carry them out with the shipping company by yourself.
2. There is no insurance mentioned in the CPT rules. If you want to secure your goods, you can either ensure them yourself or choose the CIP/CIF rules.
3. Under the CPT rules, the seller is obliged to perform export customs clearance only. You have to be sure that you’ll be able to clear products in import before choosing to use CPT.

What is the Tj chinafreight role based on the CPT Incoterms?

Tj chinafreight is a freight forwarding company, which means that it can provide carriage, packaging storage, brokerage, and customs clearance services.

In fact, choosing our services will help to avoid practically any hassle.

What kind of transportation modes can be used in the case of CPT Incoterms?

CPT Incoterms can be performed by any mode of transport including multimodal transport.

Shipping delays happen quite a lot in the trading sphere.

The reasons might vary a lot, but in the end, such delays can significantly affect your business.

Dealing with this problem might take a lot of will and skill, however, it is quite possible to guarantee that your shipments from China will be delivered as smoothly as possible.

Please, become familiar with this guide if you want to know top tips and tricks on how to do when shipping delay arises.

Let’s also mention that our article fits both buyers and sellers.

Don’t be afraid, this is a very rare scenario, but we won’t lie to you – sometimes it happens. 

In China, however, such a possibility is minimal due to harsh punishment for thieves.

How often shipping delays happen?

Shipping delays are far more common than everyone wants to think.

It is true not only in the case of China.

According to the worldwide statistics, from 6 to 12% of shipments are usually delayed regardless of shipping company or carrier.

So, on average, every tenth package is delayed.

This number can increase even more, to over 30% during times when service companies are overloaded.

One of five shipments deals with certain troubles during the delivery process (like delays or wrongly applied fees).

Even such carrier giants as USPS and FedEx have troubles with the timing of their shipments.

According to US government statistics, the delay rate in January 2020 was 12.87% (for USPS and FedEx packages sent between the USA and Canada).

Speaking of Chinese trading market, the situation with shipping delays is quite the same.

There are no official numbers about the percentage of shipments that were delayed.

However, we believe, that it is about 10 % of cargo is delayed each year when shipping from China.

What is a possible delay?

Sometimes you can see the tracking status “possible delay” while tracking your parcels.

It means that the parcel was received by your shipping company, but it might be delayed for some reason.

For example, there has been a disruption to the transport or delivery network.

This could be something like a flood or a traffic incident.

Why do LTL freight delays happen? How to avoid them?

The main reason why LTL freight delays happen is the impossibility of your shipping company to fill the container in time.

Logically, no one wants to send your single parcel in a huge empty container.

So, the shipping company might take some time to wait for other orders.

What are the demurrage charges? Who pays for them?

In international trade, demurrage refers to fees that the charterer pays to the shipowner for the delayed operations of loading/unloading.

Officially, demurrage is a form of liquidated damages for breaching the laytime as it is stated in the governing contract.

What are the main reasons for shipping delays?

There are a lot of scenarios which can lead to shipping delays.

We’ve gathered the most popular of them, according to international practice.

The most widespread situations are the following:

# 1. The shipment was delayed due to bad weather

The weather can’t be changed, and it badly affects all modes of transport. It is especially the case of maritime delivery.

# 2. The cargo is delayed because of port overload

Even with careful logistics, port and airline operators can’t predict the volume of future operations.

This can lead to overwork on the main routes and, eventually, to shipping delays.

# 3. The transport has changed its way for additional pickups

It happens not so often, but the shipping company can receive additional orders when the transportation was already started.

So, the ship/plane can make additional stops to make such pickups.

# 4. Lack of needed equipment or space on the transport

This situation happens due to logistic errors.

The shipping company can choose the transport that doesn’t meet all the required specifications for the successful carriage of goods.

There are also extremely rare but dangerous situations which can happen in international trade:

# 1. Your cargo was delivered to the wrong place

This is quite a tough situation. Yes, the carrier will do his best to deliver you goods eventually, however, it might take a lot of time.

You can require some kind of compensation from the shipping company or freight forwarder in this case.

# 2. Port operators have lost your cargo

Due to logistic error, your cargo might be delivered to the wrong haulage terminal under the wrong number.

# 3. Your container was stolen

Such vessels still pass through various quality tests but they appear to be broken much often.

# 4. The transport is broken

The vast majority of shipping companies use outdated transport which was bought at a discount.

How to deal with shipping delays (as a buyer)

To be fair, the buyer has little to do when it comes to shipping delay itself.

But there are some preventive means which can help you to avoid such a situation at all or shorten its possibility to minimal.

Let’s take a closer look at some example scenarios which happens quite often in international transportation.

# 1. No space on the scheduled transport

As we said above, sometimes it appears that the transport selected to carry your shipment doesn’t have enough space or equipment to do so.

What to do: Book the needed number of spots for your cargo ahead (approx. two weeks earlier before your goods are ready for delivery).

If you choose Tj chinafreight as your forwarding agent, you can always contact us and provide your specific shipping requirements.

We are aimed to be your trustful partner, not just a transportation service seller.

# 2. Your products can’t be delivered to the port in time

When you order FCL (Full Container Load), the suppliers usually fill the containers by themselves and deliver them to the pickup place.

In the case of the LCL shipment (Less than Container Load), the supplier delivers goods to the warehouse of the forwarder for the following consolidation.

And here’s always a certain cut-off date stated by the selected carrier.

Messing with this date means missing the scheduled transport.

What to do: Order the empty container as early as you can (at least 7 days).

Also, if land delivery is involved, do not forget to order it earlier because it is the most unstable mode of transportation

# 3. Wrong choice of the HS code for your goods

It is not a secret that the suppliers can apply for a tax refund from the government based on the HS code.

Such refund rate can be up to 17%, which is not bad money as you can assume.

This is the main reason why some suppliers might use the wrong HS code intentionally.

If customs staff find out such thing, they can hold your goods until the seller changes the HS code.

Also, the supplier might be obliged to pay penalty fees.

What to do: Work with trusted and reliable suppliers.

Also, Tj chinafreight can help you with transportation paperwork to help you avoid such situations beforehand.

# 4. Obligations connected with property rights

If you buy products under some brand, officials might require an authorization letter from the owner of such brand.

It can cost you a lot of time and money if you don’t prepare everything earlier.

What to do: First of all, be sure that you are working with patented suppliers.

Also, as it was said above, be sure to prepare all the documentation beforehand.

# 5. The vessel left late due to weather

This is a scenario where you can do anything.

Yes, you can try to believe in weather predictions and pick up hot seasons for your delivery, but it will not ensure the delivery time for 100 %.

Except for the above-mentioned scenario, you can actually prepare for unseen circumstances and guarantee yourself a timely delivery.

The easiest way to do so is to plan everything ahead.

Work together with your supplier and freight forwarder to make your shipping processes as quickly as possible.

Other tips

When it comes to the process of transit, the vessel changing its route is the most widespread case.

This is another scenario about which you can’t do anything, even if you are using the help of a freight forwarding agent.

But such agent will be the first who receive the information from the carrier, so he’ll let you know about the delay ASAP.

When the transit process is completed trouble still can arise.

Port delays can be the case for various reasons, including worker strikes, the overload of terminals, etc.

Keep in mind Chinese holidays

If you work with Chinese suppliers on a regular basis, you might already know about the time when holidays come to China.

The vast majority of buyers, however, do not know about such things.

This happens due to the culture gap between China and foreign countries.

There is a huge amount of different holidays in China, which are usually celebrated from a couple of days to three weeks.

Remember, that the following holidays can affect the delivery time:

1. National holiday (first week of October).
2. Chinese New Year (can be celebrated for three weeks according to the lunar calendar).

National Holiday is a time when most Chinese travel abroad or visit their relatives across the country.

