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A Definitive Guide On Amazon Freight Forwarders [FBA] 2

Reader:745
2019-04-23

Quick Guide:

  1. What Is A Freight Forwarder?
  2. What Does A Freight Forwarder Do?
  3. What Do Freight Forwarders Offer?
  4. Why Should You Use A Freight Forwarder?
  5. Benefits Of A Freight Forwarder
  6. How Do Freight Forwarders Charge For Their Services?
  7. How To Choose A Freight Forwarder?
  8. What Are The Key Phases Of Freight Forwarding?
  9. What Documents Should A Freight Forwarder Provide?
  10. About Amazon Freight Forwarders & Hand Carry
  11. About Customs, Duties, and Taxes
  12. Final Thoughts

 

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How To Choose A Freight Forwarder?

Since you are now aware of the basic process of freight forwarders, you will have a better clarity on what to talk while choosing the best amazon FBA freight forwarder for your business.

Research and list a few best freight forwarding services in a paper or an excel sheet along with their contact details. Look at every company’s website carefully and see what they offer.

It is best to have a call with the service provider and look for the following:

1. Check For Delivery Destinations

Even though the company might advertise itself saying that it ships internationally, it doesn’t really mean that that will cover all the countries.

A good forwarder will always include accurate information on the website about where they pick up & deliver to.

Apart from this, check if they offer an all-inclusive delivery service – door-to-door service than port-to-port.

If they offer port-to-port, you will be incurring extra costs while booking for road transportation to finalize the delivery.

2. Available Insurance Options

A forwarding company usually offers a standard insurance plan to cover two things:

     •  Basic loss

     •  Damage cost

Ask if there ate additional options available – especially if your shipments are time sensitive or valuable.

Shipments involving solar panels, pricey machinery, antiques, glass, or fragile items must be packed professionally for safe export. A few items might be excluded on a freight forwarder’s liability insurance. Therefore, it is important to check.

3. Experience With Amazon FBA

Amazon is one of the largest retailers in the world, and they have precise requirements for the items be packaged, labeled, and stored. Yes, you can do this on your own, it takes plenty of time and there are risks involved. You might end up doing big mistakes, causing rejections from the Amazon fulfillment center.

Once Amazon’s fulfillment center sends your shipments back, it is going to cost you a lot.

Therefore, it is important to work with a forwarder who has good experience in handling Amazon shipments because they will know its requirements and further, work with the suppliers to meet the criteria.

4. Tracking System

Even though their support team should be available whenever you want to talk to, it will be more convenient if you can track your packages yourself.

Ask the freight forwarder what type of tracking tool they use and check if it updates you in real time or not.

A good tracking system provides the following:

     •  Exception notifications

     •  Purchase Order management

     •  Clear dashboards

     •  Customized reports

     •  Digital copies of paperwork

     •  roofs of delivery – online & offline

5. Packaging Services

When you contact the freight forwarder, make sure to ask about their packagingservices. Check if there are additional services for it or it is included with the plan.

Most forwarding companies supply sealable bags (plastic) for small products and labels for bigger boxes.

 

What Are The Key Phases Of Freight Forwarding?

The process of freight forwarding is categorized into 6 key stages:

     •  Export haulage: This phase involves transferring the goods from source to the forwarder’s warehouse.

     •  Export customs clearance: This phase involves clearance in leaving its origin country.

     •  Origin handling: This phase involves unloading, examining, and validating the cargos against the booking documentation.

     •  Import customs clearance: This is the phase where authorities check for customs paperwork.

     •  Destination handling: This phase is where your cargo is handled after it reaches the destination office.

     •  Import haulage: This is the phase where your cargo is transferred from the warehouse to the final destination.

 

What Documents Should A Freight Forwarder Provide?

Freight forwarding involves lots of paperwork, particularly when you are shipping overseas. Make sure that your freight forwarder provides you these important documents:

     •  Bill of Lading (BOL) contract

     •  Commercial invoice  

     •  Certificate of the origin statement

     •  Export license

     •  Inspection certificate

     •  List of export packing

     •  Shipper’s export declaration document

Only when you have all the documents mentioned above, your goods will reach your customers without any delay or issue.

 

About Amazon Freight Forwarders & Hand Carry

If you use a hand-carrying or freight forwarding service, it is important to pay attention to the Amazon’s terms & conditions, which include:

     •  Amazon will not be responsible for any defect, damage, loss, or material difference that occurs to your goods after they are delivered. This means that Amazon will not provide any refund or replacement for the goods delivered to a freight forwarder or you.

     •  The goods lost after you or your freight forwarder receives, will completely be your responsibility.

     •  The goods that arrive in a damaged condition can be refused at the time of delivery and further, instruct the freight forwarder to do the same.

     •  If you (or the freight forwarder you send to) has a U.S. address, buy goods from amazon.com in order to ship them to any U.S. location.

     •  You (or the freight forwarder) are considered as the exporter. Therefore, you are accountable solely for compliance with export & import rules of the destination country.

     •  Amazon shouldn’t be mentioned on any of the export documentation (example: invoices, export declarations, air waybills, packing lists, etc.).

     •  If you (or the freight forwarder) don’t have a U.S. address, you (or the freight forwarder) cannot export the items without Amazon’s written authorization.

 

About Customs, Duties, and Taxes

The recipient or the receiver is the importer and should comply with every law and rule at the destination country.

Orders that are shipped outside the U.S. are subject to:

     •  Customs duties

     •  Import taxes

     •  Fee levied by the respective country

The receiver of the international shipment might be subject to these charges, which will be levied after the consignment reaches the receiver’s country.

The recipient should fulfill any extra charge incurred during the customs clearance. Amazon will neither fulfill these charges nor it can predict what the charges may be.

The customs policies differ widely. Therefore, it is important to contact with the local customs office for proper information on clearance procedures and causes in the delay.

 

Final Thoughts:

     •  The customs offices of certain regions or countries require the importer’s record to give an identification form before they release the shipment.

     •  You might be asked to give your identification number like UIN (Unique Identification Number), Tax ID, or CPF for this purpose.

     •  Regions/countries that ask for identification number include Chile, Brazil, Ecuador, China, Israel, India, Qatar, Peru, South Korea, South Africa, Turkey, and Taiwan.

 

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