Answers For Your International Freight Questions

What does it mean to be fulfilled by Amazon?

 

When you add FBA to your seller account, you’ll ship your inventory to Amazon for storage in their global warehouses. Then, when your products are ordered, Amazon takes care of shipping the items to your customers, as well as providing customer service.    

What are the FBA Amazon fees? 

FBA does come with a cost. Fees will vary depending upon the country that houses your products, whether your inventory is standard-sized or oversized, and if it’s considered media or non-media. You’ll be charged a fee per cubic foot of storage for your inventory in Amazon’s facility, along with weight handling fees when the items are shipped. There may also be fees for removal of your inventory. It seems complicated, but you can use the FBA revenue calculator to get real-time cost comparisons between fulfilling orders yourself versus FBA.

Which countries have FBA? 

Fulfillment centers are located in the US, Canada, the UK, Germany, France, Italy, Spain, Japan, and Mexico. 

How do I reduce cross-border payment fees when selling internationally?

FBA is really convenient, especially for international sellers, but high margins on cross border payments can really eat into your profit margins. Amazon usually charges 3.9% when you’re transferring foreign payments to your home bank account.

 

With an online seller account from OFX, we give you a virtual account in your foreign markets and great exchange rates across many currencies, so you can save up to 75% when you bring your money home.*

 

This means that if you earn $30,000 on Amazon, you’ll save a whopping $720 by simply using OFX to transfer your money instead of Amazon or PayPal. That’s a big difference!


Set up an OFX online seller account today to get the competitive edge you need in your global operations. You keep making those sales, and we’ll work on helping you keep more of your profits.

 

 

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

 

Sources:

  1. https://www.amazon.com/gp/help/customer/display.html?nodeId=201648210

  2. https://services.amazon.com/fulfillment-by-amazon/pricing.htm/ref=asus_fba_snav_p

  3. https://services.amazon.com/fulfillment-by-amazon/how-it-works.htm/ref=asus_fba_snav_how

  4. https://services.amazon.com/global-selling/fulfillment-overview.html#

price products, amazon

Can I export products on Amazon?

Yes, you sure can! In fact, Fulfillment By Amazon makes it fairly simple to designate which products to make available for export, and streamlines the process for you, the seller.

To make your products available for export, simply:

  1. Log in to Amazon Seller Central
  2. Click “Setting,” and then click “Fulfillment By Amazon”
  3. Scroll down to “Export Settings,” and then click “Edit”
  4. Click “FBA Export,” and then upload a signature
  5. Click the “Submit” button

To verify which products in your inventory are eligible for export, simply:

  1. Log in to Amazon Seller Central
  2. Click “Reports,” and then click “Fulfillment”
  3. In the left window, under “Inventory,” click “Show More”
  4. Click “Exportable Inventory”

Please keep in mind that inventory updates may take up to two weeks to appear in the report.


price products, amazon

Can I export products on Amazon?

Yes, you sure can! In fact, Fulfillment By Amazon makes it fairly simple to designate which products to make available for export, and streamlines the process for you, the seller.

To make your products available for export, simply:

  1. Log in to Amazon Seller Central
  2. Click “Setting,” and then click “Fulfillment By Amazon”
  3. Scroll down to “Export Settings,” and then click “Edit”
  4. Click “FBA Export,” and then upload a signature
  5. Click the “Submit” button

To verify which products in your inventory are eligible for export, simply:

  1. Log in to Amazon Seller Central
  2. Click “Reports,” and then click “Fulfillment”
  3. In the left window, under “Inventory,” click “Show More”
  4. Click “Exportable Inventory”

Please keep in mind that inventory updates may take up to two weeks to appear in the report.


price products, amazon

What Measurements (And What Else) Do I Need From My Supplier?

You need the shipment’s dimensions and total weight so that you can request quotes. It’s on the Packing List. If there are several items in your shipment, here’s how to work out the total volume. For each item, multiply the three dimensions together to get cubic volume, then add the cubic volumes together.

Also ask them to send the Commercial Invoice before you request quotes. It includes the standardized product description.

With these two docs, you’re halfway through preparing to request quotes.

Depending on product and country, your supplier may also need to send you:

  • Certificate of Origin, but only for the first shipment (for customs rebates, exemptions, and enforcing embargoes).
  • Material Safety Data Sheet, for hazardous products.
  • Fumigation Certificate.


How Do I Find A Good Forwarder?

There’s a lot at stake with your shipment so you want to make the right choice of forwarder. Other than by recommendation, how do you find the right one for you from the thousands out there? There hasn’t been a practical answer for that, but recently instant freight quote marketplaces have taken the guesswork out by providing reliable forwarder ratings.

