Understanding CBM: A Guide to Calculating Cargo Volume for Cross-Border Air and Sea Transportation

Efficient inventory replenishment is crucial for Amazon FBA (Fulfillment by Amazon) sellers to prevent stockouts, reduce storage costs, and optimize cash flow. This guide breaks down key strategies and processes tailored to different product lifecycle stages, ensuring you stay ahead in managing your FBA inventory.1. Replenishment Strategy for New ProductsNew products require careful planning to ensure adequate stock while minimizing overstock risks.Sales ForecastingUse metrics like review rate and average reviews to estimate future sales.Calculation formula:Reorder Quantity = (Lead Time + FBA Inbound Time + Inventory Receiving Time) × 30-Day Average Daily Sales – In-Transit Inventory – Current InventoryExampleDaily sales: 30 unitsLead time: 10 daysFBA inbound and receiving time: 25 daysIn-transit inventory: 300 unitsCurrent inventory: 450 unitsRequired Order = (10 + 25) × 30 – 300 – 450 = 300 units2. Replenishment Strategy for Growth StageDuring the growth stage, it is essential to maintain consistent inventory levels to support increasing sales while accounting for market fluctuations.Average Sales MonitoringMaintain at least one month's inventory on hand.Regularly review sales trends and adjust forecasts to avoid overestimating demand.3. Replenishment Strategy for Maturity StageIn the maturity stage, the focus shifts to balancing inventory levels to minimize storage costs while preventing stockouts.Cost Control with "Just-in-Time" ShippingImplement a "small but frequent" replenishment approach.Ship weekly using sea freight, aligning shipment quantities with one week’s sales volume.Aim to keep FBA inventory levels above 50 days of supply.4. Replenishment WorkflowInventory Data ManagementDownload Inventory and Sales Reports:Pull data from Amazon's backend, though this can be time-intensive with a large number of SKUs.Leverage ERP Systems (e.g., WIMOOR ERP):Automating calculations and streamlining processes saves time and improves accuracy.Key Features of ERP Systems:Inventory and Order Management: Seamlessly track and manage products, purchase orders, and storage.Smart Procurement: Automatically calculate replenishment needs for multiple stores and marketplaces.Shipping Optimization: Plan shipments to prevent stockouts and reduce warehousing fees.Real-Time Inventory Monitoring: Minimize excess storage costs while improving cash flow.5. Steps to Create an FBA ShipmentUpload Product Information: Choose the FBA fulfillment option in your Amazon seller account.Select Amazon Barcode: Convert to Amazon-standard barcodes for inventory.Provide Dangerous Goods Information: Fill in hazard details if applicable.Set Shipping Address and Packaging Details: Define your shipment destination and packing type.Create Shipment and Input Packing Information: Include quantities, weights, and dimensions.Print and Attach Labels: Ensure boxes are labeled correctly before shipping.6. Advantages of Using ERP ToolsERP systems enhance the replenishment process by automating and simplifying complex workflows.Benefits:Automation: Sync directly with Amazon’s backend, eliminating the need for frequent manual logins.Dynamic Calculations: Auto-generate replenishment suggestions based on real-time sales data.Open Source and Scalability: Systems like WIMOOR ERP offer open-source versions, enabling modular upgrades and commercial use.ConclusionBy following these steps and leveraging the strategies outlined above, Amazon sellers can streamline their FBA inventory replenishment process, minimize risks of stockouts, control storage costs, and optimize cash flow. Whether you’re managing new products, navigating growth stages, or optimizing mature SKUs, an effective inventory strategy ensures long-term success on the Amazon platform.FAQsHow can I calculate the right amount of inventory to reorder?Use this formula: (Lead Time + FBA Inbound Time + Receiving Time) × Daily Sales – In-Transit – Current Inventory.What is the best way to handle inventory during peak sales periods?Use an ERP system to monitor real-time sales and automate replenishment suggestions for seamless restocking.How do ERP tools help with FBA inventory management?ERP tools automate calculations, optimize shipments, reduce storage costs, and ensure inventory balance.

