Amazon Global Logistics: What is it and How Does it Work?

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What is Amazon Global Logistics (AGL)?

It is a comprehensive logistics solution offered by Amazon to simplify and optimize the global supply chain journey for both Amazon sellers and international buyers. It’s part of Amazon’s supply chain process and is designed to facilitate the movement of products across international borders, ensuring efficient shipping, customs clearance, warehousing, and delivery processes.

Here’s how it works:

Global Shipping Network

Amazon has built a vast global shipping network with partnerships with various international carriers, freight forwarders, and transportation providers. AGL leverages this network to offer competitive rates and options to sellers and customers worldwide on shipping products.

International Fulfillment Centers

Amazon operates fulfillment centers in multiple countries, and AGL allows sellers to store their products in an Amazon fulfillment center in global warehouses. This global warehousing network enables sellers to fulfill orders quickly, reducing shipping times and costs for international customers.

Customs and Compliance

One of the most significant challenges in international trade is navigating customs regulations and ensuring proper documentation. AGL provides customs brokerage services, assisting sellers with the customs clearance process, including the preparation of necessary documents and compliance with local regulations.

🗣️ Pro Tip: Amazon Global Logistics delivers to over 200 countries, with fast and reliable shipping options.

Local Delivery Partnerships

Amazon collaborates with local delivery partners in various countries to ensure efficient last-mile delivery. This involves establishing partnerships with local courier companies to ensure reliable and timely delivery to customers’ doorsteps. One can track shipments either from Amazon system or the local freight forwarder.

Shipping and Delivery Options

AGL offers a range of shipping and delivery options for sellers to choose from inbound shipping, including standard and expedited shipping, as well as options like Amazon Prime for eligible products. These options help sellers cater to customer preferences in different regions.

End-to-End Visibility

Sellers using AGL have access to real-time tracking and visibility into the movement of their inventory. This includes information on when products are received at fulfillment centers when they are shipped to customers, and expected delivery times. This visibility helps sellers manage their inventory effectively and provide accurate delivery estimates to customers.

Customer Support

Amazon provides customer support for AGL-related inquiries, helping sellers and customers resolve any logistics issues or concerns that may arise during the shipping and delivery process.

How Does Amazon Global Logistics Work?

stacked shipping containers

Here’s a step-by-step overview of how AGL typically works for an Amazon seller looking to sell products expand internationally:

  1. Seller Registration: Sellers sign up for Amazon Global Logistics account through their Amazon Seller Central account and select the international marketplaces they want to sell in.
  2. Inventory Storage: Amazon warehouses are all over the globe. Sellers send their inventory to Amazon fulfillment centers and Amazon stores and manage the inventory on behalf of the seller.
  3. Order Placement: International customers place orders for the seller’s products on Amazon’s marketplace.
  4. Order Processing: Amazon processes the orders, including picking, packing, and labeling the products for international shipping.
  5. Shipping and Customs: Amazon arranges for the shipment of products to the customer’s location, taking care of customs clearance and compliance. You don’t have to deal with cargo insurance service, freight forwarding, customs brokers, or pay additional customs bonds as Amazon Global Logistics covers all this work.
  6. Local Delivery: Local delivery partners handle the last-mile delivery to the customer’s doorstep.
  7. Customer Service: Amazon provides customer support and assistance with any logistics-related issues or inquiries.

In summary, Amazon Global Logistics is a comprehensive solution that simplifies the complexities of international shipping and logistics for Amazon sellers. It enables them to reach a global customer base, offering efficient and reliable shipping options while also providing end-to-end visibility and support to experienced sellers throughout the process.

