Choosing Between Tax-Inclusive and Tax-Exclusive Channels for FBA Sea Freight: A Guide

When shipping goods to Amazon FBA warehouses, choosing the right shipping method can significantly impact your overall logistics strategy. This decision affects costs, delivery times, and the success of your business.Sea Express and Sea Cart are two popular first-mile shipping options for FBA sellers. However, these two methods each have distinct characteristics that may suit different business needs.Both services help Amazon sellers transport goods to FBA warehouses, but understanding the differences between them can help you save time and reduce costs in the long run.This article compares Sea Express and Sea Cart, looking at transportation methods, cost structures, delivery speed, and the types of products best suited for each.By understanding these differences, sellers can make informed decisions based on their unique needs and business requirements.Transportation Method and FlexibilitySea Express:Sea Express combines both sea freight and air courier services to complete the delivery process.Goods are first shipped by sea to a destination port, and once the shipment reaches the port, the final leg of delivery is handled by an international air courier company.These courier companies then deliver the goods directly to the Amazon FBA warehouse.Process: The journey begins with sea freight. Once the goods arrive at the port, the last segment of the journey is handled by an air courier.Product Suitability: Ideal for smaller, lighter products such as electronics, clothing, and accessories.Flexibility: Sea Express is limited by the size and weight restrictions set by air courier services, making it suitable only for lightweight and small items.Sea Cart:Sea Cart follows a slightly different process. Like Sea Express, goods are first shipped by sea to a destination port.Once they arrive, however, the goods are transferred onto a truck for delivery directly to the Amazon FBA warehouse.Process: The goods travel via sea freight initially, but once they reach the port, they are delivered by truck.Product Suitability: This method works better for larger, bulkier, and heavier products, such as furniture, home appliances, and large electronics.Flexibility: Sea Cart has fewer restrictions regarding weight and size. This makes it more flexible for shipping larger items compared to air courier-based services.Cost Calculation MethodSea Express:The cost of Sea Express is generally calculated based on the weight of the shipment, usually in kilograms (KG).Since Sea Express is more suited to lightweight products, it is often a more affordable choice for small, heavy products.Cost Structure: Sea Express charges according to the weight of the goods. The price is calculated in kilograms.Additional Services: Sea Express often includes customs clearance and taxes paid services, simplifying international shipping and customs processes for the seller.Sea Cart:Sea Cart, on the other hand, calculates shipping costs based on volume rather than weight.Shipping costs are usually measured in Cubic Meters (CBM), which makes Sea Cart ideal for shipping bulkier items that may not be particularly heavy but take up more space.Cost Structure: Sea Cart pricing is based on volume, which is typically measured in Cubic Meters (CBM).Volume Optimization: Sea Cart is more economical for shipments with a higher volume but lower weight. Sellers can maximize cost-efficiency by optimizing container space.Delivery Speed and StabilitySea Express:Sea Express offers faster delivery times compared to Sea Cart.This is because Sea Express uses air courier services for the final leg of the journey, which helps speed up the overall delivery time, particularly for smaller shipments.Delivery Speed: Sea Express delivers within 3-7 days. The use of air courier services makes this method faster.Stability: Despite its faster delivery, Sea Express can experience delays, especially during peak periods or if there are complications at the ports. Factors such as increased demand, port congestion, or air traffic disruptions can lead to delays.Sea Cart:Sea Cart tends to have slower delivery times than Sea Express because it primarily relies on sea freight and truck transportation for delivery.However, Sea Cart provides greater stability due to the fewer variables involved in the shipping process.Delivery Speed: Sea Cart typically delivers within 5-10 days, depending on the distance from the port to the FBA warehouse.Stability: Sea Cart is less affected by air traffic or port congestion, which makes it a more reliable