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

Ensuring the accuracy of Amazon labels is pivotal for the smooth operation of your e-commerce business, particularly if you are utilizing Amazon's Fulfillment by Amazon (FBA) services. Incorrect labels can lead to various complications including misrouted products, delayed deliveries, and customer dissatisfaction. Here’s what you should do if you discover that your Amazon labels are wrong and how to remedy the situation effectively.Identifying Incorrect Amazon Labels1.Label Scanning Errors: Pay close attention to errors reported by Amazon during the scanning process at the Fulfillment Center. Incorrect scanning could be due to formatting issues or damaged barcodes.2. Mismatched Product Information: Ensure that the information on your labels, such as product details, ASIN, or FNSKU, matches the actual product.3. Incorrect Shipping Details: Verify the shipping addresses on your labels to ensure they correspond to your intended Fulfillment Center and that your return addresses are accurate.Immediate Actions to TakeStop Further ShipmentsIf you discover labeling errors before shipping your products, halt your shipments immediately. Proceeding with incorrect labels can result in extended delays and additional costs for relabeling at the Fulfillment Center.Contact Amazon Seller SupportReach out to Amazon Seller Support through Seller Central. Provide them with details about the labeling issue, including the affected SKUs and any error messages you've received. This will help Amazon initiate corrective measures on their end.Remedying Incorrect LabelsReprint Correct Labels1. Log into Seller Central: Navigate to the Inventory section and locate the products with incorrect labels.2. Select Correct Label Type: Ensure you are generating the right type of labels (ASIN, FNSKU, etc.) based on your inventory settings.3. Print Labels: Follow the steps to reprint labels accurately. Use a reliable barcode printer to ensure the quality of the labels.Correct Label PlacementProper placement of the label on the product or package is crucial for it to be read appropriately by Amazon's scanning systems. Leave a margin of at least 0.25 inches between the edge of the label and the edge of the packaging to avoid scanning errors.Preventive MeasuresUtilize Approved Labeling ToolsUse Amazon's recommended labeling tools and software. Cloud-based solutions like ShipStation or dedicated barcode printing software such as MarkMagic can help in designing and printing compliant labels directly from Seller Central.Check Barcode QualityUse high-quality printers and paper for printing barcodes. Laser printers and thermal printers are preferred for producing durable and scannable barcodes.Regular AuditsConduct regular audits of your labeling process. Check samples from each batch of printed labels to ensure that all printed information is accurate and easily scannable.Handling Date-Sensitive ProductsFor date-sensitive products, ensuring the accuracy of expiration dates on labels is particularly important. Incorrect dates can result in stock rejection or product spoilage, leading to lost sales and higher returns. Always print expiration dates in a visible and scannable format on the product packaging.ConclusionAddressing and preventing incorrect Amazon labels requires vigilance and adherence to best practices. Regularly monitor the accuracy of your labels, invest in reliable printing tools, and stay updated with Amazon's labeling guidelines to avoid disruptions. By taking prompt corrective actions and implementing preventive measures, you can maintain efficient operations and high customer satisfaction in your Amazon business.

What Are Terminal Handling Charges (THC)?Terminal Handling Charges (THC) are fees charged by terminal operators for handling containers at ports of origin and destination. These charges are integral to covering a variety of operational costs associated with loading, unloading, storing, and moving containers within the terminal premises. They ensure the ports can maintain the infrastructure, equipment, and workforce necessary to manage cargo efficiently.Components of Terminal Handling ChargesTHC encompasses a wide range of services provided by the terminal operators:1. Loading and Unloading: The physical movement of containers onto and off ships.2. Storage: Temporary storage of containers within the terminal before departure or after arrival. 3. Documentation: The necessary paperwork for each shipment.4. Security: Safeguarding the goods while at the terminal.5. Maintenance: Upkeep of terminal facilities and equipment.6. Labor: Costs associated with workers involved in handling cargo.Importance of THC in the Shipping IndustryTHC is a critical component of international shipping costs, significantly influencing total shipping expenses. These charges vary significantly between ports and can impact the overall logistics budget for both exporters and importers. Understanding these fees helps shippers plan better and avoid unexpected costs, thereby ensuring a more sustainable and predictable shipping process.Types of Terminal Handling ChargesTHC can be divided into three primary categories:1. Origin Terminal Handling Charges (OTHC): These are fees paid at the port where goods are loaded onto the ship. OTHC covers loading, maintenance, storage, and documentation until the container is loaded onto the vessel.2. Destination Terminal Handling Charges (DTHC): Fees charged at the port where the goods are unloaded. DTHC includes unloading, transportation within the terminal, and any necessary storage.3. Transshipment Terminal Handling Charges (TTHC): Applied when goods are transferred from one vessel to another during