Amazon Logistics Revealed: Which is more frugal, SPD or LTL in 2024? Newbie Sellers Must Read Tips

Amazon Logistics Revealed: Which is more frugal, SPD or LTL in 2024? Newbie Sellers Must Read Tips

With these three tricks, I successfully reduced the Amazon logistics cost of 40%! First, accurately select SPD or LTL according to product characteristics; second, master the box limit and time requirement of each warehousing method; third, flexibly match the headway logistics and warehousing methods. Grasping cross-border logistics is one of the keys to the success of Amazon sellers, and cross-border logistics is divided into two major segments: the headway logistics segment and warehousing logistics segment. Today we will analyze "SPD and LTL", the two main options for sellers to replenish goods in the backend.

When we are ready to send the products to Amazon FBA warehouse, the seller's backend provides two ways to enter the warehouse: SPD (Small Parcel Delivery) and LTL (Less Than Truckload).SPD transportation is a box-based unit for small parcels to carry out individual distribution, especially suitable for lightweight and small size goods. The advantages of SPD transportation are high flexibility and fast delivery, especially for fast-moving and seasonal products. Moreover, when sellers are facing the risk of out-of-stock, SPD 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 bulk shipments from different sellers to be loaded on the same truck, and automatically converts to FTL when enough pallets are shipped. This method is very suitable for sellers who need to control freight expenses or have stable sales. For example, sea freight usually chooses LTL for warehousing, while air express uses SPD.

How to choose the most suitable warehousing method for you? The first thing to consider is the characteristics of the cargo and the logistics of the first leg of the journey. If the cargo is light or needs to be replenished urgently, SPD is the ideal choice; if the cargo is larger and has sufficient transportation time, LTL may be more economical. Secondly, it is also important to assess the cost of transportation. SPD is usually calculated in kilograms or volume weight, which may vary slightly depending on whether the shipment is courier or airfreight, while LTL is calculated by the volume or weight of the shipment, taking into account the loading rate. I have noticed that many new sellers tend to look only at the unit price and ignore the total cost, which is very dangerous.

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.

Regardless of which method you choose, you must comply with Amazon's regulations: the outer box containing multiple products must not exceed 63.5 centimeters on either side (with the exception of Japan); the outer box must not exceed 23 kilograms for the U.S.-European station, and 40 kilograms for the Japanese station; after the creation of the Shipment, the cross-border shipment should arrive within 75 days, and the domestic shipment should arrive within 45 days; in the case of the Multi-Destination Inbound Program, the other shipment must arrive within 30 days after the first shipment, or else it may be rejected for warehousing. In the multi-destination warehousing program, other shipments should arrive within 30 days after the first shipment, otherwise, the shipment may be refused to be warehoused.

Delivering goods to consumers is the core task 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 your account size and sales speed, you can flexibly utilize these two methods of warehousing to successfully sell your products to the global market!

Become a Green Circle LINE friend and enjoy VIP services and benefits:https://line.me/ti/p/g2Vc38nLnR

# Amazon warehousing strategy # cross-border e-commerce logistics #SPD warehousing #LTL warehousing # Newbie seller guide # logistics cost control # Amazon FBA # cross-border overseas branding