You may wish to know as a merchant how Amazon FBA handles LTL shipments and what fees are involved. Few of them know that, on averag...
You may wish
to know as a merchant how Amazon FBA handles LTL shipments and what fees are
involved.
Few of them
know that, on average, 95% of company transactions include LTL
(less-than-truckload) shipments.
With Amazon
FBA's "LTL Trucking" option, you can save a significant amount of
money on inbound shipping once your product quantities hit a certain threshold.
You may be
wondering now, what exactly is LTL and what the philosophy is behind Amazon's
LTL shipments. Let's take a closer look at it.
Table of
Content
What Is LTL
Shipping?
Advantages
of LTL Shipping
When Is LTL
Shipping the Best Option?
What Factors
Affect LTL Shipping Prices?
Overview of
LTL Shipments from Amazon
Conditions
for Packing Shipments
Arranging
Priority Appointments for Delivery
Condition Of
the Vehicle
Amazon
Seller Requirements
How Can I
Determine The Warehouse Charges For Amazon FBA LTL?
Common
Reasons Your Delivery Can Be Rejected
Describe
LTL Shipping.
When a load
doesn't need to fill an entire trailer, LTL (Less Than Truckload) is a service
or choice that can be utilized.
LTL shipping
is essentially the freight transportation that takes up very little space
inside the entire trailer.
To put it
plainly, several shippers will occupy the same vehicle and only pay for the
space they really use—they won't be charged for the entire truck. Because of
this, LTL shipping is an affordable way to send freight.
Nevertheless,
this mode of transportation is limited to shipments weighing between 150 and
15,000 pounds.
Advantages
of LTL Shipping
LTL shipping
is a highly practical alternative for you because it offers several benefits.
Among them are:
Enhanced
Security: Before
being loaded into a truck, the bulk of LTL shipments are packaged onto pallets.
Shipments containing many smaller units have less likelihood of remaining
secure than well-packed pallets.
Cost-effective: It appears that this will save a
significant amount of money because you won't be using the entire truck's
space—just a small fraction of it. LTL becomes an affordable shipping
alternative as a result.
Effective
Tracking: All LTL
carriers provide improved tracking through the bill, which contains information
such as the PO number, lading number, shipment reference number, PRO number,
pick-up date, and so on.
Service
Options: Lift-gates,
simple collection, and prompt delivery are just a few of the exclusive services
available to you when shipping LTL.
Environmentally
friendly: Using the same truck for several people not only saves fuel but also
emits less carbon dioxide.
When Is
LTL Shipping the Best Option?
To get the
most out of your expense reductions, choose LTL.
Select LTL
shipping if the package weight is less than fifteen thousand pounds.
If your
freight doesn't need a complete trailer, go with LTL.
What
Factors Affect LTL Shipping Prices?
The
following variables affect LTL shipping rates:
Mode: For an additional cost, all LTL
shipments can be expedited.
Dimension: The weight and size of an Amazon
shipment define the freight class, which in turn determines the fee.
Location: A major factor in deciding the
pricing for LTL shipments is the distance between the source and the
destination. Generally speaking, the price increases with distance.
Overview
of LTL Shipments from Amazon
For
shipments weighing more than 150 pounds, Amazon has teamed up with FTL/LTL
(Full Truckload/Partial Truckload) Carriers.
These
carriers now provide incredibly low prices for both the pickup and delivery of
your FBA (Fulfilled By Amazon) incoming shipments.
The costs
are initially charged to Amazon's account, after which they forward the charges
to you, which appear on your Settlement Report as "Inbound Transportation
Charges."
How Can I
Schedule An LTL Shipment To Amazon?
The
guidelines listed below should be followed if you are using the LTL option to
transport your stock to the Amazon Fulfillment Center:
Pallet
Label and Pallet Needs
All
shipments of large parcels ought to be palletized. Pallets ought to measure as
follows:
1200
mm x 1000 mm
Any other
size pallet will be refused right away.
· If floor-loaded shipments are not
approved in advance by Amazon, they will not be accepted. Unauthorized
floor-loaded shipments may be charged a non-compliance fee, be refused at the
dock, or be returned to the individual merchant at their expense.