There is a huge possibility of delay response from your freight forwarder or supplier during this holiday.

New Year can last up to three weeks, with a big percentage of people moving across the country.

For the better part of hard-working people, this is the only chance in the year to get a break from their duties.

Not all three weeks are actual holidays: officially, the Chinese New Year lasts for 7-10 days.

But we strongly recommend not to appoint deliveries for three weeks in total because there are a lot of exceptions for the above mentioned official rule.

As we said earlier, this time might be the only for the vast majority of Chinese people to relax and spend a couple of days with their family.

Note: the New Year date is calculated in accordance with the lunar calendar.

So, this date changes each year; usually, it covers the end of January and the beginning of February.

What do I have to do during Chinese holidays?

Undoubtedly, you can still decide to buy some goods from China during vacation time.

Business is always a business, and we can understand that.

When shipping from China just before or during holidays, there are two most popular scenarios:

# 1. An overabundance of freight orders

Such a situation happens just before Chinese New Year, in January.

Scheduling delivery is very difficult in this month, and the freight cost is higher than in other months.

# 2. Lack of delivery orders

In March, on the contrary, the freight cost should be relatively low, because there is a lack of products available after holidays.

So, manufacturers need some time to create new assortment.

You can think that it is a good time to make some shopping but it is not true.

Because of orders lack, carriers will take much more time to fill vessels.

What to do: Try to avoid these two holidays and their aftermath.

Require certain dates for the next New Year from your seller.

Keep in mind that in the case of delay the best thing you can do is to stay in touch with your freight forwarder.

Also, do not forget to add some kind of buffer days to your supply chain.

This will help you to avoid serious troubles if your shipment was delayed.

How to deal with shipping delays (as a seller)

The supplier has a lot of power to deal with shipping delays when it comes to them.

When such a situation arises, the seller can do a bunch of things to ease the anger of the buyer.

# 1. Speak with your clients

Obviously, it is extremely important for you to constantly communicate with your clients.

In other cases, your customer would be frustrated not only because his cargo was delayed, but also because there is absolute silence from the supplier’s side.

So, you have to be the first person from whom your customer will get such bad news.

Apologize if you should and try to explain the situation to them.

# 2. Use auditing and logistics services to account carriers activity

This is one of the most effective ways to ensure you get the time-bound service you deserve.

The better part of shipping companies provide refunds they delay the delivery process because of their mistakes.

That is why you need to audit partner shipping companies and request subsequent refunds each time they screw up the delivery time.

Using automated audit services can significantly reduce your costs and provide effective control over partner shippers.

# 3. Find a real-time tracking service

Find and apply for a service that will provide you tracking info in real-time.

Not all tracking services give such an option, but there are a lot of precise systems which will help you be informed every minute.

So, when you find out about the delay, you can perform some useful actions: send another parcel to your client or inform such person beforehand.

# 4. Take control over the delay scenario

It is much easier to say than do, but you have to act as a person who really wants to solve the situation.

You don’t even have to try to avoid direct actions because it will show you in a bad light.

Do not email your clients and partners if you want to act fast.

Take calls to receive and provide updates immediately. Don’t hesitate to make decisions which will be the best for your client.

Doing so, you’ll gain a lot of trust from your customers.

# 5. Give your client the power to make decisions

Your client will be glad to have some degree of control over the delay scenario as well. 

Give them some options or provide the power to decide how to deal with shipping delays.

You can send them goods for replacement and then recover the delayed package from the carrier.

Or, you can provide your clients with discounts, bonuses, compensations, and so on.

# 6. Use special offers

As it was said above, this is a great step to make special offers to your clients.

This can serve as the smartest step toward pacifying your customers’ anger and also make them feel valued.

For instance, you could provide them 50% off on the total value of their next shipment.

Or you could provide free shipping on their next two orders.

You can come up with your own ideas on how to make your clients happy.

# 7. Beware of empty promises

Some companies tend to make empty promises.

The vast majority of them just want to stay fit with the trend.

And the nowadays trend says that the packages should be sent ASAP after the order was done.

So, you can see a lot of freight forwarders, suppliers and shippers, who state that the delivery will be 100 % done in 10/15/20 days and so on.

Such statements make huge risks to arise: if you do not fulfill these promises, your customers would be in pure rage.

Try to avoid such things if you can’t really guarantee meeting the delivery deadlines.

# 8. Use multiple shipping partners

Obviously, you have to use only reliable shipping companies as your partners.

However, even the most trustful partner can have some issues with delivery processes.

That is why you need to have a full deck of shipping companies up your sleeve.

Sure, this might require attentive research on your part to identify the expertise of each carrier.

Frequently Asked Questions

Do Incoterms 2010 speak of shipping delays?

Nope, Incoterms 2010 do not have clauses or clear statements about responsibility for shipping delays.

When such things happen the buyer contacts the supplier, who on his part contacts the shipper to figure out this scenario and get some kind of compensation for its client.

How to avoid longer shipping times (especially when drop shipping)?

The shipping time might be reduced with the help of various means.

Please, watch the useful YouTube guide on this topic, listed below.

https://youtu.be/LDMzbMjujkQ

Does the insurance cover delays when importing from China?

Cargo insurance can cover freight charges for non-delivery of your products.

This will provide you the financial security if the goods are not being delivered, or if the freight contract is not completed by the freight company after being paid.

In case of a shipping delay, this insurance is not applying.

However, there are special policies which can cover delays.

Contact your insurance company and ask them about such insurance contracts.

Why do I need a shipping delay complaint letter?

Complaint letter might be needed if you want to pursue your shipping company for the delay.

Not all suppliers and companies will contact you and apologize for the shipping delay.

Sometimes, you have to start the refund process by yourself, and that is why you need a complaint letter.

In practice, it is a document in which the buyer states the deadlines and how they were not met by the shipper.

You can find the rough example of such letter visiting this page.

What Tj chinafreight can make to help me avoid late delivery?

We work with reliable shippers only so we can provide you with high guarantees when it comes to the absence of shipping delays.

Please, contact our customers’ service if you want to see us in your team of pure success.

Dropshipping is a unique form of online business.

It mainly takes advantage of a huge amount of retail platforms available on the Internet.

Dropshipping is a way to run a storefront without any need to keep constant inventory.

The question of this article is simple – how to gain maximum profit when dropshipping from China?

Without further ado, let’s jump straight into the topic.

How dropshipping works?

Before we start building perfect schemes of dropshipping from China, we need to figure out what exactly dropshipping is?

Speaking simple, dropshipping is the process of buying and reselling items.

But, you are earning not on speculation, e.g. you’re not buying 500 products and then listing them on some website with the hope to sell all of them at once.

It would not be a smart move for several reasons.

Firstly, it is quite a sizable and risky investment.

If the product you are looking for costs you 5 USD per unit, it is about 2,500 USD you have to pay.

The final sum can be lesser, but still, it is a big amount of money.

Also, let’s not forget that you have to pay for the shipment of goods to your premises.

And there is additional hassle connected with storing your products and keeping track of them. 

Finally, you have to sell such products for more than 5 USD per item (about 10 USD to make it somewhat profitable).

And let’s not even think about the situation when these products do not sell at all eventually (which happens quite a lot with rookie entrepreneurs).

Dropshipping is used to avoid every above-mentioned flaw.

You place some products on the website before even ordering them, at the prices which you see as profitable.

When someone reaches you for the purchase, you redirect such order to your wholesale partners.

They will deal with delivery, while you’ll be sitting in your room counting money.

It is a wholesaler’s business to keep his inventory and store it properly.

And he also takes all the responsibilities connected with the order fulfillment and timely delivery.

The only thing the drop shipper might deal with is the regulation of some customer service issues (like dealing with delays, damaged goods, etc.)

Pros of dropshipping

So, after we’ve dispatched the dropshipping process by pieces, let’s talk about its benefits.