Who Can Use Amazon Global Shipping Services?

giant ship carrying stacked shipping containers

Amazon Global Shipping services are primarily designed for Amazon sellers who want to expand their reach and offer their products to customers in international markets. Here’s a breakdown of who can use Amazon Global Shipping services:

  1. Amazon Sellers: Amazon Global Shipping services are available to individuals, businesses, and brands that sell their products on Amazon’s marketplace. Whether you are a small-scale seller or a large enterprise, you can access these services through your Amazon Seller Central account.
  2. Fulfillment by Amazon (FBA) Sellers: An Amazon FBA seller can take advantage of Amazon Global Shipping services. FBA sellers store their products in Amazon’s fulfillment centers, and Amazon handles the packing, shipping, and customer service for orders, including those destined for international customers.
  3. Amazon Marketplace Sellers in Eligible Countries: While Amazon Global Shipping services are available to sellers in many countries, eligibility may vary depending on your location. Amazon continually expands its services to include more regions, so it’s essential to check the availability of these services in your country through your Seller Central account.
  4. Individuals and Businesses New to Exporting: Amazon Global Shipping services can be particularly helpful for individuals or businesses that are new to international trade. Amazon’s established logistics network simplifies the complexities of global shipping, customs clearance, and compliance, making it accessible to a broader range of sellers.
  5. Sellers Looking to Expand Globally: If you’re interested in growing your business by reaching customers in different countries, Amazon Global Shipping services provide the infrastructure and support needed to expand your reach across borders.
  6. Private Label Brands: Private label brands that sell unique or specialized products can benefit from Amazon Global Shipping services to reach a global customer base and build an international presence.
  7. Sellers of Diverse Product Categories: Whether you sell consumer electronics, clothing, home goods, or any other product category, Amazon Global Shipping services are available for a wide range of products, enabling sellers to cater to various international markets.

It’s important to note that while Amazon Global Shipping services offer numerous benefits, sellers should also consider factors such as product compliance, local regulations, taxes, and customs duties when expanding internationally. European Union for example has strict compliance requirements when importing products to any European countries.

Additionally, fees associated with these services may vary based on the products, shipping destinations, and shipping methods chosen.

To get started with Amazon Global Shipping services, sellers should log in to their Amazon Seller Central accounts, check eligibility, and follow the steps provided to list their products for international markets and access the shipping and logistics support offered by Amazon.

Is Amazon Global Logistics the Right Option for Me?

you have options to move in some directions

Determining whether Amazon Global Logistics (AGL) is the right option for you as an Amazon seller or a business depends on various factors. Here are some considerations to help you evaluate if AGL aligns with your goals and needs:

  1. International Expansion Goals: Are you looking to expand your customer base beyond your current market or region? AGL is particularly beneficial if you want to sell to customers in international markets and reach a global audience.
  2. Product Suitability: Consider the types of products you sell. AGL is suitable for a wide range of product categories, but some items may have restrictions or specific requirements for international shipping. Ensure that your products can be shipped internationally without significant logistical challenges.
  3. Scale of Operations: AGL can benefit both small-scale and large-scale sellers. However, larger sellers may find it more cost-effective, as they can leverage Amazon’s shipping network and negotiate better rates.
  4. Logistics Expertise: Evaluate your knowledge and expertise in international logistics, including customs clearance, documentation, and compliance with local regulations. AGL can simplify these processes for sellers with limited logistics experience.
  5. Shipping Frequency: Consider how frequently you plan to ship products internationally. AGL may be more advantageous for sellers with regular international shipments, as it offers streamlined logistics and shipping options.
  6. Budget and Cost Considerations: Review your budget and financial resources. While AGL can provide cost savings through negotiated shipping rates, you should also factor in fees associated with AGL services, customs duties, and taxes.
  7. Customer Expectations: Assess whether offering faster shipping options, such as Amazon Prime, is essential for meeting customer expectations in your target international markets. AGL enables you to provide competitive shipping choices.
  8. Competitive Landscape: Analyze your competition. If competitors are already selling similar products in international markets, AGL can help you level the playing field by offering efficient shipping and fulfillment.
  9. Global Marketplace Research: Conduct market research to identify which international markets have demand for your products. AGL can be especially valuable in markets where Amazon has a strong presence.
  10. Long-Term Strategy: Consider your long-term business strategy. If international expansion is a core part of your growth plan, AGL can help you establish a global presence and sustain it over time.
  11. Customer Service and Returns: Think about how you will handle customer service and returns from international customers. AGL provides support in this area, but you should also have a plan for addressing customer inquiries and returns efficiently.
  12. Regulatory Compliance: Be aware of the regulatory requirements and compliance standards in the countries you plan to sell in. AGL can assist with customs compliance, but sellers must ensure they meet all relevant regulations.

