What is the Difference Between Amazon FBA and FBM?

Many sellers will ask, what does Amazon do? Setting up a store on Amazon involves a lot, like choosing the right delivery method for your product. You can choose the appropriate delivery method when you deliver, generally divided into fba and fbm. Today I will explain to you what is the difference between amazon fba freight forwarder and amazon fbm freight forwarder?

  1. Different delivery methods
    FBA: fulfillment by amazon That is, the seller needs to prepare the goods to the Amazon warehouse in advance. After the buyer places an order, Amazon is responsible for sending the goods stored in the Amazon warehouse to the buyer in advance.
    FBM: fulfillment by merchant refers to the delivery of goods by the seller. Amazon is only a platform for merchants, and merchants need to use international express services to deliver goods to consumers.
    2. The delivery time is different
    in FBA. Since the seller stores the goods in the Amazon warehouse before the buyer places the order, the buyer can directly deliver the goods when Amazon places the order, which greatly shortens the delivery time and greatly improves the ranking of similar names, so the sales will be safer. Most of FBM is shipped from Amazon seller’s warehouse, and there are many uncontrollable factors in terms of timeliness. However, since this is shipped directly from the seller’s warehouse, the seller has control over the selection, packaging and quantity of the goods. This greatly reduces the error rate of the product.
    3. Advantages and disadvantages
    of FBA No matter how small your item is, FBA sellers can offer various shipping methods. We can choose the fastest way. Especially when you invite your Amazon Prime customer to work with you with free 2-day shipping. Amazon customers know what they want and are willing to spend, and according to Amazon data, the average customer is willing to buy FBA-shipped items. It’s not just shipping service, good customer service is the reason these customers sign up for Prime FBA is a way to keep smaller sellers away from fierce competition, your products will rank higher and give your products a chance to be seen by customers Buy.
    The main disadvantage of FBA is the cost. Amazon pays sellers a monthly warehouse fee. FBA is very expensive for items that sell less. The solution to cost is to use the Amazon Inventory Health Report, which shows the status of inventory on the shelf.
    4. Advantages and disadvantages of FBM
    One of the advantages of FBM is that sellers can be sure that their packaging is safe. However, Amazon Forum sellers have to deal with selection, packaging, shipping, and customer service. These tasks are time-consuming and difficult. Many people will use both FBA and FBM to decide which shipping method sells better. Sometimes both have the same advantages. For example, if a specific packaging method or buyer has no requirements for shipping speed, FBM is a good choice.
    1) Express first journey: four major express, DHL, UPS, FEDEX, TNT (recommend that the number of tickets is small, the sellers who are just starting out have strict requirements on the timeliness, and the single ticket is controlled at 200KG express channel can be selected internally)
    2) Air + first delivery : US UPS double-clearance package tax.
    Service introduction: US UPS double-clearance tax package, air transport from Hong Kong/Mainland to Los Angeles (LAX), express customs clearance, after customs clearance is completed, UPS will deliver to the warehouse.
    The advantages of Amazon’s double-clearing tax package service in the United States:
    ①Low price, truthful declaration, and double-clearing tax package.
    ②Air plus special line mode, the aging is fast.
    ③ Terminal UPS delivery, no appointment, stable aging.
  2. After fully understanding the differences between Amazon fba and fbm, Amazon sellers will formulate different delivery plans based on the actual situation of the product, comprehensively considering the advantages and disadvantages of different delivery methods. On the other hand, during the operation, the seller can pay attention to the latest development of the small side, which is helpful for operation and planning.

Learn Some Basic Tips About Shipping Cargo

Different goods often use different shipment matters are also different freight way, together with learning all of those!

Bulk and project cargo freight terminals

In contrast to the specific requirements of container and intermodal terminals, bulk cargo is characterised by non-standard nature and size variations, requiring high levels of resources at the terminal and transport end, open or closed storage, vessel services and terminal transfers, as well as specialized handling equipment requiring heavy lift capacity where necessary.

These can include temporary or permanent ship offloading facilities (MOLF) for nuclear power stations, temporary heavy lift terminals for offloading turbines for new conventional power stations in remote areas, fabrication, assembly, foundation loading, turbine and offshore substation fabrication, and offshore substations for offshore wind.

Using a full container is often the most cost-effective way if you have the volume of cargo to accommodate a full container. We support FCL ocean freight and help you save a lot of cost.

Container terminals

In the international container shipping industry it is vital to remain competitive and regularly upgrade facilities to maximize storage capacity and reduce container handling costs.  Multimodal transport is the new way of moving freight in recent years.

