Saturday, May 5, 2018

Amazon Shipping Terms

Phrases for us                                       Phrase for our supplier
You:                                                        Supplier:

Buyer                                                      Seller
Consignee                                              Consignor                   
Importer                                                  Exporter

Carrier
UPS, DHL, FedEx
A carrier is responsible for transporting products from A to B..
A carrier can be a person or company.

Customs Broker
From One Border To Another
Helps get your goods from one border to another.
Helps get by the CBP (Customs Border Protection)

Freight Forwarder
The recommended way of shipping over the border
UPS, DHL, FedEx ---- are carriers that provide Freight Forwarding 
Takes Care Of Shipping Process
Help you do the entire shipping process:
They do the job of the Carrier and the Customs Broker
They can take it all the way to the Amazon Warehouse or to your home.
It's also cheaper.
(Door to Door Freight Forwarder) They take it from the supplier as the carrier,  take it to the boat, responsible for it on the boat, handle all the paperwork, regulations, and customs to get it to the United States, go to the port and handle all the requirements at the port, and then from the port to Amazon or to your home.. 

Abbreviations for Shipping Terms:
*Needtoknow terms but processes you don't want to use. Essential to know to choose properly
FOB
Free On Board
You are responsible after it gets to your port.  
You don't need to know this if you have a Freight Forwarder, but it's good to know the process so you can deal more effectively with the suppliers to show them you know the process. 

EXW
Buyer Incurs Risk For Product
Not often used. All obligation is placed on the buyer. No shipping cost included.. 
Nobody picks it up from the supplier.
You are totally responsible for all of the shipping process. 
Basically no help with shipping. Seller is responsible to pick up goods from the warehouse and the entire process of going through customs and ports and to the Amazon warehouse or home.

CNF
Cost No Insurance Freight
nothing is insured
Supplier responsible for getting freight to the boat and to the nearest port.
You are responsible to get it from port to Amazon warehouse or home...

CIF
Cost Insurance Freight

Supplier responsible for freight from the factor to the boat boat and to nearest port..
You are responsible to get it from the port to Amazon warehouse or home.. same as in CNF or FOB but with insurance..

*This is the type of shipping plan to use:
DDP
Deliver Duty Paid (Door-to-Door Shipping)
Shipped to Amazon Warehouse
You pay for everything up front to the supplier
It puts all the responsibility on the supplier

Shipping Containers: (20' x 40') Not something to worry about if using a Freight Forwarder
LCL
Less Than Container Load
This is what is usually used

FCL
Full Container Load
Sometimes this is cheaper if you have a lot

The Freight Forwarder will handle the LCL / FCL shipping container...







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