When shipping goods to Amazon FBA warehouses, choosing the right shipping method can significantly impact your overall logistics strategy. This decision affects costs, delivery times, and the success of your business.Sea Express and Sea Cart are two popular first-mile shipping options for FBA sellers. However, these two methods each have distinct characteristics that may suit different business needs.Both services help Amazon sellers transport goods to FBA warehouses, but understanding the differences between them can help you save time and reduce costs in the long run.This article compares Sea Express and Sea Cart, looking at transportation methods, cost structures, delivery speed, and the types of products best suited for each.By understanding these differences, sellers can make informed decisions based on their unique needs and business requirements.Transportation Method and FlexibilitySea Express:Sea Express combines both sea freight and air courier services to complete the delivery process.Goods are first shipped by sea to a destination port, and once the shipment reaches the port, the final leg of delivery is handled by an international air courier company.These courier companies then deliver the goods directly to the Amazon FBA warehouse.Process: The journey begins with sea freight. Once the goods arrive at the port, the last segment of the journey is handled by an air courier.Product Suitability: Ideal for smaller, lighter products such as electronics, clothing, and accessories.Flexibility: Sea Express is limited by the size and weight restrictions set by air courier services, making it suitable only for lightweight and small items.Sea Cart:Sea Cart follows a slightly different process. Like Sea Express, goods are first shipped by sea to a destination port.Once they arrive, however, the goods are transferred onto a truck for delivery directly to the Amazon FBA warehouse.Process: The goods travel via sea freight initially, but once they reach the port, they are delivered by truck.Product Suitability: This method works better for larger, bulkier, and heavier products, such as furniture, home appliances, and large electronics.Flexibility: Sea Cart has fewer restrictions regarding weight and size. This makes it more flexible for shipping larger items compared to air courier-based services.Cost Calculation MethodSea Express:The cost of Sea Express is generally calculated based on the weight of the shipment, usually in kilograms (KG).Since Sea Express is more suited to lightweight products, it is often a more affordable choice for small, heavy products.Cost Structure: Sea Express charges according to the weight of the goods. The price is calculated in kilograms.Additional Services: Sea Express often includes customs clearance and taxes paid services, simplifying international shipping and customs processes for the seller.Sea Cart:Sea Cart, on the other hand, calculates shipping costs based on volume rather than weight.Shipping costs are usually measured in Cubic Meters (CBM), which makes Sea Cart ideal for shipping bulkier items that may not be particularly heavy but take up more space.Cost Structure: Sea Cart pricing is based on volume, which is typically measured in Cubic Meters (CBM).Volume Optimization: Sea Cart is more economical for shipments with a higher volume but lower weight. Sellers can maximize cost-efficiency by optimizing container space.Delivery Speed and StabilitySea Express:Sea Express offers faster delivery times compared to Sea Cart.This is because Sea Express uses air courier services for the final leg of the journey, which helps speed up the overall delivery time, particularly for smaller shipments.Delivery Speed: Sea Express delivers within 3-7 days. The use of air courier services makes this method faster.Stability: Despite its faster delivery, Sea Express can experience delays, especially during peak periods or if there are complications at the ports. Factors such as increased demand, port congestion, or air traffic disruptions can lead to delays.Sea Cart:Sea Cart tends to have slower delivery times than Sea Express because it primarily relies on sea freight and truck transportation for delivery.However, Sea Cart provides greater stability due to the fewer variables involved in the shipping process.Delivery Speed: Sea Cart typically delivers within 5-10 days, depending on the distance from the port to the FBA warehouse.Stability: Sea Cart is less affected by air traffic or port congestion, which makes it a more reliable and stable option for deliveries, especially in busy seasons.Shipping RestrictionsSea Express:Sea Express is more limited by size and weight restrictions due to its reliance on air courier services.For example, individual packages typically cannot exceed 30 kg in weight, and the length of any side should not exceed 120 cm.This makes Sea Express unsuitable for larger or bulkier items that may not meet these restrictions.Weight Limit: Packages should not exceed 30 kg in weight.Size Limit: The maximum length of any side should be 120 cm.Product Suitability: Sea Express is ideal for smaller, lighter goods, but not for oversized or heavy shipments.Sea Cart:Sea Cart has fewer restrictions when it comes to size and weight.Since it relies on sea freight and truck transport, this method can accommodate larger and heavier products.Weight and Size Flexibility: Sea Cart is better suited for large, bulky items. There are minimal restrictions regarding weight and size.Product Suitability: If you're shipping oversized items, Sea Cart is the more suitable option due to its flexible nature.Applicable ScenariosSea Express:Sea Express is best suited for smaller and lighter items that need to be shipped quickly.This method is ideal for products that require fast restocking or for sellers who need quick turnover of inventory.Best For: Smaller, lightweight products.Use Case: Sea Express is ideal for fast-moving products like electronics, fashion accessories, or small home goods.Shipping Frequency: It works well for sellers who need to restock quickly or replenish their inventory rapidly.Sea Cart:Sea Cart is more appropriate for bulk shipments, larger goods, or for sellers looking to control shipping costs.For larger products or those with low urgency, Sea Cart is often the preferred method.Best For: Larger or bulkier items, or when cost control is the priority.Use Case: Ideal for shipping furniture, appliances, or large electronics.Shipping