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Amazon sellers always use their full potential and strengths to achieve success for their sales target and business. But following the right path is the key to meeting the targeted goals. When you find reliable suppliers, low-competition, and high-demand products, the main question is how to get your product to an amazon fulfillment center through the factory. In such a scenario, choosing an FBA freight forwarder is the best help.
It has been found that the most complicated aspect of selling on Amazon marketplace is international shipping. Thus, hiring a professional to receive your products from overseas to FBA with different legal requirements and moving parts is good. This post highlights the complete understanding of freight forwarder Amazon FBA, why to hire them, and how to search for the right company to manage your shipment.
What is a Freight Forwarders?
A freight forwarder is a company that works as an intermediary in transporting goods and logistics. It facilitates cargo movement from one place to another by managing different aspects of the shipping process of the product on behalf of its clients. In international trade, freight forwarders are crucial in moving goods across other regions and countries.
Freight forwarders have specific responsibilities, including organizing and coordinating the transportation of goods, managing the supply chain and logistics, and ensuring compliance with documentation requirements and customs regulations. It has expertise in navigating shipping complexities, like choosing the proper transportation mode, overseeing the labeling and packing of goods, and arranging essential transportation insurance and contracts. They also manage documentation like customs declarations, commercial invoices, and bills of lading.
In addition, freight forwarders' value-added services include warehousing, cargo tracking, freight consolidation, and customs clearance. It functions closely with airlines, customs authorities, shipping lines, trucking companies, and other stakeholders to ensure timely delivery and efficiency of goods.
Further, amazon freight forwarders work as a link between consignees, transportation providers, and shippers, ensuring the smooth movement of goods across international and domestic borders by streamlining the logistic process.
What is a Customs Broker?
A customs broker is a professional company that assists exporters and importers in navigating the process of complex customs clearance. It works as an intermediary between the customs authorities of the specific countries and the businesses or individuals shipping goods. The customs brokers are considered knowledgeable about different countries' documentation requirements, customs regulations, and procedures. Its primary role is to ensure that shipments comply with customs regulations and laws, facilitating the smooth exit or entry of goods from a specific country.
Customs brokers manage different tasks like coordinating inspections, submitting and preparing customs documentation, paying and calculating customs duties and taxes, and resolving any discrepancies or issues that may occur during customs clearance. They help to expedite the clearance process, minimize penalties and delays, and ensure compliance with regulations by improving their understanding and expertise of customs procedures. It simplifies complex customs procedures and supports and guides exporters and importers while facilitating international trade.
Related: How to Choose Between FCL and LCL Freight
Reasons to Hire an Amazon Freight Forwarder
Many advantages exist that make you hire Amazon freight forwarders, which can simplify shipping goods internationally or domestically. Let's find some common reasons to engage with freight forwarder services.
Expertise and knowledge
Amazon freight forwarders used to have expertise and extensive knowledge in shipping regulations, logistics, customs procedures, and documentation requirements. These professionals stay updated with constantly changing industry regulations and practices, ensuring your shipments comply with all essential needs.
Customs compliance and clearance
The Customs clearance process can be time-consuming and complex when you ship goods across different international borders. Freight forwarders are associated with custom requirements and regulations that ensure your shipments comply with all essential permits, documentation, and tariffs. They manage customs clearance procedures, such as calculating taxes and duties and avoiding potential penalties or delays.
Global network and relationships
Amazon FBA freight forwarder has established relationships with customs authorities, transportation providers, and other industry stakeholders and maintains extensive networks. It helps to overcome the logistical challenges and navigate the complexities of international shipping. They use their networks to secure preferential shipping rates, find the most efficient routes, and resolve any issues.
Seamless logistics management
All aspects of the shipping process, like managing documentation, overseeing the supply chain, organizing transportation, and coordinating customs clearance, are handled by freight forwarders. These professionals ensure that goods are delivered to their destinations on time, picked up on time, and transported efficiently.
Cost and time efficiency
FBA freight forwarder builds a strong relationship with transportation providers to negotiate the competitive rates associated with shipping services. These professionals have access to a network of carriers like airlines, shipping lines, customs brokers, and trucking companies that help them to secure the most efficient and cost-effective shipping of your goods. Here, you can save resources and time by outsourcing the logistics to an Amazon freight forwarder, which could help to spend on managing complex logistics tasks.
Documentation management
Usually, shipping involves a lot of documentation and paperwork, including commercial invoices, bills of lading, customs declarations, and packing lists. Amazon FBA freight forwarder helps to handle these documents efficiently and accurately, reduces the risk of delays or errors, and ensures compliance with legal requirements. They can also offer guidance on documentation needed for different goods and countries.
Risk mitigation and insurance
Freight forwarders know the associated risk with shipping goods, like theft, damage, or loss. It helps to select the right coverage to protect interests throughout the transit process and can offer advice on insurance options. They can also assist in resolving issues and filing insurance claims on your behalf in case of any unforeseen incidents or circumstances.
Value-added services
There are many additional services offered by freight forwarders that can improve your shipping experiences and streamline your supply chain. It may include warehousing, packaging, distribution, labeling, cargo tracking, etc. With value-added services, you can pay more attention to core business activities.
