Inbound Transportation Fee

#1

Hi Everyone

I have just sent my first 3 parcels into Amazon :grinning:, Using UPS and I’ve been charged £8.79 for (Inbound transportation charge) The first 2 parcels were very small literally 2tubes of toothpaste in 1 box and 1tube of toothpaste in the 2nd box, both weighed less than 1kg per box, The 3rd box was (27x 38x 27cm) weighing 4kg, When i made the arraignments i saw information saying that courier service was free just wondering if this was the case? If not is the pricing correct as it seems very high.

Thanks in advance for any advise or help.

#2

There is/was an offer for new sellers for the first £100? ish of transportation of goods into Amazon.
But I’m not sure if it’s still active any longer and you would have needed to sign up to it.

In any case, you need to pack better than you are doing. 1kg boxes are overpriced and likely to kill any profit you may make.
I think the sweet spot is about 15kg, though I may be wrong.

#3

Hi Neil

Thanks for you reply, unfortunately i didn’t see any mention of the first £100 of transportation fees being free
Thanks for the advice regarding the weight per box,
I do remember though when i was making the collection order i was told to pack the items in 3 separate boxes even though they looked like they was addressed to the same distribution centre (Coventry) i think it was, which i did think was odd, Was this something i might of done wrong or have you herd of that happening before?
Thanks

#4

Two single tubes ?!

The offer is £80 of promotional credits towards transportation fees
Boxes under 1kg are approx £2.75 and as Neil says , 15kg are the best priced at roughly £3.70 ish - don’t forget VAT

You’re not buying these single packs of toothpaste from shops are you ?

When you were quoted that price for the items did you cancel the shipment knowing you will make a loss at those prices ?

#5

Unless they are split by Amazon to go to different centres, then you can choose how to pack the items yourself. It’s actually part of the shipment process, where you tell them how many you have in a box.
I have suspicion though, that you have chosen case packed on individual lines, which has resulted in a box for each item.

To be honest, you could probably have got the whole shipment into one box, which would have made a significant difference in the cost.

#6

@The_Little_Shop

Ok thanks does this offer apply automatically? Appreciate the advise on the weight of boxes/prices that’s definitely going to be of help for future shipments, And no fortunately i didn’t purchase from shops, Tbh I just wanted to get my first shipment away so i could get familiar with the process.

#7

https://sellercentral.amazon.co.uk/gp/help/GXMJ38VA95GUN5XU

For new sellers who use Fulfilment by Amazon (FBA), benefits include the following:

How do I redeem my inventory shipping credits?

If you send shipments to fulfilment centres using the Amazon Partnered Carrier programme, you’ll receive £80 in credits to waive inventory shipping fee. If you send shipments to fulfilment centres using Amazon Global Logistics, you will receive £160 in credits to waive fulfilment fees. Both of these credits will be applied to future fees after sending in the first shipment and will expire after one year if unused.

#8

@NEil

Ok thanks, ill definitely keep an eye out for this on my next shipment.

Much appreciated.

#9

Go through the seller university pages on creating shipments

#10

Before you send further shipments are you registered on here as a sole trader or a ltd ?

#11

I’ve setup my account as an Individual seller, But i am going to be upgrading my account to pro, and ill be ltd

#12

Did you list the stock as new ?

#13

Ok, there are two distinctly different things you are talking about there.
First is the type of account you have, Individual or professional.
The differences between these are to do with costs etc.

Then there is the difference between an individual and a business seller.
If you are setup as an individual, then you will find your account under review fairly quickly, if you are selling things as new.
As you are selling to make a profit, then you are a business.
So you need to change your legal entity to a business at the earliest opportunity.

There is also no need to go Ltd either, unless there are specific reasons for doing so.
It is generally far more expensive, than being a sole trader, until you are making a profit of about £50k per year.
I strongly advise that you speak to an accountant about this, before doing anything.

Take a look at the below.

https://sellercentral.amazon.co.uk/forums/t/quick-tip-for-new-sellers-selling-plans-and-business-types/576722/2

#14

Ok thanks for the information and the thread you have attached has more info/guidance than the whole registration process seems to offer!
So my plan with Amazon is to buy items from wholesalers and stores and then to resell on Amazon, I do not believe id be making a profit of 50k per year
I do eventually hope to be listing more than 35 items per month
I have an accountant which i will contact first thing on Monday to go through my plans
but from what I’ve said would you suggest i
1 change my account from individual to professional?
2 change from a individual seller to business seller?
3 Be a sole trader and not go ltd?
I appreciate your advice given its no doubt going to save me a lot of problems ahead
Like you’ve advised i will not do anything until speaking with my accountant
Thank you.

#15

I would guess that your better off as a sole trader, but make that decision with your accountant.
He/she will know your full financial affairs and can direct you properly.

For the account type, until you hit sales of about 30/35 items a month, there is no point in changing it to professional, as it will just cost you more, without much additional benefit.

But your next step, is most definitely to change to a business account, which you can’t do, until you have decided which entity to use.

#16

Forget the stores - stick with wholesalers
Stock from stores can only be resold on here as used , not new

#17

Exactly what we have been trying to tell Amazon for years !!

You can list as many items as you want, but it is the monthly Professional selling plan payment (£30) which is not worth paying until you hit 34/35 SALES per month. However there are other perks to the Pro plan.

It is change of selling plan, not account from individual to pro.
…and yes, you need to change the legal entity from Individual to Business (we have complained for years the stupidness of giving two different things the same name !)
I would definitely suggest sole-trader to start off with. Once you know what you are doing you can then become ltd.
You need to register with HMRC as self-employed sole-trader first, and receive your UTR before you can change to Business on Amazon, as they need your UTR.

#18

If you become a professional seller but are not VAT registered make sure to update the system so you only get charged £25 a month fees rather than £30

#19

Speak with your accountant before you declare any kind of vat exemption
Too many doing it without understanding how to account for it in future on their accounts

#20

As advised i will not proceed until I’ve spoken with my accountant, but i thought id have at look at the section where id make my Legal Entity change and i come across this message, Just wondering how id proceed when i was ready?
Thanks

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