Logistics common sense
Amazon FBA transportation tariff calculation, advantages and disadvantages analysis

Amazon FBA transportation has always been a way of delivery that many sellers don't know. First of all,  Amazon FBA first way is simply the Amazon overseas FBA warehouse head way delivery and transportation, which is the delivery service provided by Amazon. There are still some advantages in terms of distribution and mailing. Today, I will mainly introduce the tariffs and advantages and disadvantages of Amazon FBA.




    1. The calculation of tariff collection




    Reference for customs duty thresholds of cities around the world




    British threshold: 15 pounds




    The composition of comprehensive tariffs:




    VAT (Value Added Tax) + DUTY (Customs Duty) + ADV (Customs Clearance Miscellaneous Fees)




    VAT = (value of goods (declared to customs) + freight + DUTY) X 20%




    DUTY = value of goods X product tax rate




    Australian threshold: 1,000 Australian dollars




    The composition of comprehensive tariffs:




    DUTY + GST + ADV (Customs clearance fees)




    GST = British VAT (value of goods (declared to customs) + freight + DUTY) X 10%




    DUTY = value of goods X tax rate




    U.S. threshold: US$200




    The composition of comprehensive tariffs:




    DUTY (Customs Duty) + ADV (Customs Clearance and Miscellaneous Taxes)




    DUTY = value of goods X tax rate




    The EU threshold is 22 euros




    The composition of comprehensive tariffs:




    VAT = (value of goods (declared to customs) + freight + DUTY) X 19%




    DUTY = (value + freight 70%) X product tax rate




    The Swiss tariff threshold is 100 Swiss francs. (Switzerland has not joined the European Union and is a neutral country)




    Basic tax rate/WTO tax rate




    Here WTO refers to the MFN (favored nation) tax rate, which is the tariff rate enjoyed by a country's imported products from its favored country.




    Adopted by countries that have entered into bilateral or multilateral trade agreements, preferential country treatment is an important clause in the General Agreement on Tariffs and Trade. According to this article, the contracting parties will give to third countries the trade preferences, Immunities and privileges are also given to the contracting party, which is reflected in tariffs, which is a preferential nation tax. This form of tariff concession is reciprocal.




    The preferential nation tax rate is now applicable to trade between the member states of the World Trade Organization, which is the normal tax rate. Generally, the preferential tariffs of the Generalized System of Preferences and the Free Trade Zone are reduced or exempted on the basis of WTO tariffs.




    Basic tariff rate: The tariffs used as the basis and starting point of the preferential treatment in the preferential arrangements of some ASEAN countries.




    Preferential tariff rate: refers to the preferential tariff rate that is lower than the ordinary tariff rate levied on imported goods from a specific beneficiary country.




    Preferential tariffs are generally reciprocal. Through international trade or tariff agreements, the parties to the agreement will give preferential tariff treatment to each other; however, there are also unilateral ones where one-way preferential tariff treatment is given to the beneficiary country, and reverse preference is not required. Such as preferential tariffs under the Generalized System of Preferences; the WTO implements multilateral generalized preferential tariffs, which are granted by any contracting party to all contracting parties.




    There are currently two types of preferential tariffs: the generalized system of preferential rates and the free trade zone preferential rates.




    Second, the advantages and disadvantages of Amazon FBA




    The full name of FBA is Fullfillment By Amazon, and the Chinese translation is called FBA. It is a one-stop logistics service provided by Amazon, including warehousing, picking and packaging, delivery, collection, customer service and return processing.


    Advantages of FBA:

    1. Improve Listing ranking, help sellers become featured sellers and grab shopping carts, increase customer trust, and increase sales

    2. Many years of rich logistics experience, warehouses all over the world, intelligent management


    3. Super fast delivery time (most warehouses are close to the airport)


    4. 7*24 Amazon professional customer service


    5. Erase the bad review disputes caused by logistics


    6. All FBA logistics fees are exempted for products with a unit price of more than 300 USD


    FBA flaws:

    1. Generally speaking, the cost is slightly higher than that of domestic shipments (especially FBA shipments on non-Amazon platforms), but it also depends on the weight of the product.


    2. Poor flexibility (the common shortcomings of all overseas warehouses, but other third-party overseas warehouses can still have dedicated Chinese customer service to deal with some problems, but FBA can only communicate with customers in English, and the reply will not be sent to the first The three-party overseas warehouse customer service is so timely)


    3. The FBA warehouse will not provide customs clearance services for the seller's first shipment


    4. If the preliminary work is not done well, the label scanning problem will affect the goods entering the warehouse, or even fail to enter the warehouse.


    5. The return address only supports the U.S. (if you are doing FBA for U.S. sites)


    6. Customers can return the goods if they want to return the goods without too much communication with FBA (returning goods is too random, which brings a lot of trouble to the seller)


    FBA does not accept the services of the following products:


    If the seller's FBA product involves the following content, Amazon will not perform FBA shipping operations for such goods and return it to the seller once discovered, and Amazon has the right to destroy such products.


    1. Products prohibited for sale on Amazon.com. Products prohibited for sale on the Amazon platform (such as: tobacco products [including electronic cigarettes], alcohol, gunpowder, controlled knives, perishable products, toxic and hazardous substances, medicines)




    2. Gift cards, gift certificates and other stored value instruments (gift cards, gift certificates, and other stored value instruments)


    3. Extremely large or heavy products


    4. Damaged or defective Units. Note: Used condition products may have damage as long as the product is labeled with the appropriate condition


    5. Products that have been illegally replicated, reproduced, or manufactured.


    6. Product that do not comply with any agreement between Amazon and Seller (any product that does not comply with the terms of the contract between Amazon platform and seller)


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