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Shipping can feel like a wall of confusing terms at first. In this chapter, you will turn that confusion into a simple decision system you can repeat for every order.
You will learn how trade terms (Incoterms) split responsibilities, how to choose air or sea shipping, when to use a freight forwarder, and how to plan for bonds, duties, tariffs, and customs delays. You will also build a cost and timeline plan using SellerSprite Seller Tools to make decisions with confidence.
Key Takeaways
Table of Contents
When you understand shipping terms, you protect your cash flow, avoid surprises, and scale faster with confidence.
Incoterms are trade terms that define the division of responsibility in shipping. When a supplier quotes a price, the Incoterm specifies what is included and what is not.
Quick rule: The more responsibility you take, the more you must coordinate. The less responsibility you take, the more you must verify pricing.
With EXW, your supplier quotes only the product cost at the factory. Shipping the product from the factory to Amazon is your responsibility. This can be clean and cost-effective if you have reliable shipping partners and want full control.
With FOB, the supplier covers the cost and coordinates the delivery of your goods to the nearest port. From that point forward, you manage the shipment to Amazon, including import processes and final delivery.
DDU and DAP are convenient, but duties and import fees are not included, which can lead to customs delays and surprise invoices.
Important for Amazon deliveries: Avoid terms that charge the receiver a delivery fee. Amazon warehouses will not accept cartons that require payment on receipt.
DDP delivers with duties paid. You pay an all-inclusive quote, so your shipment arrives without last-minute customs payments. While not always the cheapest, it is often the lowest stress for beginners.
After you choose trade terms, you choose the shipping mode. Think of it as a balance between speed, cost, and inventory risk. Your best choice depends on how fast you need stock to arrive and how much cash you can tie up.
Split orders into two: send a small air batch to start selling quickly, and the rest by sea to lower total costs and avoid storage fees.
SellerSprite workflow tip: Use SellerSprite's Sales Estimator to estimate early demand, set your air batch to cover initial sales, and let your sea batch follow, creating a predictable pipeline for shipments.
Freight forwarders coordinate shipping from your supplier to the final destination. They can manage packing coordination, transportation booking, customs documentation, handling of import fees, and delivery to Amazon fulfillment centers.
If you hire your own shipping partner to manage end-to-end delivery (often DDP), then keep your supplier product quote as EXW so responsibilities are clear. If your supplier's quote already includes port delivery (e.g., FOB), confirm you are not paying for that step twice.
Import costs can look intimidating, but they become manageable when you treat them as a predictable checklist. The goal is to forecast these costs before you place a large order.
A bond is a requirement for importing into certain countries, including the United States. It is essentially the permission structure for importing goods. Bonds can be annual or per shipment, depending on your situation.
Duties depend on your product. Ask your supplier for the HS code range they believe best matches your product, then validate it with a customs professional to ensure your estimate is realistic.
Tariffs are an extra tax layer that can change over time. This is why you should build a buffer into your landed cost model and avoid strategies that only work when taxes are unusually low.
Some products are more likely to be inspected at customs, such as items with batteries, flammable components, ingestibles, or other sensitive materials. Inspections can be quick (e.g., scanning) or slower (manual inspection), which can introduce significant delays.
Beginner safety rule: If your product is likely to trigger extra customs scrutiny, build a bigger time buffer and avoid running too close to stockout.
When you ship to countries outside the United States, requirements can vary based on your business location, registration status, and product category. Many rules are similar, but the details can vary.
Q: What does EXW mean in a supplier quote?
A: EXW means the quote covers production only. Shipping from the factory to Amazon, plus customs and delivery, are handled by you or your shipper.
Q: Is FOB better than EXW?
A: Not always. FOB can be easier because the supplier handles delivery to the port. EXW can be cleaner if your shipper picks up from the factory and manages everything end to end.
Q: Why should I avoid DAP with Amazon warehouse delivery?
A: If duties are collected on delivery, Amazon may refuse the shipment. You want a setup where duties are paid before delivery or fully managed by the shipper.
Q: What is the safest option for beginners?
A: Many beginners prefer DDP because duties and delivery are bundled and managed, which reduces customs interruptions and surprise invoices.
Q: Should I ship my first order by air or sea?
A: For many launches, air is safer because it reduces the time to first sales and feedback. Once demand is stable, sea often becomes the cost efficient choice.
Q: How do I estimate duties and tariffs?
A: Start by getting the product classification code from your supplier, then estimate duties as a percentage of declared value. Add expected tariffs, fees, and a buffer for inspections.
Your next win is action. Pick one shipment plan for your next order, write down the term you will use, and confirm the responsibilities in writing. If you get stuck, ask inside the SellerSprite community. You will learn faster when you can compare notes with other sellers.
Join the SellerSprite community on the Facebook Group to share your sourcing journey, ask questions, and get support from fellow Amazon sellers.
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Ready for the next step? Open the SellerSprite Academy course directory to continue building your Amazon FBA skills chapter by chapter.
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The SellerSprite Team is composed of experienced Amazon sellers, ecommerce operators, and data analysts. We build practical training and Seller Tools that help you move faster, reduce mistakes, and scale with clarity.
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