Here are six reasons why you should look towards the possibility of being in the dropshipping business:

# 1. Easy to begin

The first and the most alluring benefit of dropshipping is that it is very easy to start with.

Two things you have to do is to find yourself a reliable supplier and sell his items to third persons.

There is no need of using some kind of physical store or warehouse when you start dropshipping.

Dropshipping also does not require you to have a big bag of money, to begin with it.

Sometimes you even don’t have to spend at all, because you will be operating with money from your buyers.

# 2. No warehousing options needed

As it was already mentioned above, there is no need to put up your warehouse, as well as to organize some kind of space to sell goods.

You only have to promote and successfully sell some items, while your suppliers will take care of these part of things for you.

# 3. Stressless process

Dropshipping is quite a stress-free process.

There is no hassle connected with delivering your goods when you have suppliers who offer high-quality services.

There is also no obligation for you to gather, pack, and ship products.

You can forget about the inventory tracking procedure.

The obligation of taking care of handling returns and inbound shipments will also be on the side of your supplier.

# 4. Sell as much as you want

When it comes to dropshipping, you can sell as many times as you want in a day.

The thing is that there is absolutely no pressure for you in the case of delivery processes.

You can take as many orders as you wish in a day without the need of going through the complicated shipping procedures.

# 5. Your company benefits from the success of your supplier

If you find good partners that show good performance, you can start to promote your business’ integrity and quality service.

But in fact, you’ll profit from the quality of your dropshipping partners.

It adds to the level of performance that you give to your customers.

In a way, it’s making yourself look good without doing much.

# 6. Limitless choice of goods

Finally, let’s not forget about the choice of products that can become available for you if you find the right shipping partners.

You can work with as many goods as you wish without the need to worry about making mistakes, delays or any type of inconveniences that come with it.

You don’t need to deal with only a few types of products because of such issues.

No matter how many products you display, as long as you have a great supplier, you’ll be just fine.

Cons of dropshipping

It would be a lie telling that the dropshipping process has no cons at all.

Like in any other case, this type of international trade can be quite challenging if you do not follow some key principles and use profitable strategies.

Let’s have a look at the disadvantages of the dropshipping to make you fully prepared for this business model.

# 1. Your supplier is a moving force of your business

It is not always a downside, but you have to remember that dropshipping is fully centered around the quality and stability of your supplier.

So, if your partner works flawless, you’ll both make your money without any problems.

But this is, of course, quite a rare situation.

Even the most qualitative supplier can eventually become unreliable which will make a huge impact on your business processes.

Another thing is that you are 100 % dependent on your supplier’s product choice.

For example, when you start to cooperate with some sellers, he has all the needed goods in his inventory which sell perfectly to your customers.

After some time your supplier can decide to change his manufacturing priority and start producing other goods which do not fit the requirements of your business.

If you want to avoid such a situation, try to work with several suppliers or make your favorite seller more interested in doing products exclusively for your purposes.

# 2. Dropshipping is a tricky process

Some of our readers might have decided from previous paragraphs that dropshipping is just a piece of cake to deal with.

This business is indeed easy to start with, and you can avoid a lot of issues connected with delivery processes.

But it doesn’t mean that you have to do nothing to gain your profit.

In practice, dropshipping involves a lot of complications.

Even if you have the most reliable suppliers under the belt, there still can be a lot of troubles, especially if you are dealing with a wide assortment.

The most hassle situation happens when one buyer wants to order multiple goods from various sellers.

This will complicate the process of packing the order up and delivering it.

# 3. Shipping issues

Let’s be fair: no matter how good the service of your drop shipper is, there is still the possibility of everything going wrong.

They can have a staff that doesn’t do a good job on your buyer’s order, or the couriers and shipping companies can have problems during the delivery.

The thing is you can’t predict such issues to happen: in the better part of cases they are not only unpredictable but also unintentional.

However, you still have to regulate such problems among your clients.

# 4. Huge variety of shipping costs

If you are doing business with several sellers at the same time, it also brings a lot of confusion connected with shipping costs.

Each of these suppliers can have their unusual rates and you need to count them before calculating your prices.

This process can be even more complicated when it is a rush order.

# 5. Dropshipping only 

Dropshipping is a great idea for a business, but it is also quite limited.

Opening a simple store can give you more flexibility and the possibility to cope with all kinds of customers.

For example, you can have a client in your area who wishes to see your goods in real life.

Or, you have a client who wants to get his goods ASAP.

In both cases, it would be practically impossible to solve them as a dropshipper.

# 6. Absence of physical samples

As we’ve already mentioned above, there will be inquiries about the looks and feel and things that involve touching the product in real life.

If you don’t have physical samples it could cause a loss of sale or hesitation to purchase the product for those clients who prefer to stay picky.

Is China a good place to seek for dropshipping partners?

Now, when we’ve figured out the key points of dropshipping, let’s speak of its tendencies in China.

You may already assume that this article would not see the sunlight if the dropshipping from China wasn’t a good idea.

The main reasons why you should try Chinese dropshipping partners are as follows:

1. Chinese suppliers offer the best prices in the vast majority of situations.
2. Despite low prices, the quality of Chinese goods is above average or even better.
3. There are tons of shipping companies in China, so finding a good carrier should be quite easy.
4. Because of huge manufacturing capacities, Chinese sellers can offer you all imaginable products for a reasonable price.
5. Here, you can easily find originally branded goods or well-made copies of such products.
6. Because of high competitiveness on the market, each Chinese supplier tries to provide the best services to its customers.

China became the biggest manufacturing and trading giant in recent years, so it is not a big deal to find reliable sellers here.

However, there are still some disadvantages when it comes to dealing with Chinese suppliers:

1. The vast majority of Chinese suppliers prefer to deal with wholesale orders, which is not the option for you.
2. Speaking of prices, they are also dependent on the order quantity.
3. China is a big transport hub that is connected with all countries across the world, however, it still takes a lot of time to deliver goods from here.
4. There are a lot of scammers and counterfeit products in the Chinese market.

Even though such flaws might cause you some troubles, they can be easily avoided with the help of a trustful sourcing agent, or with a strong analytical approach towards your partner’s selection.

Top Chinese platforms for dropshipping

There are a lot of sellers in each country that can help you to establish your dropshipping model.

However, Chinese manufacturers can offer you better prices and wider assortment, which are hard to beat.

Logically, there are also lots of Chinese online platforms that were created exclusively for dropshipping purposes or at least have some suppliers who can help you with it.

Let’s have a short look at some of them.

# 1. Chinabrands

The first reason why Chinabrands is winning our first spot is because of its wholesale pricing policy.

You can buy single items and still achieve a good price because of the integrated supply network of key manufacturers and agencies under the Chinabrands belt.

Another great thing about Chinabrands is a high-quality description of each product that can be found on this platform.

Chinabrands support team creates informative product details and take precise high-definition photos of the product to help its customers by picking only the needed goods.

Finally, let’s mention the professionalism of the Chinabrands QC team.

The maximum prerogative is accorded to the product quality of every displayed item.

This work is performed by highly trained, professional QC technicians who handle and perform every wee bit process of internal quality check mechanisms and procedures.

Suppliers can’t negotiate on quality with these specialists, so if some product is not showing good features, it would be banned from posting on the website.

# 2. AliExpress

AliExpress is maybe even more well-known than Chinabrands.

It operates as an online network that connects world-wide buyers to minor enterprises in China.

It is compared to Amazon by some people, but in our opinion, it is more similar to eBay in that both individuals and sellers can showcase their merchandise on a similar basis.

However, the major lack of AliExpress lies in the fact that it is restricted to Chinese mainland buyers and non-Chinese businesses to trade on this platform.

Another thing is that you have to depend on the AliExpress store rating mechanism and reviews as there is very little info present regarding each store.