Intermodal Cargo Terminals

Intermodal freight transport involves multiple modes of transport, including rail, ship and truck, in the course of container transport, without the need to unpack containers. By reducing the volume of cargo handled, we reduce the potential risk of damage and loss of cargo, while also increasing safety and speeding up the movement of cargo. More and more shippers are accepting this mode of transport for their goods.

Increasingly, however, the challenge is that port facility developers need efficient and scalable terminal layouts, while intermodal transport developers need sophisticated logistics and operational improvements to accommodate the seamless and rapid transfer of cargo between different modes of transport. The logistics of liquids often involve further considerations see.

Dry and liquid bulk terminals

Dry and liquid bulk materials have specific handling requirements and pre-determining the transport and storage of potential cargoes is part of the scope of the solution. These types of transport remain important as fuels, petrochemicals, aggregates, grains and other commodities require terminal pipelines or conveyors to and from ships.

At the same time, land-based transport and storage equipment for ship handling varies considerably and may even require highly customised solutions for specific cargoes. This includes the customized electromechanical services often required for individual types of bulk berth configuration, as well as handling incoming bulk cargo from trains and trucks, port storage, reclamation and conveying systems for ship loading, port berths, quays, ship handling, and navigation.

If you have no idea about your shipping type, feel free to send an inquiry about details. The most professional China freight forwarder team of TJ  team will arrange your cargo better at a lower price.

2022 Latest Freight Forwarding Guide

What is a freight forwarder?

Freight forwarder, literally short for freight forwarder, is an international freight forwarder. In terms of job content, it is the acceptance of a client’s commitment to complete a particular aspect of the transport of goods or a link related to it, and any work involved in this area can be done directly or indirectly by finding a freight forwarder to save capital. Depending on the goods there are also overseas agents. A freight forwarder is a general term for the business of providing various transport services in the field of circulation specifically for those who demand and supply capacity for the transport of goods. They serve the whole society and act as a bridge and link between cargo owners and capacity providers, China is one of the biggest importing and exporting markets, and a professional China freight forwarder will build a strong relationship between suppliers and clients.

Mode of transport

  1. Ocean Freight Forwarding

Refers to the international freight forwarding agent that provides waterborne cargo transportation services and related services. It can be specifically divided into two types of ocean freight forwarding and river freight forwarding.

2、Air freight forwarding

Refers to the international freight forwarder who provides air cargo transportation and related services.

3、Land transport agency

Refers to the provision of road, rail, pipeline transport and other cargo transportation services and related services of freight forwarding.

4、Intermodal Transport Agency

Refers to the international freight forwarder who provides cargo transportation services such as road, rail, and pipeline transportation and related services. This kind of agent can be further divided into sea-air intermodal transport agent, sea-rail intermodal transport agent, air-rail intermodal transport agent and other types.

As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers. Despite this, there are also some caveats to be aware of before diving in with a forwarder service. Below are a few of the advantages and disadvantages of freight forwarding.

Advantages of Freight Forwarders

  1. Freight forwarder services offer competitive pricing based on services needed by a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
  2. Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of its shipment.
  3. Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
  4. One of the main advantages of a freight forwarder is their ability to offer services relating to trade. Some services include documentation, bank paperwork, cargo insurance, and inventory management.

Potential Disadvantages of Freight Forwarders

  1.  Often, freight forwarding services aren’t the operators of the transportation moving the cargo. For this reason, their influence on what happens on board the ship, rail car, truck or airplane is minimal. Additionally, their participation in the transportation steps is typically completely hands-off.
  2. If you perform all documentation and forwarding, your costs are controllable. But, with a freight forwarder, there is no way to know what kind of service markup the forwarder is adding. A company might charge $2,500 for land transportation to a destination. Conversely, a freight forwarder can state the price as $5,500 and skim the $3,000 markup off the top.
  3. Product loss is a hard reality of some shipping processes. Putting trust in a freight forwarder to handle all shipping can lead to a loss of supply chain control. If the freight forwarder is detail-oriented, things are fine. But ineptitude can wreak havoc on shipments and lead to losses.

Do You Need Freight Forwarding?

Freight forwarding is an easy way to take your business and cargo to the next level. But, there are times when it is more effective to ship directly with the shipping company. Especially when they provide the same end-to-end supply chain services as forwarders, without the markup.If you happen to be in need of one, TJ China freight is highly recommended, offering sea freight, air freight, rail freight, FCL, LCL, DDP, DDU and more. One of the top-ranked companies in China in terms of freight rating.

Do You Know What Role H.S. CODE Plays in Freight Transport? | 2022

We all know that there are different regulations for different cargoes, that different countries have their own special customs regulations and different tariffs for different cargoes, so how can you identify these different cargoes quickly and efficiently?

