“Getting a Freight Quote: The Ultimate Guide
There are plenty of reasons to spend more on freight. The main options are to choose a more reliable carrier, or to include some extra services that might make life easier for you or your customers. However, misquoting is not one of the reasons why paying more for your shipping is a good idea. Read on for more quotes to consider

What to consider before making an offer

1. Understand the cost of materials
A common mistake in calculating material costs is to multiply the cost per pound by the weight of the material. But in sheet metal fabrication, for example, the entire sheet must be ordered to cut the part. Material cost must include extra material not used in a given part. You need a supplier who can explain the available sizes and help you understand the cost of materials, as it also involves the inevitable waste due to project specifications.

2. Determine store prices
The hourly wages your workers receive are only part of the cost of labor. Large work centers will have higher hourly rates than small work centers. In addition to the hourly rate, there are energy costs, equipment usage costs, and required floor space. All of this is aggregated into what we call the “”shop floor rate”” for a particular work center. Make sure you understand the skills required to complete the project in order to determine the correct rate.

3. Estimate the cost
Every manufacturing company has five main overhead areas that take a share of every invoice. They are (in order from most expensive to least expensive);

office salary
health care
sales salary
rent
payroll tax
Most of these can be controlled using a good productivity program. However, sales and rents will always be based on utilization. Your team may have some profit to cover these costs, but make sure you know when and where discounts are available. Not considering these costs, even on small projects, can jeopardize jobs and ultimately damage a company’s bottom line.

4. Terrible shipping tax
Toyota Vice President Taiichi Ohno said he believes that 95 percent of everything Toyota makes is waste. For many sales today, shipping and delivery can be a deal breaker, as customers are often surprised by shipping costs after accepting the sale price. By eliminating shipping waste as much as possible, you’ll remove many of the unpredictable factors in shipping costs and be able to offer your customers lower, more predictable, and fairer prices. At Boyd Metals, we do not charge for shipping or require a minimum amount per order. This can help address these costs from the start of the project.

5. The cost of delay
Even if the project estimate and approval of your bid goes well, you still need to receive raw materials to complete the project on time. As a supplier, we understand that when you ask for an accurate quote for the metal you need, you also need to know if/when the item is approved if stock exists. This critical step is where our customers experience what we call the “”Boyd Difference.”” We make stocking decisions locally to best serve our customers.

Knowing these basic “”talking points”” will help you set appropriate expectations for your clients and give you the time and steps to prepare an accurate estimate the first time. Helping customers understand what they are getting and what they are paying for will help build trust. This trust builds loyalty and keeps them coming back for project after project.

what not to do when quoting
No need to request unnecessary services. For example, request that an entire truck can transport a large amount of cargo, or fragile and valuable items that need to be moved quickly. However, booking an entire truck to carry a few standard pallets is a great way to waste money.
Applying for a tailgate for a pickup or delivery location with a dock is another surefire way to throw money at it.
Picking a random shipping class (only for shipments to, from, or within the U.S.) is guaranteed to make your shipping experience worse. If you choose a higher tier, you’re just giving away money, if you choose a lower tier, you’re giving away money once the carrier reclassifies your shipment.
Also, avoid treating any old location as standard business. Limited access locations are real and you don’t want to ignore them.”

“How demurrage, detention and port charges work

Port charges

Terminal handling fee
Terminal Handling Charge (THC) is another port charge for containers that you cannot bypass. THC is the cost of loading and unloading the container.
Cargo loading and unloading ports charge terminal loading and unloading fees.
If a container is transshipped, the port where the transshipment takes place also charges THC. In this case, terminal handling charges will be paid directly by the shipping company. This is usually not the case for THC at loading ports.
early arrival fee
The fee charged by the port for a container to arrive at the terminal before the incoming stack is opened. The acceptance of early arrival containers is at the discretion of the port/terminal operator.
late fee

The fee charged by the port for a container to arrive at the terminal after the incoming stack has been closed. The acceptance of early arrival containers is at the discretion of the port/terminal operator.

port storage fee
In the port charges line for the container, there is no bypass port storage charge. These fees are charged for FCLs that have not been cleared for import. As well as full boxes waiting to be shipped and empty boxes piling up in ports.
Port storage fees are usually passed on to shipping lines by terminal operators. Here, margin is usually added on top before the bank charges the customer.
You may end up having to pay both port storage fees and demurrage fees. However, there are places where port storage charges and demurrage charges are the same. Wondering how to avoid these storage charges?

detention
Unlike demurrage charges, demurrage charges are added when a container is out of port. If you hold the carrier’s container for more than the free days allowed, you will be charged a detention fee.
You may also be charged a detention fee when you export a container. Suppose you pick up an empty container to load it. But you don’t return it until the free days are used up. The carrier will then charge a detention fee.
These charges were added to reduce container turnaround time.

Expenses related to the goods
Such expenses are incurred due to the goods, and the amount is directly related to the type and quantity of the goods. It includes cargo port charges, handling charges, stowage charges, flattening charges, switching cabin charges, storage charges, barge charges, tally charges, etc. Except for the cargo port charges, the rest of the above charges shall be borne by the cargo owner.
All use shall be borne by the ship owner or the cargo owner or the charterer in accordance with the provisions of the bill of lading or the charter party.

Demurrage and Demurrage
While some of these port charges may be unavoidable, on the other hand, demurrage and detention charges are completely avoidable charges, but in many cases, these charges are caused by mishandling, misunderstanding, and failure to follow proper protocols. will happen.
When they do occur, these charges can have a considerable financial impact on the overall business, and sometimes these costs can be so high that some customers forgo shipments at their destination because of these costs.
Let’s see what is demurrage, demurrage, demurrage and reasons for demurrage, why is it charged, who charges, who pays..
Although the most common market practice is to combine demurrage and demurrage, there are several cases where demurrage and demurrage are charged separately, so it’s important to understand the difference between demurrage and demurrage.

Demurrage, Demurrage and Port Fee Calculation Solutions
Scenario: A container is unloaded from a ship on July 2. The consignee unloaded from the port on July 12 and returned the empty container to the designated warehouse on July 19.
Demurrage days offered by shipping lines = 7 days
Free layover days provided by the shipping company = 10 days
Port free days = 3 days

Example of demurrage calculation:
Based on the dates above, on July 12, the box will be in the port/terminal for a total of 11 days.
Based on the above, demurrage free line days will expire on July 8.
11 days stay – 7 days free = 4 days The box’s welcome time at the port/marina has exceeded its welcome time.

