Amazon FBA Sellers: 3 Tips for Choosing the Right Freight Forwarder
It has never been a better time to be an eCommerce seller on Amazon. In 2016, a study found that 43 percent of all online sales went through Amazon, and that’s expected to grow. In fact, as Business Insider writes in the same article, “although [Amazon] faces a wide range of competition in the e-commerce market from both legacy retailers and new entrants, none of them can match Amazon’s customer loyalty and brand awareness when it comes to online shopping.”
With Amazon’s domination of the online market, an eCommerce business has the potential to grow exponentially on the site. Best of all, Amazon offers great programs for their eCommerce sellers, such as their fulfillment services, Amazon FBA.
What Is Amazon FBA?
Amazon FBA stands for Fulfillment by Amazon. With this service, Amazon stores your product in their distribution centers and ships it out to customers on your behalf. Amazon FBA enables qualified eCommerce businesses to be part of their Amazon Prime program, which means your customers enjoy free two-day shipping.
How Will You Get Your Products to Amazon?
While Amazon handles the back-end logistics of housing and shipping your product, you are responsible for getting it to their fulfillment centers. At first, it’s easy to rely on a major parcel shipping companies to do this for you. However, as you start to sell more products, using those same companies can become too costly. That limits how much you can grow and sell.
Why You Should Invest in a Freight Forwarder
Luckily, there is a solution: A freight forwarder. There are some ways an international freight forwarder can maximize your eCommerce business, primarily by serving as your business’ logistics department for the front end of your supply chain. A freight forwarder helps save you time and money by coordinating multiple shipments and helping you choose the most cost-effective way to ship them.
They’re also a great investment: With Amazon streamlining the shipping process to your customers, why not use a freight forwarder to do the same for you?
What to Look For in an eCommerce Freight Forwarder
There are three things you want to look for when choosing a freight forwarder to work with as an Amazon FBA.
1. Do they have experience with Amazon FBA?
As Amazon is one of the world’s largest retailers, they have specific requirements for the products they’ll store, and how those products need to be packaged and labeled. While it is possible to do this on your own, it can be time-consuming, and there’s always the risk of making a mistake. Your shipment might be rejected at the Amazon fulfillment center and sent back to you at your expense.
Working with a freight forwarder who has experience shipping to Amazon is a must. They are experienced in handling Amazon’s requirements and will work with your suppliers to meet those rules. That means fewer mistakes and always knowing your products are meeting Amazon’s strict requirements.
2. Are they responsive?
A good freight forwarder should act as the global logistics department for your business. That means they need to make your business a priority, by learning your business goals and establishing standard operating procedures. Great communication is a must too. Your freight forwarder should communicate when there are changes to Amazon’s FBA policies and offer ideas on how to streamline your supply chain.
3. Can the freight forwarder help you grow your business?
The potential to grow an eCommerce business quickly is exponential, and you need a freight forwarder that can grow with you. That means they should have an extensive network of partners around the world and access to multiple shipping lanes. By choosing this type of freight forwarder, you know they can meet the demands of your growing business and will work with you to keep your supply chain flowing efficiently.