Ultimately, the decision to use Amazon Global Logistics should align with your business objectives and growth strategy. It’s advisable to start with a thorough evaluation of your products, target markets, shipping plan, and logistics needs. If you find that AGL’s services align with your goals and can enhance your ability to serve international customers efficiently, it may be a suitable option for expanding your Amazon business globally.

Amazon Global Logistics (AGL) can potentially save you thousands of dollars in shipping costs in several ways:

hand putting a coin in a black piggy bank
  1. Negotiated Shipping Rates: Amazon has significant negotiating power with shipping carriers due to its large shipping volume. As a result, AGL can offer competitive shipping rates to sellers. These negotiated rates are often lower than what individual sellers could secure on their own, leading to cost savings.
  2. Economies of Scale: AGL leverages economies of scale by consolidating shipments from multiple sellers. By grouping shipments together, Amazon can optimize container space and reduce transportation costs per unit, resulting in cost savings.
  3. Streamlined Customs Clearance: Customs clearance can be a complex and costly aspect of international shipping. AGL provides customs brokerage services, helping sellers navigate customs regulations efficiently. This can reduce the risk of delays and additional customs-related expenses.
  4. Reduced Storage Costs: If you use Amazon’s international fulfillment centers as part of AGL, you can benefit from reduced storage costs compared to using third-party warehouses. Efficient inventory management can lead to cost savings over time.
  5. Fulfillment Efficiency: AGL integrates with Amazon’s global fulfillment network. By using this network, sellers can fulfill orders more efficiently, reducing handling costs and potentially decreasing the time products spend in transit.
  6. Optimized Shipping Routes: AGL optimizes shipping routes to minimize transportation costs. Amazon’s logistics algorithms determine the most efficient way to move products, taking into account factors like distance, mode of transportation, and delivery times.
  7. Competitive Shipping Options: AGL enables sellers to offer competitive shipping options to international customers, such as expedited or Prime-eligible shipping. This can attract more customers and boost sales, offsetting shipping costs through increased revenue.
  8. Reduced Returns Costs: Efficient logistics can also lead to fewer returns due to damaged or delayed shipments. This can reduce return-related costs, including return shipping and restocking fees.
  9. Access to Prime: For eligible products, AGL can provide access to Amazon Prime in international markets. Prime members tend to spend more and buy more frequently, which can increase sales and offset shipping costs.
  10. End-to-End Visibility: AGL offers real-time visibility into your shipment’s progress, allowing you to make informed decisions about inventory management and shipping options. This visibility can help you avoid costly delays or stockouts.
  11. Customer Retention: By providing reliable and efficient shipping options to international customers, you can enhance customer satisfaction and retention. Repeat business from satisfied customers can contribute to long-term revenue growth.
  12. Strategic Expansion: AGL can enable you to strategically expand into new international markets where you can capture untapped demand and increase sales. The revenue generated from these markets can offset shipping costs.

While AGL can provide significant cost savings for many sellers, it’s important to note that the actual savings will depend on various factors, including the nature of your products, shipping volumes, destination countries, and the shipping methods you choose. Additionally, sellers should carefully evaluate the fees associated with AGL services to ensure that the overall cost structure aligns with their business goals and profitability objectives.

Final Words

Amazon Global Logistics is a game-changer for Amazon sellers who want to go global and explore different Amazon marketplaces. It simplifies the complexities of international logistics, reduces costs, and enhances the customer experience.

As Amazon continues to expand its global footprint, AGL becomes an even more valuable tool for sellers looking to reach new markets and scale their businesses internationally.

Embracing AGL can be the key to unlocking new growth opportunities and establishing a global presence in the world of e-commerce. For sellers, it’s not just about selling on Amazon, but selling to the world through Amazon.

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