Logistics is usually the boring part of selling on Amazon until it costs you your entire profit margin. Many new FBA sellers focus entirely on product research and marketing, only to lose thousands of dollars on avoidable shipping errors.
From “Dimensional Weight” surprises to stuck customs, here are the top 5 mistakes to avoid.
1. Underestimating Packaging Volume (CBM)
The Mistake: You calculate profit based on the product size, not the box size. The Reality: If you sell a small garlic press, but it comes in a huge, airy blister pack, you are paying to ship air. The Fix: Ask your supplier to make the packaging as tight as possible. A 10% reduction in box size can save 10% on sea freight and 20% on FBA storage fees. Always check the total CBM using a Calculator.
2. Ignoring “Floor Loaded” Fees
The Mistake: You tell your supplier to “just put the boxes in the container” (Floor Loaded) to fit more units. The Reality: Amazon FBA centers have strict requirements. If you send a loose floor-loaded container directly to Amazon, they may reject it or charge exorbitant fees to palletize it for you. The Fix: Use a 3PL (Third Party Logistics) warehouse in California to receive the floor-loaded container, palletize it according to Amazon standards, and then truck it to FBA.
3. Not Checking the “Incoterms”
The Mistake: The supplier quotes a super low shipping price, so you say “Yes.” The Reality: The price was likely EXW (Ex Works), meaning you have to pay to pick it up from their factory. Or it was CIF (Cost, Insurance, Freight) to the US port, but YOU have to pay the destination port fees (which can be $1000+). The Fix: Always ask for a DDP (Delivered Duty Paid) quote if you want an “all-in” price where the supplier handles everything up to Amazon’s door.
4. Wrong HS Codes
The Mistake: You let the supplier pick the HS Code (Harmonized System) for customs. The Reality: The supplier picks a code that has low duties in China, but might have a 25% tariff in the USA. The Fix: Research your own HS Code on the US harmonized tariff schedule to know exactly what duty rate you will pay.
5. Failing to Label Cartons Correctly
The Mistake: Your cartons arrive at Amazon without FBA Box Labels. The Reality: Amazon will put your inventory into “Problem Solve” status. You will be charged a labeling fee per unit, and your stock will be delayed by weeks. The Fix: Send the FBA Shipping Labels (PDF) to your supplier and ensure they are printed on every single outer carton.
Summary
Shipping isn’t just a cost; it’s a strategy. By auditing your packaging size and understanding your Incoterms, you can undercut your competitors who are still making these expensive mistakes.