Freight Can’t WaitMoving your inventory into global markets

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Table of contents

•Global opportunity•International vs. domestic shipping•Getting products to FBA•Calculating shipping cost•Import requirements•Handling customs•Shipping from China•Bringing your profits home

The global opportunity

What do you need to know?•Custom duties and taxes•Customs visibility of trade

– Intellectual Property Rights– Agency regulatory bodies (FDA, USDA etc.)

•Incoterms/Terms of Sale – who is responsible for charges at each point of the transit

What needs to be done before shipping overseas?•Research!•Know the duty rates•Understand government agency requirements•Set expectations about timeframes (allow for a cushion)•Understand Amazon and other fulfillment requirements•Build a buffer for time zone differences and national holidays

– Chinese New Year – suppliers closed for approximately 2 weeks at the end of January

How does shipping internationally differ from domestic?

How do I get my products to FBA?

Getting your products to FBA•Amazon has 31 fulfillment centers across the EU, and Shapiro can help you ship to any of them•Amazon determines which warehouses you must ship to

– This summer they will be forcing more sellers to split cargo amongst several FCs (US)

Knowing how much product to send•Research your sell through reports and market•If you’re using other fulfillment services, you could consolidate to save on shipping

– Shapiro can ship to Amazon or other FCs, can bring in a container and split deliveries out or provide temporary storage

•There’s no minimum that you need to ship, but it’s most cost effective to ship at least 1 cbm/150 kg•Small items should go as loose freight

How do I get my products to FBA?

• Freight rates are based on mode, volume, weight and distance mainly

• Also consider commodity types (e.g. hazmat goods may cost more)

• Duties and taxes vary by country so importers should fully research this before selecting a commodity– E.g. UK charges VAT on top of duties, while some countries have free trade agreements– Some countries impose high duty rates on goods coming from countries where goods are produced and

sold at below fair market value (anti dumping / counterveiling duties)

• Cargo exams can cost money, which the importer would be responsible for

How are shipping rates calculated?

Amazon has strict rules!•Type of pallet they accept•Overall packaging•The appointment process•When the cargo can be delivered

Understanding customs•Customs requires that the true value that you paid for the goods be reported on customs declaration•Manufacturer info, gross and net weights, material breakdowns or ingredient lists are also required

Remember: Other government agencies will have requirements outside of customs too

What are the import requirements for shipping to warehouses?

Documentation to send with palette•FBA pallet labels and carton labels•Gross and net weights•Packing slip, including # of cartons, units per carton, and carton dimensions•Commercial invoice and packing list•Bill of landing

Understanding VAT•VAT differs between countries•It’s charged as a % of the shipping, duties, cargo value and any insurance paid•Charged to the end user at the time of the final sale

Import brokers•You need a broker for customs clearance if you’re shipping with a freight forwarder•If shipping small parcels, couriers like DHL/Fedex can handle the clearance of small, low value shipments

How do I handle customs?

• You can ship to FBA from just about anywhere

• Shapiro’s agent in China can coordinate with your shipper on the export

• Even if you can’t get everything packaged for FBA before shipping, Shapiro’s agents can palletize and add labels

• Make sure to get your quality check done beforehand!

Can I ship directly from China to FBA EU/UK?

Br i ngi ng your f unds home

Revenue from your overseas sales

Marketplace converts your revenue at an unspecified rate and at

a time of their choosing

Marketplace Solution

Revenue from your overseas sales

Marketplace sends your revenue to your in-country

receiving account

You pick when to bring your money home at our great exchange rates – your

money when you want it! Revenue arrives in your home bank account

Revenue arrives in your home bank account

Questions?

• These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgment.

• Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed.

• All opinions and estimates constitute the author’s own judgment as of the date of the briefing and are subject to change without notice.

• Any rates given are ‘interbank’ i.e. for amounts of $5million or more thus are not indicative of the rates offered by World First.

• World First USA, Inc. is a Delaware corporation, registered as a Money Services Business in the United States with FinCEN, and holds licensing as a non-depository financial institution with the Nationwide Multistate Licensing System (NMLS#1018479). World First USA, Inc. is also registered in Canada with FINTRAC (registration number M11393445).

Disclaimers