Decoding Terminal Handling Charges (THC)

Hey there, Amazon sellers! If you're working with a freight forwarder in China to ship your FBA inventory and wondering whether to choose tax-inclusive or tax-exclusive shipping, you're not alone.As someone who's been coordinating with Chinese freight forwarders for years, I can tell you that making the right choice can significantly impact your bottom line.China remains the go-to sourcing destination for most Amazon sellers, and finding the right shipping solution with a reliable freight forwarder in China is crucial for your business success. Let's break down everything you need to know in plain English.What's the Deal with Tax-Inclusive vs Tax-Exclusive Shipping?Before diving into the specifics, let's get clear on what these options really mean for you as a seller. Think of it like choosing between an all-inclusive resort vacation versus planning each part of your trip separately. Each has its perks and drawbacks, and what works best depends on your situation. Let's explore both options in detail:Tax-Inclusive (The "Easy Button" Option)Think of tax-inclusive shipping as the "all-you-can-eat buffet" of shipping options. You pay one price, and everything's taken care of. Here's what you get:🏷️ All taxes and customs duties included📦 Door-to-door service😌 Zero paperwork headaches⚡ Faster processing (usually)Real talk: Yes, you might pay a bit more upfront, but the peace of mind can be worth its weight in gold, especially if you're new to the game.Tax-Exclusive (The DIY Approach)This is like buying the ingredients and cooking yourself - more work, but potentially cheaper. You'll need to:📋 Handle your own customs paperwork💰 Pay taxes and duties separately🧮 Calculate fees yourself🤓 Understand international shipping regulationsPro tip: If you're good with numbers and don't mind some extra work, this could save you some serious cash.Making the Right Choice: Real ScenariosLet's look at some real-world examples to help you understand how these options play out in practice. I've worked with hundreds of sellers, and these scenarios come up time and time again. By seeing how other sellers have handled similar situations, you can better gauge what might work for your business:Scenario 1: The New SellerMeet Sarah, who just started selling yoga mats on Amazon:Limited experience with international shippingSmall initial inventoryTight budget but values peace of mind ➡️ Best Choice: Tax-inclusive. The extra cost is worth avoiding potential costly mistakes.Scenario 2: The Experienced SellerMeet Mike, who's been selling electronics for 3 years:Knows the ins and outs of customsShips large volumes regularlyHas a dedicated logistics team ➡️ Best Choice: Tax-exclusive. The savings on bulk shipments can be substantial.Smart Decision Factors (The Practical Stuff)Now that we've covered the basics and seen some real examples, let's dive into the nitty-gritty factors that should influence your decision. These are the practical considerations that can make or break your shipping strategy:Know Your NumbersBefore choosing, ask yourself:What's your profit margin per product?How much volume are you shipping?Can you handle delays if something goes wrong?Consider Your Product TypeSome products are more complicated than others:📱 Electronics: Often have special requirements👕 Clothing: Usually straightforward🧪 Beauty products: May need special documentationTime vs MoneyBe honest about your situation:How valuable is your time?Do you have the expertise to handle shipping logistics?What's your tolerance for paperwork?Pro Tips from Experienced SellersDrawing from years of collective experience in the Amazon FBA community, here are some golden nuggets of wisdom that can save you time, money, and headaches:Start Smart: If you're new, begin with tax-inclusive until you learn the ropesDo the Math: Calculate total costs for both options with your actual productsPlan Ahead: Consider peak seasons when shipping times matter moreBuild Relationships: Good shipping partners can offer better rates over timeRed Flags to Watch Out ForWhen evaluating your shipping options, there are certain warning signs you should never ignore. Here's what to look out for:Tax-Inclusive Warning Signs:Prices that seem too good to be trueUnclear terms about liabilityPoor communicationTax-Exclusive Pitfalls:Hidden fees popping upComplicated paperwork requirementsUnclear customs proceduresMaking Your Final DecisionAfter considering all the factors above, you're probably getting closer to a decision. Here's a framework to help you make the final call:Ask yourself these questions:Do I have time to manage shipping details?Am I comfortable with customs procedures?How much can I afford to spend upfront?What's my risk tolerance?The Bottom LineEvery business is unique, but here's a straightforward way to make your choice:Choose Tax-Inclusive if:You're new to FBAValue simplicity over savingsShip irregular volumesWant predictable costsChoose Tax-Exclusive if:You're experienced in shippingHave time for managementShip large volumesWant to maximize savingsRemember: Your choice isn't permanent. Many successful sellers start with tax-inclusive and switch to tax-exclusive as they gain experience. The key is making an informed decision based on your current situation and goals.What's Next?Now that you've got all the information you need to make an informed choice, here's how to move forward:Get quotes from multiple providersRead all terms carefullyStart with a small shipment to test the watersKeep track of all costs for future referenceReady to make your choice? Remember, the "best" option is the one that works for YOUR business right now. Don't get too caught up in what others are doing - focus on what makes sense for your situation.FAQsWhat is the difference between tax-inclusive and tax-exclusive shipping?Tax-inclusive covers all taxes upfront; tax-exclusive requires separate handling of customs and duties.Which shipping option is better for new Amazon sellers?Tax-inclusive is often better for new sellers to avoid paperwork and potential customs issues.Can I switch from tax-inclusive to tax-exclusive shipping later?Yes, many sellers start with tax-inclusive and switch to tax-exclusive as they gain experience.