# 3. DHgate

DHgate functions exactly like AliExpress interlinking global buyers with enterprises in China.

They provide you buyer safeguards and maintain an escrow process wherein the payment is passed from the purchaser to the vendor only after the buyer receives his product.

How to choose your platform?

We strongly advise trying all three above-mentioned platforms.

You never know where you find a reliable supplier with needed products.

All three platforms contain interesting items, unique sellers and can offer you various discount proposals.

So, you can start your research right by just visiting these platforms via provided links.

If you want to find more platforms for dropshipping from China, please check the video linked below.

How to find and choose Chinese products for dropshipping?

Finding the right products for your dropshipping business can be quite a tough process if you do not know how to start.

The thing is that your ultimate goal should be not only to find needed items.

What is more important, you have to find the right niche in the economical world.

In practice, the easiest way to begin a dropshipping business is to find a hot market:

1. What are people interested in right now?
2. What trends are big?
3. What is the hot item at the moment?

Basically, you need to find a market where people spend a lot of money and which they are passionate about.

Note: it is recommended to search for a niche that is interesting for you as well.

A good understanding of your business will give you a strong advantage among your competitors.

When you find the preferable field for your activities, you have to ask yourself about the problems which your items will solve for your customers.

As you may know, this is an important rule in economic science: each product is solving some kind of issue in the client’s life.

So, when you are looking for the products on the Internet, try to think of their ability to solve real problems.

Try yourself: think of some difficulties which you have in your life.

Do you need new accessories for your gadgets?

Or do you need some helpful tools for your kitchen/household?

These are examples of small but significant issues that happen in the everyday life of every human.

If you try to listen to what people tell about such struggles, you’ll hear their needs, even if they are spoken indirectly.

You need to be empathetic to their needs and work to understand them correctly.

Finally, use your online store to provide your customers with problem-solving tools.

Remember, the product is just a commodity that can be easily replaced with something similar or cheaper.

People wish to achieve something more significant than a product in their pocket.

In any niche, it is important to offer something of value other than just an item. 

As an example, if you are selling cookware, add a recipe book to each order.

If you want to build long-lasting relations with your customers, you have to provide real value for them.

So, to determine what kind of niche fits you better, you should:

1. Search a hot market.
2. Ask your clients about their needs.
3. Try to fulfill such a need with some kind of products.

If you can’t come up with your ideas, you can find hot markets using AliExpress’ Bestselling page.

How to go through the order fulfillment process?

Speaking of the fulfillment process, multiple options can give you some strong advantages which were discussed previously.

But it also brings a couple of questions: for example, how do you know which supplier to choose?

There are a few different methods which you can use in your working scheme:

#1. Choose a single supplier for the vast majority of orders

The simplest method is to find one reliable supplier which can fulfill all your orders.

Just in case, you can also find a couple of spare sellers who can come up when the emergency arises.

You can add your main supplier’s email address as a recipient for all new order confirmations, automating the whole fulfillment process.

# 2. Choose the supplier based on shipping properties

China is a big country, with lots of economic hubs where you can find reliable manufacturers.

And there are tons of shipping lines in each big city, so the shipping rates and the delivery time might slightly vary.

So, you can try to choose the supplier with the fastest and cheapest transportation options.

# 3. Choose the supplier based on the item availability

If your store contains a large assortment, you’ll most likely need to choose the supplier due to the availability of one or another item.

Needless to say that when doing it manually, it complicates your life a lot.

There are automated platforms like Ordoro, but your suppliers have to provide data feeds to run it correctly.  

# 4. Choose the supplier based on price

This sounds easy, but in dropshipping, it is quite frequent when several suppliers give you practically the same price on some items.

While searching for the best price, do not forget to consider potential delivery fees, real-time shipping rates, and supplier pricing under the chosen currency.

Note: You can try to achieve the best price by contacting the suppliers and showing them the prices of each other.

Just don’t try to do this too early: if you’re asking for discounts as a newcomer, the only things you’ll achieve are declines and tense relations with sellers.  

How to deal with returns in dropshipping?

As you may know, each store has to have some kind of return policy.

In the case of dropshipping, it becomes quite tricky to figure out the most optimal solutions because your suppliers might have different policies on their side.

If they have a 45-day return window, it gives you a lot of space when dealing with returning issues.

But some Chinese suppliers have strict rules in this matter, and a single supplier might be the reason why you’ll also have a strict policy.

When your client requires to return a product, the process will look like this:

• a client contacts you to apply for a return;
• you contact your supplier and require an RMA (return merchandise authorization) number from him;
• the client sends the product back to the seller, mentioning the RMA number on the shipping documents;
• the supplier returns the money or sends appropriate goods to your client, with some kind of bonus;
• you refund your client or wait until the replacement product will arrive.

Despite the simplicity of the paper, the return process might involve a lot of complications.

# 1. Return charges

A lot of Chinese sellers include fees for return processes.

Even if your seller charges for it, we do not recommend to redirect them to your customers.

Such things seem quite outdated and unfriendly.

Instead of this, you should calculate your prices including possible return fees.

# 2. Defective items

You have to use a special approach when dealing with the return of defective products.

Some dropshippers prefer not to cover shipping costs when their customers return such items.

In some way, this might come from the idea that they haven’t manufactured products so they are not liable for its defective properties.

We, however, recommend to be more polite and compensate such shipping fees.

This would be a good approach if you are interested in the creation of a reputable enterprise.

If the defective product is inexpensive, you should probably avoid the hassle for your customer to ship it back and just send him a replacement.

# 3. Dealing with the angry client

Let’s not forget that when your customer gets products that are defective or simply doesn’t correspond to his expectations, you get quite a confused and most often angry person to deal with.

Which is more important, such a person will never go back to you as a customer, if he doesn’t get some kind of compensation for his troubles.

You have to create a reasonable return policy, provide your clients with bonuses and propose discounts for their next purchase.

# 4. Your supplier may be unreliable when it comes to returns

Some suppliers won’t pay for shipping when replacing defective items or even pave away the possibility of return.

Needless to say that such suppliers might be avoided from the very beginning, but every dropshipping veteran will tell you that finding a good one can be an everlasting issue.

Even if you find a reliable seller, no one guarantees you that he’ll not change his assortment with time, close his business or simply become unreliable.

In any case, it doesn’t mean that you have to think about your customers in the first place.

So, even if your supplier lets you down, try to find a similar item or simply pay your customer the whole order price from your pocket.

If you’ll be smart and have a good choice of suppliers, such situations won’t happen frequently.

Note: if the customer wants to change a non-defective item for money, the better part of companies will oblige such clients to pay the shipping costs.

If you want to stand out among the masses, you can offer free returns.

Bear in mind that this might be expensive if you won’t calculate your prices correctly.

Also, you’ll have to deal with clients who order products just for fun (you’ll be surprised, but there are a lot of such customers).

How to deal with shipping procedures?

When you dropship internationally, you have do deal with various restrictions and limitations, such as:

• various rules for weight and length in different countries;
• additional charges from suppliers;
• extra hassle while resolving problematic orders due to higher shipping fees;
• additional costs for shipping large, heavy or dangerous goods.

Also, you have to correctly calculate shipping rates, which can become a tough procedure.

When you are dealing with several suppliers who ship from different locations, it’s difficult to accurately calculate shipping rates for each order. 

There are three ways of how you can calculate shipping rates for your products:

# 1. Real-time rates

Using this approach, you’ll calculate shipping rates using the total weight of purchased products and the final destination.

This method is quite accurate but you have to keep in mind the rates of each partnership warehouse.

# 2. Per-type rates

Using a per-type method, you’ll set an average rate for each product type.

For example, all small packages would be shipped for 5 USD, while larger orders would be shipped for higher rates (10 USD and above).