and stable option for deliveries, especially in busy seasons.Shipping RestrictionsSea Express:Sea Express is more limited by size and weight restrictions due to its reliance on air courier services.For example, individual packages typically cannot exceed 30 kg in weight, and the length of any side should not exceed 120 cm.This makes Sea Express unsuitable for larger or bulkier items that may not meet these restrictions.Weight Limit: Packages should not exceed 30 kg in weight.Size Limit: The maximum length of any side should be 120 cm.Product Suitability: Sea Express is ideal for smaller, lighter goods, but not for oversized or heavy shipments.Sea Cart:Sea Cart has fewer restrictions when it comes to size and weight.Since it relies on sea freight and truck transport, this method can accommodate larger and heavier products.Weight and Size Flexibility: Sea Cart is better suited for large, bulky items. There are minimal restrictions regarding weight and size.Product Suitability: If you're shipping oversized items, Sea Cart is the more suitable option due to its flexible nature.Applicable ScenariosSea Express:Sea Express is best suited for smaller and lighter items that need to be shipped quickly.This method is ideal for products that require fast restocking or for sellers who need quick turnover of inventory.Best For: Smaller, lightweight products.Use Case: Sea Express is ideal for fast-moving products like electronics, fashion accessories, or small home goods.Shipping Frequency: It works well for sellers who need to restock quickly or replenish their inventory rapidly.Sea Cart:Sea Cart is more appropriate for bulk shipments, larger goods, or for sellers looking to control shipping costs.For larger products or those with low urgency, Sea Cart is often the preferred method.Best For: Larger or bulkier items, or when cost control is the priority.Use Case: Ideal for shipping furniture, appliances, or large electronics.Shipping Frequency: Sea Cart is ideal for sellers shipping in bulk or those prioritizing low-cost logistics.Additional ConsiderationsSeasonal Delays:Both Sea Express and Sea Cart can face delays during peak shipping seasons like Chinese New Year, Black Friday, or Christmas.Shipping demand during these times tends to rise significantly, leading to possible disruptions.It's essential to plan ahead and expect additional time for processing and shipping during these periods.Sea Express: Susceptible to delays during peak seasons due to air traffic and congestion at international ports.Sea Cart: While it’s less affected by air traffic, sea freight can still face delays during busy periods, especially due to port congestion.Environmental Impact:Sea Cart is a more eco-friendly option compared to Sea Express.This is because air freight tends to consume more fuel and generate more carbon emissions compared to sea freight.For sellers looking to reduce their carbon footprint, Sea Cart is a better option.Sea Cart: More environmentally friendly due to the lower fuel consumption of sea freight.Sea Express: Uses air freight, which typically results in a higher carbon footprint.Optimizing Shipments:Effective packaging is crucial for both Sea Express and Sea Cart.With Sea Express, sellers need to consider packaging size and weight carefully to avoid additional fees.For Sea Cart, the focus should be on optimizing the use of available shipping container space, especially for large shipments.Sea Express: Be mindful of weight and size restrictions to avoid extra charges.Sea Cart: Maximize space utilization to make shipments more cost-effective.ConclusionChoosing between Sea Express and Sea Cart depends on the type of goods being shipped and the seller's priorities.Sea Express is a faster method, ideal for smaller, lightweight products that need quick delivery.Sea Cart, on the other hand, is better suited for bulkier, larger shipments, especially when cost control is a priority.By understanding the key differences in transportation methods, cost structures, delivery speeds, and product suitability, sellers can make more informed choices tailored to their needs.FAQsWhat is the main difference between Sea Express and Sea Cart for FBA shipping?Sea Express uses air courier for the final delivery, making it faster, while Sea Cart uses truck transport and is better for bulkier items.Which option is better for large items?Sea Cart is ideal for large, heavy, or bulky products due to fewer size and weight restrictions.How are shipping costs calculated for Sea Express and Sea Cart?Sea Express is based on weight, while Sea Cart is based on volume (CBM).

