We’re often approached by Amazon sellers and online retailers about details on how to import goods, deal with customs, and pay importation taxes. The process may seem complicated but that’s where Logistics Plus can help. We know you have an online retail store to run, and products to sell – so let us handle the logistical details for you.
Global sourcing from a foreign country is often needed to obtain affordable, quality products. But as with all good things, there are several logistical issues that have to be worked out in order to be successful.
What To Expect When Importing
- Long Lead Times – Most overseas suppliers won’t even begin making your products until you actually place an order and make a small payment to cover the cost of materials. Depending on the nature of your items, expect to wait anywhere from one to four months to get your products manufactured. Very rarely will a supplier actually carry significant inventory of your product, so you must plan ahead.
- A Hefty Minimum Order – If you are ordering products to be manufactured overseas, expect to place a fairly large minimum order. Every manufacturer will have their own minimums but don’t be shy about asking before you order. As a rule of thumb, if you are just starting out, you can probably take whatever you consider a large order and multiply that number by 10.
- Payment Terms – Most if not all manufacturers expect to be paid by wire transfer. Usually, you have to put down a percentage of payment upfront to cover the initial costs and then pay the balance once the items are ready to be shipped. There are escrow services available to handle payment issues, but in general, transactions go much faster when there’s mutual trust between you and your supplier. Of course, you’ll have to establish this trust over time.
- Quality control – Quality may be an issue in the beginning. In general, it will take several iterations in order for you to get your products exactly the way you want them.
- Language Barriers – Many suppliers in Asia will not speak English very well; but as long as you keep most of your communications through email, things will go much smoother. Most suppliers are able to read English much better than they can understand the spoken language. Of course, if you work with Logistics Plus, we will likely have logistics experts located in that country who can speak the local language to address any issues on your behalf.
Preparing For Your Shipment
Once you’ve ordered your products and they are finally ready to be shipped to you, what’s next? There are two primary ways to get your goods into your home country: air or ocean transportation. Before you initiate your shipments, make sure you ask for the following documents from your supplier. These will be required in order to clear customs.
- A Commercial or Customs Invoice – Description and declared value of the items
- A Packing List – Description of items you are importing, PO number, delivery address, etc.
- Bill of Lading – This is a detailed list of shipment goods given to the carrier in order to transport your goods (your broker can provide this for you)
Shipping By Air
Shipping your items by air is by far the easiest option but also the most expensive. Expect to pay between 5-6 times more to ship by air versus ocean transportation. Because Logistics Plus has accounts and discounts with more air carriers, shipping international air shipments with us is a breeze because we’ll take care of pretty much everything.
The supplier provides the Logistics Plus air carrier with all of the materials mentioned above and then they will transport all of your goods directly to the address that you specify. Just have this information handy once your goods have shipped and you are all set. Logistics Plus will also provide you a detailed invoice so that you see any and all duties associated with your imported goods.
Shipping By Ocean
Shipping by ocean can take a lot longer than air, but is totally worth it if you are importing a large volume of goods. As mentioned before, you can easily save between 5-6 times the amount you would have paid shipping by air.
The key to accepting shipments by ocean is working with a good customs agent, like Logistics Plus. This is especially important if this is your first time importing by ocean carrier. This is what the customs agent will take care of for you.
- Customs Documentation – They will take care of any and all documentation required in the entire process
- Customs Entry – They will take care of getting your goods from the port directly to your office
- Customs Duty – They will take care of calculating and billing you for any duties associated with your goods.
- Customs “Single Entry” or “Continuous” Bond – You are required to buy a bond that acts as insurance with Customs in the event you should default on the customs duties. Your customs agent will take care of this for you as well.
Although there are some fees associated with these services, Logistics Plus will get your goods through customs swiftly and without hassle. As an example, a recent shipment handled for an online retailers would have cost $1,600 dollars by air, but by ocean it only cost $550. Overall, the customer saved over 65% on transportation. The trade-off was that it took over 3 weeks to receive the shipment by ocean as opposed 4 days by air.
Do you have additional retail & distribution questions or are you also selling your goods on Amazon? Let the transportation and logistics experts at Logistics Plus help – we make importing easy. Call us at 1.866.564.7587 or contact us for more information.