# 3. Flat-rate shipping

In this case, you’ll charge a single flat rate for all orders, regardless of product type, weight, and final destination.

You can also offer free shipping for all your customers, but this requires good pricing strategies from you.

Please, check the next video guide if you want to learn about duties and taxes while dropshipping from China.

Conclusion

The best way to end this article is to remind our readers that there is no single formula of prosperity when it comes to dropshipping from China.

There are other things which you have to consider, like promotion of your store, dealing with taxes, monitoring the market and your nearest competitors, etc.

However, even if you do everything correctly, but fail to choose the right niche, all your efforts can become meaningless.

You should be ready for changes on the market and in the minds of your customers, as well as for issues connected with international tendencies.

But we believe that if you have a good idea and a strong understating of it, there is only diligence which you have to put in the mix for 100 % success.

Speaking of the whole international trade flow, we can’t even imagine the number of shipments processed every day.

Some transportation hubs pass over millions of packages each day, and it is very crucial to not get lost among this mass.

There are a lot of tools that help warehouse operators and carriers to figure out what package lies in front of them.

One of the most popular means for it is various shipping marks.

Let’s find out what shipping marks are, what types of shipping marks are there and how to properly use them.

What is a shipping mark?

Thanks to the rapid advances in logistics technology, the global freight transportation infrastructure could handle enormous volumes of cargo each year.

For example, in 2008, more than $16 trillion of exported freight was delivered across the world.

Despite the overload of the flow, all operations in international freight transportation must be completed smoothly from beginning to end.

To prevent wrong delivery, accidents, losses, customs penalties or damage resulting from improper storage or incorrect handling, the worldwide trade practice presumes that each shipping unit has to be marked with the required shipping marks correctly and completely.

Another reason why the shipping marks were introduced in international trade is that all the packages have to be spotted and recognized at a distance with ease.

Such marks can help the cargo to be handled right and efficiently during the whole delivery process.

So, basically, shipping marks serve two main purposes.

First of all, they are used as identification marks for the carriers and all those engaged in the carriage and handling while in transit.

Secondly, they are used by the consignee to identify the corresponding order and ensure the correct delivery.

As for the definition, shipping marks are some symbols, words or numbers that are attached to each package unit for easy identification and handling of the shipment.

What are the main types of shipping marks?

There are several ways of how we can categorize shipping marks.

First of all, shipping marks are divided due to their placement:

1. Package marks.
2. Boxes marks.
3. Pallet marks.
4. Container marks.

Also, we can divide shipping marks into the following categories:

1. Marks for shipments.
2. Marks for documents.

In practice, shipping marks are used to show the description of transported goods, the origin of goods, handling information, inner package type, and quantity, net weight, gross weight, consignee details, etc.

Also, there are special shipping marks for unconventional cargo, such as fragile or dangerous goods.

Speaking of certain examples, the following shipping marks have to be printed on the boxes for the international freight:

• buyer’s name and/or logo;
• product reference and/or order number;
• the net and gross weight of a single carton;
• dimensions of a single carton;
• number of carton (example: 1/230; 2/230; 3/230…);
• country of destination.

For the warehouses or distribution centers’ purposes the next shipping marks might be required:

• product reference (SKU) and/or order number;
• other relevant information about the products: season, size, color, or breakdown of the different types of goods inside a particular carton;
• the above information is often contained in a barcode or an RFID tag, for faster processing.

If you want to learn more about the warehousing processes, please, read our full guide on this topic.

What are the main rules when using shipping marks?

There are a few key shipping marks related rules that all involved parties have to follow.

Such include:

Rule #1. Shipping marks that indicate destination and transportation points should be applied with the help of stencil with waterproof ink on three sides of the package.

Rule #2. Shipping marks don’t have to show the real trade names of your products.

Instead of that, coded marks are used so the handlers are less aware of the contents and therefore that the goods are less subject to theft.

Rule #3. The above-mentioned codes for shipping marks should be changed from time to time to minimize any familiarity handlers may develop with the codes.

Rule #4. If the shipment requires any sort of specialist handling or treatment then the shipping marks should show it as well (this info should also be present on the bill of lading).

Rule #5. All cautionary shipping marks must be permanent and very readable.

If there are different languages in the country of origin and destination, make sure that shipping marks are printed in both languages.

Rule #6. It is highly recommended to avoid materials that are not waterproof when making shipping marks.

Rule #7. Most freight shipping will require a certain level of handling at the target destination, so it would be quite rational to print the handling instructions on the exterior of the shipping crates or cardboard boxes in the language of the destination country.

Even though the use of shipping marks is not regulated by a single law, the above-mentioned rules are obligatory and their break might cause huge issues during the delivery.

Shipping marks for the LCL shipments

When you’re shipping cargo which is less than container load (LCL), your products will be placed into a shared container with other orders.

Even though the LCL shipping is an efficient and cost-effective way of delivery, it might be quite confusing to search through all the packages inside the container and find the correct one.

Imagine if a dozen companies packed in a shared container about 50 packages which look quite similar from the first glance.

You can see where it becomes confusing, can’t you?

As long as your goods are labeled correctly with the right shipping marks, it’s easy to separate them when the container is unpacked.

To do so, the parties involved in the delivery need to take several steps:

1. Your supplier has to correctly label your package and include its code in the transportation documents.
2. The shipping company puts several packages from various suppliers in a single container with a special number.
3. The shipping company includes info about all the packages inside such a container in the transportation documents.
4. When the goods get to the country of destination, it is easy to find your package with the help of container number and transportation documents.

So, as a buyer, you have not much to do with the process of labeling your goods.

However, if something goes wrong due to improper marking, you can require the compensation for such cargo.

Shipping marks for the Amazon FBA

We believe that the vast majority of our readers are already familiar with the Amazon FBA concept (if not, please, read our full guide on this matter).

So, if you try to ship your products to Amazon FBA, there are additional labels that will need to be put on the cartons.

Amazon has a quite strict marking and packaging requirements for freight to be accepted to the warehouse.

Basically, you have to visit your Amazon FBA page, select products that you want to send, create and print barcodes for them.

Please, watch the following Amazon video guide for FBA labels.

How to mark dangerous goods?

Proper marking of dangerous goods increases the security of transportation due to extreme care with which they are proceeded.

As you can see from the picture below, there are six marks which have to be placed on the box with dangerous goods.

Also, there are special marks for the limited quantity and excepted the number of dangerous goods:

If you are not familiar with the topic of the dangerous good, you can check the following Tj chinafreight guide.

Frequently Asked Questions

How to make shipping marks?

Generally, it is the seller’s obligation to prepare your package and apply all the needed shipping marks.

However, it wouldn’t be superfluous to understand how the shipping mark has to be created.

Here are some general recommendations:

1. Shipping marks can be both printed and handwritten, however, the latter ones are more difficult to read.
2. More important information should be easy-to-reach.
3. Depending on the type of product you want to ship, appropriate warning signs may need to be printed on the cartons as well (for example, if the product is easily damaged, use a “fragile” sign).

What shipping marks are required when exporting from China?

Practically the same shipping marks as in the rest of the world.

The only difference is that it is better to print all shipping marks both in English and Chinese.

What different shipping marks mean?

Needless to say that there is a big choice of shipping marks used in international trade.

In practice, there is no single document or webpage where you can see all existing shipping marks.

If you want to learn more about various shipping marks and their looks, please, visit this guide.

Also, you can check some popular marks in the picture below.

Which documents should contain shipping marks? Are there some exceptions?

Practically every document connected with international trade requires the use of shipping marks.

Some documents may cover almost all of the shipping marks that are related to your package, while other documents may refer to one or two shipping marks.

The packing list should speak of as much shipping marks as possible.

In addition to the packing list, the bill of lading and commercial invoice should cover the related shipping marks.