Example of holdover calculation:
The full box leaves the port on the 12th, and the customer only returns the empty box on July 19th.
No Detention Days = 10 days, so valid until July 21, but no detention fee due to customer returning empty on July 19.

Port storage calculation example:
Using the dates above, there will be 8 days of port storage to be paid along with demurrage until July 12, as the port only offers 3 free days that expire on July 4th.
So essentially, for this container, the client pays
Demurrage = 4 days (free from 2 July to 8 July, demurrage from 9 July to 12 July) – to shipping company
Detention = 0 days (10 days free, so July 12th to July 21st free, return empty on July 19th, so no detention)
Port Warehousing = 8 days (July 2-July 4 is Port Free Day, so from July 5-July 12, 8 days for warehousing apply) – Direct or via shipping company to port

So why do shipping companies charge demurrage and demurrage
In the operation of a container shipping company, the cost of containers, repairs, maintenance, leasing, etc. is about 20% of the cost of the shipping company. A container is like a ship, only if it’s circulating and not idle..
In the above case, the container remained with the consignee for an additional 11 days. This means that during these 11 days, the container is not under the control of the shipping company, which means that this particular container does not bring any revenue to the shipping company for these 11 days..
Demurrage and demurrage charges by shipping lines are their way of getting some compensation for the period when that container is outside the revenue generating period.”

“10 Shipping Terms Every International Shipper Should Know

COD, CYCY, DM and DT. Say what? To the untrained ear, it’s just gibberish. For international shippers, however, things are different. Knowing the shipping terms is absolutely critical when shipping goods worldwide. That being said, it’s not easy to remember exactly what the various abbreviations stand for. Fortunately, I’ve created this quick reference guide for you to come back to when your memory fails.

1. Incoterms – International Commercial Terms
When purchasing or selling goods, the goods need to be moved from their origin to their destination. The best way to do this is to negotiate at the point of purchase how it is going to be accomplished. But in order for both parties to understand and agree on the particulars, they have to speak the same language and agree on what the terms actually mean.

Incoterms are short for International Commercial Terms. They are a series of pre-defined commercial terms published by the International Chamber of Commerce. The terms are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.

2. COD – Change of Destination
Imagine your cargo has been loaded onto a container ship and is now on its way to its destination. For some reason, you realize you have to change your destination!

No need to panic. This is the time to request COD – change destination. This is a request for a container ship to unload your container and deliver your cargo to another destination than the one originally booked.

3. Container Yard to Container Yard (CYCY)
A container yard is a location within a port or terminal where, in the case of import, containers are stored before being loaded onto or unloaded from a ship.

The shipping word CYCY describes the beginning (port of loading) and the end (port of discharge) of the carrier’s responsibility on a container yard.

4. Demurrage (DM)
Demurrage is a charge that container shipping companies charge when your import container is not picked up in time.

Fees related only to the use of the equipment shall be paid by the merchant or international shipper for the carrier’s equipment beyond the free time provided by the carrier to deliver the goods to the port, terminal or warehouse.
After the international shipper unloads the cargo, the port (provided by the container shipping line) has some free time to store them. You must claim your container before the free period expires.
Otherwise, the number of days the container remains in port will be charged by the international shipper.
For example, demurrage charges can also be charged to the container shipper if the container shipper is unable to deliver the container due to customs issues.
A fee can then be charged to store your container for the number of days in port.

5. DT – Detention
If you pick up the import containers but don’t return them to the shipping line in time, detention is a cost you have to pay. Then, you must pay for the additional days it takes to return the container. You may also be subject to demurrage charges if your container cannot be shipped out via the container line because it is not returned in time. Then you have to pay for the extra days you own the container.

6. Full Container Load (FCL)
Full Container Load (FCL) – As the name suggests, for those transporting larger volumes of cargo, they can use the space of a full ISO container.
FCL International Shippers have exclusive rights to the container, so the container will always contain your cargo, from the original packaging to the devan at the destination.
FCL involves a full container load and it will be the product of price, time, underlying product, shipping technology and many other factors to decide whether to use FCL or LCL.
For a named consignee because it will be the cargo; it can be any type of item shipped from a toy, merchandise or equipment.
An example is a toy trader who receives a large order from a supermarket chain, rather than splitting the order and sending each order as a container of parts (by LCL); the container shipper ships as one full case and uses its own container Shipping all products. This means no space is shared with other shippers.

7. Fill and Strip
Containers can be loaded and unloaded at all terminals by dedicated personnel. Loading and unloading can take place at the terminal after shipment or directly from the carrier’s container.
Significant savings can be made in the latter case, especially when loading oversized cargo.
Container handling services are often an additional service a company seeks throughout its supply chain for out-of-gauge item cargo.

8. Port Storage
When the containers are unloaded from the ship, they are transferred to the container yard.
Ports offer free storage periods (not to be confused with free demurrage on container routes).
During this time, the international shipper has time to process the customs clearance process and ship your product to the warehouse or final destination.
This is critical for ports, as space shortages can affect port productivity and cause port congestion.
If the shipper does not clear and transship your container in time, the port can charge port storage fees.

9. Bill of Lading
A bill of lading is a legal document issued by the carrier to the shipper and includes shipping details such as the type of goods, quantity, freight and destination. It represents an agreement between the parties involved and helps ensure that the exporter receives payment and the importer receives the goods. The bill of lading also serves as a shipping receipt.

10. Overturned – The container was never loaded onto the ship
Container scrolling happens sometimes. This means that your container did not make a container. Your container may not be loaded on board due to customs issues, overbooking or missing ships.
Your carrier will reschedule your shipment and place your container on the next outgoing vessel.”

“SOC Containers vs COC Containers

What is a COC container?
COC means “”Carrier Owned Container””. The shipping company itself owns these shipping boxes. In this case, most of the control is in the hands of the operator. The shipper shall abide by certain rules and regulations established by the carrier regarding the timing and use of the container.
Any form of delay or damage to the equipment will make you liable. The COC brought two of its most damaging charges – demurrage and demurrage. If left unchecked, they can exceed the value of your actual shipment.

What is a SOC container?
SOC containers are mostly rented by the cargo owners themselves, and then sign an agreement with the shipping company to rent the shipping company’s space, in order to reduce the container fee and other expenses incurred by the use of the shipping company’s containers. Although using SOC boxes, shipping companies charge less sea freight, but some shipping companies will refuse to accept such boxes. In short, the success of booking has a certain relationship with the shipping company.