The H.S.CODE system is very useful in shipping operations because it allows customs officials to identify goods faster and easier, thus speeding up the clearance of goods.

Also known as the Harmonised System Code (H.S.CODE), H.S.CODE is the primary tool used by customs officers and duty officials to classify imported goods. Developed by the World Customs Organisation (WCO), H.S.CODE is a multi-purpose international product nomenclature that describes the type of goods being transported. Each H.S.CODE is a six-digit number, and many goods have multiple H.S.CODEs associated with them – for each country of origin or destination, or for each brand or manufacturer, etc.

The H.S.CODE can also be used to provide a common identifier for import and export goods, to identify the category of goods, to manage the classification of goods, to review tariff rates, etc.

How many numbers are there in the H.S.CODE?

The Harmonised System (HS) code is used by border agencies to identify the international trade status of goods and consists of three parts: a 2-digit code, a 4-digit code and a 6-digit code.The first 6 digits of the HS code can be used in conjunction with a country’s local customs identification number to indicate the trade status of the goods.

Are the HS codes different for each country?

Each country can adapt the HTS code with a 2 or 4 digit code without changing the first 6 digits. In other words, the first 6 digits remain the same in each country. However, it is important that countries do not modify the first six digits when adding numbers to more accurately classify and define goods. Countries that are part of the Harmonised System codes must be content to define the basic commodity at the six-digit level, however they can also introduce more detailed descriptions in those six digits

To determine if an HS code is valid you must first find out what type of HS code it is. There are three types: commodity codes, statistical codes and auxiliary codes. Commodity codes are used for raw materials and intermediate products, statistical codes are used for customs only, and auxiliary codes are used for other types of data that do not fall into the other two categories.

After determining which type of HS code it is, you must then look at the first two digits to see if that HS code has a four-digit extension. If the first two digits are 00 to 21, then there is no four-digit extension. If the first two digits are 22 to 47, then it has a four-digit extension. If it has a four-digit extension, you will have to find out what it means by looking at an additional table showing all the possibilities. After you have determined what type of HS code it is, you will have to look at the first two digits to find out if that HS code has a four-digit extension. If the first two digits are 00 to 21, then there is no four-digit extension. If the first two digits are 22 to 47, then there is a four-digit extension. If there is a four-digit extension, you have to find out what it means by looking at the additional table showing all possible extensions.

For more detailed information, please head to the official website. And you can contact us if you are looking for a China freight forwarder to help ship your cargo from or to China for your business. Our professional team is committed to providing the best service with expertise. Sea, Air and rail freight, FCL & LCL, DDP & DDU, Door to Door, Port to Port, just let us know your requirements, and we will provide you with excellent forwarding service at a reasonable price.

What is the Current Situation and Future of the China Shipping Industry?

With more than 18,000 kilometres of coastline and 123,000 kilometres of inland waterways, China’s unique natural conditions have laid a good foundation for the development of the shipping industry. The booming economy, especially the continuous, rapid and stable development of the national economy over the past 20 years since the implementation of reform and opening up, has provided a rare opportunity and impetus for the rise and development of China’s shipping industry.

Marine transportation, also known as “international marine cargo transportation”, is the most important mode of transportation in international logistics. As international trade becomes more and more prosperous, the process of globalization is further accelerated, and in the current global integration, all industries such as bulk commodities, consumer electronics, garments, etc. are deeply dependent on marine transportation, and marine transportation has also become the mainstream way of trade between various countries/regions, 19% of the world’s bulk sea cargo is currently shipped to China, and 20% of container transportation comes from China; and the new Of the new volume of maritime cargo transported, 60-70% is destined for China. China is the world’s largest port in terms of cargo and container throughput, with three of the top five ports in the world in terms of container throughput. As China’s economic influence continues to expand, the world’s shipping centre is gradually shifting from the West to the East, and China sea freight industry has entered the forefront of the world’s maritime competition. It is reported that China’s ocean shipping fleet has now entered the top ocean freight forwarders in the world.

The shipping industry has always been regarded as an important pillar industry for a country, and governments attach great importance to the nationalisation attributes of shipping enterprises. Cargo volume growth is slowing down and the overcapacity situation has not been fundamentally improved while cargo volume growth is being tested.