Operating a business that depends on international shipping is a challenge and costly. But here's the good news: utilizing US international warehouse transit can dramatically reduce the cost of logistics. If you're an online retailer or managing inventory across different sales channels, here's how a good warehouse can cut costs across all levels.Lowering Peak Season Shipping CostsThe holidays can be a nightmare for logistical experts. Shipping costs rise when demand increases, and traditional methods usually fail to meet the needs. If you ship your goods to a US overseas warehouse before the peak season, you will save yourself the cost of shipping charges.Ship in the off-season to keep from high shipping costsDistribute shipments over time to lessen the effect of sudden demand surgesBenefit from lower freight rates when shipping costs for global shipping are lowerReducing Storage FeesSuppose you're just beginning to learn about the game or do not have sufficient storage space in your home. In that case, warehouses in overseas transit services let you store goods in huge quantities without worrying about the cost of storage over the long term.Keep your storage costs down by transferring goods only when requiredMake use of the free storage times that some warehouses provideAvoid the risk of accumulating overstocked inventory in your warehouse at homeOptimizing Multi-Platform OperationsFor businesses that sell on multiple platforms, such as Amazon, eBay, and others, US overseas warehouses are the ideal solution to reduce the cost of storage and shipping.Effectively distribute products across different platformsSave money on warehouse charges by consolidating inventory into one locationImprove delivery times for customers from multiple marketplacesReducing Stockouts and Missed SalesNothing is more frustrating than running out of stocks. Warehouses in overseas locations allow you to efficiently replenish your stock without the usual delays associated with international shipping. You'll be stocked and keep your sales going.Beware of missed sales opportunities that are due to out-of-stock itemsMore rapid restocking results in more sales during periods of high demandStop listings from being removed from visibility or being penalized for not being in stockSimplifying Returns and ExchangesReturns can become a major logistical headache, especially when dealing with international shipments. The presence of a US warehouse for the management of returns makes the process easier, reducing shipping costs and freeing you from stress.Handle returns locally instead of paying international return feesRefunds and exchanges are processed faster to improve customer satisfactionSave money on international return shipping costs by handling your return directly through the USReducing Risks and Improving EfficiencyWhen you ship products internationally, there's always a chance of risk. However, having a US international warehouse may help minimize the risk of product returns, repackaging, or even non-compliance issues.Make use of relabeling and repackaging services to get your products back on track fastReduce the possibility of damage to your product or theft in shippingReduce shipping delays and costs caused by regulatory or customs issuesAccessing Discounted Shipping RatesUS overseas warehouses typically collaborate with local carriers and often receive higher rates than independent businesses. This means they can access lower shipping rates, which can further reduce the overall cost of logistics.Get the benefit of local warehouse agreements with major carriers like UPS, FedEx, and USPSBenefit from bulk shipping rates to save money on delivery optionsTransfer the savings to your customers, or keep the differenceFAQsHow do US overseas warehouses aid me in reducing costs during the busy season of the holidays?By storing your items in a US overseas warehouse prior to peak season, you will save on high shipping costs. Additionally, you can divide your deliveries to ensure that costs are reasonable and on time.What are the typical costs for using the US overseas warehouse?Fees vary by the level of service and warehouse; however, you'll generally be charged storage costs, which are determined by the size and amount of items stored. Additional fees could include shipping, order processing, and return handling.How can I manage my returns with a US overseas warehouse?Yes. The US overseas warehouse could assist you in managing local returns, reducing the shipping charges for international returns, and expediting refunds or exchanges.What is the procedure if my product requires packaging or labeling repackaging?Many US overseas warehouses offer repackaging or relabeling services to ensure that your products conform to local requirements. This reduces the possibility of fines or shipping delays.How can US overseas warehouses help me save money on shipping costs?Warehouses usually have agreements with local transport companies, which give you discounts on shipping costs. This can dramatically reduce the cost of shipping compared to handling your shipments independently.ConclusionIf you're looking to cut costs and increase the efficiency of your logistics, using the US shipping service to overseas warehouses is a great alternative. From avoiding peak-season shipping surges to reducing costs for storage and improving return handling, these options offer many advantages. Keep your logistics easy, quick, and cost-effective by utilizing the full benefit of US overseas warehouse services today.