What is the difference between SOC and COC?
SOCs and COCs are often physically the same, sharing a designation such as a CSC license and an Approved Continuing Examination Program (or ACEP) certification. The only difference between a SOC and a COC is which party owns and is responsible for. Containers owned by the shipper belong to the shipper and are continually reused to ship the same product.
Containers owned by the carrier belong to the carrier or logistics company and are leased to consignees who do not have their own containers. After delivery, the COC is returned to the carrier, who then leases it to other customers. On the other hand, the SOC is returned to the shipper, who must store and maintain it independently of the carrier.

Benefits of COC
COCs are typically used for standard shipments on routes with high cargo traffic. If the carrier has enough boxes, there is little incentive to use your own containers. Using COC becomes economical if end-to-end movement is paid fairly at the same time.
Once they are returned, there is no need to worry about the containers as it is not the shipper’s responsibility.
Using a COC container is much simpler, just pay the carrier “”full”” freight to ship the goods.
COCs allow for higher freight discounts, especially on shipments originating from high “”surplus areas””, as shippers help carriers save some money by exporting their shipments using their COCs.

SOC benefits
SOC containers are an excellent source that can help expedite the supply of goods between countries without delaying shipments until the container is returned before the goods are unloaded and unloaded.
SOC helps avoid unexpected demurrage and demurrage charges that can rise into the hundreds of dollars if loading times, customs clearance, towing, port congestion, etc. are not considered in advance.
People can source their own goods on request, especially in remote areas far from the hinterland, where containers are either unavailable or much more expensive.
You can also choose to buy or lease containers according to your own needs or according to current needs.

Carrier-owned container
It is owned by the carrier or shipping company. Here, some costs have to be paid, especially demurrage and detention. They are mainly used for the import and export of goods, but can also be used for the storage of goods. They decide the availability of the container after payment, so it is the carrier’s responsibility.

Although the two types of containers have marginal advantages over each other, these containers are an important asset that helps the shipping industry generate huge revenue. The container goes through several steps between the loading point and the destination. Each of these interactions complicates the process and increases costs during the movement of goods. But people should always seek what works for them and their needs are met.

SOC vs COC: Who wins?
When choosing between SOC and COC, SOC Containers tend to win more votes. This is because of several advantages offered. SOC Box gives its owner full rights to make any decisions about the box, shipping and other matters.
It allows complete control, flexibility and freedom. Not only will you save on costs, but additional penalties like demurrage and detention will be waived. You can ship anywhere you want without worrying about boxes being unavailable during peak seasons. A one-time purchase can pay you for years.”

“What you need to know to use the SOS box

In international trade, COC boxes are usually used for shipment of goods, that is, shipping company boxes. But also encountered SOC box, that is, own box, also known as the owner’s own box.
What is a Shipper Owned Container?
A Shipper Owned Container (SOC) is a freight container owned by an independent individual or business. A Carrier Owned Container (COC) is the property of the carrier and is leased to the carrier’s consignee, while the SOC is the property of the shipper who then pays the carrier to carry the cargo for them by purchasing a slot in their truck Container charges or ships.

Where to Find Shipper-Owned Containers
Typically, a SOC can be found anywhere a COC is located. Although SOCs are often found on routes with less cargo, they are transported in the same way that carriers use to transport COCs. Below are the four most common freight SOC shipping methods.
cargo ship
The most common place to find a shipper-owned container is on a long sailing ship. Also known as cargo ships or container ships, they are designed to carry hundreds of metal SOCs of standard size 20 to 40 feet stacked on top of each other. Cargo ships play a key role in global shipping and trade operations.
Large ground transportation
Shipper-owned containers are also used for land transportation. Trucking is by far the most common form of ground transportation (the sheer size and weight of the SOC and COC require large trucks and engine power). However, rail freight continues to serve active freight on international shipping.
airplane
Air freight is used for expedited shipping and is also the most expensive method of shipping packages. Air freight requires specialized aircraft to accommodate SOC, COC, and other containers that can be loaded with cargo, and is more expensive.

multimodal transport
Multimodal transport refers to a transport mode in which a cargo container is transported to its unloading point in combination with the above transport modes. The farther the freight destination, the more likely the carrier will have to utilize multiple shipping strategies to complete the delivery.

SOC box operation process
1. Booking
The use of SOC boxes will reduce the shipping company’s box fee income. Therefore, SOC box booking is more difficult.
Compared with the shipping box, in addition to the different appointment number when booking, the shipping company has to check the box certificate, and the owner will accept the booking only after the box certificate is approved. If the booking party has its own SOC box, the box certificate can also be provided to the freight forwarder. After the freight forwarder has passed the review, the owner’s SOC box can be used for booking. Generally speaking, this cost is lower and the shipping cost will be lower. However, the box certificate review often results in the pre-allocated one day later than the owner’s box.

2. Take orders
After receiving the customer’s bill of lading, check the bill to see if there are any special terms and requirements for the bill of lading, and check with the shipping company whether it can be displayed.
When reviewing the order, pay attention to the Chinese name of the goods, HS.CODE. If it is a general chemical product, you need to provide MSDS, transportation condition appraisal certificate, the contact information of the consignor and the consignee, and check whether the consignor is a freight forwarder or a logistics company. If it is a freight forwarder, a copy of the NVOCC qualification certificate is required; if not, the booking will not be accepted unless the shipper information is changed.

3. Cabinets
When picking up the container, you need to rely on the forwarder’s release notice to pick it up, and the freight forwarder’s container management will indicate the pickup address and box number section in the container release notice. Put the box notice to knock on the team seal, and put the order to the shipping company to put it on site. There is only one entry page for the SOC box on-site, which is used for entering the terminal. Be sure to keep the team well. If it is lost, it will not be able to enter the port.

4. Return the box
When returning SOC containers, in most cases, foreign container owners designate return container yards. These depots are sometimes the same as the shipowners, sometimes in different places. Generally, the foreign agent of the freight forwarder will ask the consignee to sign a letter of guarantee for the return of the box to ensure that the box is returned to the accurate yard. If the SOC box is accidentally returned to the shipowner’s yard, and then shipped to another country by the shipowner, it will inevitably cause greater losses and cause disputes.

What is the difference between SOC and COC?
SOCs and COCs are often physically the same, sharing a designation such as a CSC license and an Approved Continuing Examination Program (or ACEP) certification. The only difference between a SOC and a COC is which party owns and is responsible for. Containers owned by the shipper belong to the shipper and are continually reused to ship the same product.

