4 FBA Mistakes to Avoid to Simplify Amazon Global Logistics

Could your Amazon global logistics use some help? The team at Frisbi, formerly known as First Choice Shipping, provides tips for increasing sales and scaling processes in this guest article. 

You can find information about the Amazon Global Logistics program here.

Tapping into Amazon’s international market is one of the best decisions that sellers can make. To help increase sales now and scale your FBA business in the future, we’re breaking down the top four Amazon global logistics mistakes that sellers should avoid when shipping into international FBA locations.

FBA Mistake #1: Using the Wrong Incoterm

Whenever you’re selling internationally, a commercial invoice is required. The commercial invoice is a document used at customs that states what you’re shipping. Within the document, a description of the goods along with their value is included to determine the tax charge.

On the commercial invoice, the incoterms indicate what the payments will be as far as taxes and shipping costs. Sellers must mark whether or not the delivery duties are paid (DDP) or unpaid (DDU). When shipping to Amazon, you must use DDP to ensure that everything is paid for in advance and billed to the shipper. If the incoterm is marked as DDU, and the delivery duties are unpaid, Amazon has the right to refuse the shipment and ship it back to the seller. Unfortunately, the seller will be billed for the shipment return in this scenario.

FBA Mistake #2: Not Having an Importer of Record

The Importer of Record assumes responsibility for the clearance and security of the shipment. Typically, the importer of record is the receiver in the forwarding country. However, shipping into Amazon FBA with it as the importer of record is a big mistake to avoid!

When it comes to international shipping, Amazon does not want to assume responsibility that legal goods are imported to the destination country. To avoid Amazon's or custom’s refusal of your shipment, look for a provider that will act as the importer of record and has an alternative address that is not Amazon in the destination country.

FBA Mistake #3: Using the Wrong HS Codes or Not Providing HS Codes

Remember the commercial invoice mentioned two mistakes ago? In the commercial invoice, there are also HS codes (Harmonized System), otherwise known as a tariff code. Customs uses this code to identify what the sellers are shipping and define the tax rate. This unique code is used for sellers to accurately describe the products that they are shipping to avoid extra or unnecessary tax fees.

Another common HS code mistake is not providing one at all. When sellers don’t include HS codes in their commercial invoice, customs will look up the most expensive code they can find on file for the product and charge them that rate.

FBA Mistake #4: Not Planning Returns

The last and most commonly overlooked mistake that sellers make is not planning returns. Amazon does not provide international shipping options and will not be responsible for international shipments. Avoid being stuck without an FBA Removal Order by planning your returns ahead of time.

Before your global expansion, make sure you have a returns order in place by using a provider who can offer FBA removal return options, or ensure that the forwarding country you are shipping to has a warehouse available to send your returned shipments. Doing this will save you a ton of time and a ton of money.

Manage Amazon Global Logistics with Ease

Avoiding these top four FBA mistakes will not only help streamline your Amazon global logistics, it will also help you get the best tax rates available when passing through customs and avoid any losses from future returns.

Frisbi is a first-class logistics solutions provider recommended by Amazon. We can facilitate the logistics, from international shipping to returns when you ship to any international Amazon location via their FBA option. Contact us to get in touch with our knowledgeable support team which will help you every step of the way.