Amazon PCC Success – Your FBA Shipment Checklist: What Is It About and How to Use It?
Amazon FBA is the easiest way to get started with your online business as Amazon is the leading shopping app in the USA. It has over 150.6 million mobile users, which means you have opportunities to reach your target audience. Walmart comes next with monthly mobile app users of 76.45 million . If you are new to the Amazon platform, don’t get confused when shipping your items to your customers.
There are many shipping options for your cargoes from a foreign country to their final destination. But there are challenges you encounter when shipping the goods like customs and tariff duties as soon as they get to the port of entry. There’s nothing to worry about when shipping your products, FBA shipment checklist will ease your work like paperwork, fulfilment, and logistics.
Continue reading and find out what is FBA shipment checklist is, and learn how to use it.
Fulfilment by Amazon: An Overview
Fulfilment by Amazon is a process offered by Amazon to Amazon sellers to make the process of packing, storing, and shipping hassle-free. FBA also handles exchanges and returns of products. It is considered a dependable eCommerce fulfilment for both customers and merchants.
The products will be delivered to the fulfilment centres ready for pickup, packing, and transported to the customer’s address.
What is an FBA Shipment Checklist: Learn to Use It
Amazon has the ideal fulfilment system in the eCommerce industry. The company delivered about 3.5 billion dollars packages to different countries in 2019.
By 2021, Amazon expects delivery of 80 percent of its packages to various destinations. As Amazon sellers, is it practical to use FBA?
For your easy understanding, learn the FBA shipment checklist and how to use it.
- Start Negotiating with Suppliers
Before you can begin shipping your products, you need to negotiate first with suppliers for product sourcing.
As soon as you have started discussing with your suppliers, your next step is to confirm the shipment. The expenses are calculated based on the so-called “landed cost.” The equation is Landed Cost is equal to Cost per Unit plus Freight Cost plus Customs Charges. Include the import duties and shipping costs when discussing with your supplier to calculate the total cost per shipment.
Some sellers opt for a third-party cargo forwarder to take care of the shipping process. The freight forwarder will coordinate with your supplier for the paperwork and shipping details. If you hire a third-party freight forwarder, inform them to obtain a quote aside from the manufacturing cost paid by the supplier.
- Establish Incoterms with Suppliers
Incoterms is an abbreviation for the international commercial term. It is a standard freight term used in international shipping agreements. Establishing incoterms with your suppliers will lessen confusion in contracts in foreign trade by specifying the terms and obligations between the merchant and the buyers.
The incoterms will identify who is liable for shipping the products from its exit and entry points. You and your supplier should discuss the incoterms who will handle the shipment.
- Select Air or Sea Travel
It is time to choose which route to transport the cargo after discussing with a supplier about the incoterm whether by air or ocean travel. Air shipments can be too costly, but it is the quickest way to deliver the products. Use a third-party freight forwarder if the package is over 200 kilos by ocean shipment.
If the cargo is below 200 kilos, you can ask your supplier to send it by plane through an international courier. It is vital to research which courier or cargo forwarder offers lower shipment costs. The quantity and size of your order determine if the product will be kept in a pallet, box, or container van. The cargo forwarder or the supplier will handle this problem.
- Start Your Shipping Plan
After making the final decision on your order’s shipment, the next step is to create your shipping plan.
Go to the Seller Central and fill out the information on the Manage Inventory screen.
Create the product name and input the final address from where the product sets for collection before heading to the fulfilment facility.
Its purpose is to direct it to the nearest Amazon warehouse.
Double-check the address spelling and needs confirmation by the freight forwarder or supplier. Consider the following tips when creating the shipping plan:
- Be specific about the packing type if it is large, small, case-packed, or oversized items and the units and number of cases.
- Write down who prepares the packages. Select “Merchant” if the supplier is the one handling the products.
- Identify if the Merchant or Amazon is preparing the labelling for the FNSKU barcode for each item.
- Save and print the PDF file of the shipping plan details, and send it to the supplier for labelling purposes.
- Confirm the shipment for approval.
- Shipping Label & Address
Once you confirm the shipment, Amazon will start selecting the location of the fulfilment facility where the collection of your package takes place. Check the shipment plan page multiple times before you click on the approval button. Amazon will send the final information to the freight forwarder or supplier for coordination before the shipment begins.
- Choose the Last-Mile Delivery Method
At this time, you will select what delivery method for your shipments, such as small parcel delivery (SPD) and less-than-truckload (LTL) method. When you have finally approved your shipment found in the Seller Central, you can choose either SPD or LTL found on the Center Replenish Inventory page to finish your FBA shipping journey.
You can differentiate Amazon FBA to Dropshipping and Affiliate Marketing too. Learn more on this blog: Amazon FBA vs Dropshipping vs Affiliate Marketing: Where to Start?
Is Amazon FBA a good source of income?
Definitely! If you consider FBA as a business partner and employer, you will truly succeed and build your status as a seller. Don’t mind the ugly sides of this program. They are all lies. It needs patience to reach your FBA goal.
How much should I allocate to begin selling with FBA?
It depends on you. Start selling on FBA at an initial capital of 1000 USD, but others start without spending a lot. Sell multiple products in case some do not sell; you can source your income from the other products.
How long should I wait for my products to show in the inventory?
It takes three to four business days for Amazon to store your products in their warehouse. If your product is not packaged based on the Amazon guideline, it will take some time before it shows in your inventory.
As an FBA seller, it pays to follow the checklist in shipment, from negotiating with a supplier to the delivery method. Review your input as many times as you can before confirming the approval to avoid account suspension. Read the forum discussions to learn more from fellow merchants about FBA shipment.