Containers owned by the carrier belong to the carrier or logistics company and are leased to consignees who do not have their own containers. After delivery, the COC is returned to the carrier, who then leases it to other customers. On the other hand, the SOC is returned to the shipper, who must store and maintain it independently of the carrier.

Benefits of using SOC containers
1. Avoid demurrage and demurrage
Demurrage and demurrage are two such charges that significantly impact the overall shipping budget. Demurrage is a charge issued when your cargo stays at a freight station for longer than a specified time, whereas demurrage is a charge imposed by a carrier for prolonged use. That means keeping the equipment longer than the contracted time frame, or it could mean keeping the trucks longer. It can happen for various reasons:

Customs Clearance – Typically, the customs clearance process takes 12 to 48 hours. But sometimes, if the inspector suspects there is any doubt, your transport unit may need to rest for a few days. Various circumstances can affect the delay or rejection of your shipment.
Permanent Rejection – There are several reasons for permanently rejecting a shipment. This could be a misdeclaration of the goods, undervaluation of the goods, or even in the case of import restricted products.

2. You get rid of freight LCL
Freight consolidation is a method in which various shippers within a specific geographic area combine their cargo into a single shipping unit, which is then transported to the port of destination, where the consolidated cargo is disassembled and delivered to an authorized holder. In this case, the shipper usually has to wait for the shipping unit to fill up.
The more days your box stays at the terminal, the more the box operator will charge. At this point, SOC Containers can be a boon for you.

3. Can be shipped to remote areas
In remote areas, the flow of transported goods and CTUs is erratic. Since they are not high surplus areas, shipping may be inflexible. You may have to wait a few days for the cargo box to be completely filled. These locations are known to have high process uncertainty, slow customization procedures and unreliable port operators. Using a SOC in a remote area can keep you away from this type of uncertainty

4. Acts as a backup when the port is congested
Overcapacity comes with the peak season. During peak/peak seasons, with some units being loaded and unloaded on and off the ship, respectively, import and export rates rose significantly. Port congestion is likely to occur because of delays in customs clearance as cargo increases. These units can stay at the dock for a few days, charging you demurrage and detention fees. Therefore, SOC boxes can also help you keep your money in your pocket during times of port congestion, especially during peak seasons.

5. Sets you free during peak season
High prices in peak season can be avoided. The demand for sea containers is increasing due to the large amount of cargo waiting to be delivered around the world. Freight containers are often in short supply due to increased demand.
In this case, having the container owned by the shipper proves to be beneficial to the exporter. You don’t have to worry about the shipping carrier’s container availability as you can easily deliver your cargo on time.

How expensive is the container owned by the shipper?
A SOC can cost anywhere from $1,300 to $3,000 or more, so you should check how and where you ship your goods before you invest. If you are transporting goods over long distances or to remote areas with frequent delays, or if you experience frequent delays, purchasing a SOC may be a worthwhile investment as it completely eliminates the hassle of demurrage and demurrage, While providing greater control over your supply chain.”

“how to save on amazon fba shipping costs

It can really lower your Amazon FBA fees. You won’t let Amazon give you a discount, but you can change the way you use the service so you don’t incur unnecessary charges. You should also make sure all your data is accurate and claim back fees for any undiscovered mistakes Amazon makes.
Small changes can save you a little on every product you store in Amazon’s warehouses and more on every order Amazon fulfills for you. Multiply that by the thousands of units stored and thousands of orders fulfilled, and these small changes can save a lot of money.
Here are six key strategies to help you lower your FBA fees and add those savings directly back to your bottom line.

1. Ensure product dimensions are accurately recorded
Some different FBA fees are based on size and weight, including shipping and storage fees. Your product dimensions are already on Amazon’s system, but they are not always accurate. If Amazon thinks your product is bigger than it actually is, it will charge you more.
Why is your data inaccurate? To understand this, it’s useful to first understand how Amazon sets your product size. When you set up a new ASIN and send your product to an FBA warehouse for the first time, Amazon will scan the product using their Cubiscan system. They may then rescan your product from time to time to check if the dimensions have changed.

Despite using a high-tech measurement system, it’s not uncommon for Amazon’s measurements to vary significantly between scans. It’s not clear why this happened, but it could be air entrapment in the bag, sticky tape sticking out and confusing the scanner, or just operator error. Remember, Amazon won’t tell you if they’ve changed your product size, they’ll just update them and start charging you differently.
So what should you do? First, run the Expense Preview report. In addition to the FBA fee estimate, this also shows the full size and size class of all your products. Check them against your own data and determine if any measurements are inconsistent with your own data, especially if it pushes them to a higher level.
Then submit a case to Seller Support to rescan your product. Amazon will put your product back in the Cubiscan and (hopefully) correct the size. This should ensure you get the correct fee in the future, and you can also request a refund for overcharges on past orders – more on that later.
Check your product sizes regularly, as Amazon can update them at any time, or sign up for a listing monitoring tool to stay informed of any unexpected changes.

2. Improve items of various sizes and weights.
FBA fulfillment fees first depend on the size of the product, as specified by Amazon’s product size class. Products under 3 lbs that are classified as “”regular size”” are only paid according to the weight range they fall into. Products weighing more than 3 lbs are also subject to variable weight charges. There will be a $2.50 delivery fee for small standard size products up to 10 ounces in weight. Due to the size and weight classes used, additional charges may apply for products that are slightly larger or heavier than the top – sometimes considerably more. Let’s look at another scenario. A large, standard-size product weighing 16 ounces will be charged a $3.48 delivery fee, while the same size product weighing 17 ounces will be charged $4.90. That’s $1.42 above the bottom line, a 41% increase. If you sell 10,000 products per year, you’ll save $14,200, which may be adjusted slightly to fall into the lower end of these ranges. Therefore, one of the first actions all sellers should take to reduce fees is to determine which size and weight range their products fall into. Current product size tiers and FBA fulfillment fees can be viewed here. Below are excerpts from the book. The first item to search for is something at the very bottom of the size or weight range, such as those in the example above. How do you reduce the size of such items? Since selling items online is different from selling in a typical brick-and-mortar store, it is crucial to choose elegant product packaging that is as small and light as possible. However, if you want to save FBA costs quickly, try to modify the critical product in one of the following ways: The empty space in the box should be reduced or eliminated. Replace larger cushioning material with thinner cushioning material. Instead of keeping accessories in their own area, place them in the product. Some user assembly is required to get the product to fit in the box better. Making these adjustments can take some effort and effort, but as long as you sell the product, the investment will pay off. Remember, entire industries have been transformed by transforming packaging and merchandise to reduce size and weight – look at IKEA furniture.

