Amazon FBA and importing from China: updated 2019 guide

· MingTa Group

Amazon FBA (Fulfillment by Amazon) remains one of the most accessible ways to set up an import business. You ship your product to Amazon's warehouse and they handle storage, shipping and customer service. However, importing from China for FBA has specifics you need to be aware of.

Optimised logistics flow

The most efficient flow is: factory in China, quality inspection, FBA labelling at origin, ocean freight to a European port, customs clearance, inland transport to the Amazon warehouse. At MingTa Group we manage the whole process, including FNSKU labelling at the factory, which saves time and money by removing the need for an intermediate warehouse in Europe.

FBA labelling and prep

Amazon requires each unit to carry an FNSKU (Fulfillment Network Stock Keeping Unit) label, that master cartons meet specific dimensions and weight, and that certain products are packed in polybags or bubble wrap. Most Chinese factories are already familiar with Amazon's requirements and can prep the goods correctly. Our team verifies compliance before shipment.

Real costs and margins

A common mistake is to calculate only the product cost and freight. Real costs include: product FOB (40-50% of the selling price), freight and customs (10-15%), import duties and VAT (recoverable), FBA fees (15-25% of the selling price), and PPC advertising (10-20%). For a product that sells for 25 EUR, you need a landed unit cost in Amazon below 8-10 EUR to make a margin.

Mistakes we see repeatedly

The most frequent mistakes we see among our Amazon FBA clients are: not researching the market thoroughly before ordering (tools like Jungle Scout or Helium 10 are essential), ordering too large a quantity on the first batch, skimping on professional product photography, and not registering the brand before launching (Amazon Brand Registry protects you and gives competitive advantages).

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