Market concentration is increasing, with mergers and acquisitions and alliances continuing and dominating market share. Changes in the internal and external environment have also led to changes in the liner industry, while a number of new trends have emerged. In recent years, the pace of consolidation in the global container shipping industry has accelerated, with mergers and acquisitions of liner companies and several restructuring of shipping alliances. At present, three alliances dominate the container shipping market and occupy the majority share on the three major east-west trunk routes. The outlook for China sea shipping industry is good and it is expected that by 2030 China will continue to secure its position as the world’s number one cargo trading nation and will dominate the global container maritime trade.

How Can I Track My Shipment Accurately?

As we all know, logistics are ever-changing and require customs clearance, taxation and freight …… Keeping up to date with the logistics of your goods will help you to better track the arrival of that cargo.

Air china cargo

Listed below are the most common airlines in order of airline code.

Tj China Freight

To track air freight shipments, an AWB number is essential. AWBs are displayed on a document called an Air Waybill, which is always shipped with all shipments transported by the airline. This number provides useful information about your order, but most importantly it is used to track the shipment.

The AWB number is an 11-digit document code consisting of a three-digit airline prefix and an eight-digit number representing the waybill number. It can be expressed like this. 321-87654321.

China sea shipping

The best way to track China sea freight is to use the shipping line’s container tracking system, which will give you the location and status of your cargo.

Container number – The serial number starts with four letters. The next six digits are the serial number and the last digit is the check digit.

Bill of Lading Number – The bill of lading is the document required by the shipping company to ship your goods by sea.

Booking Number – This is the booking number provided to you by the shipping company for your shipment.

It can be difficult to track every container, so it makes sense to use a freight forwarder such as SIS. They can give you a full picture of all the containers registered to your company, and you can also check your shipping company’s website directly.

If you need any China freight forwarding service and also need to tracking the state of the cargo, Send an inquiry to  TJ China Freight to get a better rates.

The Concept of Freight Forwarding and Its Main Responsibilities

Freight forwarding company is called freight forwarding company, which is mainly responsible for the business of cargo transportation, both domestic and foreign trade. The duty is to transport the goods entrusted by the client from one place to another through the established transport routes. They serve the whole society and are a bridge and a link between the cargo owner and the supplier of transportation capacity. The main business of freight forwarders is to provide freight intermediaries. Freight forwarders are responsible for working with customs, shipping companies agents are responsible for working with customs, shipping companies and airlines and transporting the client’s goods to overseas trade customers according to the terms of trade. Its responsibility is to transport the goods entrusted by the customer from one place to another by using sea, air and land transport methods through the determined transport routes. The service is intended for the entire community and is a bridge and link between cargo owners and transport capacity providers.

Local forwarder agents in china are generally engaged in the domestic transportation business, usually using zero-load and collector truck transportation; international freight companies are generally engaged in ship and air freight. Both companies are companies that own their own cars or ships, i.e., the owners. Domestic freight forwarders are generally freight forwarders, and international freight forwarders are generally ocean or freight forwarders.

Freight forwarding companies are divided into a level of international freight forwarding company limited, there are two, three, etc., a level of agents can be directly in the air or sea companies or railroad companies booked, two must only be booked at a level, and so on the formation of the international freight forwarding industry, is the inevitable product of the international commodity circulation process, is an indispensable component of international trade, because of this, the industry is recognized by countries around the world for international trade freight forwarding for businesses. Very proud to say that TJ China Freight is a first-class freight forwarding company approved by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China, with first-class freight forwarding qualifications and a freight forwarding company engaged in international maritime and air freight forwarding services as an NVOCC. If you are looking for a  top ocean freight forwarders in China, TJ China Freight is a good choice.

London Heathrow to See Business Expansion Due to Outbreak

In the latest news, the operator of London Heathrow Airport has confirmed that it will lift the cap on airline operations through the airport from 30 October.

Heathrow Airport Limited (HAL) introduced the cap following major delays and cancellations to airport services as it struggled to meet fast-growing passenger demand at the height of the post-pandemic period.

Place flying in sunset sky

The airport has also come under pressure this year due to delays in cargo handling and the threat of industrial action.

Heathrow handled 18 million passengers this summer, more than any other European hub, according to HAL, although it said – during the blockade – it was hit harder than its European rivals.

John Holland-Kaye, Heathrow’s chief executive, commented. We have removed the summer cap and are working with airlines and their ground staff to restore full capacity at peak times as soon as possible”.

Looking ahead, the operator noted that while demand is getting stronger, it has not yet fully recovered to pre-Covid levels.

HAL forecasts that total passenger numbers will reach 60 to 62 million in 2022, some 25 percent less than in pre-pandemic 2019.

In addition, headwinds from the global economic crisis, the war in Ukraine, and the impact of Covid-19 mean that a return to pre-pandemic demand is unlikely for several years, except at peak times.

