Freight Forwarding: What Is It? Why Successful Amazon Sellers Use ForwardersRyan
WHAT’S A FREIGHT FORWARDER AND WHY DO I NEED ONE?
One of the biggest surprises to many new Amazon sellers is how big of a role logistics plays in the cost and effort of becoming an online seller and getting a product launched on Amazon. When I launched my first private label product on the Amazon marketplace in 2013, I followed a blog post I found on selecting a product, finding a supplier, and negotiation tactics. After finally selecting a product, paying a deposit, and starting production, I asked my supplier, almost as an afterthought, “Shipping is included in the price, right?”
Turns out I was very wrong, and my supplier kindly informed me that the price we agreed upon would only get my products to the port in China, and I was responsible for getting them to Amazon’s fulfillment center.
I quickly started searching around for companies that could ship from China to Amazon, but back then there was absolutely no information on the subject. I had no idea what I was doing, or even what terminology to be searching for. Luckily my supplier had a contact who could ship my product to the port of San Diego, where I could pick it up and get it the rest of the way to Amazon. During the shipping process I got a fast education on shipping methods, transportation companies, container freight stations, customs brokers, customs duties, drayage, and a whole heap of other things that were completely foreign to me.
The shipment eventually got to Amazon, but by the time it did my initial investment in the business had quadrupled. With so much time, energy, and money going into the logistics of an Amazon business, it’s important for those selling in online marketplaces, both new and seasoned, to understand the processes of moving international cargo to Amazon’s fulfillment centers.
FREIGHT FORWARDING FOR AMAZON SELLERS
Once your business grows beyond using air express (DHL, UPS, etc., typically expensive and ships door-to-door) or if you’re starting out with larger, heavier products, you’ll need an Amazon freight forwarder to move your goods from the manufacturer to your assigned Amazon fulfillment center. While this process can be done on your own, it requires coordination with 4-6 different companies, and careful tracking off your shipment. Headaches and potentially large shipping and CBP fees can be mostly avoided when using a freight forwarder. Any good freight forwarders will be able to organize most or all the process for you, so you can focus on growing your business.
WHEN SHOULD I USE A FORWARDER?
Typically, it becomes more cost effective to use either air or sea freight when your total shipment weight reaches 300 lbs (135 kg). Before then, the forwarder’s fee will outweigh any savings in cheaper shipping rates.
HOW CAN FBAFORWARD HELP ME?
FBAforward will coordinate your entire shipment from the time production is finished at your manufacturers until it is checked in at Amazon. We are the only Amazon-focused freight forwarder that guarantees compliance with your shipments to help ensure your account stays in good standing with Amazon (we all know how stressful that can be!). We allow you to outsource the entire process so you can focus on your business, and trust us with the logistics.
CEO and Co-Founder
Ryan oversees the day-to-day operations and overarching strategy of FBAforward. He holds a JD/MBA from the University of San Diego. During his professional career, he has worked in both public and private accounting industries. Ryan owned a successful Amazon business before recognizing a need for an all-in-one logistics company for Amazon sellers.