transit. TTHC covers unloading, storage, and reloading at the transshipment port.How Are Terminal Handling Charges Calculated?THC calculation methods can vary depending on the terminal and the specifics of the cargo. The charges are usually based on either the weight or the volume of goods, or on the size of the container (e.g., 20-foot or 40-foot containers). For full container loads (FCL), the THC might be a fixed rate per container, whereas for less than container loads (LCL), the charges could be calculated based on the shipment’s weight or cubic volume. Factors That Influence THCSeveral factors determine the amount of THC:1. Local Charges: Different ports have varying operational costs which influence the THC.2. Cargo Type: Special cargo like hazardous materials or refrigerated goods may attract higher THC due to additional handling requirements.3. Terminal Policies: Each terminal’s unique policies and technology can impact THC.4. Port Location: Geographic and economic conditions at the port location can cause variation in THC rates.Difference Between Wharfage and THCIt's important to differentiate THC from wharfage. Wharfage is a fee for using the wharf to load or unload cargo, calculated based on the shipment’s volume or value. THC, however, covers the broader handling services within the terminal, including storage and movement of containers.Who Pays for THC?Typically, the consignor (exporter) pays the THC at the origin port, and the consignee (importer) pays at the destination port. However, these responsibilities can be negotiated and specified in the sales contract. The Bill of Lading (BOL) often denotes these agreements, ensuring clarity between parties.Impact and Management of THCUnderstanding and managing THC is essential for optimizing shipping costs. Businesses can take several steps to mitigate these expenses:1. Shipment Consolidation: Combining multiple smaller shipments into one larger container can reduce the number of containers handled, thereby lowering THC.2. Port Selection: Choosing ports with lower THC rates can lead to significant cost savings.3. Negotiation: Engaging with carriers to negotiate better THC rates based on shipping volumes.4. Use of Shipper-Owned Containers (SOCs): SOCs can help avoid additional charges and provide more control over the shipping process.

Amazon FBA (Fulfillment by Amazon) offers an efficient way for sellers to store and ship products, but one key aspect of managing your products involves understanding the distinction between Standard-size and Oversize items. These classifications directly impact your storage fees, fulfillment charges, and overall operational costs. Misclassifying your products can result in higher expenses, so it's crucial to know the differences.For international sellers, especially those shipping products from China to the USA, working with a reliable freight forwarder China to USA Amazon FBA is essential. They help ensure that your products are delivered efficiently and classified correctly once they arrive at Amazon’s fulfillment centers.In this guide, we'll explore how to distinguish between these categories, giving you the tools to avoid unnecessary fees and manage your business more effectively.Standard-Size Product RequirementsStandard-size products are generally smaller and lighter, and they come with lower fulfillment fees. The rules for what qualifies as a standard-size product may seem straightforward, but precision is essential to ensure you're not inadvertently overclassifying your products.Key Criteria for Standard-Size Products:Standard-size products are limited to 20 pounds or less in weight.For the dimensions, the longest side (typically height) must not exceed 18 inches.The total size, calculated by adding length + girth, must remain under 130 inches.Standard-size products are those typically found in common categories like books, clothing, toys, and small electronics. For instance, a pair of shoes or a small backpack would usually qualify as standard-size.These size limitations ensure that standard-size products are easy to handle, package, and store within Amazon’s fulfillment centers. Because of their small size and lightweight nature, standard-size items benefit from cheaper storage and shipping fees.Additional Guidelines for Measuring Standard-Size Products:When it comes to measuring your product, make sure you account for the packaging dimensions as well. The girth, which is the perimeter of the product’s packaging, plays a significant role in determining whether your item qualifies as standard-size.The formula for calculating the girth is as follows:Girth = (2 x Width) + (2 x Height).This method ensures that irregularly shaped items are measured properly for classification.Oversize Product CriteriaOversize products are those that exceed the limits for standard-size products. These are typically larger, heavier items that require additional handling, packaging, and storage space. Because of this, they often incur higher fees.Key Criteria for Oversize Products:If the item weighs over 20 pounds, it will be classified as oversize.If any side of the product exceeds 18 inches, or if the total length + girth exceeds 130 inches, the product is considered oversize.Oversize products include a range of items such as large furniture, bulky electronics, and home appliances.Oversize products fall into different categories, with each category having specific weight and size requirements.Oversize Categories:Small Oversize: Products that are heavy but compact (e.g., guitars, foldable treadmills, small outdoor gear like kayaks). These items weigh up to 70 pounds.Standard Oversize: Products that weigh between 70 pounds and 150 pounds, such as large home appliances (e.g., microwave ovens) and bulky furniture (e.g., office chairs, bookshelves).Large Oversize: Products that weigh more than 150 pounds or are over 108 inches in total size. Examples include large recreational equipment (e.g., riding lawn mowers, large couches) and industrial machinery.Oversize products incur higher storage and fulfillment fees due to their size and weight. They also require additional packaging and handling, which is why these fees are generally much higher than for standard-size products.How to Accurately Determine the Product CategoryAccurate classification of your product is crucial for ensuring that you don't face unnecessary fees or delays. It’s essential to measure and weigh your product carefully to ensure it falls within the correct category. Here's a breakdown of the steps you need to follow to make sure your product is classified correctly:Step 1: Measure the ProductStart by measuring the longest side, which is typically the height. Then, measure the width and height of the product. It’s essential to include the product’s packaging in your measurements.For irregularly shaped items, you will need to calculate the girth using the formula:Girth = (2 x Width) + (2 x Height). Once you have the girth, add it to the length to get the total dimensional size.Step 2: Calculate the WeightWeigh the product along with its packaging. It’s important to note that Amazon uses both actual weight and dimensional weight (calculated based on size) to determine shipping costs and product classification. If the product is large but lightweight, its dimensional weight may push it into the oversize category, even if the actual weight is low.Step 3: Use Amazon’s ToolsAmazon Seller Central provides tools for calculating the correct classification. When you enter your product dimensions and weight into the system, it will automatically categorize the item as either standard-size or oversize based on the inputs.Additionally, you can use third-party FBA Size Tier Calculators that help you estimate the size tier of your product before listing it.Step 4: Watch for Regional DifferencesDifferent Amazon marketplaces (e.g., US, UK, Japan) may have slightly different classification rules. For example, the weight limits and dimensional restrictions for oversize items may vary between regions, so always check the requirements for the marketplace you are selling in.Practical Tips for Avoiding Extra FeesManaging the classification of your products is key to avoiding costly mistakes and unnecessary fees. Here are some practical tips to help you navigate this process effectively:Accurate MeasurementAlways measure both the product and packaging accurately to ensure that your items are correctly classified. For products that are on the border between standard-size and oversize, even a small difference in dimensions or weight can lead to a change in classification and result in higher fees.Use Dimensional WeightIf your item is large but lightweight, always consider dimensional weight when determining your product’s size classification. This is particularly important for bulky but lightweight items, such as large cushions or inflatable furniture.Reevaluate Products RegularlyAs you change the packaging or make modifications to your product, the classification may also change. It's essential to regularly check your listings to ensure that they are up-to-date and still categorized correctly. For example, switching to a more compact packaging design could potentially reduce your fees if it brings your product back into the standard-size category.The Impact of Oversize FeesOversize products come with significantly higher storage and fulfillment fees, which can eat into your profits. The reason for these increased fees is the extra handling and storage space required for larger items.Storage FeesOversize products are stored in Amazon’s fulfillment centers, and Amazon charges different storage fees based on the time of year. For example, long-term storage fees are higher during peak seasons, such as the holiday period. It’s important to plan your inventory carefully to avoid high long-term storage costs.Fulfillment FeesAmazon also charges higher fulfillment fees for oversize items, including costs for picking, packing, and shipping. For larger items, the shipping costs are significantly higher than for standard-size products. Moreover, these products may require additional packaging and handling, which contributes to the increased costs.To manage these costs:Consider optimizing packaging to reduce product size where possible.Use inventory management strategies to avoid overstocking, which can trigger long-term storage fees.ConclusionClassifying your products correctly into standard-size or oversize categories is crucial to running a successful Amazon FBA business. By understanding Amazon's size and weight requirements, accurately measuring your products, and using the available tools, you can ensure that your items are categorized correctly and avoid unnecessary fees. Regularly check your listings to ensure accuracy and manage your inventory efficiently to maximize profitability.By following these steps, you'll be better equipped to navigate Amazon’s complex fulfillment system and optimize your business operations.FAQsHow do I know if my product is Standard or Oversize?Measure your product's weight, length, and girth. If it exceeds 20 lbs or 18 inches in any dimension, it's Oversize.What happens if I misclassify my product?Misclassifying can lead to higher storage and fulfillment fees, impacting your profits.Can a freight forwarder help with FBA classification?Yes, a freight forwarder can help ensure your products are shipped correctly and classified based on size and weight.