Frequency: Sea Cart is ideal for sellers shipping in bulk or those prioritizing low-cost logistics.Additional ConsiderationsSeasonal Delays:Both Sea Express and Sea Cart can face delays during peak shipping seasons like Chinese New Year, Black Friday, or Christmas.Shipping demand during these times tends to rise significantly, leading to possible disruptions.It's essential to plan ahead and expect additional time for processing and shipping during these periods.Sea Express: Susceptible to delays during peak seasons due to air traffic and congestion at international ports.Sea Cart: While it’s less affected by air traffic, sea freight can still face delays during busy periods, especially due to port congestion.Environmental Impact:Sea Cart is a more eco-friendly option compared to Sea Express.This is because air freight tends to consume more fuel and generate more carbon emissions compared to sea freight.For sellers looking to reduce their carbon footprint, Sea Cart is a better option.Sea Cart: More environmentally friendly due to the lower fuel consumption of sea freight.Sea Express: Uses air freight, which typically results in a higher carbon footprint.Optimizing Shipments:Effective packaging is crucial for both Sea Express and Sea Cart.With Sea Express, sellers need to consider packaging size and weight carefully to avoid additional fees.For Sea Cart, the focus should be on optimizing the use of available shipping container space, especially for large shipments.Sea Express: Be mindful of weight and size restrictions to avoid extra charges.Sea Cart: Maximize space utilization to make shipments more cost-effective.ConclusionChoosing between Sea Express and Sea Cart depends on the type of goods being shipped and the seller's priorities.Sea Express is a faster method, ideal for smaller, lightweight products that need quick delivery.Sea Cart, on the other hand, is better suited for bulkier, larger shipments, especially when cost control is a priority.By understanding the key differences in transportation methods, cost structures, delivery speeds, and product suitability, sellers can make more informed choices tailored to their needs.FAQsWhat is the main difference between Sea Express and Sea Cart for FBA shipping?Sea Express uses air courier for the final delivery, making it faster, while Sea Cart uses truck transport and is better for bulkier items.Which option is better for large items?Sea Cart is ideal for large, heavy, or bulky products due to fewer size and weight restrictions.How are shipping costs calculated for Sea Express and Sea Cart?Sea Express is based on weight, while Sea Cart is based on volume (CBM).

In the realm of international trade, understanding Incoterms is crucial for smooth transactions and effective logistics management. One of the widely used Incoterms is DAP (Delivered at Place). This term defines explicit responsibilities for both buyers and sellers, which impact various aspects of the supply chain, including costs, risks, and logistics.What Does DAP Mean?DAP stands for "Delivered at Place," a term introduced in 2010 to replace the outdated DDU (Delivered Duty Unpaid) Incoterm. Under DAP, the seller is responsible for delivering goods to a pre-agreed location, covering all transportation costs and bearing the risk until the goods arrive at the designated place, ready for unloading.Seller’s Responsibilities1. Transportation and Delivery: The seller manages the entire transportation process, from the origin to the buyer’s specified location. This includes arranging carriage and covering transportation expenses. 2. Export Formalities: The seller is responsible for handling all export-related formalities, such as obtaining necessary licenses, permits, and ensuring export clearance.3. Risk and Cost Coverage: The seller bears all risks and costs associated with transporting the goods until they reach the agreed destination. However, the seller is not responsible for unloading the goods upon arrival.Buyer’s Responsibilities1. Import Formalities and Costs: Upon arrival, the buyer assumes responsibility for import customs clearance, paying duties, taxes, and handling any necessary documentation for importing the goods into the destination country.2. Unloading: The buyer is responsible for unloading the goods at the destination point. Any additional costs related to unloading are borne by the buyer.3. Further Transportation: After delivery, the buyer must arrange and pay for any further transportation needed to move the goods from the unloading point to their final destination.Pricing ConsiderationsThe pricing under DAP agreements includes several components:1. Transportation Costs: Since the seller is responsible for delivering the goods to the agreed place, all transportation costs from the point of origin to the destination are covered by the seller.2. Export Duties and Taxes: Any duties, taxes, and fees associated with exporting the goods are factored into the seller’s costs, impacting the final price.3. Import Duties and Taxes: Although the buyer covers these costs, their potential impact on overall transaction expenses must be considered.Clicke Here Get Auto Shipping Quote: https://globalshippingauto.com/fcl-shipping-from-chinaAdvantages for the Buyer1. Reduced Risk: The seller assumes most of the transport-related risks until the goods arrive at the designated place, providing the buyer with a more secure transaction framework.2. Convenience: Buyers benefit from the seller handling most logistics, making the process more convenient and efficient.Potential Disadvantages1. Higher Costs: Since sellers cover extensive logistic costs, they might include these expenses in the product price, resulting in higher overall costs for the buyer.2. Delays and Unloading Issues: Potential delays in customs clearance or unloading can incur additional costs for the buyer.ConclusionUnderstanding DAP Incoterms is essential for anyone involved in international trade. It delineates the explicit responsibilities of both sellers and buyers, offering advantages like reduced risks and streamlined logistics but also necessitating careful consideration of potential delays and higher costs. Effective communication and clear contractual terms are key to leveraging DAP benefits and ensuring smooth transactions.By grasping DAP terms comprehensively, traders can optimize their supply chain, manage risks better, and facilitate international trade more efficiently.