When starting this business you should be clear about everything related to Shipping, as it is one of the most expensive items. In the following Guide to send products from China to the US, you will get all the necessary and indispensable information so that you are clear throughout the process. To avoid mistakes and do not end up spending more on shipping than the same cost of the product.
Terms and operation used in shipping products:
You must know each one in detail since they are used in the negotiation stage with the manufacturer. By understanding them you will avoid making mistakes when buying the product.
Common Shipping Terms
You will find these words in English as it is the language that is used by your provider in China.
Supplier (Seller, Shipper, Exporter, Consignor, and Manufacturer): This is the person or manufacturer that makes your products in China. They can be called in any of the ways and you can see them throughout the shipping process.
Buyer (Receiver, Importer, and Consignee): It is the term used to identify you as an Amazon seller.
Carrier: It is the exclusive transport company that is responsible for moving your products from their place of origin to their destination. In the case of Shipping from China to US, the most used are DHL, FedEx, and UPS.
Cargo (Freight): It is how the product or goods that are transported are called, either by ship, plane or vehicle.
Customs Agent (Broker): It is the professional person who is responsible for preparing and presenting all the necessary documentation and tax to complete the importation of your products into customs.
Freight forwader: It is the intermediary company of transport services between the manufacturer and buyer who is responsible for shipping the products. It offers a more complete service that includes, insurance, storage, consolidation, and processing of customs permits.
On the Ground Agent (Sourcing Agent): It is the person that acts as a physical link of the buyer in China, is responsible for attending the company and looking for manufacturers, negotiating, inspecting and preparing products and shipments.
Main types of shipments:
The main 2 are air and by ship:
Airfreight: It is the most convenient option when you have a minimum quantity of products, although the delivery time is much faster from 5 to 7 days. Its cost is much higher than the Ocean Freight.
Ocean freight: When you are sending heavier products and larger quantities, this is the best alternative, since the cost will be much cheaper. The delivery time is 5 to 7 weeks.
You have 2 shipping options. The first is when you have the necessary amount of products to fill a container. The second is when you must share the container with another buyer.
Incoterms: These are the contractual terms imposed by the ICC international chamber of commerce that was created to define responsibilities between importers and exporters.
Some of the Incoterms are as follows:
- EXW (Ex Works)
- FOB (Free On Board)
- FCA (Free Carrier)
- FAS (Free Alongside Ship)
- CFR (Cost and Freight)
- CIF (Cost Insurance and Freight)