Can You Believe It? Choosing the right Amazon logistics method can save you 30% cost! 2024 SPD vs LTL Full Analysis

Can You Believe It? Choosing the right Amazon logistics method can save you 30% cost! 2024 SPD vs LTL Full Analysis

Can you believe it? Choosing the right Amazon logistics inbound method can save you up to 30% in logistics costs in 2024! Cross-border logistics is one of the keys to success for 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. The "SPD and LTL" mentioned in this article are the main options for sellers to replenish goods in the backend, targeting the inbound logistics section. Let's learn more about the advantages and disadvantages of these two methods to help you make the most informed choice!

When we are ready to publish and inventory, to send products to Amazon FBA warehouse, in the seller's backend there will be two kinds of warehousing options: SPD (Small Parcel Delivery) and LTL (Less Than Truckload).SPD transportation is a unit of the box, for small parcels for individual distribution, especially suitable for lightweight, small size of the goods. The advantages of SPD transportation are high flexibility and fast delivery, especially for fast-moving and seasonal products. What's more, when sellers are facing the risk of out-of-stock, express delivery is the best emergency solution.

LTL transportation, on the other hand, starts with CBM/pallet count, which is suitable for larger and heavier cargoes or scenes where sellers need to replenish a large amount of cargoes. It allows different seller's bulk cargo to be loaded in the same truck, and it can also be automatically converted to FTL transportation when enough pallets of cargo are delivered. The biggest problem is that many new sellers don't know that LTL is usually chosen for sea transportation, while SPD is mostly used for air express. This way is very suitable for sellers who need to control the freight expense or have stable sales.

How to choose the most suitable warehousing method for you? First of all, consider the characteristics of the cargo and the logistics of the first trip. If the cargo is light or needs to be replenished urgently, SPD is the right choice; if the cargo is bigger and has enough transportation 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 may vary slightly depending on whether the shipment is express or air freight, while LTL is calculated by the volume or weight of the shipment, taking into account the loading rate.

When using SPD, please note that the back-end use of SPD inbound will affect the total number of boxes that can be sent according to the selected carrier: small parcels express with cooperative carriers is limited to 200 boxes, non-cooperative carriers are limited to 500 boxes. This difference is very important for sellers with large replenishment volume! As for LTL, it is usually necessary to place the goods on pallets, please be sure to confirm the palletizing details with the logistics provider and make sure to use a compliant logistics provider.

In addition, there are some comprehensive notes you must know: the outer box containing multiple products shall not exceed 63.5cm on either side (except for the Japanese station); the outer box shall not exceed 23kg for the U.S.-European station, and 40kg for the Japanese station; after the creation of the Shipment, the cross-border shipment shall be delivered within 75 days, while the domestic shipment shall be delivered within 45 days; in the multi-destination warehousing program, the other shipment shall be delivered within 30 days after the first shipment, otherwise it may be refused to be warehoused. In a multi-destination warehousing program, other shipments must arrive within 30 days of the first shipment or they may be rejected from warehousing. It's unbelievable! Many sellers have had their shipments rejected due to ignorance of these regulations, resulting in serious losses.

Delivering goods to consumers is the most important part of cross-border e-commerce. For the same product, SPD is the right choice for timely replenishment, while LTL is the right choice for cost control. 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 be successfully sold to the global market!

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