Amazon FBA Third party shipping question(s)

[Johnny1975]

I want to ship products from factories in China to Amazon's warehouse in the US.

I am in neither country, so I would be the third party that gets billed.

I'd like to get clarification on a couple of things.

1) What incoterm would be best?

If I buy the products on EXW it means (as far as I understand), that the factory will make the products, package them, produce the shipping documentation (Bill of Lading, Commercial Invoice and Packing List), and nothing else. So when the carrier arrives, no one will load the products into the truck, because EXW doesn't include loading, and it's not the driver's job. So I'd have a big problem.

If I buy on FOB it means (as far as I understand) that the factory will make the products, package them and sort out the shipping documentation, transport the products to the port and do customs clearance. But then I'd somehow have to coordinate it so that the carrier knows where to pick up the products from. it sounds complicated and unnecessary to do it that way, because...

...if I buy the products on FCA it means (as far as I understand) that the factory will make the products, package them, and then part of the deal is that when the carrier arrives they (the factory) will load them onto the truck, and then the carrier can continue from there.

Is all of that correct?

It seems to me that FCA would be the way to go. But the suppliers in China always express their prices as FOB. Can I negotiate with them to make it FCA (or another incoterm if there's a better one)?

Also, is the factory likely to charge for storage until the carrier arrives?

Basically what's the best arrangement?



2) Like I say I would be the third party and I need to be billed for everything. How would I arrange it so that I am billed for everything that the carrier does? I've heard that I'd need to have it clarified on the shipping label, but if that's true I wouldn't know how to do that when arranging the shipment on seller central. I've also heard that I can clarify it on the carrier's website when arranging everything. I'm confused.



3) I've searched high and low for some way of calculating the total shipping costs (including customs and everything), but there doesn't seem to be any info on this. UPS have a calculator but I can't use it before having decided on a product because you have to enter the address or postcode of the origin. Is there any way where I can see for myself how everything is calculated? I have no idea how much shipping is, customs, or anything. I've heard that each country has some kind of code, but that's all I know. As for customs, no idea. I just want information which will enable me to make a reasonable estimate of total shipping and related costs for getting the stuff from the factory to Amazon's warehouse, without having to spend all day on the phone to UPS.

Danke.

 

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[kd38]

I believe what you may be looking for a freight forwarder.

They usually handle the whole importing, custom fees and all that jazz and bill you later.

They will also be the ones that transport your delivery from the port to the designated warehouse.


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[Walter Hay]

I want to ship products from factories in China to Amazon's warehouse in the US.

I am in neither country, so I would be the third party that gets billed.

I'd like to get clarification on a couple of things.

1) What incoterm would be best?

If I buy the products on EXW it means (as far as I understand), that the factory will make the products, package them, produce the shipping documentation (Bill of Lading, Commercial Invoice and Packing List), and nothing else. So when the carrier arrives, no one will load the products into the truck, because EXW doesn't include loading, and it's not the driver's job. So I'd have a big problem.

If I buy on FOB it means (as far as I understand) that the factory will make the products, package them and sort out the shipping documentation, transport the products to the port and do customs clearance. But then I'd somehow have to coordinate it so that the carrier knows where to pick up the products from. it sounds complicated and unnecessary to do it that way, because...

...if I buy the products on FCA it means (as far as I understand) that the factory will make the products, package them, and then part of the deal is that when the carrier arrives they (the factory) will load them onto the truck, and then the carrier can continue from there.

Is all of that correct?

It seems to me that FCA would be the way to go. But the suppliers in China always express their prices as FOB. Can I negotiate with them to make it FCA (or another incoterm if there's a better one)?

Also, is the factory likely to charge for storage until the carrier arrives?

Basically what's the best arrangement?



2) Like I say I would be the third party and I need to be billed for everything. How would I arrange it so that I am billed for everything that the carrier does? I've heard that I'd need to have it clarified on the shipping label, but if that's true I wouldn't know how to do that when arranging the shipment on seller central. I've also heard that I can clarify it on the carrier's website when arranging everything. I'm confused.



3) I've searched high and low for some way of calculating the total shipping costs (including customs and everything), but there doesn't seem to be any info on this. UPS have a calculator but I can't use it before having decided on a product because you have to enter the address or postcode of the origin. Is there any way where I can see for myself how everything is calculated? I have no idea how much shipping is, customs, or anything. I've heard that each country has some kind of code, but that's all I know. As for customs, no idea. I just want information which will enable me to make a reasonable estimate of total shipping and related costs for getting the stuff from the factory to Amazon's warehouse, without having to spend all day on the phone to UPS.

Danke.

I'll answer in order:

1. The Incoterm FCA Free Carrier At) is not used a lot and doesn't give you a lot of benefit, except the assurance that the supplier will load on board your carrier. It still means you will have a lot of organizing to do, and you have to handle a lot of details. For example the A in FCA has to be precisely defined. It could be at the supplier's factory, at a carrier's depot, or even on board a vessel or aircraft.
FOB adds the condition that the supplier is responsible for all costs and risks to the point at which the cargo passes over the ship's railing.
As the customer you are entitled to negotiate terms to suit you, but that assumes the supplier is willing to follow those terms. It's not directly relevant, but by way of example, some suppliers won't use your nominated courier service, or won't use China Post etc.
All of this is academic if you choose to do as I always recommend, and as suggested by @kd38, get the services of a freight forwarder to handle the entire shipment for you.
I would never deal with a factory that charged storage.

2. Your freight forwarder will bill you for all costs involved from the factory to Amazon. (I don't recommend direct shipment to Amazon, but that's another story.)

3. You are overthinking the whole process. True you need to know freight costs. You find that out by asking freight forwarders for quotes. That should always be done before you place an order. Freight forwarders almost universally employ Customs Brokers (or in the EU Customs specialists) and if you ask the forwarder to include an estimate of duty when they quote you for the freight service, that is usually provided free of charge.

When obtaining a quote you will need to know every detail of the shipment - product description, package weight, number of packages, package dimensions, point of pick up and point of delivery. Ask the freight forwarder for a quote that covers pick up from the factory through to delivery to your destination. (Amazon.) That should include Customs clearance, purchase and lodgement of a bond. Bear in mind that although the forwarder will pay duty and taxes on your behalf, they will be charged in addition to the price quoted.

Ideally you should find a forwarder willing to act as Importer of Record (IOR), but in reality very few will accept that role. One that will do that for you is AMZTransit. I recommend viewing this Reddit thread: AMZ Transit - My Experience • r/FulfillmentByAmazon I have no connection with AMZTransit. They could also help you with prepping for Amazon. This would eliminate the risks involved in shipping direct from China to Amazon. You might like to search my AMA for my posts on the subject of direct shipment China to Amazon.

Walter