3. Do all the necessary preparations in advance
FBA has many, many requirements on how sellers use the service. These cover inbound shipping, product packaging, barcode labels, and more. To give you an idea of ​​how wide these requirements are, there are 15 pages on Seller Central for product packaging alone, covering general requirements for all products, as well as general requirements for liquids, powders, glass, batteries, plush toys, sharps, clothing, jewelry, baby products, etc.
Many sellers will take the simple option of paying Amazon for all the necessary packaging and getting it ready for them. This has some big drawbacks:

Amazon charges a fee for every item they have to prepare for you.
It will take longer for your inventory to be available for purchase.
If you choose to use manufacturer barcodes instead of Amazon FNSKU barcodes, your inventory can be “”blended”” with other sellers’ inventory.

4. Get unfinishable inventory from FBA
When a customer returns a product, Amazon will inspect it and decide if it can be resold. Products that are in such poor condition that they cannot be resold are called “”unfulfillable””. They will stay in the fulfillment center and incur storage fees unless you take action.

To find out if you have any unsellable inventory, run the Availability Report in Seller Central and check the “”Total Unsellable”” column. If you have any unsellable inventory, you can choose to either destroy it or return it to you.

Alternatively, you can choose to use the new FBA Grading and Resale or FBA Liquidation programs. All of these options have associated fees, but they will certainly be cheaper than charging for FBA storage indefinitely.

5. Review and file claims for your FBA invoices.
Many FBA sellers are unaware that there may be inconsistencies in Amazon’s fees and that they are eligible for repayment under the FBA inventory reimbursement policy. The following are the most important details to be aware of.

The average annual charge discrepancy, in our experience, varies between 1% and 3% of yearly FBA sales. In other words, claiming all of the FBA reimbursements you’re eligible for could boost your net profit margin dramatically. Another way to look at it is that out of every 100 units shipped to FBA, one to three will have a discrepancy along the route.

Keep in mind that Amazon pays the retail value of the affected inventory, not only the cost of the inventory, when providing an FBA reimbursement. As a result, you receive both the profit you would have made on that inventory and the money you spent to purchase it.

You only have a certain amount of time to file claims. In the United States, Amazon allows 9 months to reconcile Amazon FBA inbound shipments, and 6 months in the European Union. For lost, damaged, discarded, or removed units, as well as improper customer refunds, you have 18 months to file a claim. You only have 90 days to file a claim for overpriced fulfillment fees.

It is your responsibility to review your inventory, transaction, and fee data for irregularities and make claims before the deadlines pass. What evidence do you have to back up your claims? You’ll need to file cases with Seller Support to alert them to the discrepancies and supply any extra information they need. Documentation such as bills of lading, proof of delivery, invoices, packing slips, and more may be requested.

Seller Support may dispute your claims or pay a lower compensation than you requested. To establish the case for a full refund, you’ll need a clear understanding of the charge and reimbursement regulations, as well as how to effectively reconcile your data.

Auditing your data for FBA charge recovery chances and filing claims with Amazon is a time-consuming and difficult procedure, but it’s typically well worth it. If you don’t want to do it yourself, there are companies who specialize in recovering FBA costs on on behalf of sellers.

6. Manage your inventory to minimize storage fees
Amazon’s use of storage fees, storage limits, and the Inventory Performance Index (IPI) provides a clear picture of how they want sellers to use FBA. All of these factors encourage sellers to keep inventory levels low so Amazon can fully utilize its warehouse capacity. If you treat Amazon’s fulfillment centers as personal storage units, you’re going to be heavily penalized.

Amazon’s storage fees are divided into three main levels:

From January through September, the monthly inventory storage fee for standard-size products is $0.75 per cubic foot.
The monthly inventory storage fee for standard size products from October to December is $2.40 per cubic foot.
In addition to the above fees, the long-term storage fee for inventory that has been in the fulfillment center for more than a year is $6.90 per cubic foot per month.
Please note that the monthly storage fee for oversized items varies, with a long-term storage fee of $0.15 per item, which applies if it is calculated higher than the quantity-based fee.

You can see that the total cost for 1 cubic foot of storage varies between $0.75 in January (products stored less than a year) and $9.30 in October (products stored more than a year). This is the same space but will cost you 12 times more.

Some sellers want to make inventory management as simple as possible and send bulk stock orders to FBA directly from the factory. This can be very expensive, especially if sales are slower than you’d like. The good news is that reducing your FBA storage fees is easy.”

“International Shipping Process Guide

Many newcomers to foreign trade, or those who want to contact foreign trade, do not know much about the process of shipping. This article will give you a brief overview.
There are various reasons for the movement of goods between countries, most of course for the reasons of increasing the value of the goods. With the rapid development of e-commerce, a large number of small businesses now require international shipping, here is an attempt to explain the different steps in the shipping of goods.
There are many players involved in international shipping, shipping companies, booking agents, freight forwarders, customs brokers; introduce the four main players of LCL shipping: shippers, consignees, freight forwarders and shipping companies.
A shipping company is a company that transports your cargo at sea. You may never talk to them or even see their documents or letters.
However, the freight forwarder is the logistics provider you will be dealing with. They can arrange shipping from shipper to consignee – you are one of them.
The shipper is the shipper at the origin; it can be you or the factory or seller from which you purchased the product.
The consignee is the recipient of the goods; this could be you or the person you are selling to.

Step 1: Export Shipping

After the shipping company confirms the booking, the goods need to be transported to the port. This process is called export shipping. The freight forwarder will need to obtain an empty container from the shipping company or container yard. Quality inspection and capacity assessment of containers are important as failure to do so may affect the quality of the cargo being transported.
When picking up an empty container from a shipping company or container yard, the consignee needs to provide three documents, which must be presented by the freight forwarder.
power of attorney
ID card
Compensation letter
After obtaining the empty container, the cargo is now loaded into the container, ready to be transported to the terminal for onward loading onto the ship. Transportation can be done by road (via container trucks), rail, barge or intermodal, depending on the terrain or geographic location. Export shipments are usually arranged by local transporters with local expertise or local operations. However, it is highly recommended that an experienced freight forwarder understand the requirements, document processes and be able to determine the best shipping method at a competitive cost within the required time frame.

Step 2: Export customs clearance

Export customs clearance is a basic requirement for international shipping and must be completed before the goods arrive at the terminal for loading. The process varies from country to country and includes important steps and principles that all customs authorities follow. Below are the basic steps and required documents for export clearance.

