Amazon sellers face a pivotal decision when it comes to restocking: How should they ship their products? The major contenders are air and sea freight. While the initial inclination might be towards cost-efficiency or speed, a deeper dive reveals there’s more to consider.
Let’s unpack the key points in making this decision:
Tip 1: Speed
Air freight’s major advantage is its swiftness. With goods taking only days
instead of weeks to be delivered, it’s the go-to option for pressing restocks.
Speedy customs handling and less time-in-transit means products reach Amazon’s
FBA centers faster.
Tip 2: Cost
While air freight may sometimes offer competitive rates for lighter packages or
smaller shipments, sea freight is often the reigning champion in terms of
economy for larger orders. Beware of the hidden costs in sea freight, however,
such as inland delivery charges.
Tip 3: Size
Airplanes have space constraints. If you’re transporting bulky goods, container
ships are the unsung heroes. They can accommodate vast volumes, making them
cost-effective for larger consignments.
Tip 4: Weight
Sea freight offers a substantial weight allowance, making it far more
cost-effective for heavier shipments. The cost differential between air and sea
becomes more pronounced as the weight goes up.
Tip 5: Availability and Cash Flow
While air freight provides frequent and fast shipments, sea freight, albeit
economical, can tie up your capital for longer periods. If cash flow is a
concern, the balance between cost and speed becomes crucial.
Tip 6: Striking the Balance
There’s no one-size-fits-all approach. Depending on the urgency and product
type, sellers might split shipments, sending a portion via air and the bulk by
sea. This provides a buffer stock while awaiting the major shipment.
Tip 7: Partnering with a Freight Forwarder
Navigating the complexities of shipping requires expertise. Freight forwarders
or agents help streamline this process. When sourcing a forwarder:
Compare quotes: Don’t settle for the first quote. Shop around.
Look for global presence: Companies with offices in both the source and destination countries can manage the end-to-end process more efficiently.
Seek expertise on duties and taxes: It’s essential to have clarity on additional charges to prevent unforeseen expenses.
Additional Tip – Environment Consideration
While not strictly a business consideration, the environmental impact might
influence your decision. Sea freight is generally more carbon-efficient per
unit than air freight. If sustainability is a part of your brand’s ethos, this
factor could be crucial.
Conclusion
Navigating the decision between air and sea freight is multifaceted. Amazon FBA
sellers need to weigh speed against cost, size against weight, and immediate
availability against cash flow. Ultimately, partnering with an experienced
freight forwarder can offer guidance, ensuring your stock reaches Amazon’s FBA
centers in the most efficient and cost-effective way.
