FBA (Fulfillment by Amazon) sales is a scorching topic nowadays. For sellers who like taking risks, it’s like manna from the gods. However, it’s not the same for people who want total control over every aspect of their business. Furthermore, there’s the matter of the fees that Amazon requires of its sellers.
Does Amazon FBA pay for shipping? No, it doesn’t. You will shoulder the shipping costs of your products to Amazon’s warehouses, that's why it’s essential to find favorable Amazon FBA shipping rates from your logistics partner. After sending your items to its warehouses, Amazon does the rest.
People don’t understand how lower Amazon FBA shipping rates can boost their sales whatever selling plan they choose on Amazon. Let’s talk about how lower FBA shipping rates can benefit you as a seller.
Professional Sellers Can Sell to Amazon Prime Members
More exposure automatically translates to more sales. As a professional seller, your products will be available to Amazon Prime’s 95 million US members. There is a $119 annual fee for Amazon Prime members. I don’t have to tell you that these Prime members became members because they shop on Amazon a lot. On average, Prime members spend $1400 on Amazon annually, while non-Prime members spend $600.
Shipping cost is a vital part of selling on Amazon, and many buyers are attracted to the 2-day shipping benefit. This would mean your products have the possibility to sell out fast. Getting a good deal on Amazon FBA shipping rates can save you a lot of money that you can use for other things, like paying fulfillment fees, warehouse fees, etc. In addition, watch out for news like the waiving of warehouse fees for Amazon FBA that started in March of this year. That adds to your savings, too.
Timely Pick-Ups and Deliveries
Your shipping partner should know the value of timely deliveries. Amazon’s FBA will work for you as long as Amazon doesn’t run out of your products. Remember, the fees will still be there even when they don’t have any of your products to sell. You should be able to drop your products off at your logistics company’s warehouse or arrange for them to pick your products up at your location. Normally, US to Canada shipping cost and vice versa is pretty steep. It’s imperative to find a logistics partner that can offer you something more affordable than express shipping Canada post.
Knowledge in Customs Tariffs and Taxes
The less you pay in customs, taxes, and other fees when your items are in transit, the more flexibility you can have in setting the prices. Customs duty is sometimes a minor irritant for sellers. It’s a tariff or tax imposed on goods crossing international borders. Any delays in crossing the US-Canada border could have a major impact on Amazon’s inventory, your sales volume, and customer feedback.
Your shipping partner should be experienced in the logistical details of cross-border deliveries. This means that all products should have the proper documentation, including the seller’s name and address, description of the goods in English (a legal requirement), quantity of each type of item, price in U.S. dollars, weight of the items, and country of origin.
Items are classified into three: Duty-free (costs less than $800), Informal Entry ($800-$2500) , and Formal or Commercial Entry (costs more than $2500). Your logistics partner should have the know-how to negotiate the border crossing of your products without incident.
Then, there are tax breaks for different trade agreements like the United States-Mexico-Canada Trade Agreement (USMCA). This is a trade agreement that eliminates most tariffs on trade items between the US, Canada, and Mexico. Your shipping partner should know which items are subject to tariffs and which are exempt.
Reliable Logistics Partner Across the Border
Low FBA shipping rates also depend on reliable partners across the border. Obviously, the most efficient way for your logistics company to carry your items to the US is to find a reliable logistics partner themselves. Depending on the volume of your shipments, the carriers in the US all have their advantages and disadvantages. USPS offers the most affordable shipping. They work best with small, light shipments. You can consider UPS for larger shipments and if there’s a need for strong package tracking. FedEx is ideal for express deliveries, large shipments, and strong tracking.
For shipping companies, it’s important to let their customers know how much shipping particular items cost. Many companies have reverted to offering an international shipping calculator to their clients to inform them of the possible shipping costs. Having this knowledge gives a seller a great advantage. You can set your selling price minus all the costs associated with sending your products to Amazon and all of Amazon’s fees. This gives you more flexibility in dealing with Amazon and their customers.
Cheaper Shipping Translates to Lower Prices
Of course, any amount you save in shipping costs and fees will have an impact on your price. It gives you a chance to be more competitive with other sellers on Amazon. If you want to know more about our affordable Amazon FBA shipping rates, contact us at Stallion Express. We’ll make sure you’ll have a reliable logistics partner in the future.