Basic requirements for export customs clearance
Make sure the business is registered with the government with a certificate of incorporation and a certificate of approval from the TIN NO
Confirm that the goods are not prohibited and can be exported.
Make sure the same goods are not restricted in the importing country
Confirm the export classification code (HS CODE) of the material or product you are exporting.
Obtain an export license or license (if required)
Obtain a cleaning inspection certificate from an inspection agency
Register an export declaration electronically or manually for each shipment.
Required customs clearance documents (export):

Exporter Registration Documents: This includes the Exporter’s Certificate issued by the NEPC
Quality Assurance Documents: This includes documents such as Certificates of Analysis and Test Certificates.
Financial documents: including but not limited to
Nigerian Export Earnings Form (NXP)
commercial invoice
proforma invoice
cargo movement document
Certificate of Cleaning Inspection (CCI)
waybill
packing list

Booking confirmation notice.

Step 3: Terminal Processing

The next step after export clearance is terminal processing, also known as origin processing. At this point, the freight forwarder determines the vessel required for transportation and begins terminal processing, which requires the following.
After customs and shipping company documents are confirmed, the cargo is unloaded from the truck and transferred to the terminal staging area for counting and inspection.
Terminal authorities use customs clearance documents to verify booking details to ensure and verify that the cargo is confirmed for international shipment. A dock handling invoice is issued to certify that the goods have been received at the dock.
Containers are stored in terminal ports, waiting for ships to be ready for loading and shipping.

Step 4: Sea Shipping

The freight forwarder decides to choose a shipping company to perform the ocean freight from origin to destination to meet the schedule required for the shipment. A freight forwarder has a contract for the carriage of containers with a shipping company, in which case the shipper or consignee does not have any direct interaction with the shipping company.

Shipping costs are ultimately borne by the shipper or consignee. However, ocean shipping is never the full cost of shipping from port to port. There are various surcharges imposed in the industry, such as fuel adjustment factors and currency adjustment factors, which are passed on to the shipper or consignee.

5. Import customs clearance

Import clearance can usually begin before the goods reach the destination country. As for export clearance, it is a procedure for making a declaration and submitting it along with the relevant documents so that the authorities can register the goods and collect any duties. Import customs clearance shall be handled by the forwarder or the agent of the forwarder, or the customs broker designated by the consignee.

Import customs clearance procedures must be completed before the goods leave the bonded area of ​​the destination country. Usually, this means before the goods leave the freight forwarder or the freight forwarder’s destination warehouse.

6. Destination processing

As for the origin, the goods also need to be loaded and unloaded at the destination before they can be released to the consignee. Simply put, destination handling involves the transfer of containers from ship to shore and from port to the freight forwarder’s destination warehouse. It also includes unloading the container and preparing the cargo for pickup by the consignee.

Trucks for transporting LCL cargo
Destination processing includes multiple destination charges and is always performed by the freight forwarder or the agent designated by the freight forwarder. A fee can be charged to the shipper or the consignee, but payment in full is always required before the goods are handed over to the consignee. Likewise, if the agreement is that the shipper pays the ocean freight and the consignee pays the destination fee, it is actually the shipper who decides who the consignee has to buy destination processing from. As discussed for origin fees, this can create some friction or surprises for unplanned recipients.

Step 7: Import Shipping

The transfer of goods from the import warehouse to the consignee’s address and the final destination of the goods is called import haulage. Transportation can be done by road (via container trucks), rail, barge or intermodal, depending on the terrain or geographic location.

Import shipments can be handled by forwarders who handle international ocean freight or by local freight companies specializing in import shipping services. If a freight forwarder is responsible for import shipments, they will use their trucks or contract with a third-party freight company to do the job. Alternatively, the consignee can choose to collect the goods at the destination warehouse to save on import shipping costs.”

“How to Print Amazon Product Labels

Amazon FBA is growing in popularity, and it’s not hard to find out why. A service that saves you time and reduces operational stress; take your shipping stress and put it in the hands of the world’s largest online retailer where on-time delivery is second nature…for This is a no-brainer for growing businesses with limited internal resources.
Millions of products can be purchased with the click of a button, so it’s no surprise that Amazon’s automated fulfillment process relies heavily on accurate barcodes and labels. So if you want to be part of the FBA action, you will need to know what Amazon wants and give it to them the way they want.
Any product you want to send to Amazon for their fba service needs to be clearly marked and contain the specific information they need. Amazon can actually fine you if you get it wrong, but don’t worry, we’re here to help you learn how to get Amazon barcode labels right the first time, everything you need to know every time.

What is an Amazon FBA label?
Amazon FBA labels are specific labels that help Amazon collect, store, distribute, and ship your products in fulfillment centers.
Since FBA is a very large-scale business, Amazon relies heavily on these specific barcodes and labels. These FBA labels ensure that the right customer is getting the right product from a valid seller.
Additionally, these special labels make tedious sorting, management and shipping a breeze, enabling fast shipping and faster delivery.
Failure to follow these shipping rules can result in unnecessary fines, delays, and sometimes even the return of your product from a fulfillment center.

What are the most common types of labels?
It would be ideal if you knew about the different types of tags. In short, tracking your shipment or individual product requires only two main barcodes:
Manufacturer Barcode – UPC, JAN, EAN or ISBN
Amazon Barcode – FNSKU

What should the label contain?
Some sellers make the mistake of labeling too much or too little. Fewer details can make it difficult for fulfillment teams to assign your products to the correct storage.
The same applies to labels that contain unnecessary information, as it can sometimes confuse bar readers. To avoid all this, every label on your shipment should contain three basic elements:
Valid FNKSU barcode
Product name, such as dog bars, toys, etc.
Product condition, such as used, new, etc.

What are the barcode label printing options?

As an Amazon seller, you have four printing options at your disposal. They are as follows:
1. Print it yourself
You can print your labels with all the necessary tools available on the Amazon Seller Central page. However, this method requires you to have a printer and printer rolls for creating, printing, and pasting.
2. Amazon Label Service
Amazon Label Service gives you an easy option to have Amazon add your stickers in fulfillment centers. However, you should change the “”Who Prints”” setting to “”Amazon”” to activate the service. Amazon US charges a flat fee of $0.30 per item for Standard FBA and $0.10 per item for FBA Small and Light. In contrast, Amazon Europe charges £0.15, £0.25 and £0.35 per item, depending on the size.
3. Use an existing barcode
If your product is eligible for a manufacturer’s barcode, you can use your existing barcode and avoid the hassle of printing.
4. Customize the printing barcode
Ordering custom printed barcodes is an easy way to streamline the labeling process without taking too much time. You can let third-party companies create custom printed barcodes with shape, size, and design elements.