· In the upper right corner of the
unitized load, each pallet should prominently display the Vendor's name, the
From and To address, the Number of cartons, the PO number, and the Pallet #____
of _____ pallets.
· Each pallet must contain the approved
amounts.
· "Mixed SKUs" or "mixed
merchandise" should be the label applied to every pallet containing
products that are different yet visually similar.
· Every pallet needs to be
plastic-wrapped and have a notice on it that warns the carrier to "do not
break the stretch-wrap."
· Pallets with damage or breakage won't
be accepted and may be rejected at the merchant's expense.
· Pallets are non-transferable.
· When single-stacked, pallets cannot
be higher than 1.5 meters.
· A pallet carton is limited to 33
pounds in weight. If anything weighs more than this, it needs to be labeled as
"Heavy Weight." To ensure that it is easily readable, it should be
printed in large block letters.
· Nothing may protrude more than 25 mm
past the edge of a pallet.
Conditions
for Packing Shipments
To guarantee
that your inventory gets to the Amazon fulfillment centers securely, it's
critical to package your shipment correctly.
If you plan
to ship your merchandise via LTL shipping, you must follow Amazon's box
specifications in order for it to arrive at the warehouse without incident.
How ought
one to proceed?
The
following will be your responsibilities as an FBA seller:
· Constructing the shipping of pallets
· Making use of regular pallets
· Respecting the label requirements on
the pallet
· Planning the delivery
· Giving the Bill of Lading (BOL)
· Giving the Amazon shipment ID, (PRO)
tracking number, and reference ID to the appropriate carrier
How ought
your carrier to proceed?
Make certain
that your carrier:
· Contains the reference ID, (PRO)
tracking number, and Amazon shipping ID.
· Respects the standards established
for the condition of the vehicle
· Makes a prior appointment for the
delivery
Carrier
Specifications Regarding LTL Delivery
As
previously stated, it is your sole responsibility as a seller to make sure the
carrier you select satisfies the specifications listed below.
Note: The delivery will be refused if the
carrier you select disregards the terms and conditions. Thus, be sure to follow
the guidelines provided below.
· When arranging a dock appointment,
Amazon will require the carrier to provide their Amazon Shipment ID, (PRO)
tracking number, and reference ID on the BOL.
· Pallet and box counts should be
communicated by the carrier prior to the planned appointment. The Unit counts
may be requested by the Amazon fulfillment center.
· Upon reaching the Amazon fulfillment
center, the carrier is expected to furnish a BOL document that satisfies
Amazon's specifications. If a physical copy of the BOL document is unavailable,
the carrier may nevertheless offer a soft copy.
Arranging
Priority Appointments for Delivery
A delivery
appointment must be scheduled with the carrier you select to deliver your
shipments. Prior to arranging a delivery appointment, make sure you and your
carrier have finished all required processes.
· Remember that professional carriers
can only schedule a delivery appointment to any of Amazon's fulfillment
centers; public deliveries are not permitted.
· Prior to the appointment being
approved, the carrier must be registered with Amazon.
· Without a booked appointment, a cargo
won't be accepted at its fulfillment center.
· The shipment will be denied without
incurring any fees for Amazon in the event that the appointment is missed by
thirty minutes or more. In addition, a fresh appointment for redelivery must be
asked for, made, and approved.
· Carriers need to follow Amazon's
delivery guidelines and safety norms.
· Carriers should make their
appointments 24 hours in advance for incoming deliveries.
In the event
that unforeseen weather causes a shipment to be delayed, Amazon should be
notified by the relevant carrier. Revisions will be made by Amazon according to
availability.
To arrange a
delivery time, take the actions indicated below:
· Fill up the FBA Booking Form by
downloading it.
· Send the carrier an email including
this form and a link to the Carriers User Manual.
· Make an account (if you don't already
have one) with your carrier.
· Open your Carrier Central account and
make an appointment request.
· Within a day of receiving your
request and checking the information, Amazon will reply.
· Your appointment for delivery will be
arranged based on availability. You will be advised of the day and time.
Note: Carriers should state clearly that
the package is for FBA (Fulfillment by Amazon) when you make an appointment. In
order to speed up the appointment booking process and guarantee correct
reception of the inventory, it is also necessary to give the FBA Shipment ID.
