Fba Shipping: A Logistics Strategy That Cross-Border E-Commerce Must Know!

With the boom of cross-border e-commerce, more and more sellers choose the FBA (Fulfillment by Amazon) model, but the logistics process of FBA has become a headache for many novices. Especially for sea transportation, the transportation cycle is long and the process is complicated. Any mistake in any link may affect the listing of goods. Next, through some real cases and practical data, I will take you to easily understand the key points of FBA shipping!

1. FBA shipping: an affordable but long choice

Friends who have done cross-border e-commerce know that sea transportation is a very cost-effective transportation method, especially suitable for large quantities of goods. Compared with the fast but expensive air transportation, sea transportation is affordable and stable. However, its shortcomings are also obvious-slow speed, as fast as one month, and as slow as two months to arrive at the Amazon warehouse.

Case: A US Amazon seller compared air and sea transportation and finally chose the latter, saving nearly half of the freight. Although the transportation time was extended by 30 days, preparing stocks in advance allowed them to avoid the risk of out-of-stock. According to Statista, the cost per kilogram of sea freight in 2023 is about $0.50, while air freight is as high as $6. Comparing this set of data, it can be seen that sea freight is more suitable for cost-sensitive sellers.

2. Overview of FBA sea freight process: Let the goods arrive at the warehouse steadily

The process of FBA sea freight is actually not complicated, but there are details that need to be paid attention to in each link. In simple terms, the process includes: cargo loading, export customs declaration, sea transportation, customs clearance at the destination port, and delivery to Amazon warehouse. Each link is related to the timeliness of entering the warehouse. Once a problem occurs somewhere, the entire process will be delayed.

Case: An export company in Shenzhen recorded their sea freight FBA process. From loading, export customs declaration, to Amazon's US warehouse, the whole process took 45 days. They found a logistics company that provides one-stop service, and all links are handled by logistics agents, which saves a lot of trouble. According to IBISWorld data, the average timeliness of FBA sea freight is 30-50 days, and the specific time varies according to the destination. These figures can help sellers plan their time in advance to prevent out-of-stock.

3. Choose a reliable FBA shipping service provider

Choosing the right logistics service provider can save you a lot of trouble. Whether the service provider is reliable directly determines the safety and transportation efficiency of the goods. When choosing a logistics company, you may wish to first check whether the service provider has cross-border e-Commerce Logistics experience, especially FBA warehousing experience. If the logistics company has a customs clearance partner in the destination country, the customs clearance efficiency will be higher.

Case: A European Amazon seller chose Sino Shipping, a cross-border logistics company, because the company has rich experience and a good reputation in the European market, which greatly reduces the customs clearance problem. According to Flexport's research, experienced logistics companies can increase the timeliness of goods entering the warehouse by 20-30%. Therefore, a reliable logistics partner can really save you a lot of trouble.

4. How to save money: Start with packaging and delivery time

The shipping cost seems cheap, but in order to further reduce costs, sellers also have some tips. For example, packaging optimization, improving loading efficiency, and early delivery can save a lot of money.

Case: An Australian seller reduced the overall volume by 10% by optimizing the packaging, thereby saving 15% of transportation costs. According to a report by DHL, packaging optimization can help sellers save 15%-20% of logistics costs, because sea freight is usually charged by volume. Reasonable planning of packaging and loading can not only save costs, but also improve warehousing efficiency.

5. Customs clearance and customs declaration: details that cannot be ignored

Many cross-border sellers have problems in the customs clearance process, either because of incomplete documents or unfamiliarity with the regulations of the destination country. These small mistakes often cause goods to be stranded at the port, affecting the time of listing. Therefore, it is very important to be familiar with the customs clearance process and prepare customs clearance documents. If necessary, you can find a professional customs clearance agent.

Case: A US seller had his goods detained due to incomplete customs clearance information, resulting in delayed delivery. Later, they chose a professional customs clearance agent, which significantly reduced the customs clearance time. According to the World Bank, the average customs clearance time in the United States is 1-2 days, but incomplete documents may delay up to 1 week. Therefore, the integrity of customs clearance documents is definitely a detail that cannot be ignored.

6. Peak season delivery strategy: plan ahead and avoid peaks

November to December every year is the peak season for cross-border logistics, especially during the Christmas season, when logistics time will be extended a lot. For FBA sellers, staggering the peak and shipping in advance is a key strategy.

Case: A Chinese electronic product seller shipped two months in advance, avoiding the peak period of logistics and ensuring that the goods arrived at the Amazon warehouse on time to welcome the Christmas peak season. This method helped them obtain a large number of orders during the competitive peak season. According to Flexport data, during the peak season of logistics, FBA shipping time may be extended by 25%-40%. Therefore, if you want to catch up with the peak sales season, it is best to plan the delivery time in advance.

7. Reduce risks: buy insurance to ensure the safety of goods

Although the probability of loss of goods in sea transportation is low, the transportation cycle is long after all, and the risk cannot be ignored. Once the goods are damaged or lost, insurance is a guarantee. Therefore, it is recommended that sellers purchase insurance for goods when shipping by sea to reduce possible losses.

Case: A British seller suffered damage to the container during transportation, and borne all losses because he did not purchase insurance. From then on, they would buy insurance for every ocean shipment to ensure that the risk was controllable. According to statistics from the international insurance company TT Club, about 40% of the cargo suffered losses due to uninsured shipping in the global ocean shipping loss incidents each year. Although insurance increases costs, it can provide protection for cargo, especially in long-distance transportation.

8. Environmental protection and sustainable logistics: Become a green cross-border seller

In recent years, environmental awareness has been continuously improved, and more and more sellers have begun to pay attention to carbon emissions in the logistics process. Choosing low-emission green logistics companies and reducing packaging materials are all green logistics initiatives. Especially in the European and American markets, environmental protection measures can not only enhance the brand image, but also gain more consumer recognition.

Case: A European brand chose Maersk's "carbon neutral" shipping service to reduce carbon emissions and meet the EU's sustainable development standards. According to the International Maritime Organization (IMO), carbon emissions from the shipping industry account for 2.2% of global emissions. By choosing a green logistics provider, sellers can reduce their carbon footprint by about 30%. Becoming a green cross-border seller not only helps protect the environment, but also gains an advantage in market competition.

Summary

FBA shipping may seem complicated, but as long as you master these key links and tips, you can smoothly deliver goods to Amazon warehouses and easily enter overseas markets. Do a good job of process planning, choose a reliable logistics partner, reasonably control costs, buy insurance to protect goods, pay attention to environmental protection... These are the key points that can make your FBA shipping more efficient. On the road of cross-border e-commerce, logistics is an obstacle that cannot be avoided. Mastering FBA shipping means mastering the key to entering overseas markets!