How To Ship From Wholesale To Amazon Warehouse?

Learn how to ship products from wholesale to Amazon warehouse efficiently. This guide covers essential steps, best practices, and tips to ensure smooth and successful delivery, helping you optimise your Amazon FBA process.

Introduction 

Shipping products from wholesale suppliers to Amazon warehouses is a critical step for any seller looking to leverage the Fulfillment by Amazon (FBA) program. This process can significantly impact your business’s efficiency, profitability, and customer satisfaction. By understanding the essential steps and best practices involved, you can ensure that your products are delivered smoothly and in a timely manner to Amazon’s fulfilment centres. In this guide, we’ll walk you through the entire process, from selecting the right wholesale suppliers to preparing and shipping your products to Amazon warehouses, helping you streamline your operations and maximise your success on the platform.

How To Ship From Wholesale To Amazon Warehouse?

Shipping products from wholesale suppliers to Amazon warehouses is a crucial step for sellers using the Fulfillment by Amazon (FBA) program. This process involves several key steps, each of which is vital for ensuring your products reach Amazon’s fulfilment centres efficiently and in compliance with their requirements. Here’s a detailed guide to help you navigate this process.

1. Selecting the Right Wholesale Supplier

• Research and Vetting: Choosing the right wholesale supplier is foundational to your success. Start by conducting thorough research. Look for suppliers who specialise in your product category and have a strong reputation. Platforms like Alibaba, SaleHoo, and ThomasNet can be great starting points. Make sure to vet suppliers by checking reviews, asking for samples, and verifying their business credentials. It’s crucial to work with suppliers who have a proven track record of delivering quality products on time.
• Negotiating Terms: Negotiation is key in securing favourable terms. Discuss pricing, minimum order quantities (MOQs), lead times, and shipping costs. Payment terms are also important; while some suppliers may require full payment upfront, others might offer more flexible terms. Ensure all agreements are clearly documented to avoid future disputes.

2. Preparing Your Products

• Product Labeling: Amazon requires that all products sent to their fulfilment centres have scannable barcodes, either the manufacturer’s barcode (UPC, EAN) or an Amazon FNSKU (Fulfillment Network Stock Keeping Unit). You can generate FNSKU labels in Seller Central. Ensure your supplier understands these requirements and can provide properly labelled products. If not, you might need to handle labelling yourself or through a third-party prep service.
• Packaging: Proper packaging is essential to protect your products during transit. Amazon has specific packaging requirements to prevent damage and ensure safety, such as using sturdy boxes, bubble wrap, and other protective materials as needed. For fragile items, consider double-boxing. Also, ensure that any hazardous materials are packaged according to Amazon’s guidelines to avoid issues during check-in.
• Bundling and Kits: If you’re selling products in bundles or kits, make sure they are assembled correctly and labelled as a single unit. Each bundle should have a unique FNSKU, and the packaging should clearly indicate that it is a set.

3. Creating a Shipment Plan

• Amazon Seller Central: Log in to your Amazon Seller Central account and navigate to the ‘Inventory’ tab to create a shipment plan. This involves selecting the products you want to ship, specifying the quantities, and choosing the destination fulfilment centre. Amazon may split your shipment to different fulfilment centres to optimise its distribution network.
• Shipping Options: Decide whether to ship products directly to Amazon or use a prep service. Direct shipping can be more cost-effective but requires meticulous compliance with Amazon’s packaging and labelling requirements. A prep service, although more expensive, ensures that your products meet Amazon’s standards, potentially reducing delays and issues at the fulfilment centre.

4. Shipping to Amazon Warehouse

• Shipping Labels: Once your shipment plan is created, Amazon will provide shipping labels that must be attached to each box. These labels include important information such as the shipment ID and destination fulfilment centre. Ensure labels are securely attached and clearly visible.
• Carrier Selection: Choose a reliable carrier that offers tracking and insurance. Amazon partners with several carriers (like UPS, FedEx, and DHL) that offer discounted rates for FBA shipments. Compare rates and services to find the best option for your needs.
• Freight Forwarders: For international shipments, consider using a freight forwarder. They can handle complex logistics, including customs clearance, tariffs, and duties. Freight forwarders ensure that your products comply with import regulations and reach Amazon’s warehouses without unnecessary delays.

5. Tracking and Monitoring Your Shipment

• Tracking Numbers: Keep track of your shipment using the tracking number provided by your carrier. Monitoring the progress of your shipment allows you to address any issues that may arise, such as delays or delivery exceptions.
• Receiving at Amazon: Once your shipment arrives at the Amazon fulfilment centre, it will be checked in and processed. This involves verifying the shipment contents against your shipment plan and ensuring everything complies with Amazon’s standards. This process can take a few days to a couple of weeks, depending on the volume and seasonality.

6. Dealing with Issues

• Damaged or Lost Items: Despite careful planning, shipments can sometimes encounter issues such as damage or loss. If products are damaged or lost during transit, file a claim with your carrier. Amazon has a process for reimbursing sellers for lost or damaged items under certain conditions, known as the FBA Lost and Damaged Inventory Reimbursement Policy.
• Non-Compliance: If your shipment does not comply with Amazon’s requirements, it may be rejected or incur additional fees. Amazon will provide feedback on non-compliant shipments. Address any issues promptly to avoid disruptions to your inventory availability.

