You should know a few things about shipping directly to FBA with AGL. First of all, only shipping out of China has this service available. And secondly, if you are not shipping at least a few CBMs, the fixed cost of handling with AGL will supersede most local freight forwarders in the market that can charge by weight. In other words, you shouldn't use AGL if you're shipping fewer pallets of goods.
What Is Amazon Global Logistics?
Here's the definition from AGL's website. "With our door-to-door freight transportation services, you can ship Amazon FBA inventory directly from China to fulfillment centers with reduced landed costs and competitive rates."
Simply put, with Amazon Global Logistics, you can get your products to Amazon's warehouses cheaper than if you were to ship them yourself due to the economies of scale. AGL consolidates shipments from different sellers bound for the same fulfillment warehouse and ships them in 40HQs directly.
In addition, with the volume they have for FBA shipments, Amazon can buy their freight lines or bargain with freight companies for a favorable shipping rate, which they offer to AGL clients at a slight premium.
The result is lower freight costs to US and EU but at the expense of longer lead time (due to consolidation). Another benefit of AGL is your shipments are trackable from Amazon Seller Central.
If you're interested in using Amazon Global Logistics to ship your products to FBA, I recommend trying them. You won't be disappointed.
What Are the Pros and Cons of Using Amazon Global Logistics for Shipping to Amazon FBA?
Pros:
1. Cost-effectiveness: AGL is highly cost-effective, saving you money on shipping costs.
2. Convenience: Track your shipments quickly and access all the information you need in seller central.
3. Payment Terms: AGL does not charge you for the shipment until it is received and closed under FBA shipments.
4. Automated Customs Documents: Invoice and Packing Lists generate automatically from data in seller central.
Cons:
1. Long Lead Time: Since AGL needs to consolidate shipments, sometimes lead times can be as long as three months.
2. Strict Customs Value: AGL may check and deny the customs value of your products (especially for shipments bound for EU).
3. By The Book: This isn't necessarily a con, but AGL follows the law by the book, making them less competitive because most Chinese freight forwarders don't.
Examples below:
a. Require Importer of Record (US) / VAT or EORI (UK/EU): You will need to have an importer of record for US-bound shipments and a VAT/EORI for UK or EU-bound shipments.
b. Straight Forward Rates: Rates are by FCL, CBM for LCL, plus customs tax. Chinese freight forwarders may offer DDP at a fixed rate per KG, like 1 USD per KG. This rate would benefit shippers with highly valued but lightweight products (think electronics).
How Do I Ship to Amazon FBA Using Amazon Global Logistics?
Step 1: Create an Amazon Global Logistics profile (Link here)Step 2: Create shipment by confirming the inventory you wish to send. Enter any prep information and packaging format details. Tick the box for "I want to ship with Amazon Global Logistics."
Step 3: Select Shipping Mode and Speed, Origin City, Cargo Ready Date, Incoterms, Value Added Services, and what currency to pay. If you choose CNY, you will need a registered company in China for invoice issuance (发票).
Next, you will add the Shipper, Importer of Record, and Destination contact information. You can choose the point of contact for the shipment between the Shipper or Destination Contact. You will need to select your ISF seller and buyer and the product description in the shipment as well.
After adding this information, confirm the rate and pick-up date (optional, you can drop off too).
Step 4: This is the most tedious part of the process. You will need to fill out Customs compliance for each SKU at a time upon first time shipping with AGL. You'll need the HTS code, Manufacturer Information, Customs Value, and provide any other compliance data you need to import into your destination country.
Step 5: Print shipment and pallet labels. Affix labels accordingly and wait for Amazon to pick up the shipment.
Note: Amazon will email you and ask for a power of authority (POA) the first time you use Amazon Global Logistics for a country.
With Amazon Global Logistics, you can seamlessly ship products to FBA warehouses in US, UK, and EU countries and eventually to all other marketplaces. This effective shipping service provides sellers with various shipping options and tracking capabilities, so you can keep your focus on selling instead of logistics.
If you need any help managing your AGL shipments or utilizing our warehouse in China to consolidate shipments from different manufacturers, reach out to one of our representatives and ask about our China Logistics Assistance services today.