Speaking of the exceptions, the bill of exchange should not cover any shipping marks on it, except the letter of credit number.

The bill of exchange is a negotiable instrument and the format of the bill of exchange regulated by the local law.

What kind of shipping container markings are used in international trade?

# 1. Container number is the main marking which can be found on the door.

It is an alphanumeric sequence made up of four alphabets and seven numbers.

# 2. The check digit is basically a part of the full container number, which can be used to identify if the above-mentioned number is valid or invalid.

# 3. Container owner or lessor, which is the entity that owns or operates the container.

This could be a shipping line or a container leasing company.

# 4. Max gross is the maximum weight that the container can carry including its own tare weight.

# 5. ISO Code is given to each container to avoid any ambiguity in naming the container.

For example, in different countries, a standard 20′ container is called Dry Van (DV), General Purpose (GP), Standard (SD), Normal, Dry Container (DC), etc.

As these terms are all different, as a standard, the ISO code of 22G1 is used to denote that the container in question is a 20′ container.

# 6. Classification society label for type testing, which can be achieved after the container is tested for its strength, cargo, and seaworthiness.

# 7. The weight of the container is the actual weight of an empty container and this is given by the manufacturer at the end of the manufacturing and labeling process.

# 8. Max payload is the maximum weight of the cargo that can be packed in the container.

The misdeclaration of this weight by the customers has severe consequences both to life and property.

# 9. Cube is the maximum volume in the cubic capacity that can be packed into the container. 

Unlike weight, it is not possible to over pack the container by volume as it will be quite evident.

# 10. CSC, ACEP & other certifications (every container should have a valid safety approval plate called Container Safety Convention plate or CSC to be used in international trade).

What does the umbrella symbol mean on the packaging?

You might be familiar with the umbrella symbol on packages due to its popularity.

It means to keep the package away from rain or damp conditions.

Another popular symbol is the thermometer sign.

This symbol is generally found on packages that contain food or drinks.

Shipping marks, labels, and symbols – is it the same?

Shipping marks are a very loose term.

Practically any symbol, word or number can be considered as a shipping mark in export and import transactions.

China is well-known as a place with the best wholesale terms for all popular products.

Due to the distant location from other world markets, Chinese suppliers had some issues with distribution channels.

However, modern technologies broke this wall and dozens of wholesale web platforms were created.

Some of them are more suitable for beginners, while others can be used only if you have certain knowledge.

We’ve tried to sort the top 10 of the best Chinese wholesale websites that provide the best prices and qualitative services to their customers.

Without further ado, let’s begin our tour.

Alibaba.com

Alibaba is one of the largest B2B eCommerce websites worldwide.

It can be considered not only as the first website that introduced the concept of wholesale eCommerce but also as the service which opened the doors of the Chinese factories to the worldwide market.

Before Alibaba was created, it was quite a complicated thing to search for and negotiate with the Chinese suppliers (due to various factors like language, huge distance, and so on).

So, Alibaba was the very first platform that solved these issues and allows you to deal with Chinese suppliers with the help of few clicks.

Alibaba doesn’t sell products itself: in practice, it is just a marketplace where buyers and sellers can meet each other and conclude agreements.

Sellers create special accounts, list their products, interact with buyers and proceed deals.

In short, Alibaba just acts as an intermediary between buyers and suppliers

It primarily facilitates the discovery of products, communication & payment.

Founded by Jack Ma in 1999, Alibaba group is headquartered at Hangzhou, China.

Buyer safety measures

One of the strongest features of Alibaba is buyer safety assurance.

In fact, this service has solved the biggest issue between Chinese suppliers and foreign buyers: lack of trust.

The following are the key mechanisms that are used to guarantee the buyer’s safety.

# 1. Trade assurance

Trade assurance is a concept wherein Alibaba assures buyers of timely and properly made delivery.

If the supplier doesn’t deliver goods on time, or if such goods have low quality, then Alibaba will refund your money.

If you want to be a part of this program, you have to apply for a trade assurance contract with the supplier.

To do so, follow the next simple steps:

1. Contact the supplier to require the needed info about products.
2. Receive quotes from such a supplier.
3. Ask the supplier about the trade assurance order contract option.
4. Accept the contract and make payment.

Before closing the deal, make sure that the contract mentions product specifications and stipulated delivery time.

If the supplier doesn’t carry out everything properly, you can report it to Alibaba customer support.

Maybe the best part of it is that the trade assurance service is totally free of charge.

# 2. Gold suppliers

Another reliable way to make your deals more secure is to make business only with so-called “Gold suppliers”.

A gold supplier is a premium membership program that comes at a cost to the suppliers.

A seller who wants to register as a Gold supplier needs to pay a membership fee to Alibaba.

After this, gold suppliers are checked and verified by Alibaba’s third-party inspectors.

So, it is impossible to become a gold supplier if you don’t have a legally registered business with a physical presence.

According to Alibaba’s analytical department, 85% of the buyers are willing to deal only with Gold suppliers.

# 3. Company profile metrics

If you open a supplier’s profile on Alibaba, you can see a few crucial metrics like:

• transaction level;
• buyer ratings and reviews;
• recent transactions;
• trade capacity;
• production capacity;
• R&D (research and development) capacity.

The above-mentioned indicators can help you to figure out if some seller is reliable or not.

As an example, if the production capacity doesn’t match your requirement then that supplier isn’t a long-term fit.

Another example: if the seller’s recent transactions don’t show any activity then it’s a sign that the seller isn’t popular.

# 4. Quality inspection service

Another means for the buyer’s protection is the independent quality inspection service.

Alibaba quality inspectors can visit each supplier or factory on your behalf and inspect the needed goods.

These inspections can be performed at various manufacturing stages like pre-production, during-production or post-production.

Please, keep in mind that this service comes at the cost of a buyer.

Thus, it is worth to apply for this service if you order a big amount of products.

Delivery time and modes

Speaking of the delivery time and transportation modes, it is entirely the seller’s choice.

As we already figured out, Alibaba is a marketplace so it doesn’t have direct control over sellers’ inventory and its movement.

However, Alibaba has its own logistics service that integrates with top players like DHL, FedEx, TNT, and so on.

Also, a real-time online tracking service is available.

Payment methods

Another great thing about Alibaba is a feature called secure payment.

According to the rules of this system, the supplier won’t receive your money until you confirm the delivery of products in proper condition.

Basically, secure payment feature functions as an escrow system.

However, you won’t be able to use this option if you pay the Alibaba supplier directly.

Instead of that, you can pay via Alibaba using its secure payment feature.

Alibaba supports various payment modes like:

1. Credit card.
2. T/T.
3. e-Checking.
4. Western Union.
5. Pay Later.
6. Boleto.

Product quality assurance

So, Alibaba assures goods quality with the help of the next services:

• trade assurance;
• inspection;
• secure payment.

Also, the transaction indicators are effective in judging the quality of products or suppliers.

Prices

Alibaba has an enormously large seller and buyer base, so there is a huge competition out there.

Therefore, sellers try their best to give the cheapest rates for their customers.

Also, Alibaba periodically runs offers and discounts for active customers.

Pros of Alibaba

• huge seller and product base;
• effective buyer safety measures;
• good prices;
• logistics and quality inspection support;
• bulk RFQ (Request for a quote) feature.

Cons of Alibaba

• not so user-friendly and quite an outdated interface;
• inaccurate product prices and descriptions;
• the complicated ordering process (browse, contact multiple sellers, require quotes and compare them, apply for the trade assurance, make a payment).

https://youtu.be/QJDR1_I1aYU

Aliexpress.com

While Alibaba focuses on huge wholesale and bulk orders, AliExpress was introduced to fulfill consumers’ and small wholesale orders.

In fact, AliExpress is considered as one of the world’s largest B2C and B2B portal.