7. Optimizing Future Shipments

• Learn from Experience: Analyze any issues or delays you encounter and adjust your processes accordingly. For example, if you frequently experience delays due to labelling issues, consider using a prep service. Continuous improvement will lead to smoother shipments over time.
• Supplier Relationships: Building strong relationships with your suppliers is crucial. Communicate regularly and provide feedback on their performance. A reliable supplier who understands and meets Amazon’s requirements consistently can significantly streamline your operations.
• Cost Efficiency: Look for ways to reduce shipping costs. Consolidating shipments, negotiating better rates with carriers, and optimising packaging can all contribute to cost savings. Additionally, consider using Amazon’s Partnered Carrier Program for discounted shipping rates.

Common Challenges in Shipping from Wholesale to Amazon

Shipping products from wholesale suppliers to Amazon warehouses is a critical step in the Fulfillment by Amazon (FBA) process. However, this process can present several challenges that can disrupt your operations and impact your profitability. Understanding these common challenges and learning how to overcome them is essential for smooth and successful shipping. Here’s a comprehensive guide to help you navigate these challenges.

1. Compliance with Amazon’s Requirements

Challenge: Amazon has strict packaging, labelling, and shipping requirements. Non-compliance can result in delays, additional fees, or rejected shipments.

Solution:

• Thorough Preparation: Familiarize yourself with Amazon’s FBA requirements. Regularly review Amazon’s guidelines, as they may change over time.
• Training Suppliers: Ensure your suppliers are aware of and comply with Amazon’s requirements. Provide them with detailed instructions and checklists.
• Prep Services: Consider using third-party prep services that specialise in preparing products for Amazon FBA. These services can handle labelling, packaging, and quality control.

2. Accurate Inventory Management

Challenge: Managing inventory accurately is critical to avoid stockouts or overstock situations, both of which can impact sales and profitability.

Solution:

• Inventory Software: Use robust inventory management software that integrates with Amazon Seller Central. This helps track inventory levels in real-time.
• Regular Audits: Conduct regular inventory audits to ensure that the physical inventory matches the records. Address discrepancies promptly.
• Replenishment Alerts: Set up alerts for low inventory levels to ensure timely reordering from suppliers.

3. Shipping Delays

Challenge: Delays in shipping can result in stockouts, lost sales, and lower seller ratings.

Solution:

• Reliable Carriers: Partner with reliable shipping carriers that offer tracking and timely delivery. Amazon’s partnered carriers often provide discounted rates and reliable service.
• Buffer Time: Account for potential delays by planning your shipments with extra buffer time. This ensures that your products arrive at Amazon warehouses before your inventory runs out.
• Freight Forwarders: For international shipments, freight forwarders are used to handle customs clearance and other logistics efficiently.

4. Handling Damaged or Lost Shipments

Challenge: Products can be damaged or lost during transit, leading to financial losses and inventory shortages.

Solution:

• Proper Packaging: Ensure your products are packaged securely to withstand the rigours of shipping. Use sturdy boxes, bubble wrap, and other protective materials.
• Insurance: Insure your shipments to protect against financial loss in case of damage or loss. Most carriers offer insurance options for valuable shipments.
• Claims Process: Familiarize yourself with the claims process for your chosen carrier. Act promptly to file claims for damaged or lost shipments and keep detailed records of all transactions.

5. Cost Management

Challenge: Shipping costs can be significant, impacting your overall profitability.

Solution:

• Negotiating Rates: Negotiate better rates with carriers, especially if you’re shipping large volumes regularly. Amazon’s Partnered Carrier Program can also offer cost savings.
• Consolidated Shipping: Whenever possible, consolidate shipments to reduce per-unit shipping costs. Shipping in larger quantities can often be more cost-effective.
• Optimising Packaging: Use appropriately sized packaging to avoid dimensional weight charges. Reducing the size and weight of packages can lead to significant savings.

6. Customs and Regulatory Compliance

Challenge: International shipments can be delayed or rejected due to customs issues and regulatory non-compliance.

Solution:

• Documentation: Ensure all necessary documentation (invoices, packing lists, certificates of origin, etc.) is accurate and complete. Incorrect or missing documents can cause significant delays.
• Customs Brokers: Use customs brokers to navigate complex import regulations. They can ensure your shipments comply with all legal requirements and handle the paperwork efficiently.
• Regulatory Research: Stay informed about the import regulations of the destination country. Regulations can change, and non-compliance can lead to fines or confiscation of goods.

7. Communication with Suppliers

Challenge: Miscommunication with suppliers can lead to errors in order fulfilment, shipping, and labelling.

Solution:

• Clear Instructions: Provide clear, detailed instructions to your suppliers regarding packaging, labelling, and shipping requirements. Use checklists and visual aids if necessary.
• Regular Communication: Maintain regular communication with your suppliers. Use video calls, emails, and messaging apps to keep everyone on the same page.
• Supplier Relationships: Build strong relationships with your suppliers. A good relationship can lead to better service, more flexibility, and faster resolution of issues.