Condition
Of the Vehicle
It's crucial
that the vehicle fulfills Amazon's requirements for delivery of your items or
products:
· The pallet jack should be able to
support the entire weight of the car on its floor.
· Amazon does not accept trailers with
uneven or corrugated flooring due to safety concerns.
· The floor of the car should be
secure, intact, and well-maintained.
· The car should be spotless,
waterproof, and odor-free (especially when transporting food and medical
supplies).
· The straps ought to be fastened
securely.
· In the event that the authorities are
unable to properly unload the products, any truck, trailer, cargo, or portion
of the shipment may be denied at the fulfillment facility. In certain
situations, an email address linked to your seller central account will receive
a notification.
Amazon
Seller Requirements
For LTL This section mostly covers the
specifications for boxes and pallets.
Box
Limits:
A single LTL
shipment is limited to 4,999 boxes. You must create a second shipment if you
need to transport more than 4,999 boxes.
Requirements
For The Pallet:
· Use 4-way access, 40-inch x 48-inch
wooden pallets.
· You cannot dispatch units on pallets
that are made of fragile material like particle board or cardboard.
· If a large, single unit doesn’t fit
in a pallet of 40-inch x 48-inch, go for a pallet type and size that is
suitable for it.
· Ship the units on B Grade GMA
Standard for higher pallets. Irrespective of the material (composite, plywood,
lumber, etc.), the B Grade GMA Standard pallets have:
· Not less than four boards at the
bottom
· 6 – 7 boards at the top, based on the
board width
· 4-way entry
· Stringers for extra support
· Ship your grocery products on 1A
Grade GMA Standard pallets only. The 1A Grade GMA Standard pallets have:
· 5 boards at the bottom
· 7 boards at the top
· 4-way entry
· Stringers for extra support
· No block repairs
· The GMA Standard Grades 1A & 1B
are only acceptable for Personal, Beauty, and Health Care products. The 1B
Grade GMA Standard pallets have:
· Not less than four boards at the
bottom
· 6 – 7 boards at the top, based on the
board width
· 4-way entry
· Stringers for extra support
· Only one stringer might include a
plug
· Damaged and broken pallets will not
be accepted. They will be rejected immediately at the dock at the seller’s
expenditure.
· Ship only if the pallets are in
proper condition.
How Can I
Determine The Warehouse Charges For Amazon FBA LTL?
You can
assess how much it will cost for Amazon LTL to transport to its warehouse by
following the procedures shown below.
Step 1: Create a shipment plan by visiting the Prepare Shipment page on Amazon Seller Central.
Step 2: You will notice two options under
Shipping Service: Shipping Carrier & Shipping Method.
Step 3: Select Less than truckload (LTL)
under Shipping Method.
Step 4: Select Amazon-Partnered Carrier
under Shipping Carrier.
Step 5: Select the method of packing your
package from the dropdown menu under the "Shipping Packing" section.
After completing the necessary fields, press the bottom confirm button.
Step 6: You can get an estimate for your
pallet under Pallet Information. Nonetheless, you must include information
regarding the dimensions, weight, and number of pallets. You'll see a checkbox
choice next to the STACKABLE PALLETS option on the right. Don't check it, as
Amazon may send a vehicle to pick up just the pallets that are stackable.
Consequently, your pallets won't fit inside the truck if they can't be stacked.
Step 7:
Select the date, the person to contact, the fright class (select 100), and the
declared value (the commercial value of your cargo) under the Shipping Charges
section.
Step 8: In order to obtain an estimate of
the costs associated with Amazon LTL, click the calculate button at the bottom.
Common
Reasons Your Delivery Can Be Rejected
· When there is no booking or
appointment scheduled for delivery
· Incorrect vehicle type
· Single delivery appointment for
numerous vehicles
· Late or early delivery
· Unsafe pallet or vehicle
· Damaged freight
· No access to the stock because of
non-Amazon inventory blocking access
· Tampered freight
· Damaged freight
· Improper or no paperwork for delivery
· Inaccessible pallets
· Vehicles that disallow Amazon from
offloading the inventory from the backside
· Surpassing the quantities that are
already booked during the appointment
Read More:
How to Join the Amazon Partner Carrier Program: A Seller's Guide
SEO Navigation: Staying Competitive in Evolution
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