It is owned by the Alibaba group as well.

AliExpress follows a special pricing structure: when you increase the quantity of the products, the price per unit would drop accordingly.

Also, buying from AliExpress is faster than in the case of Alibaba.

Basically, AliExpress is just like Amazon: you simply add the needed goods to your cart and pay for them.

There is no need for quotations like when you trying to deal with Alibaba sellers.

Also, AliExpress manages everything else like logistics, buyer assurance, etc.

Buyer’s safety measures

Logically, AliExpress also has its assurance mechanisms to keep its buyers safe.

Let’s have a short look at some of them.

# 1. Refund guarantee

Just like in the Alibaba case, you can request a full refund if you don’t receive bought goods or if their quality differs from the description.

To do so, you should fill the complaint form and wait for a reply from the AliExpress support team.

Also, some documents from the postal office and pictures of goods might be needed to prove your position.

# 2. Guarantee of on-time delivery

AliExpress guarantees the receivement of your shipment before a certain date.

If the delivery happens too late, you can also raise the issue with their support team.

# 3. Extra warranty

If you live in one of the EU countries, you can be a part of the AliExpress “Extra warranty” program.

With its help, you can get two years of guarantee for the vast majority of products listed on the website.

Don’t hesitate to ask the AliExpress seller about such an option.

Delivery time and transportation modes

When you proceed through the checkout process, you can choose between several transportation methods.

So, the delivery time purely depends on the selected logistics service provider, as well as on your location.

The following providers are available when you are buying on AliExpress:

• UPS;
• FedEx;
• DHL;
• TNT;
• EMS etc.

The logistics providers might vary from one buyer to another.

Premium logistics companies like UPS, FedEx, DHL, and TNT provide quite a fast delivery (within 6 to 12 days to the USA).

And public companies like EMS take a longer time to deliver (about 25-30 days to the USA).

AliExpress also has a great logistics option called “ePacket” to the buyers of select countries.

If you choose ePacket, then you can expect a quicker service (within 15 days to the USA) at a very profitable price.

So, you may have to pay much more for the services of premium logistics like DHL, while ePacket would cost less and deliver goods within practically the same amount of time.

So, if you see that AliExpress offers you an ePacket option, it is highly recommended to use it. 

Finally, there is also a standard AliExpress shipping option, which is free of charge in the better part of cases.

But, it is also the slowest way, about 40 days to the USA.

Payment methods

When buying from AliExpress, you can choose between the next payment methods:

1. Credit card.
2. Paypal.
3. Wire transfer.
4. Webmoney.
5. Western union.
6. Boleto.
7. SMS payment.
8. Cash payment.
9. AliExpress pocket etc.

Some payment modes (like Paypal and cash payment) are available for certain countries only.

In general, the AliExpress payment system operates quick and smooth.

In case of any issues, you can contact their support team.

Also, AliExpress uses a so-called “3D secure” technology which adds an additional layer of safety for online card transactions.

Product quality assurance

AliExpress is a huge marketplace with thousands of suppliers listing their products.

So, you have to assess the sellers well before buying some goods.

When you get on the page of some product, on top of it you can find some important info like:

• store open date;
• customers satisfaction score;
• customers feedback like Item as described, communication, shipping speed, etc.

Make sure to check all the quality indicators thoroughly.

Also, you can choose between several products according to their ratings which could be found below the product title.

Prices

AliExpress pricing seems to be the most reasonable when we are talking about small wholesale quantities.

Another attractive thing is the fact that AliExpress offers regular flash deals and sale coupons to their customers.

Pros of AliExpress

• quite simple and quick ordering process;
• worldwide delivery;
• 100+ million product categories;
• 24/7 live customer support.

Cons of AliExpress

• prices are not competitive for large wholesale orders.

https://youtu.be/LMGTzcOXuuk

Made-in-china.com

Just like Alibaba, Made In China might be considered as one of the oldest Chinese wholesale websites for international buyers.

Made In China is a marketplace just like the better part of websites on our list.

It was founded in 1998, headquartered in Jiangsu, China.

Buyer safety measures

Made in China uses several methods to guarantee the safety of its buyers.

# 1. Verified suppliers

Made In China states that they have only verified suppliers listed on their platform.

All verified suppliers achieve the corresponding badge, which can be seen near their name.

# 2. Secured trading services

Just like Alibaba, Made In China staff releases payment to the sellers only when you confirm the delivery of such products in proper state.

Also, under this policy, Made In China provides inspection services.

That means you can hire some third party inspectors who can check the quality of goods in real life.

# 3. Offline and online sourcing meetings

We mostly appreciate this option from the Made In China.

In fact, the platform staff can help you to meet interested suppliers face-to-face.

Yes, that’s totally possible.

If you don’t have time to meet the supplier face-to-face, you can require the online meeting option.

In this case, Made In China staff will arrange the online meeting with the seller of your choice.

# 4. Business information report

If you want more information about the seller, you can always request an info report from Made In China.

Typically, the following report will contain the next data:

• risk analysis;
• trade payments;
• history;
• operations;
• corporate structure;
• finance & banking;
• public records.

# 5. 360-degree virtual tour

Another unique thing about the Made In China is that a lot of suppliers have made a 360-degree virtual tour to their offices and factories.

You can find a corresponding icon near the seller’s name.

# 6. Audit report

Made In China presumes the audit option for the better part of its sellers.

You can check the Audit icon beside the name of the seller to figure this out.

The audit is needed to verify the next info:

1. Product and manufacturing capacities.
2. Management system and certification.
3. Production quality control.
4. Financial capacity.
5. Working processes and environment.

Note: we recommend you to deal only with suppliers that have been audited by Made In China.

Delivery time and transportation modes

Please, bear in mind that Made In China isn’t a simple straight forward purchase platform like DHgate or AliExpress.

It means that you can’t just select the needed goods, delivery partner and pay for it.

Instead of that, you have to contact the seller and request a quote, like in the case of Alibaba.

So, when it comes to logistics partners, you have only two basic options.

First of all, you can use the seller’s logistic partner or choose one from the Made In China logistics marketplace.

Made In China supports some reputed logistics agents, as well as direct shipping companies like DHL, FedEx, etc.

As in any other case, the delivery time depends on your location and chosen transportation mode.

Payment methods

Made In China supports the use of credit cards only.

It means that you can’t use popular payment systems (like Paypal or Webmoney) to checkout on this platform.

Product quality assurance

Firstly, the quality of Made In China goods is assured by the aforesaid buyer safety features.

Secondly, the product quality is assured due to the high competitiveness of this marketplace.

Finally, Made In China lists various MEI (manufacturing excellence and innovation) award-winning products.

The MEI awards are categorized into the gold award, silver award, individual award, nominated award, and selected award.

Prices

Made In China is a huge marketplace, so you can be sure that you can find reasonable wholesale prices here.

Pros of Made In China

• buyer safety mechanism;
• intuitive user interface;
• wide range of suppliers and goods.

Cons of Made In China

• complicated buying procedure;
• slow customer support.

https://youtu.be/idLZG9UyBPc

DHgate.com

We can recommend DHgate as the best Chinese wholesale website for beginners in international trade.

The fast and easy wholesale buying experience is the main feature of DHgate.

As it becomes clear from the previous examples, buying wholesale isn’t an easy process.

You need to find and shortlist a bunch of verified sellers, talk to them, request quotes, choose transportation modes, then close the deal.

And we have to mention that such activities take a lot of time.

And when using DHgate, you have to simply add the needed goods to your cart and checkout.

Also, on DHgate you can make both small and large wholesale orders with ease.

The popularity of DHgate is also explained by the fact that it hosts more than 30 million products.

DHgate headquarters is located in Beijing, China.

Buyer safety measures

It is absolutely safe to buy from DHgate, mainly due to mechanisms used to protect buyers while they are dealing with local sellers.