Advanced Tips for Efficient Shipping from Wholesale to Amazon Warehouse

Shipping products from wholesale suppliers to Amazon warehouses is a pivotal aspect of the Fulfillment by Amazon (FBA) program. To stay competitive and maximise efficiency, sellers need to go beyond the basics and adopt advanced strategies. Here are some advanced tips to streamline your shipping process, reduce costs, and enhance overall efficiency.

1. Optimize Shipment Planning

• Advanced Inventory Forecasting: Utilize advanced inventory management software with forecasting capabilities. These tools analyse historical sales data, seasonality, and market trends to predict future demand accurately. This helps in maintaining optimal inventory levels and reduces the risk of stockouts or overstocking.
• Automated Replenishment: Implement automated replenishment systems that trigger orders from suppliers when inventory levels fall below a certain threshold. This ensures timely restocking and reduces manual intervention.

2. Leverage Amazon’s Inventory Placement Service

• Centralised Shipping: Amazon’s Inventory Placement Service allows you to send all your inventory to a single fulfilment centre, after which Amazon distributes it across its network. This can simplify logistics and reduce shipping costs, especially for smaller sellers.
• Cost-Benefit Analysis: Conduct a cost-benefit analysis to determine if the fees for using the Inventory Placement Service are outweighed by the savings in shipping costs and the benefits of streamlined logistics.

3. Utilize Advanced Packaging Techniques

• Customised Packaging: Invest in customised packaging solutions that not only protect your products but also optimise space utilisation. This can reduce dimensional weight charges and shipping costs.
• Eco-Friendly Packaging: Use eco-friendly packaging materials. Not only is this better for the environment, but it can also appeal to eco-conscious consumers and enhance your brand image.

4. Integrate Technology for Real-Time Tracking

• Real-Time Tracking Systems: Integrate real-time tracking systems with your logistics and inventory management software. This provides visibility into the entire supply chain, allowing you to monitor shipments, anticipate delays, and proactively address issues.
• Blockchain Technology: Consider using blockchain technology for enhanced transparency and security in your supply chain. Blockchain can provide an immutable record of transactions and movements, reducing the risk of fraud and errors.

5. Implement Advanced Quality Control Measures

• Third-Party Inspections: Use third-party inspection services to verify product quality and compliance with Amazon’s standards before shipping. This reduces the risk of receiving non-compliant or defective products at Amazon warehouses.
• Automated Quality Control: Implement automated quality control systems that use AI and machine learning to detect defects and inconsistencies during the manufacturing and packaging process.

6. Optimize Shipping Routes and Methods

• Multimodal Shipping: Explore multimodal shipping options that combine different modes of transportation (e.g., sea, air, and land) to optimise cost and delivery time. Multimodal shipping can be particularly useful for international shipments.
• Dynamic Routing: Use dynamic routing software to optimise shipping routes in real-time based on factors like traffic, weather, and carrier performance. This ensures faster and more reliable deliveries.

7. Negotiate Better Rates with Carriers

• Volume Discounts: Leverage your shipping volume to negotiate better rates with carriers. Carriers are often willing to offer discounts for large or frequent shipments.
• Multi-Carrier Strategy: Adopt a multi-carrier strategy to avoid dependency on a single carrier. This allows you to compare rates and services, choosing the best option for each shipment.

8. Use Fulfillment Centers Strategically

• Distributed Inventory: Store inventory in multiple fulfilment centres closer to your major markets. This reduces shipping times and costs and improves customer satisfaction with faster deliveries.
• Cross-Docking: Utilize cross-docking techniques where products are directly transferred from inbound to outbound transportation with minimal storage. This reduces handling and storage costs and speeds up the supply chain.

9. Enhance Supplier Collaboration

• Collaborative Planning: Engage in collaborative planning with your suppliers to align production schedules with your inventory needs. This ensures a steady supply of products and reduces lead times.
• Supplier Scorecards: Implement supplier scorecards to track and evaluate supplier performance based on criteria like on-time delivery, product quality, and compliance. Use this data to make informed decisions and drive continuous improvement.

10. Stay Updated with Amazon’s Policies

• Regular Training: Regularly train your team on Amazon’s policies and updates. Amazon frequently updates its requirements and guidelines, and staying informed ensures compliance and reduces the risk of issues.
• Amazon Forums and Groups: Join Amazon seller forums and groups to stay updated on the latest trends, tips, and best practices. Networking with other sellers can provide valuable insights and help you stay ahead of changes.

FAQ’s

Conclusion

Shipping directly from your wholesaler to Amazon’s fulfilment centres can significantly streamline your Amazon FBA business. By following the steps outlined above and effectively communicating with your supplier, you can save valuable time and resources while ensuring your products reach Amazon warehouses efficiently. Remember to consider potential restrictions, shipping costs, and proper packaging to optimise this process. Utilise Amazon’s resources and prep services when needed, and don’t hesitate to seek further guidance from established e-commerce resources. With this knowledge, you’re well on your way to successfully shipping wholesale inventory directly to Amazon and fulfilling customer orders seamlessly.