Non-DDP FBA Ocean Shipping: Customs & Tax Guide

What is CBM?CBM, an abbreviation for cubic meter (m³), serves as the standard unit of measurement for calculating the volume of cargo in logistics, specifically in cross-border air and sea transportation. Understanding and accurately calculating CBM is essential for efficient shipment planning, proper utilization of transport vehicles and storage facilities, and cost management.Significance of CBM in TransportationCBM plays a crucial role in both air and sea transportation by determining the space a shipment occupies. This volumetric measure is universally used for calculating storage and freight charges globally, and is equally significant for air freight, sea freight, and even truck and van transportation. In air transportation, airlines calculate freight costs based on the larger value between the volumetric weight and the actual weight of the goods. This system ensures that bulky yet lightweight shipments are charged fairly compared to dense items. Sea freight pricing primarily focuses on shipment size rather than weight, as sea vessels are equipped to handle large volumes of cargo.Calculating CBMThe calculation of CBM follows a straightforward formula. For regular-shaped cargo, measure the length, width, and height of the item in meters and multiply these dimensions:\[ \text{Length (m)} \times \text{Width (m)} \times \text{Height (m)} = \text{CBM (m³)} \]For multiple identical items, this formula can be multiplied by the total number of items. If the shipment includes items of various sizes, repeat the calculation for each item and sum the resulting volumes.Shipments with irregular shapes require a different approach. Measure the longest length, width, and height to account for the entire space occupied by the item. Use the following adjusted formula for irregular shapes:\[ \text{Longest Length (m)} \times \text{Longest Width (m)} \times \text{Longest Height (m)} = \text{CBM (m³)} \]For cylindrical items, calculate the CBM using the radius and height with the formula:\[ \pi \times \text{Height (m)} \times (\text{Radius (m)})^2 \]where \(\pi \approx 3.14\).Impact on Freight ChargesCarriers use CBM to determine the chargeable weight of a shipment. Different modes of transport convert 1 CBM into varying weight values:Air freight: 1 CBM = 167 kgRoad freight: 1 CBM = 333 kgSea freight: 1 CBM = 1,000 kgDimensional Weight (DIM Weight)**: This metric is essential for lightweight shipments that occupy significant space. For example, a pallet of cotton versus a pallet of metal would be billed differently despite their identical volume due to their weight difference. Carriers determine the chargeable weight based on the greater value between the DIM weight and the gross weight.CBM in Container ShippingChoosing the right container size based on CBM calculations optimizes freight costs and handling efficiency. The average CBM capacities for commonly used containers are:20' container: 26-28 CBM (maximum 33 CBM)40' container: 56-58 CBM (maximum 66 CBM)40' high cube: 60-68 CBM (maximum 72 CBM)45' high cube: 72-78 CBM (maximum 86 CBM)ConclusionUnderstanding CBM and how to calculate it is integral to the logistics and transportation industries. By making informed decisions based on CBM measurements, logistics professionals can optimize cargo loading, manage shipping costs, and ensure compliance with global standards. The proper calculation and application of CBM ensure efficient operation of cross-border air and sea transportation.

Operating a business that depends on international shipping is a challenge and costly. But here's the good news: utilizing US international warehouse transit can dramatically reduce the cost of logistics. If you're an online retailer or managing inventory across different sales channels, here's how a good warehouse can cut costs across all levels.Lowering Peak Season Shipping CostsThe holidays can be a nightmare for logistical experts. Shipping costs rise when demand increases, and traditional methods usually fail to meet the needs. If you ship your goods to a US overseas warehouse before the peak season, you will save yourself the cost of shipping charges.Ship in the off-season to keep from high shipping costsDistribute shipments over time to lessen the effect of sudden demand surgesBenefit from lower freight rates when shipping costs for global shipping are lowerReducing Storage FeesSuppose you're just beginning to learn about the game or do not have sufficient storage space in your home. In that case, warehouses in overseas transit services let you store goods in huge quantities without worrying about the cost of storage over the long term.Keep your storage costs down by transferring goods only when requiredMake use of the free storage times that some warehouses provideAvoid the risk of accumulating overstocked inventory in your warehouse at homeOptimizing Multi-Platform OperationsFor businesses that sell on multiple platforms, such as Amazon, eBay, and others, US overseas warehouses are the ideal solution to reduce the cost of storage and shipping.Effectively distribute products across different platformsSave money on warehouse charges by consolidating inventory into one locationImprove delivery times for customers from multiple marketplacesReducing Stockouts and Missed SalesNothing is more frustrating than running out of stocks. Warehouses in overseas locations allow you to efficiently replenish your stock without the usual delays associated with international shipping. You'll be stocked and keep your sales going.Beware of missed sales opportunities that are due to out-of-stock itemsMore rapid restocking results in more sales during periods of high demandStop listings from being removed from visibility or being penalized for not being in stockSimplifying Returns and ExchangesReturns can become a major logistical headache, especially when dealing with international shipments. The presence of a US warehouse for the management of returns makes the process easier, reducing shipping costs and freeing you from