How to Print Amazon FBA Labels
Amazon Seller Central knows how frustrating it can be to print all these product labels, so they try to make the process as painless as possible. To print your Amazon FBA label, follow these steps:

Login to Seller Central

Go to Inventory > Manage FBA Inventory from the menu bar
Scan your product listing and find the product for which you want to print a label.
Click Edit to the right of the selected product
In the drop-down menu, click the Print Items tab
Select the number of labels to print on the right
Click on the paper/sticker type and choose your preference
When done, click the Print Projects tab
Amazon generates the labels for you, so you don’t have to worry too much about the details.

some label paper requirements
For Amazon FBA, you need to follow three basic label stock requirements:
The paper should be completely white and 100% non-reflective.
You should strictly use black ink to print barcodes. Color inks do not perform well in a variety of climates and shipping conditions.
Make sure to use a removable adhesive so customers can easily remove the label after delivery.”

“7 Ways to Improve Amazon Profit Margins
While Amazon has become an important sales channel for many brands, increasing sales and fulfillment fees are shrinking profit margins, making Amazon more and more expensive as a sales channel. Fortunately, many brands have found ways to increase profit margins when selling in this massive retail market. Here are 7 ways brands can reduce fees and other costs to improve profit margins.
1. Create a product package
One of the easiest and fastest ways to increase profit margins is to use product bundles.
If you’re new to bundling, you can offer multiple products in one Amazon listing.
The main benefit of bundling is increased profit margins and less competition in the Buy Box.
In most cases, creating a new listing means you’ll be a solo seller for quite some time (until other people notice that your bundle is popular and can use the same products).
If set up correctly, you can become a solo seller of the bundle and it’s still profitable as long as you keep selling it.

In a way, bundles are similar to private label sales – just easier and faster to create. If certain bundles don’t sell, you can always split them up and sell them as a single unit to get your money back (as you’ll be bundling popular products).

2. Use repricing software
This should always be your first strategy when it comes to improving Amazon’s profit margins, as it’s an easy-to-achieve way to achieve your goals.
Prices on Amazon change all the time, and you have to keep up with them. But instead of doing it manually, see why you should use the Amazon repricer.

3. Switch to a credit card for your inventory purchases
Maybe you pay the supplier via PayPal or your bank account. While that’s fine — especially if you’re just starting out and don’t have much income to do — you should reconsider this as you scale.
Replenishing your inventory with a credit card means putting more money back into your wallet with cash back, points or other rewards. Just make sure you pay your balance every month, otherwise, your increased profits may be forfeited.

4. Take advantage of out-of-stock products
Taking some time to find out-of-stock products can pay dividends, and as you might expect, speed is of the essence.

You need to find products that are out of stock but have good sales rankings on Amazon.
If you’re the quickest responder and ship your product to Amazon the next time it’s in stock, you’ll be able to enjoy some solo selling time during which you’ll be able to make a decent profit.

5. Purchase all remaining units from the supplier
Another great way to gain an edge over your competitors and make good profits is to keep an eye on the remaining numbers of popular products your suppliers have.
Some suppliers will display the remaining stock of a product on their website, if you notice a limited number of sellers for that particular product, consider purchasing all that is left over.
You should ask for a discount to take the remaining stock from them, but as long as it’s a popular product, consider buying it anyway.
It may take some time for your suppliers to restock, which means that when the remaining sellers are out of stock, you will be the sole seller and be able to enjoy the many benefits of that status.

6. Sell items that are often out of stock
This is a very high-risk strategy when it comes to improving Amazon’s profit margins, so definitely don’t rely on it as your primary method.
What it takes: Search for frequently out-of-stock products (with good sales rankings), buy from suppliers, and wait for other listings to be out of stock. When this happens, activate your listing, but the price is much higher.
Buyers will suddenly see your listing as the only one available and will buy from you, leaving you with a very high profit margin.
However, doing so has many risks:
There’s no guarantee that buyers will pay the higher price, as some may be content to wait for a lower-priced alternative to emerge. It might take some tinkering to find the fine line between high profit margins and ridiculous prices.
If the gap between product out-of-stocks is too great, your long-term storage fees (if you store them that long) may offset or exceed your profit margins. Using this method on fashion items may leave you with products that are trending in the past, rather than products that are in high demand.

7. Allow Dynamic Listings to Drive Profits

Slow-selling products on Amazon reduce profits, making inventory another critical area to check.
How much inventory does Amazon store and how long will it be there?
A surprising number of national brands do not know the answers to these questions.
Experienced brand managers know that storage costs can be high if product turnaround times are too long. In fact, Amazon recently changed the way they set inventory storage fees, making 2018 even more expensive.
Now, they’re preventing inactive product inventory by raising storage fees and changing the long-term storage fee structure from billing every 6 months to billing monthly. By moving from semi-annual to monthly assessments, fees have increased by an average of 6%.
The bottom line is that Amazon has fulfillment centers, not warehouses.
Amazon doesn’t want to store your products longer than they have to, so they use fines to incentivize brands to move inventory quickly. As a result, brands that take up valuable real estate in their packaging centers face a higher risk of loss of profit margins.
National brand managers need to identify sluggish products that will seep into profits and then stop selling them on Amazon.
A better strategy is to promote a diverse SKU catalog on the brand’s company website and keep only the most effective SKUs on Amazon.
If a brand already has hundreds of products on Amazon to maximize reach and exposure, optimize the top-performing products first with ads and quality reviews. Increased visibility into profitable items can offset the extra cost of slower-moving listings.

Stay Profitable by Considering Context When Selling on Amazon
The cost of selling on Amazon often makes national brands question the ROI of directing more resources to this marketplace. What brands need to realize is that ignoring Amazon is not a viable option unless they want to risk losing the bulk of their e-commerce sales.
A better solution is for brand owners to approach each sales channel in a unique way and appropriately shift their perspective on marketing, customer acquisition, sales and profitability for each market.
For example, traditional e-commerce sales utilize email campaigns as part of their marketing strategy. However, this approach doesn’t translate well to Amazon, as brands are not allowed to remarket to consumers.
Once brand owners have adjusted their thinking, they can develop tailored strategies to maximize profits appropriately for each market.
Part of a brand’s strategy to improve Amazon’s profit margins is to validate all listing descriptions and check for inaccuracies. Brands should only keep items in their Amazon catalog with fast turnaround times and remove slow-moving inventory.
In addition to maximizing profits, it is also important for brands to expand their understanding of profitability to get the full value of selling on Amazon. In the overall picture of a brand’s success, immeasurable factors such as influence and exposure can far outweigh profits alone.”