# 1. Escrow payment model

Your seller won’t receive money until you confirm the delivery of ordered products in proper conditions.

# 2. On-time delivery

Some DHgate sellers have the on-time delivery badge beside their names.

This means that such a supplier has a nearly perfect proportion of successful on-time deliveries.

# 3. China brands badge

You can check if the seller has a China brand badge or icon in its profile.

It means that such a supplier deals with genuine and original made-in-china goods.

# 4. Facility certification

DHgate does field-level verification to check the supplier’s facility or manufacturing site.

These tests are conducted and performed with the help of independent third parties.

So, if a supplier has the field certification badge then you can be sure that such a supplier is totally legit.

# 5. SquareTrade

If you are a US citizen, you can use the SquareTrade feature to get an extended warranty for electronic products.

You can see the corresponding badge near the supplier’s name, just like in previous cases.

# 6. Premium merchant

Suppliers who provide excellent customer service and high-quality goods are tagged by DHgate as premium merchants.

# 7. Top merchants

Premium merchants who also have high-volume sales are marked as top merchants.

This is one of the first badges you should look for when buying on DHgate.

# 8. Return and refund policies

Like many other platforms, DHgate offers a full refund in case you haven’t received ordered goods or if their conditions do not correspond to the description.

In some cases, you might be disappointed with the product quality, but still, decide to keep it.

When it happens, you can ask for a partial refund from the DHgate customer support.

Delivery time and transportation modes

When buying from DHgate, the next logistics agents are available:

1. China post.
2. DHL.
3. EMS.
4. FedEx.
5. ePacket.
6. UPS.

When choosing a product, you can see available shipping methods, as well as the corresponding delivery time.

There is also a system called DH Storage: the thing similar to Amazon FBA.

Under this program, DHgate suppliers store their goods in warehouses located in the US and the UK.

That ensures fast shipping (about 5 days) to US and UK buyers.

Also, you can be sure of the faster return and refund process when ordering products from the DH storage.

Payment methods

DHgate supports the next methods of payment:

1. Credit card.
2. Bank transfer.
3. E-wallet.
4. Debit card.
5. Apple pay (only for certain countries).

Product quality assurance

To conclude, there are the following mechanisms which help to ensure the quality of DHgate products:

1. Supplier rating and feedback from customers.
2. Product rating and feedback from customers.
3. Partial and full refund.
4. DHgate badges.
5. Third-party quality check.

Prices

DHgate prices are decided by the suppliers, however, each product listed on DHgate supports tiered pricing system (more goods – lesser price).

Also, DHgate runs promotions, gives coupons, and makes other special offers regularly.

You can find discount coupons ranging from 10 to 100 USD.

Pros of DHgate

• multilayer buyer safety measures system;
• simple and fast ordering procedure;
• DH Storage option;
• a huge amount of sellers and available goods;
• friendly for beginners.

Cons of DHgate

• the search algorithm is far from flawless.

https://youtu.be/f2fHRbMR4zo

Globalsources.com

Global Sources is a website that is basically a one-stop platform for all your sourcing needs.

Global Sources is not only a marketplace but also a trade show organization body and sourcing service provider.

As a web marketplace, it connects wholesale suppliers with buyers, just like DHgate, Alibaba, and AliExpress.

As a trade show organization body, it lists and helps to register for upcoming trade shows or Chinese fairs.

Speaking of the sourcing services, Global Sources can help its customers with:

• product samples;
• smart sourcing;
• private sourcing events;
• bulk RFQ;
• sourcing news and advice.

Buyer safety measures

Global Sources has quite a complicated system of buyer safety assurance.

Let’s look at some tools used in this mechanism.

# 1. Verified manufacturers

The seller having a Verified Manufacturer badge has been checked and verified by Global Sources staff members.

Such a verification involves checking of business licenses and other legal documents of the manufacturer.

# 2. O2O (Online-To-Offline) supplier

O2O supplier is the one who has maintained a comprehensive online profile for a long time and is active participants in trade shows.

These O2O suppliers are denoted by a corresponding badge.

# 3. Verified company certificates

To get verified company certificates badge, the supplier has to give its company certificates for verification by independent agencies like TUV, Experian, Dun, Bradstreet, and so on.

# 4. Verified product certificates

Same as with company certificates, product certificates are checked by aforesaid independent verification agencies.

Delivery time and transportation modes

Unfortunately, there is no direct buy mechanism on Global Sources.

Each time you’ll have to request a quote from the seller and then speak about various terms (e.g. price, delivery, payment).

So, you will be deciding on delivery mode after discussing it with the supplier.

In practice, all the popular logistics agencies (like UPS, DHL, China post) are available.

Payment methods

There are several payment methods available for Global Sources parties.

However, due to the incompletion of the payment security system, it is better to use PayPal.

PayPal comes with an in-built buyer protection system, so if your supplier makes wrong moves, you can always rely on the return.

To do so, you have to keep all the trade documents to provide them to PayPal customer support as a piece of evidence.

Product quality assurance

We found buyer safety features quite useful when it comes to product quality assurance.

The high competitiveness of the Global Sources marketplace also leads to a good quality of products distributed by each seller.

Prices

Global Sources lists some of the best Chinese wholesalers, suppliers, and manufacturers. 

Therefore, you can be assured of the best product price on Global Sources.

Pros of Global Sources

• trade shows and exhibitions option;
• premium sourcing value-added services;
• a huge pool of verified sellers;
• friendly website.

Cons of Global Sources

• not suitable for beginners;
• not enough security in the case of payment.

https://youtu.be/k9lxo4MpaPw

1688.com

1688.com is a part of the Alibaba Group.

After the creation of Alibaba.com, 1688.com became the next massive project of the company.

From first glance, you might say think that the name was chosen by chance, which is not true.

 The hieroglyphs that correspond to the number 1688 sound like the word Alibaba.

From the very beginning, the site was focused on the domestic market of China.

Also, the B2B model was chosen, which is the sale of goods by one legal entity to other legal entities.

These features predetermined the key points that create inconvenience for foreign buyers when working with 1688.com:

• the interface language is available only in Chinese;
• payment for goods can be made via the card issued by one of the Chinese banks, or from the Alipay wallet to replenish which, you will need a card from a Chinese bank as well;
• delivery of purchases is made within China only and usually, you have to pay for it.

Such barriers can be easily overcome with the help of a trustful sourcing agent (please, read this Tj chinafreight guide if you want to learn more).

Buyer safety measures

Although the vast majority of 1688 suppliers offer 7 days return and exchange policy, it takes at least 1 month for the shipping of the goods from China and returned by the clients from overseas.

Obviously, in such a situation you surpass the 1688 return and exchange policy.

The main thing which can help you to avoid fraud is the quality inspection or sample service conducted by your sourcing agent right after the deal is done.

Also, you can view product and supplier’s ratings, as well as other useful metrics (e.g. seller’s popularity).

Delivery time and transportation modes

The delivery time depends on the location of your sourcing agent and shipping methods which he can offer you.

Payment methods

As we said above, there is a huge gap when it comes to payment methods and security.

Unlike Aliexpress where you can pay via PayPal and international credit cards, 1688 accepts only Alipay and UnionPay, as well as China bank debit cards.

So, the only way to pay for the goods in 1688 is to use sourcing agent services.

Product quality assurance

On one hand, Chinese buyers are more experienced in their market, and since 1688 works entirely as an inner-state trading platform, suppliers here are not interested in manufacturing dummies.

On the other hand, some prices are so cheap, that it just can’t be a sign of good quality.

That is why we strongly recommend conducting independent quality inspections after buying goods (especially in the case when big money is involved).

Prices

After reading previous paragraphs you might think “Why even bothering buying from 1688 if it takes so much time and eff