Amazon is the world’s leading e-commerce platform. However, sellers on the platform need to pay specific fees, which may affect profit margins. Therefore, sellers must understand how to reduce costs. Amazon FBA (Fulfillment by Amazon) is a service that allows sellers to ship products directly to Amazon warehouses. It is responsible for warehousing, storage, and inventory orders. Although this process may be challenging for novice sellers, it offers significant advantages to small and medium-sized enterprises and e-commerce sellers, including convenience. This guide will help you effectively ship products to Amazon FBA, optimize logistics, and improve profitability.
How to Ship to Amazon FBA
We understand how crucial it is to get your excellent products into those Amazon fulfilment centres. That’s a massive part of the FBA process, and we’re here to make it as easy as possible! We know the high-level steps make it seem simple, but we’re here to help you with the nitty-gritty. Just follow this handy step-by-step guide, and we promise you’ll get your FBA shipment to Amazon without a hitch!
1. Preparation:
- Create an Amazon seller account: If you don’t already have one, register one first.
- Select FBA service: Select to use the FBA service in the seller centre.
- Prepare products: Ensure your products meet Amazon’s requirements, including packaging, labelling, etc.
2. Create shipping plans
- Log in to the seller centre: Go to the Amazon seller centre.
- Create a new shipping plan: Select “Manage inventory” in the “Inventory” menu, then select the products you want to ship and click “Ship/Restock”.
- Fill in the shipping information, including the shipping address, product quantity, packaging type, etc.
3. Product packaging and labeling
- Packaging requirements: Amazon has strict requirements for product packaging to ensure that the packaging meets standards and avoids damage during transportation.
- Labelling: Each product must be labelled with the FNSKU label provided by Amazon. The shipping label provided by Amazon also needs to be affixed to the outer box.
4. Selecting the logistics method
- Selecting the logistics service provider: You can choose from Amazon’s partner carriers (such as UPS and FedEx) or other logistics companies.
- Arranging pickup or delivery: Depending on the selected logistics method, arrange pickup or delivery to the logistics company’s distribution centre.
5. Shipping to the Amazon warehouse
- Track shipping: Use the tracking number provided by the logistics company to monitor the shipping status of your goods in real-time.
- Please arrive at the warehouse: Once your goods arrive at the Amazon warehouse, Amazon will receive them and put them on the shelves.
6. Amazon receives and puts goods on shelves
- Receive confirmation: After Amazon receives your goods, it will send you a confirmation.
- Put products on shelves: After the goods have passed inspection, Amazon will put them on the shelves for customers to buy.
7. Manage inventory and orders
- Inventory management: Manage inventory through the seller centre to view inventory levels and replenish goods promptly.
- Order processing: Amazon will handle all orders, including packaging, shipping, and customer service.
8. Fee Settlement
- FBA fees: Amazon will charge corresponding FBA fees based on the product’s size, weight, and storage time.
- Settlement cycle: Amazon usually settles sales revenue every two weeks, deducts related fees, and then transfers the remaining amount to your bank account.
9. Matters needing attention
- Comply with Amazon policies: Ensure all operations comply with Amazon policies and regulations to avoid account suspension.
- Optimize logistics costs: Choose the appropriate logistics method and packaging to optimize shipping costs.
- Replenish goods promptly: Monitor inventory levels and replenish goods promptly to avoid out-of-stock situations that affect sales.
- Following these steps, you can successfully ship goods to the Amazon FBA warehouse and use Amazon’s logistics network to process orders efficiently.
How much does it cost to ship to Amazon FBA?
Amazon FBA shipping costs are reasonable and depend on many different things, like how far the stuff is going, the size and weight of the box, and the shipper’s rate card. Shipping within the U.S. is usually cheaper than shipping overseas, which is good for sellers in the U.S. On average, sellers pay about $0.25 to $0.30 per pound to ship products to Amazon FBA warehouses, which is reasonable. The cost per unit decreases as you ship more, which is excellent for businesses. But it’s important to remember that shipping costs can vary a lot. The weight and size of your shipment and where it’s going all affect the final price to Amazon FBA.On top of that, there’s a fee for Amazon’s new FBA inbound placement service, which makes the shipping process more efficient and convenient.
What is the cheapest way to ship to Amazon FBA?
The Amazon Partnered Carrier program is the cheapest way to ship your products to Amazon FBA, and I want to ensure you have all the options you need. But I’ve found a better choice. Ocean Freight is the most affordable shipping method. It’s a more economical option if you ship from China or other parts of the Far East to the United States. Depending on the volume of your order, you can choose from full container load (FCL) or less container load (LCL) shipping.
How Long Does Amazon FBA Shipping Take?
Upon arrival at the Amazon FBA distribution centre, the item is generally processed within 2-6 days. The product is deemed ready for sale following the scanning and processing stages. However, during the peak holiday season, unexpected processing delays may occur. The “Shipping Queue” feature in the Amazon Seller Center provides real-time updates on the status of shipped products.
How to choose the best shipping agent for Amazon FAB shipping
Choosing the right Freight Forwarder is essential as it directly affects shipping costs, time and efficiency. Here are a few key factors to consider when choosing a Freight Forwarder:
- Experience and reputation: It is imperative to select a freight forwarder with a proven track record and a sterling reputation in FBA logistics. Such a company will have a profound understanding of Amazon’s specific requirements and the capacity to assist in averting the most prevalent shipping-related issues.
- Shipping method selection: The agent should be able to provide various shipping options, including ocean, air, and rail freight, among others. They should also be able to assist you in selecting the most cost-effective solution.
- Price transparency: The freight forwarder’s fees must be clear and transparent. Choose agents who provide a detailed cost breakdown in advance and do not have any hidden fees.
- Service quality: Choose a freight forwarder with full tracking and timely feedback. In particular, the agent can help you with customs clearance and allocation to Amazon’s designated warehouse.
- Customer reviews and feedback: Check the reviews of other sellers to see how well the agent handles Amazon FBA shipments.
- Additional services: Some freight forwarders provide value-added services, such as help applying for the necessary documents, warehouse and inventory management, etc. These services can reduce the seller’s workload and help save time.