As an Amazon seller, I’ve learned the hard way that packaging can make or break your FBA business. Let me share exactly how to select materials that protect your products, pass Amazon’s strict checks, and keep costs under control—based on seven years of trial-and-error experience. Partnering with a trusted china freight forwarder early in the process can also streamline your supply chain, ensuring materials meet both Amazon’s standards and international shipping regulations.Thermal Printers & LabelsEvery seasoned seller knows this truth: poor-quality labels lead to warehouse rejections . I recommend investing in a commercial-grade thermal printer like the Rollo Wireless. Pair it with 4x6 inch thermal labels that meet Amazon’s 300 dpi resolution requirement. For product labels, use either 2x1 inch or 3x1 inch sizes, and always opt for waterproof polyester labels—they survive humidity 3x longer than paper alternatives.Master Carton SpecificationsLast month, a client’s 60.5 cm carton triggered Amazon’s oversized penalty. Here’s the golden rule: never exceed 60 cm on any side for standard shipments . Use double-walled corrugated boxes with 32 ECT strength ratings. For U.S.-bound shipments, include a 2x2 inch “Made in China” label in permanent ink—not stickers. Pro tip: Source boxes with pre-printed FBA compliance marks to speed up receiving.FBA LabelingYour product labels need military-grade durability. I’ve tested 12 materials and found that synthetic polyester labels with permanent acrylic adhesive withstand:-20°C warehouse freezers48-hour salt spray tests (simulating ocean shipping)100+ rubs with isopropyl alcoholFor outer boxes, use 4x4 inch labels placed 5 cm from the top edge. Always leave 1.5 cm clearance around barcodes—Amazon’s scanners need this breathing room.Packaging TapeThrough infrared scans at Amazon fulfillment centers, I discovered that taped seams must cover 70-80% of box length . Use 2-inch clear polypropylene tape with 60+ pound tensile strength. Avoid colored tapes—they trigger unnecessary customs inspections. My go-to: 3M’s Box Sealing Tape 371+, which bonds in 30 seconds flat.Cushioning MaterialsBubble wrap thickness matters more than you think:3/16” for lightweight items (apparel, books)5/16” for moderate protection (electronics, ceramics)1/2” for heavy/fragile goods (machine parts, glass)For eco-conscious sellers, consider cornstarch-based packing peanuts that dissolve in water. They provide comparable protection to Styrofoam but decompose in 90 days.Fillers & Void ReductionAmazon’s dimensional weight pricing punishes empty space. Use automatic air pillow systems that fill voids within 2 seconds—I recommend the PadPox M1 for small operations. For manual packing, hexagonal paper fillers prevent shifting better than shredded material. Always maintain 5 cm of cushioning on all sides.SustainabilityUpgrade to FSC-certified boxes with 90% post-consumer waste content. My clients report 18% higher customer satisfaction scores when using plant-based inks for printing. For moisture-sensitive items, switch to seaweed-based barrier films—they block humidity as effectively as plastic but decompose in compost bins.Compliance TestingConduct three crucial tests before shipping:Drop Test : From 1.2 meters onto concrete (simulates belt drops)Vibration Test : 3 hours at 5-500 Hz frequency (mimics truck transport)Compression Test : 200 lbs force for 1 hour (stacking simulation)Invest in a $250 digital force gauge to measure cushioning effectiveness—it pays for itself by preventing just two damaged returns.Cost-Saving Strategies That Actually WorkNegotiate with suppliers using these proven tactics:Order 6-month supplies during Q1 (manufacturers offer 12-15% discounts)Combine orders with 3 other sellers to hit higher MOQ tiersSwitch to regional paper mills—local sourcing cuts freight costs by 40%FAQsCan I reuse Amazon’s packaging materials?Only if you completely remove all previous labels, tape, and markings. Residual glue traces cause 73% of reused box rejections.How often do packaging requirements change?Amazon updates guidelines quarterly. Subscribe to their Packaging News digest and set Google Alerts for “FBA rule changes.”What’s the biggest hidden packaging cost?Dimensional weight charges. Use slimmer boxes—reducing carton size by 20% typically saves 18-22% in shipping fees.Are custom-printed boxes worth the investment?Only for products over $50 retail price. Below that threshold, stick to stock boxes with insert cards.Final Checklist Before Shipping :✓ Verified box dimensions with digital calipers✓ Tested labels with alcohol wipe & freeze test✓ Confirmed cushioning meets ISTA 3A standards✓ Removed all non-Amazon barcodes/logo