“Amazon FBA Fee Calculation
With the rapid development of e-commerce, more and more people turn their attention to overseas markets. And Amazon is the world’s largest e-commerce platform, so many merchants choose to settle in Amazon.
Amazon’s operations include two major modes, namely the Amazon (FBM) self-shipping model and the Amazon (FBA) Amazon delivery model.

1. Advantages and disadvantages of self-shipping model (FBM)
These two modes have their own advantages and disadvantages. Self-delivery means that Amazon only acts as a sales platform, the seller’s own source channel. After a customer places an order in the store, it will be delivered to foreign customers through international express parcels.
Advantages: low investment, you can wait until the order is issued before purchasing, packaging and distribution are also operated by yourself, directly facing customers, and it is easier to build a good brand. The categories are more extensive. Some categories, including product characteristics, do not support FBA logistics (large-scale goods), and only self-delivery can be done.
Disadvantages: slow aging, slightly less orders than FBA mode. In fact, FBM is similar to the domestic Taobao store. The seller opens a store on it, and when someone places an order, it can be shipped according to the address.

2. Pros and cons of the Fulfillment by Amazon (FBA) model
Amazon (FBA) Fulfillment by Amazon means that the goods are delivered to Amazon’s FBA warehouse in advance, and then someone places an order and then the Amazon warehouse delivers it to the buyer.
Advantages: fast with aging. And Amazon will also have traffic support, which is much higher than FBM’s exposure. Returns and exchanges do not require the seller’s consent and are handled directly by Amazon customer service, so most people prefer FBA products.
Disadvantages: The operating cost is much higher than that of FBM, and storage fees need to be paid every month (calculated according to the product volume). If the product does not sell, you need to pay the storage fee on an ongoing basis.

What are common Amazon FBA fees?
Amazon charges all sellers 15% of the sale price of each item, regardless of the e-commerce fulfillment method.
In addition to seller fees, Amazon FBA charges two main fees: fulfillment fees and inventory storage fees.
FBA fulfillment fees include the entire picking, packing, and shipping process for each shipped order.
FBA inventory storage fees include storing your products in Amazon fulfillment centers.
Here’s exactly what each fee is and why the price of each fee varies so much.

FBA fulfillment fees
Unlike many fulfillment service pricing models that charge for picking, packing, and shipping as separate line items, FBA fulfillment fees cover every step of the fulfillment process.
Fulfillment charges depend on the product size and shipping weight of the item being shipped. There are two main categories of product sizes: standard and oversized.
Standard-sized products are those that weigh less than 20 pounds or measure less than 18x14x8 inches.
Oversized shipping includes items that are larger or heavier than those listed above.

Within these categories, there are several additional subcategories.
Both size and weight of shipping items are important because Amazon uses dimensional weight to calculate shipping costs, which takes into account the density of the shipment.
Fulfillment fees for standard-sized items range from $2.41 (under 1 lb) to over $4.71 (over 2 lbs), with an additional $0.38/lb for items over 2 lbs.
For oversized items (over 18x14x8 inches), the fee for small oversized items (over 70 lbs or 60 inches on the longest side) starts at $8.13, plus an additional $0.38/lb for the first two pounds.

On the other hand, delivery fees for special oversized items (over 150 pounds or 108 inches on the longest side) start at $137.32, with an additional $0.91 per pound for the first 90 pounds.
FBA also charges an additional $0.40 per garment delivery fee.
At the end of the day, your FBA fulfillment fees will mostly depend on what exactly you’re selling—there’s no one-size-fits-all fee here.

It’s also worth noting that while packaging is included in the FBA fulfillment fee, Amazon will pack your product in an Amazon-branded box. This means that Amazon’s branding is paramount, and it can overshadow any branded experience you intend to create with shipping. While this may not be a deal breaker, it’s worth keeping in mind.

Other FBA Fees Explained
Depending on your business needs, there may be additional charges for fulfilling Amazon orders using FBA.
Product return fee
For example, if your product is eligible for free returns through Amazon Prime, you will incur additional fees for FBA returns. (Return processing is included in the fulfillment fee for products that do not have free returns.)
Inventory clearance fee
Also, if you decide to no longer use FBA, removing your inventory from their fulfillment centers can be costly. If you choose to have Amazon remove your inventory and return it to you, they will charge a fee of $0.50 to $0.60 per item based on the item size. Amazon handles the inventory for you at a cost of $0.15 to $0.30 per item.
fine
Amazon has very strict requirements for sellers, and they also use fees to punish sellers who don’t follow the rules (here’s an article on avoiding mistakes when selling on Amazon). For example, Amazon will charge a labeling fee for sellers who do not adhere to its strict FBA inventory barcode labeling specifications. Sellers who do not prepare products in accordance with strict packaging and preparation guidelines are subject to unplanned FBA preparation fees.
Package preparation fee
Of course, you can always choose to have Amazon prepare and package your products for you—for an additional fee. Depending on your profit and order volume, this can save your business from hassle or unnecessary extra costs.
Note: This is intended as a high-level overview and is by no means comprehensive – Amazon FBA comes with some additional potential fees. See their Seller Central documentation for more information.
Long-term storage fee
Inventory stored in an Amazon fulfillment center for more than 365 days will be charged a monthly long-term storage fee of $6.90 per cubic foot or $0.15 per item, whichever is greater. Long-term storage fees are calculated using an inventory snapshot on the 15th of each month. FBA calculates inventory age based on FIFO.

Is Amazon FBA right for your business?
That’s up to you to decide. Once you’ve done the math and determined the cost, it’s up to you to figure it out.
Nor is there necessarily a right or wrong answer. For some startups, Amazon FBA can be a no-brainer, while others prefer to control the entire shipping and delivery process.
You also need to remember that the decision to use Amazon FBA is not just about numbers. You should consider other factors such as customer service, branding, and return frequency.
For example, when you ship with Amazon FBA, you lose your creativity with packaging materials. If this is an important factor for your brand and product experience, then FBA may not be the right choice for you.

Ready to master Amazon FBA?
The world of Amazon FBA is vast, exciting, and full of potential. However, this is far from simple.”