What is an Amazon Freight Forwarder?
An Amazon Freight Forwarder (often abbreviated as FBA Freight Forwarder) is a logistics service company that specializes in helping Amazon sellers handle the shipping of goods from the manufacturer (usually overseas, such as China) to Amazon’s operations centres (FBA warehouses). They are not officially part of Amazon but are independent third-party logistics providers.
Their core roles are
- Managing the complex logistics chain involves coordinating the links, including pickup, warehousing, international transportation (sea or air), customs clearance, and inland transportation to the destination.
- Handling documentation and compliance: responsible for preparing and submitting the documents required for import/export customs clearance, ensuring that the shipment complies with the destination country/region and Amazon FBA regulations
- Acting as a middleman: connecting sellers, manufacturers, carriers (shipping companies/airlines), customs, trucking companies and Amazon warehouses
In short, they are the international logistics concierge for Amazon sellers and are particularly good at handling specific requirements for shipments to FBA warehouses.
How do Amazon sellers utilize freight forwarders?
- International shipping: Freight forwarders are indispensable when sellers source goods from overseas (e.g. China, Vietnam, etc.) and must ship them to Amazon warehouses in target markets (e.g. the US, Europe, Japan).
- Simplified process: Outsourcing complicated logistics planning, booking space, customs clearance, tax payment, and booking Amazon warehouses to professionals.
- Cost optimization: Freight forwarders can often get better shipping prices than individual sellers (because of the large volume of goods) and can reduce unit shipping costs by consolidating small quantities of goods from different sellers (LCL).
- Professional customs clearance: Ensure that goods pass through customs smoothly and handle customs duties and tax issues (for example, providing DDP – Delivered Duty Paid services).
- Ensure FBA compliance: They understand and can ensure that the packaging, labels (such as FNSKU labels and carton marks), pallet specifications, etc., of the goods, meet the strict inbound requirements of Amazon FBA to avoid rejecting goods.
- Multiple shipping options: According to the seller’s time and cost requirements, they can provide various options such as sea shipping (slow but cheap), air shipping (fast but expensive), or a combination of sea and air shipping.
How do you find the best Amazon freight forwarder?
Finding the best FBA freight forwarder requires some research and comparison:
- Peer recommendations: Asking other successful Amazon sellers which freight forwarder they use is one of the most reliable ways.
- Online search: Use keywords such as “Amazon FBA freight forwarder China to USA”, “FBA shipping”, “Amazon FBA logistics”, etc. to search.
- Seller communities/forums: Seek recommendations and reviews where sellers gather, such as Facebook groups, WeChat groups, Zhihu, Reddit, etc.
- Amazon Service Provider Network (SPN): Amazon officially has a platform to recommend service providers, where you can find logistics service providers that have passed specific reviews.
- Logistics platforms/directories: Platforms such as Freightos, Flexport, or some industry directories.
Key points for evaluating freight forwarders:
- FBA experience: Must have extensive experience handling FBA shipments and understand Amazon’s processes and requirements.
- Scope of services: Does it cover your country of origin and destination? Does it provide the services you need (sea freight, air freight, customs clearance, labelling, etc.)?
- Pricing transparency: Is the breakdown of fees clear? Are there any hidden fees?
- Communication efficiency: Is the response time fast? Is it easy to communicate?
- Customer reviews: Check online reviews and word of mouth.
- Insurance: Find out about the freight insurance options they offer.
- Get quotes: Ask for quotes from at least 2-3 forwarders to compare prices and service details.
What services do freight forwarders offer?
FBA Freight forwarders usually offer a range of services, which may include
- Pickup: Collecting goods from factories or suppliers.
- Warehousing: Providing short-term storage at the place of origin or destination.
- Consolidation: Combining small shipments from different suppliers or sellers into one large shipment (LCL or FCL).
- Export Customs Clearance: Export formalities in the country of origin.
- International Freight: Arranging sea or air freight space.
- Import Customs Clearance: Import formalities in the country of destination.
- Duty & Tax Handling: Calculating and paying customs duties and import VAT (usually DDP).
- Destination Deconsolidation: The goods are split up at the destination warehouse if required.
- FBA Prep Services:
- Labelling: Attaching FNSKU product labels and shipping labels to the outer boxes.
- Palletizing: Palletizing the goods according to Amazon’s requirements.
- Inspection: Basic quality inspection (additional costs may apply).
- Booking FBA Delivery Appointment: Booking delivery times via Amazon’s systems (e.g. Carrier Central).
- Final Mile Delivery: Delivery of goods from the port/airport or the destination warehouse to the designated Amazon FBA warehouse.
- Shipment Tracking: Providing updates on the shipping status of goods.
- Cargo Insurance: Assistance with purchasing transport insurance.
What are the associated costs of an Amazon freight forwarder?
The costs are highly variable and depend on several factors, but the main components usually include:
- Ocean/Air Freight: The core transportation cost, calculated by volume (CBM) or weight (KG). Ocean freight is generally cheaper but slower, while air freight is faster but more expensive.
- Origin Charges: These include the pick-up fee, customs clearance fee, documentation fee (e.g., for electronic release), port handling charges (THC), and warehouse entry fee.
- Destination Charges: These include the customs clearance fee, port handling charges (THC), bill of lading fee, storage fee (if incurred), sorting fee (if required), etc.
- Duties & Taxes: Calculated based on the declared value of the goods and the commodity code (HS Code) and levied by the destination country’s customs.
- Fuel Surcharge (Fuel Surcharge – BAF/FAF): This may fluctuate with oil prices.
- Peak Season Surcharge (Peak Season Surcharge – PSS): May be incurred during peak shipping seasons.
- FBA Prep Fees: A separate fee will be charged if the forwarder provides services such as labelling and palletizing.
- Trucking Fee: Inland transportation fee from the destination port/airport or warehouse to the Amazon FBA warehouse.
- Insurance Premium: Optional, calculated as a percentage of the value of the goods.
- Forwarder Service Fee: The forwarder’s own service commission or operating fee.
Important note: Always ask the forwarder for a detailed quotation (quotation) that lists all-inclusive and exclusive items. A DDP quotation usually includes most costs (transportation, customs clearance, customs duties), which is more convenient for sellers, but you should check the details.