Shipping oversized items to Amazon FBA isn’t as straightforward as just packing your goods and sending them off.Whether you’re handling your own shipments or working with a China freight forwarder, there are rules and regulations you absolutely need to follow to avoid costly mistakes.Imagine this: You ship a 120-pound couch without the right labels or packaging, and it gets rejected at the FBA warehouse.Or, even worse, you end up paying hefty fees for non-compliance. This isn’t just a hassle – it’s a drain on your profits.That’s why it’s crucial to know the ins and outs of oversized shipping before you even pack your boxes. Let’s dive into the essential tips for making sure your oversized items make it to Amazon’s FBA warehouse without any issues.Understand Amazon’s Size and Weight RulesAmazon loves rules, and oversized items have their own playbook. Mess this up, and your shipment could get rejected, cost more, or take forever to check in. Here’s what you need to know:Size LimitsStandard-sized boxes: Any side can’t exceed 64 centimeters.Oversized items: Must ship in individual boxes – no bundling multiple oversized products together.Packaging after assembly: If your item is already pushing size limits, make sure the packaging doesn’t tip it over Amazon’s maximum size requirements.Weight RegulationsItems over 100 lbs (45 kg): Add a “Mech Lift” label so everyone knows a machine is required.Items 50–100 lbs (22.5–45 kg): Use a “Team Lift” label to indicate team handling.Jewelry and watches: Keep the box weight under 40 lbs (18 kg). Yeah, they’re picky like that.Nail the Packaging – No Room for ErrorsPackaging isn’t just about looking professional – it’s about surviving the journey.Here’s How to Pack Like a Pro:Use six-sided hard boxes – no floppy cardboard that crumbles under pressure.Clear old labels before slapping on new ones. Trust me, mixed-up barcodes are a nightmare.Add Amazon-specific labels on every box – these are non-negotiable.For bulk shipments? Label both the outer big box and every inner box.Bonus Tip:Fill empty spaces with high-quality padding to prevent internal movement. Shipping is like bumper cars – your items will take a hit, but good padding keeps them intact.Pre-Label and Prep Like It’s Your Job (Because It Is)Amazon’s system relies on labels. Without proper prep, your inventory could disappear into the void.Individual item packaging: Use bubble wrap, foam, or whatever it takes to keep your products secure.Right-sized boxes: Avoid oversized boxes with too much empty space – they’re more prone to damage.Unique labels: Every item and box needs its own unique label to avoid mix-ups.If You’re Using Pallets, Do It RightPallets aren’t just for giant warehouses. They’re your best friend for heavy-duty shipping. But Amazon’s picky about this too:Pre-schedule your pallet delivery. Show up unannounced? That’s a quick way to get turned away.Make sure your pallets meet Amazon’s size and material standards.Label both pallets and individual boxes.Cost Control – Don’t Bleed MoneyShipping oversized items is already pricey, but you can still control your costs. Here’s how:Dimensional weight pricing: Carriers charge by size AND weight. Pack efficiently to avoid paying for wasted space.Use freight forwarders that specialize in FBA to save on international shipments.Try using Amazon’s partnered carrier programs for bulk discounts.Avoid Rookie MistakesDon’t learn the hard way. Here are the most common mistakes sellers make – and how to avoid them:Ignoring weight and size rules: Even 1 cm over the limit could trigger extra fees or rejection.Old labels: Forgetting to clear them leads to massive delays.Insecure packaging: Fragile items WILL get damaged if not properly packed.Always Follow Amazon’s Rules – No ShortcutsAmazon doesn’t mess around. If you cut corners, expect rejected inventory, hefty fees, or worse – your account suspended.Follow their rules for:Safety requirementsLabeling and prepSpecific product restrictionsLet’s Make This RealImagine this: You ship a 120 lb couch to Amazon without a “Mech Lift” label. It arrives damaged, gets flagged as unsafe, and you’re charged return fees. Ouch, right?Now imagine you followed the rules. Same couch arrives intact, Amazon stocks it seamlessly, and you start making money. The choice is obvious.FAQsCan I bundle multiple oversized items in one box?Nope. Amazon requires oversized items to ship individually.What’s the most cost-effective way to ship oversized items?Use freight forwarders or Amazon’s partnered carrier programs. These can save you money, especially for international shipments.What happens if my shipment doesn’t meet Amazon’s requirements?Your items could be rejected, returned, or even destroyed – and you’ll foot the bill.Final WordsShipping oversized items to Amazon FBA isn’t rocket science, but it does take some effort.Get the size and weight right. Nail the packaging. Follow Amazon’s rules like your business depends on it – because it does.Start small, test your process, and keep optimizing.Shipping smarter means happier customers, smoother operations, and more money in your pocket.And who doesn’t want that?