You found the perfect product on Alibaba for $2.00. You are ready to order 500 units. Then the supplier sends the invoice: Shipping is $1,500.
Suddenly, your profitable product is a money pit. High shipping costs kill more Amazon FBA businesses than bad products. Here are 5 proven strategies to lower your Alibaba shipping costs without sacrificing speed.
1. Optimize Your Packaging (The “Air Tax”)
Shipping carriers charge for volume (CBM), not just weight. If you are selling a set of kitchen spatulas, and they are packed in a big, colorful display box full of empty air, you are paying to ship that air.
The Fix:
- Ask the supplier to use “Opp Bags” (clear plastic) instead of color boxes.
- Ask them to “nest” the items to reduce volume.
- Use our CBM Calculator to see how much you save if you reduce the box height by just 2cm.
2. Don’t Ship “Ex Works” (EXW)
If a supplier quotes you EXW, it looks cheap. But EXW means you have to pay to pick up the goods from their factory door in China.
- You pay the truck driver.
- You pay the export customs fees.
- You pay the port handling.
The Fix: Ask for FOB (Free on Board). This forces the supplier to pay for everything until the goods are on the ship. It is usually much cheaper for them to handle local Chinese trucking than for you to arrange it from the USA.
3. Consolidate Your Samples
Are you ordering samples from 3 different suppliers?
- Shipping 3 separate packages via DHL = $150 total.
- Consolidation: Ask Supplier A and Supplier B to ship their samples to Supplier C. Then Supplier C puts them all in ONE box and ships it to you.
- Total Cost = ~$60.
4. Sea Freight vs. “Sea Mail” (Matson)
If you need goods faster than standard sea freight (45 days) but cheaper than Air (7 days), ask for Matson Clipper (Fast Boat).
- Speed: ~15-20 days to the West Coast.
- Cost: Cheaper than Air, slightly more than slow boat.
- It is the perfect middle ground for Amazon sellers who need stock quickly.
5. Buy “DDP” (Delivered Duty Paid)
For beginners, DDP is a lifesaver. The supplier gives you one flat price that includes:
- Shipping.
- Customs Duties.
- Taxes.
- Delivery to your door.
While DDP might seem slightly more expensive on paper, it protects you from “surprise fees” at the US port (like exam fees or demurrage) that can cost thousands.
Summary
Never accept the first shipping price. Negotiate the volume of the packaging, not just the price of the freight. A smaller box is a cheaper box.