How Does Freight Forwarding Work For Amazon Sellers 2023?

Last Updated on: 30th January 2023, 03:46 pm

Freight forwarding is a service used by Amazon sellers to ship their products to customers. The process involves a freight forwarder, who acts as a middleman between the seller and the shipping carrier.

Freight Forwarding Working

The seller first sends their products to the freight forwarder’s warehouse. The freight forwarder then packages and ships the products to the customer, using a shipping carrier such as FedEx or UPS.

The freight forwarder also handles customs clearance and other logistics tasks, such as arranging for the transport and storage of the products.

One of the main benefits of using a freight forwarder is cost savings. Freight forwarders often have contracts with multiple shipping carriers, which allows them to negotiate lower rates. This can be particularly beneficial for sellers who are shipping large quantities of products or heavy items.

Another benefit is convenience. Freight forwarders can handle all aspects of shipping, from packaging and labeling to customs clearance and delivery. This can save sellers time and reduce the risk of errors, such as lost or damaged shipments.

Freight forwarders can provide additional services such as warehousing and inventory management, which can be helpful for sellers who are scaling up their businesses.

Read also: Maximizing Profits with Amazon FBA

What Is The Difference Between A Freight Forwarder And A Shipper?

A freight forwarder and a shipper are both involved in the logistics process of shipping goods, but they serve different purposes.

A shipper is a person or company that is responsible for sending goods from one location to another. They are typically the manufacturer, distributor, or seller of the goods being shipped. The shipper packs and loads the goods onto a carrier for transport.

A freight forwarder, on the other hand, acts as an intermediary between the shipper and the carrier. They arrange for the transportation of the goods on behalf of the shipper. They handle all the logistics, such as finding the most cost-effective and efficient shipping method, booking cargo space, arranging for customs clearance and providing the necessary documents, and coordinating delivery to the final destination.

In short, a shipper is the sender of the goods, while a freight forwarder is a third-party logistics provider who arranges and coordinates the transportation of those goods on behalf of the shipper.

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Do You Need A Freight Forwarder For Amazon FBA

Amazon Fulfillment by Amazon (FBA) is a program that allows sellers to store their products in Amazon’s warehouses and have Amazon handle the shipping and customer service for those products. If you are using Amazon FBA, you do not need to use a freight forwarder to ship your products to Amazon’s warehouses.

Instead, you would need to prepare your products for shipment to an Amazon fulfillment center, by preparing and packing them according to Amazon’s guidelines. Once your products are ready, you can then ship them directly to an Amazon fulfillment center using a carrier of your choice.

Amazon will then take care of the rest, including handling customer service and shipping orders to customers.

However, if you want to ship your products to your customers directly or want to use Amazon FBA service for only some of your products and not all, you may still consider using a freight forwarder.

Freight forwarders can help you reduce shipping costs, help you with customs clearance, and provide other logistics services.

Overall, whether or not you need a freight forwarder for Amazon FBA depends on your specific needs and how you want to handle shipping and logistics for your products.

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Which Are Amazon Freight Forwarders

Amazon has a program called “Amazon Global Selling” which allows sellers to expand their business to other countries by providing support for international shipping and customs clearance. As part of this program, Amazon partners with several freight forwarders to help sellers with their international shipping needs.

Some of the freight forwarders that Amazon partners with include:

• Flexport
• FedEx Trade Networks
• UPS Supply Chain Solutions
• DHL Global Forwarding
• Kuehne + Nagel
• DB Schenker
• Agility Logistics
• CH Robinson
• Nippon Express

It’s important to note that this is not an exhaustive list and Amazon may also partner with other freight forwarders depending on the region.

Read also:Shipping FBA Inventory To Amazon Warehouse – A Simple Guide

• Flexport: Flexport is a freight forwarder and logistics company that provides air and ocean freight services, customs brokerage, and supply chain management. They offer a range of services for Amazon sellers, including FBA prep and consolidation, warehousing and distribution, and freight forwarding. Flexport also has a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• FedEx Trade Networks: FedEx Trade Networks is a division of FedEx that specializes in international shipping and logistics services. They offer a range of services for Amazon sellers, including freight forwarding, customs brokerage, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• UPS Supply Chain Solutions: UPS Supply Chain Solutions is a division of UPS that specializes in logistics and supply chain management. They offer a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and inventory management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• DHL Global Forwarding: DHL Global Forwarding is a division of DHL that specializes in international shipping and logistics services. They offer a range of services for Amazon sellers, including freight forwarding, customs brokerage, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• Kuehne + Nagel: Kuehne + Nagel is a global logistics company that provides a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• DB Schenker: DB Schenker is a global logistics company that provides a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• Agility Logistics: Agility Logistics is a global logistics company that provides a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• CH Robinson: CH Robinson is a global logistics company that provides a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.
• Nippon Express: Nippon Express is a global logistics company that provides a range of services for Amazon sellers, including freight forwarding, customs brokerage, warehousing and distribution, and supply chain management. They also have a technology platform that allows sellers to track their shipments, manage their inventory, and access real-time data on their supply chain.

Sellers can also use other freight forwarders who are not partners of Amazon, but in that case, the process may differ than the one mentioned in the above answer.

It is always advisable to research and compare different freight forwarders before making a decision, to ensure that they can meet your needs and provide the best value for your business.

Read also: What Is Dropshipping? Complete Overview 

How To Choose A Freight Forwarder

Choosing the right freight forwarder for your business can be a critical decision as it can greatly impact your shipping cost, speed, and reliability. Here are some factors to consider when choosing a freight forwarder:

1. Services offered: Freight forwarders offer a range of services including air and ocean freight, customs brokerage, warehousing and distribution, and logistics management. Consider which services you need and ensure that the freight forwarder you choose offers them.
2. Experience and reputation: Look for a freight forwarder that has experience in your industry and has a good reputation. You can ask for references from other sellers or read online reviews to get a sense of their reputation.
3. Shipping routes: Look for a freight forwarder that specializes in shipping to your destination countries. They should have knowledge of the local regulations and customs clearance processes, which can save you time and money.
4. Pricing: Compare prices between different freight forwarders. Keep in mind that the cheapest option may not always be the best one. Consider the total cost of the service, including any additional fees.
5. Communication and support: Choose a freight forwarder that is easy to communicate with and has a good customer service team. They should be able to provide you with real-time tracking and updates on your shipments.
6. Flexibility: Look for a freight forwarder that is able to adapt to your changing needs. This is especially important if you are an Amazon seller, as the demand for your products may fluctuate.
7. Technology: Look for a freight forwarder that uses advanced technology to track and manage your shipments. This can make the process more efficient and provide you with real-time data on your supply chain.
8. Certifications: Check if the freight forwarder is certified by organizations like the International Air Transport Association (IATA) or the International Federation of Freight Forwarders Associations (FIATA). These certifications indicate that the company meets certain standards of quality and safety.

Ultimately, the right freight forwarder for you will depend on your specific needs and the nature of your business. It’s important to do your research and carefully evaluate the options before making a decision.