stress.Handle returns locally instead of paying international return feesRefunds and exchanges are processed faster to improve customer satisfactionSave money on international return shipping costs by handling your return directly through the USReducing Risks and Improving EfficiencyWhen you ship products internationally, there's always a chance of risk. However, having a US international warehouse may help minimize the risk of product returns, repackaging, or even non-compliance issues.Make use of relabeling and repackaging services to get your products back on track fastReduce the possibility of damage to your product or theft in shippingReduce shipping delays and costs caused by regulatory or customs issuesAccessing Discounted Shipping RatesUS overseas warehouses typically collaborate with local carriers and often receive higher rates than independent businesses. This means they can access lower shipping rates, which can further reduce the overall cost of logistics.Get the benefit of local warehouse agreements with major carriers like UPS, FedEx, and USPSBenefit from bulk shipping rates to save money on delivery optionsTransfer the savings to your customers, or keep the differenceFAQsHow do US overseas warehouses aid me in reducing costs during the busy season of the holidays?By storing your items in a US overseas warehouse prior to peak season, you will save on high shipping costs. Additionally, you can divide your deliveries to ensure that costs are reasonable and on time.What are the typical costs for using the US overseas warehouse?Fees vary by the level of service and warehouse; however, you'll generally be charged storage costs, which are determined by the size and amount of items stored. Additional fees could include shipping, order processing, and return handling.How can I manage my returns with a US overseas warehouse?Yes. The US overseas warehouse could assist you in managing local returns, reducing the shipping charges for international returns, and expediting refunds or exchanges.What is the procedure if my product requires packaging or labeling repackaging?Many US overseas warehouses offer repackaging or relabeling services to ensure that your products conform to local requirements. This reduces the possibility of fines or shipping delays.How can US overseas warehouses help me save money on shipping costs?Warehouses usually have agreements with local transport companies, which give you discounts on shipping costs. This can dramatically reduce the cost of shipping compared to handling your shipments independently.ConclusionIf you're looking to cut costs and increase the efficiency of your logistics, using the US shipping service to overseas warehouses is a great alternative. From avoiding peak-season shipping surges to reducing costs for storage and improving return handling, these options offer many advantages. Keep your logistics easy, quick, and cost-effective by utilizing the full benefit of US overseas warehouse services today.

Amazon FBA (Fulfillment by Amazon) offers an efficient way for sellers to store and ship products, but one key aspect of managing your products involves understanding the distinction between Standard-size and Oversize items. These classifications directly impact your storage fees, fulfillment charges, and overall operational costs. Misclassifying your products can result in higher expenses, so it's crucial to know the differences.For international sellers, especially those shipping products from China to the USA, working with a reliable freight forwarder China to USA Amazon FBA is essential. They help ensure that your products are delivered efficiently and classified correctly once they arrive at Amazon’s fulfillment centers.In this guide, we'll explore how to distinguish between these categories, giving you the tools to avoid unnecessary fees and manage your business more effectively.Standard-Size Product RequirementsStandard-size products are generally smaller and lighter, and they come with lower fulfillment fees. The rules for what qualifies as a standard-size product may seem straightforward, but precision is essential to ensure you're not inadvertently overclassifying your products.Key Criteria for Standard-Size Products:Standard-size products are limited to 20 pounds or less in weight.For the dimensions, the longest side (typically height) must not exceed 18 inches.The total size, calculated by adding length + girth, must remain under 130 inches.Standard-size products are those typically found in common categories like books, clothing, toys, and small electronics. For instance, a pair of shoes or a small backpack would usually qualify as standard-size.These size limitations ensure that standard-size products are easy to handle, package, and store within Amazon’s fulfillment centers. Because of their small size and lightweight nature, standard-size items benefit from cheaper storage and shipping fees.Additional Guidelines for Measuring Standard-Size Products:When it comes to measuring your product, make sure you account for the packaging dimensions as well. The girth, which is the perimeter of the product’s packaging, plays a significant role in determining whether your item qualifies as standard-size.The formula for calculating the girth is as follows:Girth = (2 x Width) + (2 x Height).This method ensures that irregularly shaped items are measured properly for classification.Oversize Product CriteriaOversize products are those that exceed the limits for standard-size products. These are typically larger, heavier items that require additional handling, packaging, and storage space. Because of this, they often incur higher fees.Key Criteria for Oversize Products:If the item weighs over 20 pounds, it will be classified as oversize.If any side of the product exceeds 18 inches, or if the total length + girth exceeds 130 inches, the product is considered oversize.Oversize products include a range of items such as large furniture, bulky electronics, and home appliances.Oversize products fall into different categories, with each