Shipping from China to Amazon FBA in the US?

I’ve always thought that sending product direct to Amazon from China is complicated. I’ve managed accounts that use 3rd party logistic partners (3PLs) to handle the shipment pickup from the manufacturer/supplier, shipping via air or sea, and customs clearance. Wait, there’s more–finding a good 3PL is also challenging because your 3PL has to be reliable and needs to have experience delivering directly to Amazon fulfillment centers. And it doesn’t end there–you should also have an importer of record (IOR) on file.

An Importer of Record (IOR) is a person who ensures all import products are documented as required by the Customs and Border Protection (CBP) in the USA. An IOR is responsible for filing taxes, duties and legal documents related to a particular imported shipment.

This IOR will be the one responsible for the shipment that you bring into the country of destination. Any company that wants to send goods to the Amazon fulfillment center must hire an importer of record (IOR) because Amazon will not act as an IOR, neither your supplier, for any goods that are sent to the fulfillment center. This is applicable for shipment of goods of any value or size. Some 3PL can be the IOR for an additional cost and some, you will have to hire separately.

I also looked into Amazon Global Logistics but same thing–an IOR is needed when setting up your AGL account.

Anway, I have the same thinking when I was about to launch my first product on Amazon. I was coordinating with several 3PLs, getting quotes to compare fees, looking for IORs, etc. It was overwhelming to say the least. Then lo and behold, I found out that Amazon has a new-ish program – SEND (Amazon Partnered Carrier Program). Not sure when this program started so it was a surprise, a really good suprise, that there’s now a program to ship products directly from China to the US.

With this program, it automatically eliminates the need for 3PL and IOR and provides a cheaper alternative with several carrier services available. There’s also an option to add a pick-up service from your supplier, and everything is happening inside the Amazon platform, including all the payments that will be deducted from your account. You don’t have to deal with the partner carrier outside Amazon so that makes the transaction safer and more secure.

Sounds too good to be true?

I don’t blame you but let me tell you that I’ve used this program 3 times already just this year alone. Partner carriers I’ve used are Linktrans and Sinotrans. How was the experience? My products arrived within the time range, communication was easy with both companies, and fees were reasonable. My supplier also helped with coordinating with the carrier service representative because it’s easier since they both speak the same language.

How did I find out?

I was creating a shipment on Amazon because I needed to provide the Ship-to address to the 3PLs that I was coordinating with. When I reached the CONFIRM SHIPPING part, I chose non-partner carrier (the other option was AGL) and that’s when the SEND (Partner Carrier Program) appeared as an option.

Once I’ve confirmed the shipment, I forwarded the shipping labels to my supplier so they can prepare the master cartons. The next day, I got an email from the carrier service company confirming the shipment with fees recalculated to add duty/import tax. The duty/import tax was not that significant–$100 maximum–but I think it depends on the actual product/commodity and the value of the entire shipment. You can also ask the carrier service to add insurance for your shipment just in case. They normally have an insurance in place but it’s generic and applies to the entire container so if you want an insurance specific to your shipment, you can request for it.

Once the added duty/import tax was approved, they proceeded with the shipment–had it picked up from my supplier and loaded in a container. Then I waited until the shipment arrives in Amazon. The charges won’t be immediately deducted from your account. In my case, it took a month from when Amazon started receiving the products into their warehouse.

What about the IOR?

Amazon partnered carrier shipments will be commercially cleared, with the carrier taking care of both origin and destinations customs clearance.

Now if there’s a discrepancy between units received by Amazon and units expected–sometimes it’s Amazon’s fault or your supplier or the carrier service–but it’s an entirely different issue which I will be discussing next so stick around!