Find out how to import goods from China, ship them to an Amazon warehouse and navigate the seas of customs, freight and duties. Experts from Flexport joined us for session 9 to explain how it all works, and what you need to do to get your inventory shipped to the US & Europe.

1. SESSION 3:
Supplier Outreach &
Product Selection
T H E M I L L I O N D O L L A R C A S E S T U D Y
E U R O P E

2. Introducing Travis & Sam
Sam Scudellari
◍ Account Executive - Emerging Markets
◍ ~2 years at Flexport
◍ Started in operations for some of Flexport’s
largest Amazon accounts
◍ Previously, 3+ years in accounting and asset
management
Travis Falasco
◍ ~2 years at Flexport
◍ 1 year running FBA operations for a large
Amazon seller
◍ 2 years operations management - Target Corp
◍ 8 years military logistics - US Air Force

3. MDCS Challenge
Updates
Web App Winner
JSP
Winner

4. MDCS Challenge
Updates

5. Agenda
◍ Creating an Amazon Shipping Plan
◍ Selecting Final Delivery Method
◍ Amazon labeling
◍ When to palletize
◍ Inspections
◍ Incoterms
◍ Shipping timelines
◍ Calculating final delivery costs to Amazon
◍ Market Updates - What to expect for Peak Sea

6. Freight Forwarder Vs Supplier
◍ If you are shipping via air and your cargo
weighs more than 250 kg, then you need a
freight forwarder
If cargo is less than 250 kg, then you can use your
supplier who will leverage DHL Air Express. A freight
forwarder will be too expensive in this scenario
◍ For ocean shipments always use a freight
forwarder

7. Why Can’t I Use My Supplier For Shipping?
◍ Poor service. Shipping, US customs, etc. is
not their specialty.
◍ A lot of pricing you get from a supplier will
change later (not transparent)
◍ If you ever need information it takes a long
time to get
◍ If your business is successful and starts
scaling your shipping risk also scales
exponentially if you stay with your supplier

8. FCL or LCL?
Full Container Load / Less Than Container Load
◍ LCL lets you keep your inventory low
◌ Ideal if you don’t have the money or space to accommodate a full container at
your warehouse
◌ Lets you ship in smaller volumes so you can keep your inventory lean
◍ FCL may be cheaper than LCL
◌ LCL costs more than FCL per unit of freight because freight agents prefer a
full container load
◍ FCL gets delivered more quickly than LCL
◌ Shipping LCL requires additional steps - such as loading and unloading the
container
◌ When shipping FCL direct to a single FBA warehouse
◌ Cartons MUST be labeled at origin, neatly stacked, and stacked no taller than
72”

9. Containers

10. Shipping Via Air
◍ Chargeable weight is the weight which airlines will use
when determining the cost of a shipment
◍ Carrier will charge you for whatever is greater: the gross
weight, or the volumetric weight

11. Inspections
◍ Always have your shipment inspected in China
by an independent third party. Even if you have
shipped with your supplier multiple times
◍ Recommended solutions: VTrust, Topwin
Inspection, China Quality Check
◍ Tip: Try to negotiate (ahead of time) with your
supplier for them to pay for the second
inspection if the first inspection fails.

12. Creating An Amazon Shipping Plan
The Ship From address is…
◍ NOT YOUR SUPPLIER'S ADDRESS
◍ Should be a warehouse address in the country
you import to
◍ All US imports should be a Los Angeles area
address
◍ Put all SKUs in one shipment plan!

13. Your Final Delivery Method?
Your freight forwarder
may be able to provide
trucking services, which
will be more expensive,
but faster.
Amazon LTL services are
not available in the EU.
Delivering floor loaded
FCL direct in the EU is
near impossible.

14. Calculating Final Delivery Cost In Seller
Central
UPS:
1. Select “Small Parcel Delivery (SPD) and
“UPS.”
2. Complete the “Shipment Packing” section
by entering the units per box, the number
of boxes, and the box weight.
The estimated shipping cost will be in the
“Shipping Charges” section.