category having specific weight and size requirements.Oversize Categories:Small Oversize: Products that are heavy but compact (e.g., guitars, foldable treadmills, small outdoor gear like kayaks). These items weigh up to 70 pounds.Standard Oversize: Products that weigh between 70 pounds and 150 pounds, such as large home appliances (e.g., microwave ovens) and bulky furniture (e.g., office chairs, bookshelves).Large Oversize: Products that weigh more than 150 pounds or are over 108 inches in total size. Examples include large recreational equipment (e.g., riding lawn mowers, large couches) and industrial machinery.Oversize products incur higher storage and fulfillment fees due to their size and weight. They also require additional packaging and handling, which is why these fees are generally much higher than for standard-size products.How to Accurately Determine the Product CategoryAccurate classification of your product is crucial for ensuring that you don't face unnecessary fees or delays. It’s essential to measure and weigh your product carefully to ensure it falls within the correct category. Here's a breakdown of the steps you need to follow to make sure your product is classified correctly:Step 1: Measure the ProductStart by measuring the longest side, which is typically the height. Then, measure the width and height of the product. It’s essential to include the product’s packaging in your measurements.For irregularly shaped items, you will need to calculate the girth using the formula:Girth = (2 x Width) + (2 x Height). Once you have the girth, add it to the length to get the total dimensional size.Step 2: Calculate the WeightWeigh the product along with its packaging. It’s important to note that Amazon uses both actual weight and dimensional weight (calculated based on size) to determine shipping costs and product classification. If the product is large but lightweight, its dimensional weight may push it into the oversize category, even if the actual weight is low.Step 3: Use Amazon’s ToolsAmazon Seller Central provides tools for calculating the correct classification. When you enter your product dimensions and weight into the system, it will automatically categorize the item as either standard-size or oversize based on the inputs.Additionally, you can use third-party FBA Size Tier Calculators that help you estimate the size tier of your product before listing it.Step 4: Watch for Regional DifferencesDifferent Amazon marketplaces (e.g., US, UK, Japan) may have slightly different classification rules. For example, the weight limits and dimensional restrictions for oversize items may vary between regions, so always check the requirements for the marketplace you are selling in.Practical Tips for Avoiding Extra FeesManaging the classification of your products is key to avoiding costly mistakes and unnecessary fees. Here are some practical tips to help you navigate this process effectively:Accurate MeasurementAlways measure both the product and packaging accurately to ensure that your items are correctly classified. For products that are on the border between standard-size and oversize, even a small difference in dimensions or weight can lead to a change in classification and result in higher fees.Use Dimensional WeightIf your item is large but lightweight, always consider dimensional weight when determining your product’s size classification. This is particularly important for bulky but lightweight items, such as large cushions or inflatable furniture.Reevaluate Products RegularlyAs you change the packaging or make modifications to your product, the classification may also change. It's essential to regularly check your listings to ensure that they are up-to-date and still categorized correctly. For example, switching to a more compact packaging design could potentially reduce your fees if it brings your product back into the standard-size category.The Impact of Oversize FeesOversize products come with significantly higher storage and fulfillment fees, which can eat into your profits. The reason for these increased fees is the extra handling and storage space required for larger items.Storage FeesOversize products are stored in Amazon’s fulfillment centers, and Amazon charges different storage fees based on the time of year. For example, long-term storage fees are higher during peak seasons, such as the holiday period. It’s important to plan your inventory carefully to avoid high long-term storage costs.Fulfillment FeesAmazon also charges higher fulfillment fees for oversize items, including costs for picking, packing, and shipping. For larger items, the shipping costs are significantly higher than for standard-size products. Moreover, these products may require additional packaging and handling, which contributes to the increased costs.To manage these costs:Consider optimizing packaging to reduce product size where possible.Use inventory management strategies to avoid overstocking, which can trigger long-term storage fees.ConclusionClassifying your products correctly into standard-size or oversize categories is crucial to running a successful Amazon FBA business. By understanding Amazon's size and weight requirements, accurately measuring your products, and using the available tools, you can ensure that your items are categorized correctly and avoid unnecessary fees. Regularly check your listings to ensure accuracy and manage your inventory efficiently to maximize profitability.By following these steps, you'll be better equipped to navigate Amazon’s complex fulfillment system and optimize your business operations.FAQsHow do I know if my product is Standard or Oversize?Measure your product's weight, length, and girth. If it exceeds 20 lbs or 18 inches in any dimension, it's Oversize.What happens if I misclassify my product?Misclassifying can lead to higher storage and fulfillment fees, impacting your profits.Can a freight forwarder help with FBA classification?Yes, a freight forwarder can help ensure your products are shipped correctly and classified based on size and weight.