Related: All About Ltl (Less Than Truckload) Freight
When Do You Need To Use A Freight Forwarder?
Using a freight forwarder is advantageous in different types of shipments and situations. When do you need to use a freight forwarder? – is essential to understand.
Less than 200 kg of shipment
If you have less than 440 lbs or 200kg of shipment goods, then using something other than a freight forwarder is recommended. If your supplier uses a courier service like FedEx, UPS, or DHL to organize the shipment, it can be the fastest and most cost-effective way to get your small shipment. Here, the courier services for the shipment of your goods will work as the customs broker that delivers the product to the final destinations. After that, the courier service may send you duty fees or customs bills.
More than 200 kg of shipment
You can use an Amazon freight forwarder if you have more than 200 kg of shipment weight. Whether shipping through sea or air freight, it is beneficial as it can save you many headaches and is a more cost-effective option. It is recommended to use a freight forwarder when shipping by sea.
How Much Will It Cost To Use A Freight Forwarder?
The cost of using a freight forwarder may differ based on different factors, like the origin and destination, the nature of the shipment, the weight and size of the goods, the transportation mode, and the specific services required. You must focus on crucial cost considerations when using a freight forwarder Amazon FBA.
Customs duties and taxes
Custom customs taxes and duties can be applied when shipping goods across different international borders. Freight forwarders can help to calculate these charges depending on the country's customs regulations. Here, the cost will be based on the declared value, goods types, and preferential tariffs or applicable trade agreements.
Freight charges
Freight forwarders help to negotiate the rates with carriers depending on the weight, volume, dimension of the shipment, and transportation and distance mode. The freight charges may differ based on the specific carrier contracts and these factors.
Additional services
Additional services like warehousing, distribution, packing, labeling, cargo insurance, and cargo tracking are involved in freight forwarders that may incur separate costs. These service fees will be based on the level of service required and the specific requirements.
Customs clearance and documentation fees
The freight forwarders manage the preparation and submission of different shipping documents, including customs declarations, bills of lading, and commercial invoices. It may include customs clearance fees facilitating and coordinating the clearance process with the support of customs authorities.
Handling fees
The best Amazon FBA freight forwarder may charge handling fees for managing, receiving, and inspecting the goods at their facilities. These handling fees may differ based on the complexity and the type of the shipment.
However, it would help if you remembered that freight forwarders work on a for-profit basis, and the included fees cover their overhead and service costs. Here, the transparency of costs and specific pricing structure can differ between freight forwarders. Thus, requesting a detailed breakdown of fees and costs from the freight forwarder upfront that involves additional charges during shipping is recommended.
Common Questions You Need To Ask Freight Forwarders
When choosing to use the best Amazon FBA freight forwarder for your business, it is essential to ask the right questions. A list of common questions is highlighted below.
- Can your freight forwarder company work with smaller sellers?
- Do you have FBA shipping experience from Amazon?
- Do you provide clean and clear communication?
- Do you provide cargo insurance?
- Does your freight forwarder company charge a reasonable rate?
- Do you offer a customs bond?
- Does your company offer customs clearance?
- Does your company handle all aspects of the shipping process?
- Can your company assist in labeling products based on Amazon's requirements?
- Can your company receive goods from the destination to the Amazon warehouse?
Steps to find the Amazon FBA freight forwarder for your business
Significantly few steps are in finding the best Amazon FBA freight forwarder for your business.
- Firstly, go to the website to start and start comparing the rates.
- You need to enter the page's destinations, types of goods, origin, and loads.
- Next, enter your factory’s address for origin.
- You can choose a fulfillment center to direct shipping to that destination.
- Enter the address of the fulfillment center close to the port where your products are shipped.
- After finding a freight forwarder, you can ask them to change the address for the fulfillment center by creating a shipment.
- Next, you can enter shipping items like containers, boxes, or pallets.
- You can contact your suppliers to ensure everything is perfect.
- At last, you need to enter the value of your goods, which will prepare the shipment. If you don't know the total value, look at your invoice or ask your suppliers.
- After that, your supplier will do the labeling and ensure your goods comply with Amazon's requirements.
- You can choose yes for customs bonds and brokerages, which will help your product reach the port.
- You will get multiple freight forwarders options once you have given all the information.
- You can set up your shipment after finding the best Amazon FBA freight forwarder to work with.
Many terminologies are used in the Freight Forwarder that you must check carefully, such as bill of lading, packing lists, commercial invoice, entry summary, proof of delivery, ex-works, free on board, full container load, less than container load, customs bonds, etc.
Related: Land, Air, or Sea: Picking the Best Freight Option
Conclusion
To wrap it up, having a reliable freight forwarder is essential to running an eCommerce business. They can help reduce shipping costs and offer valuable logistics support needed for international growth. When choosing your Amazon FBA freight forwarder, consider their services and prices carefully and ask questions to narrow down your options. Once you find a trustworthy partner, you can rest easy knowing they have your best interests. Here at Simpl, we specialize in providing freight forwarding services to help make global trade easier for online businesses. Contact us today if you're looking for a reliable partner to take the hassle out of eCommerce shipping. Need help reducing shipping costs for eCommerce orders? Get in touch with Simpl and start taking advantage of global opportunities!
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