15. Calculating Final Delivery Cost In Seller
Central
Amazon LTL:
1. Select “Less than truckload (LTL) and “Amazon-Partnered
Carrier.”
2. Complete the “Shipment Packing” section

16. Preparing Your Goods
◍ For LCL and Air, ship your cartons loose and
labeled
◍ Only fragile products should be palletized
◍ For FCL, cartons must be neatly stacked,
labeled, and not stacked taller than 72”

17. Labelling
◍ Units must always be labeled!
◍ Cartons should always be labeled!
◍ UPS labels can be applied at origin
as well!

18. Tracking Your Shipment
◍ UPS tracking in seller
central
◍ Amazon LTL is tracked via
the carrier’s BOL and PRO
tracking number

19. 3 things to consider for transit timelines
Manufacturer to Port
Booking, pick-up from manufacturer site, delivery to
port/on-vessel
◍ Air: 1-2 days
◍ LCL: 7-9 days
◍ FCL: 2-3 days
Port to Port
◍ Air: 1-2 days for direct or 3-5 days for deferred
◍ Ocean: 14-16 days

20. 3 things to consider for transit timelines
(Continued)
Port to Final Destination (customs clearance - prep in advance of arrival)
Pick-up from port, delivery to final destination or Amazon prep warehouse.
◍ Ocean: 5-6 days
◍ Air: 1-2 days
Prep (labeling, palletization, etc.)
◍ FCL/LCL consol box (direct to Flexport warehouse): 1-2 days for UPS,
4-5 days for Amazon LTL (2 business days to book Amazon LTL
partner)
◍ LCL non-consol: 1-2 days at CFS, 1-2 days transfer to Flexport
warehouse, then add above
◍ Air: 1-2 days UPS

21. Incoterms
Terms of sale that define who
arranges for the payment and
handling of the goods during shipping,
from the moment the goods leave the
seller’s door up until their arrival at
the buyer’s warehouse
◍ You and your supplier set
incoterms
◍ 11 incoterms, but the most
common are FOB, EXW, and FCA
FOB (Free on Board) – the supplier is
responsible for getting your goods from
the factory to the port
EXW (ExWorks) – the freight forwarder is
responsible for getting your goods from
the factory to the port

22. Cargo Insurance
Always get freight insurance because:
◍ 50% of freight claims are denied by carriers
◍ Your cargo will pass through many hands and places
before it gets to you, increasing the chances of damage
◍ If damage or loss occurs, carriers will do their best to
limit their liability or avoid it altogether, even if they are
at fault

23. Shipping Documents
◍ Bill of lading - the ticket outline the journey of your cargo from
origin to its destination
◍ Telex release - an electronic release of the B/L
◍ Express bill of lading - agreement between buyer and seller

24. Shipping Documents
Commercial Invoice
Needed to clear shipment through U.S. Customs. Needs to contain:
◍ Country of origin/ manufacture
◍ Full name and address of Importer on Record
◍ Full name and address of supplier/ manufacturer
◍ Complete description of merchandise in English
◍ Quantity of units for each product
◍ Unit value for each product, including currency declaration
◍ Total extended value, including currency declaration
Packing List
◍ Information must match what is listed on the commercial invoice

25. Getting Through Customs
Give your freight forwarder the commercial invoice,
packing list, and/or product information. Be as
accurate and detailed as possible so your customs
broker can correctly classify your goods to avoid
holds at customs.
Types of Customs Exams:
◍ X-Ray Exam - The container is driven through an X-ray
machine.
◍ Tail Gate Exam - Customs will peek inside the container.
◍ Intensive Exam - The container is opened and stripped.

26. Peak Season
◍ Peak season occurs in Q3 and Q4 in preparation for the winter
holidays
◍ Expect high, volatile rates, rolled cargo (cargo is moved to a later
shipment due to a lack of space on the scheduled carrier), trucking
delays, and other interruptions
◍ Plan ahead – book carriers early and expect to need more time to
load/unload at origin and destination because of congested ports
and warehouses
◍ Prepare for extra fees as a result of congestion
◍ Be Flexible

27. Follow Along:
Your Homework
1. Speak with your Freight Forwarder and plan out your
shipment of inventory
2. Shipping to Amazon:
https://www.flexport.com/help/109-shipping-to-amazo
n
3. For help with H.S. Code classification:
https://hts.usitc.gov/current
Get all of the resources and links from this session:
https://www.junglescout.com/session9-HW

28. Join us next week for inventory ordering, contracts, payment
terms and more!
Register for FREE at junglescout.com/million