Amazon FBA : How To Handle Broken Products From Your Supplier

Getting broken products from your supplier is one of the most common issues that happen to Amazon FBA beginners. This issue relies heavily on one factor. The shipping model.
Choosing the right shipping model is one of the most challenging tasks for eCommerce sellers. It involves planning and studying fees, taxes, policies, and warranties. 

In this article, the Nine University team covers how to create an efficient shipping strategy to prevent and fix common shipping mistakes when running a business at Amazon Seller Central.

Prevent Getting Damaged Goods From Amazon FBA Suppliers

Testing before selling
Unfortunately, eCommerce beginners can face expensive mistakes. If they don’t test their products before selling them.
For example, let’s say you buy 500 items and ship them directly from your manufacturer to an Amazon FBA. When doing this, the sellers are unaware of the quality of their product. The quality of the packaging, and whether it was somewhat damaged during shipping. 

Unfortunately, if the products are damaged, sellers can’t rely on Amazon Support. The responsibility is completely on themselves and their manufacturer.
To test a product before selling it, we recommend the following tips:
1. Buy a few samples from your manufacturer.
2. Have the samples to be shipped directly to your home address.
3. Buy a couple of samples of Amazon’s best-selling products that are similar to yours. As well as compare these products with your samples. And determine if there are any outstanding differences between weight. As well as structure, materials, packaging, etc.

What is a customs broker? Do I need one?

Custom brokers help businesses with the legal aspects of international shipping. They can guide you through which shipping terms are more convenient for you. Also, brokers can help you file a complaint. For example, if there is an issue with the shipment .  Such as damaged goods.
Because shipping is a complex process that can easily result in costly mistakes. It is very convenient to hire a broker.

Understanding the Incoterms: Who assumes responsibility for damaged goods

Who assumes responsibility for damaged products depends on the International Commercial Terms (Incoterms). Which is established between the buyer and the supplier.
Some of the most common International Commercial Terms are: EXW, FOB, DDU, and DDP. 

EXW (Ex Works)
The terms included consist of:
1. At the supplier's warehouse products are available for pickup.
2. The supplier is responsible for the Bill of Landing or Airway bill.
3. The buyer assumes full responsibility for the rest of the shipping process.  Including potential product damages  and, costs.

FOB (Free On Board)
1. FOB is only available for ocean freight. The terms included are:
2. The supplier leaves the products ready for delivery at the port of origin.
3. The supplier provides all the required documentation to sail out of the origin port.
4. Documentation for the shipment is the buyer's responsibility. As well as to be received in the designated location.
Regarding potential damages, the seller is responsible until the goods arrive at the designated location. Risks involved are the buyer's responsibility as well.

DDU (Delivered Duty Unpaid)
1. A price is agreed  between the buyer and the seller . This will cover the production and transportation of goods to a designated location.
2. The seller is responsible for the goods until they arrive at the designated destination. Such as your house or warehouse.
3. The buyer is responsible to pay. As well as arrange the documentation required to import the items in his country.

DDP (Delivered Duty Paid)
The supplier is responsible for all the shipment process. All the fees and responsibilities are on your supplier.

At Nine University, we aim to provide guidance to new eCommerce sellers and to help them have a successful business. Reach out to us!

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Disclaimer: We do not guarantee that you will achieve results or earn any money using the information we provide. Like any business venture, hard work and effort are required. The successes shown are not typical, and are self reported. You should not expect to achieve similar results. In fact, most clients make little to no money. Use caution and always consult your accountant, lawyer or professional advisor before making any decision concerning your business, investment or finances.