“Our top priority is to re-establish the airport ecosystem to meet peak demand,” a statement from HAL said.

“To do this, businesses across the airport will need to recruit and train up to 25,000 security cleared personnel – a huge logistical challenge.”

It said its balance sheet remained “solid” despite the losses. Underlying losses so far this year have risen to £400 million (US$460 million), adding to the £4 billion (US$4.6 billion) sustained in the previous two years.

HAL said it had taken “responsible steps to protect liquidity and cash flow in the face of uncertain markets and to reduce gearing”.

Heathrow said it would aggressively expand its business and actively engage with Chinese freight forwarders and various other airfreight operations to change the situation, despite the huge challenges it faces.

 

What Will Be the Trend of China’s Freight Forwarding Industry

Since the reform and opening up, China freight forwarding industry has developed rapidly and played an important role in expanding foreign trade, attracting foreign investment, expanding employment, and promoting the development of third-party logistics. At present, with the implementation of the “One Belt, One Road” strategy and the vigorous development of cross-border e-commerce, the development of international freight forwarding is expected to enter a new chapter.

Before the reform and opening up, cargo agent in China was strictly controlled and lagged behind in development. After the reform and opening up, the Chinese government gradually liberalized the management of international freight forwarding, international freight forwarding industry has ushered in rapid development. China’s international freight forwarding industry employs about 2.5 million people, the development momentum is strong. At the same time, the “Belt and Road” strategy and the continuous development of cross-border e-commerce provide sufficient growth momentum for the international freight forwarding industry, with a bright future. However, the international freight forwarding industry itself also has certain limitations. On the one hand, the international freight forwarding industry is a pure service industry, closely related to the quality of service, geographical location, interpersonal relationships, past history, etc., resulting in a small number of small and medium-sized freight forwarding companies and large freight forwarding companies, which is not conducive to the further development of the industry.

On the other hand, international freight forwarding is an industry where competition and cooperation coexist. For international freight forwarding enterprises, to achieve complementary business between different countries, regions and enterprises, information sharing and freight network sharing to enhance their own strength. In the above context, China’s international freight forwarding industry will show the following four major trends.

First, large-scale application of Internet information technology to improve the scope and efficiency of sharing and cooperation. Through the use of modern information technology, the integration of physical logistics networks and invisible information networks can be achieved.

Second, continue to extend the industry chain. A strong freight forwarder will certainly expand its business to logistics and supply chain management consulting services to improve its competitiveness.

Third, specialization, refinement and specialization continue to strengthen. With the increasingly fierce competition in the market, how to stand out has become the primary consideration of many small and medium-sized international freight forwarding enterprises. Therefore, strengthening specialization, refinement and specialization is inevitable. Finally, the speed of integration is accelerating. Since the development of the international freight industry, the trend of integration has gradually unfolded, especially for enterprises with similar geographical ties, regional concepts and social relations. With accelerated integration, the international freight industry can develop better.

Black Friday 2022 is Just Around the Corner and You Need Professional Freight Forwarders!

You may say, why should I call you professionals when I can contact the logistics myself?

  1. Going it alone

For most shipments, it is simply not possible to arrange international shipping online with a sea or ocean freight forwarder.

It can be done even without a freight forwarder, but for the layman it is a dangerous game. When it comes to freight, there are many things that can go wrong, and often do. You need to cover your bases with freight insurance.

  1. Your supplier arranges for the shipment to be located furthest away within the United States

This is a classic trap that often sees inexperienced importers fall into. Many suppliers offer to arrange shipments as far as the US ports. This may seem like a good deal if you only add in the cost of local trucking. But there are other costs involved.

Such shipping arrangements often use one of the “C” Incoterms, particularly the CIF Incoterms. These Incoterms have several disadvantages for the importer, including the common situation where the importer is held hostage by inflated costs.

  1. Your supplier arranges the entire shipping process

Your supplier may be an expert in manufacturing or trading, but they will not be an expert in shipping.

If they have an arrangement with a local freight forwarder that can manage the entire shipping process, it is unlikely to be any better than what you have arranged. At the end of the day, the supplier will be looking to recover their costs.

If they cost account for freight costs, they have no incentive to secure a good price. This means you could be paying inflated shipping costs.

If they offer a sales/freight package, they are likely to jack up the price.

This will result in you walking out the door with high logistics costs and no insurance. We all know that reaching the exporter’s warehouse requires customs clearance, tax payment and customs brokerage……. Anything that goes wrong at any point in the process will not guarantee the timeliness of your shipment.

Let TJ China Freight help you reach another peak in your career with this upcoming biggest promotion of 2022!