If you run an eCommerce business that does FBA, you want a good freight forwarder as a partner. These companies provide you with cost-effective, wide-reaching means of picking up your products and getting them to your customers. Unless you want to handle all of the shipping yourself – a task that grows increasingly impossible as your venture grows – then you’ll want an FBA as a partner.
However, you might not be entirely convinced yet. If you’re just a small seller with only a few customers, you might not think you need one. Or perhaps you aren’t sure how having one might benefit your business now or in the future. Well, let’s take a look at the reasons a good freight forwarder is important for your business.
An Amazon freight forwarder that does its job cultivates relationships with shipping companies, carriers, and even port officials. This network is an expansive, comprehensive one that can be useful.
Network of Contacts
The primary benefit of the network when it comes to your business is its ability to cut deals with all the right people. These deals, in turn, can save you money. They can reduce the cost of shipping, or better manage things like tariffs and taxes. They can even take away the overhead involved with applying shipping labels if you pick one that knows your business and has worked with FBA before. These are all minor benefits, but they’re also huge conveniences.
Another way that a freight forwarder can help you is through negotiating a cut in costs. They have a higher volume of containers, which gives them leverage in cutting down the prices that carriers charge. At the same time, they can also save you money in terms of overhead and quality of service. FBA also means that you don’t need to have a warehouse or other storage facility of your own.
Freight forwarders also have expertise in the complex world of international shipping. Whether it’s port duties, banking regulations, required documentation, or the like, they are aware. This knowledge can go a long way towards making your fulfillment of deliveries much smoother and less of a hassle.
These little details may not seem like a huge deal, but they can cripple even the largest companies and it pays dividends to have a partner who knows their way around these details.
Access to Shipping Lanes
Shipping lane access is of vital importance. You might be a small business now, but you won’t be one forever. As your enterprise expands, so too do your shipping needs. Before long, you’ll find yourself in need of someone who has access to some of the best shipping lanes in the world so you can deliver more products to more customers.
An FBA freight forwarder allows you to do that. Their network of relationships with all sorts of relevant companies means they can get your products on the right lanes. If you have one that has extensive shipping lane access, that also means you don’t need to change partners as you grow. The company can grow alongside you, scaling up as your business gets bigger and bigger.
Emergencies happen at sea. The open ocean is not the easiest or most stable place in the world. Cargo can get lost or diverted off-course, and you’re not likely to know how to handle that. A freight forwarder would know what to do and can work with you to make sure that your diverted cargo can get to where it’s going. Without them, you’re likely to become as lost as your products when it comes to what to do.
Benefits of Experience
An FBA freight forwarder that has worked with Amazon FBA before can save you a lot of time and headaches. They know how to apply the labels, have worked in this system before, and can get things done faster than you can. There is always a learning curve to these things, and an experienced freight forwarding company has already figured things out.
Making Things Simpler
The business of shipping things is one of many moving parts. Lots of moving parts, in both a figurative and literal sense. A freight forwarder brings the benefit of making things simpler for you. Hiring such a firm takes away a number of administrative decisions and tasks that must be done, but are difficult to understand or don’t have a direct impact on your deliveries. By having a freight forwarder, you only have one point of contact rather than a half dozen or more.
Freight forwarding can help with customs. International shipping is a complicated web of rules, taxes, duties, and regulations. Even the smallest error in the paperwork can get your products held at the port for an extended period, hurting your bottom line. Don’t take the risk.
Take advantage of their expertise, rather than trying to pick it up yourself and risking your business when you make a mistake.
A freight forwarder can make your business operate more smoothly, as well as give you more time. While it might not seem necessary at first, the functionality and flexibility can be a major convenience as your enterprise expands and grows.