What is Air Freight Forwarding?Air freight forwarding is the process of organizing and managing the transportation of goods via air carriers. This includes coordinating various aspects such as shipping arrangements, rate negotiations, shipment tracking, and documentation assistance. Freight forwarders act as intermediaries between shippers and carriers, handling the logistical complexities to ensure the smooth transfer of goods from one destination to another.The process typically begins with the consignor (shipper) contacting a freight forwarder to arrange the shipment. The forwarder liaises with airlines to secure space on a suitable flight. Once the goods are prepared, they are transported to the airport for loading onto the aircraft. During transit, the forwarder manages documentation and ensures compliance with regulations. Upon arrival at the destination airport, the consignee (receiver) takes possession of the goods after customs clearance.Air freight forwarding is particularly beneficial for transporting goods over long distances quickly, making it ideal for time-sensitive items such as perishables and electronics. However, it is generally more expensive than other modes of transport and has limitations in cargo capacity and environmental impact. The Air Freight Transportation Process1. Shipment Preparation - The shipper properly labels, marks, and packages the cargo according to IATA Cargo Handling Manual (ICHM) standards. - The freight forwarder receives the shipment from the shipper, verifies documentation, and ensures security requirements are met.2. Flight Planning - The freight forwarder plans the flight route and prepares a build-up plan for loading the cargo onto the aircraft. - The carrier receives the pre-plan details and the initial build-up plan.3. Cargo Build-up - The freight forwarder collects the freight, performs serviceability checks on the ULDs (unit load devices), and consolidates the cargo as per the build-up plan. - The final load is transferred to the carrier or ramp handling agent.4. Air Transport - The cargo is transported by air to the destination airport, with the freight forwarder managing documentation and regulatory compliance during transit. - High-value and time-sensitive goods, such as electronics and perishables, are well-suited for air freight due to the speed of delivery.5. Delivery and Customs Clearance - Upon arrival, the consignee takes possession of the goods after the necessary customs clearance procedures. - The freight forwarder assists with customs formalities and final delivery to the consignee.Key Considerations in Air Freight Transportation Sustainability and environmental impact: Air freight has a higher carbon footprint compared to other modes of transport, which has led to increased focus on sustainability measures, such as the use of more fuel-efficient aircraft and the optimization of cargo loads.Changing market dynamics: The air freight industry has faced challenges in recent years, including stagnating transport volumes since the 2008 financial crisis. Adapting to these changes requires air freight players, such as shippers, airlines, airports, and freight forwarders, to optimize their operations and explore new opportunities. Operational decision-making: Understanding the real-world air cargo operations, including processes at warehouses, cargo terminals, and airports, is crucial for making informed operational decisions and improving the efficiency of the air freight supply chain.Air Freight Brokers: A Crucial Link in the Supply ChainAir freight brokers play an indispensable role in modern logistics, offering a vital service that connects shippers with air carriers for the efficient and expedited transport of goods. With expertise in the complexities of air freight, these brokers ensure that shipments reach their destinations swiftly and securely.Advantages of Using Air Freight Brokers1. SpeedAir freight is the fastest mode of transportation, making it ideal for urgent and time-sensitive shipments. Brokers facilitate this speed by efficiently managing all aspects of the air freight process.2. ReliabilityDespite occasional weather-related delays, air freight remains one of the most reliable shipping methods. Brokers provide real-time updates and tracking, allowing shippers to monitor their cargo's progress.3. SecurityAirports are highly regulated and secure environments, reducing the risk of theft or damage. Minimal handling and tight security protocols ensure the safety of goods throughout the journey.4. FlexibilityAir freight brokers offer flexible shipping options, including charter services for urgent or exclusive shipments. This flexibility allows businesses to choose the most appropriate service level for their needs, from next-flight-out options to deferred shipments for less urgent cargo.Challenges and ConsiderationsWhile air freight offers many benefits, it is also one of the most expensive shipping options. Businesses must weigh the cost against the advantages, such as reduced inventory carrying costs and the potential for capturing market share by meeting tight delivery deadlines. Additionally, certain goods may be restricted from air transport due to safety regulations, which brokers can advise on.In ConclusionAir freight transportation is a complex and interconnected process that requires coordination among various stakeholders, adherence to regulations, and a focus on sustainability and operational efficiency. By understanding the key steps and considerations, businesses can leverage the speed and reliability of air freight to enhance their global supply chain strategies.