Don’t rule smaller forwarders out. They’re often more focussed on smaller customers. But check which countries they have trusted agents to take care of the local arrangements.

Clearly, you want a forwarder you can trust and keep you in the loop. When you request a quote, you may get a good indication. Like, if they take days to respond with a quote, or it comes with obvious errors.

Invoicing errors are endemic to the industry, for instance the staggering amounts wrong in just booking shipments onto container ships. So, how about your quotes? Until you build experience, that makes it more difficult to check quote accuracy, especially whether all fees have been included. That’s because each forwarder has their own quote layout, their own fee descriptions, and itemize or roll up fees in different ways.An exception is for automatically generated quotes, which will take everything you requested into account, and more generally be much less likely to have errors.


Which Jargon Do I Really Need To Know?

Like any other industry, freight is rife with jargon. Freight glossaries will tell you what an abbreviation stands for, and that’s great – if you’re doing a quiz. Here’s the jargon that you absolutely need to understand, and the reasons why.

FOB & Other Freight Terms

By international convention, every international sales contract must include an incoterm (standardized freight terms that define when the shipment’s responsibility and liability transfers from the seller to the buyer). Both parties must agree to one – no incoterm, no shipment.

Each incoterm has it’s pros and cons, and some of those cons are frightening!

Here’s your go-to incoterms:

  • Free On Board: FOB plays to both your and your supplier’s strengths. Your supplier arranges the shipment within their country. Your forwarder arranges main leg and delivery.
  • Ex-Works: EXW gives you total control of the shipment from pickup to delivery. You’ll pay more freight costs than with FOB, so use a freight rate calculator to help work out how much better you’ll want the deal to be.

LCL

Less than container load (LCL) is when your shipment won’t fill a plane or container. It gets “consolidated” with other shipments at a freight consolidation center (grand name, but it’s just a type of warehouse located near airports and seaports).

Why do you need to understand this? So that you understand why your shipment takes longer and costs more than with a full container load (FCL). It carries more risk of delay or loss, too, so ensure your cartons are clearly marked – carton count, gross weight, net weight, country of origin, and tracking labels (e.g. FBA shipment labels).

Documentation

Can you keep tabs on all the shipping documents that come your way? Do you know your Bills of Lading from your Letter of Credit? Do you need to? For now, check out why these few key freight documents are important for you.


What does it mean to be fulfilled by Amazon?

 

When you add FBA to your seller account, you’ll ship your inventory to Amazon for storage in their global warehouses. Then, when your products are ordered, Amazon takes care of shipping the items to your customers, as well as providing customer service.    

What are the FBA Amazon fees? 

FBA does come with a cost. Fees will vary depending upon the country that houses your products, whether your inventory is standard-sized or oversized, and if it’s considered media or non-media. You’ll be charged a fee per cubic foot of storage for your inventory in Amazon’s facility, along with weight handling fees when the items are shipped. There may also be fees for removal of your inventory. It seems complicated, but you can use the FBA revenue calculator to get real-time cost comparisons between fulfilling orders yourself versus FBA.

Which countries have FBA? 

Fulfillment centers are located in the US, Canada, the UK, Germany, France, Italy, Spain, Japan, and Mexico. 

How do I reduce cross-border payment fees when selling internationally?

FBA is really convenient, especially for international sellers, but high margins on cross border payments can really eat into your profit margins. Amazon usually charges 3.9% when you’re transferring foreign payments to your home bank account.

 

With an online seller account from OFX, we give you a virtual account in your foreign markets and great exchange rates across many currencies, so you can save up to 75% when you bring your money home.*

 

This means that if you earn $30,000 on Amazon, you’ll save a whopping $720 by simply using OFX to transfer your money instead of Amazon or PayPal. That’s a big difference!


Set up an OFX online seller account today to get the competitive edge you need in your global operations. You keep making those sales, and we’ll work on helping you keep more of your profits.

 

 

*Average savings based on a sample of published transaction fees for cross border payments provided by Amazon and PayPal dated 8.24.16. Quoted savings are not indicative of future savings. Third party intermediary fees may apply.

 

Sources:

  1. https://www.amazon.com/gp/help/customer/display.html?nodeId=201648210

  2. https://services.amazon.com/fulfillment-by-amazon/pricing.htm/ref=asus_fba_snav_p

  3. https://services.amazon.com/fulfillment-by-amazon/how-it-works.htm/ref=asus_fba_snav_how

  4. https://services.amazon.com/global-selling/fulfillment-overview.html#