80%'s Amazon seller chose the wrong logistics method! 2024 SPD vs LTL full comparison analysis!
80% People who choose the Amazon Logistics inbound method get the first step wrong! You know why? Because they did not make the best choice according to their own product characteristics and sales situation. Grasp the cross-border logistics is one of the key factors in the success of Amazon sellers, and cross-border logistics is divided into two major segments: the first leg of the logistics section and the logistics section into the warehouse. Today, we're going to analyze "SPD and LTL", the two main options for sellers' back-end inbound replenishment, to help you make the smartest logistics decisions in 2024!
When preparing to send products to the Amazon FBA warehouse, the seller's back office provides two options for warehousing: SPD (Small Parcel Delivery) and LTL (Less Than Truckload.) SPD transportation is delivered in boxes, which is especially suitable for lightweight and small-sized goods. The biggest advantage of SPD transportation is its high flexibility and fast delivery speed, which is especially suitable for fast-selling and seasonal products. For example, if your product is facing the risk of out-of-stock due to a sudden surge in sales, SPD is the remedy for your emergency!
LTL transportation is completely different, it starts with a CBM/pallet count, which is suitable for larger and heavier shipments, or when you need to replenish a large amount of goods. It allows different seller's bulk cargo to be loaded on the same truck, and it can be automatically converted to FTL when there is enough cargo to be transported. The biggest problem is that many sellers don't know that LTL is usually chosen for sea freight, while SPD is used for air express, which is very important for sellers who need to control freight or have stable sales.
How to choose the most suitable warehousing method for you? First of all, consider the characteristics of your cargo and the logistics of the first leg of the journey. If your shipment is light or needs to be replenished urgently, SPD is the right choice. If you have a large shipment and have plenty of time, LTL may be more economical. Secondly, it is also important to evaluate the transportation cost. SPD is usually calculated in kilograms or volume weight, which varies according to express or air freight, while LTL is calculated by volume or weight of the cargo, taking into account the loading rate.
When using SPD, there is a key detail that you will never think of: SPD inbound in the backend will affect the total number of boxes that can be shipped depending on the carrier you choose! Small parcel couriers that choose cooperative carriers are limited to 200 boxes, while non-cooperative carriers are limited to 500 boxes. This difference is critical for sellers who are replenishing large quantities! For LTL, you need to place your shipment on the pallet correctly and make sure to use a compliant logistics provider.
Regardless of which method you choose, you must comply with Amazon's specifications: the outer box must not exceed 63.5 centimeters on either side (with the exception of the Japanese station); the outer box must not exceed 23 kilograms for the U.S. and European stations, and 40 kilograms for the Japanese station; cross-border shipments must be delivered within 75 days, and domestic shipments within 45 days; in the case of multi-destination inbound programs, other shipments must be delivered within 30 days of the first one, or they may be refused to be in the warehouse.
Delivering goods to consumers is the core mission of cross-border e-commerce. For the same product, you can choose SPD to replenish the goods in time, or LTL to control the cost, both are wise choices. Depending on the size of your account and the speed of your sales, you can flexibly utilize these two methods of warehousing, so that your products can successfully conquer the global market!
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# Cross-border e-commerce logistics # Amazon FBA warehousing #SPD Express #LTL Transportation # Cross-border seller tips # Logistics cost optimization # Amazon logistics solutions
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