How To Survive The Recent Amazon FBA Logistics Issues?

Let's Navigate the Recent Amazon FBA Logistics Challenges for Survival :)

Surviving the ups and downs of Amazon FBA logistics can feel like navigating a maze, right?

Well, buckle up because we've got some game-changing insights for you!

In this article, we're diving deep into the realm of logistics supply to Amazon FBA.

Our guest through this journey is none other than the logistics guru himself, Amit Rosenthal from Proboxx.

Related Read: Proboxx Review & Platform Tutorial - Amazon FBA Digital Freight Forwarder & Logistics Company

Trust me; you're in for a treat!

Because whether you're a video watcher or a reading aficionado, I've got you covered.

You can catch the full conversation with Amit in our video embedded below or stick around for the written version right here.

Oh, and for those hungry for more FBA wisdom, don't miss out on my Free Amazon FBA Logistics Course With Amit.

Free Amazon FBA Logistics Course

Now, let's dive into the good stuff – my chat with Amit!

Interesting Read: Actionable Tips for Efficient Shipping to Amazon

Enjoy the ride! 😊

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Vova: Hey fellow Amazon FBA enthusiasts, Vova Even here, your go-to guy for all things Amazon FBA.

Today, I'm joined by Amit, and we're diving deep into a crucial topic that's been on everyone's mind: navigating the challenging waters of Amazon FBA logistics.

Hi, Amit.

So, there are many sellers asking questions like, "What can we do? How can we navigate through unpredictable situations like the current logistics challenges?"

We've discussed the impact on cash flow earlier because, acknowledging that we can't always predict global events like a pandemic or war is not always feasible.

So, how can we navigate through that?

How do we keep our businesses afloat?

I have a little tip from my own experience that has helped me not only survive but thrive in these times – negotiating better terms with both suppliers and freight forwarders.

Amit: Hi Vova, I'm all ears. Please share.

Vova: Alright, let's break it down in terms of cash flow.

Imagine you're ordering, let's say, 5,000 units of a product.

Yes, we can pay for them straight away, you know, the normal 30-70 split that many sellers typically go for – 30% upfront and 70% once it's finished.

That's the standard, and it works.

But here's a twist: consider paying a significant portion upfront for a big order, maybe 20%, and then the remaining 80% on demand.

Picture this: we finish production, pay 20%, and then, without the pressure of paying the entire sum upfront, settle the remaining 80% as needed.

So, picture this scenario: three months down the line, you still have goods in the warehouse, and suddenly there's a need for an extra 2,000 units.

Here's the trick – at this point, we pay the remaining 80% and ship them out.

Why?

Well, it helps us keep cash on hand.

Now, let me share a nugget of wisdom from our experience.

We're not a massive business; last year, our Amazon sales reached $72,000.

It's not a staggering amount, but it's a mid-six-figure range.

We're aiming to do even better this year, but remember, we're a business that moves tens of thousands of units.

So, why do we need this cash flow?

Well, aside from running our business smoothly, there's the practical side – I need to live!

I've got bills to pay, including the rent for this place, and the list goes on.

So, here's my little nugget of advice for fellow sellers: negotiate those terms.

And don't just stop at suppliers; consider having a chat with freight forwarders too.

Sure, everyone's after those green dollar bills today, but in this game, we've got to help each other out. 

It might depend on relationships, but negotiating these things can make a real difference.

Now, Amit, what are your thoughts on this?

Amit: Let's be realistic here.

I appreciate the value we're aiming to provide to sellers, and I want to emphasize, especially from the standpoint of straightforwardness.

Now, what you're advising makes a lot of sense, but it's crucial to consider the length of your relationship with suppliers.

From my experience dealing with Chinese businesses extensively, negotiating terms like these is next to impossible with new suppliers.

It's like a zero percent chance.

Perhaps, after two or three years of working together, you might have a shot, but for brand new suppliers, it's close to zero.

But here's something sellers can consider: negotiating on the cost itself, perhaps with freight forwarders.

In my opinion, securing a business loan is crucial in today's landscape.

However, generally speaking, especially for ongoing businesses, the best advice I can give is to start production as early as possible.

If you're a new seller, the dynamics might be different as you don't have to worry about inventory on hand.

However, for those with an established business, reevaluate your assumptions.

If you think it takes 60 days from production to reach the FBA center, consider a buffer.

Rethink how you manage your stock, considering the generally efficient transit time from China to the U.S.

Build your assumptions and standard operating procedures accordingly because, without a doubt, you're risking going out of stock.

Vova: Reflecting on what you shared, Amit, it's clear that navigating the complexities of Amazon FBA logistics requires a thoughtful approach.

Negotiating terms, considering loan options, and reevaluating production timelines – all valuable insights.

Thank you, Amit, for shedding light on these crucial aspects.

Your time and expertise are greatly appreciated, and I'm sure our audience will find these discussions incredibly beneficial.

Until next time, thank you for joining us on this insightful journey!

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Conclusion

Alright, folks, that wraps up our chat with Amit.

Navigating the twists and turns of Amazon FBA logistics can be tricky, but we've got some solid tips in our toolkit now.

Remember to talk terms with your suppliers and freight forwarders, explore loan options, and, most importantly, plan your production timelines wisely.

Big thanks to Amit for breaking it down for us.

Let's keep rocking those Amazon sales and stay tuned for more game-changing insights.

Happy selling, everyone!

P.S. - Need more logistics solutions? Discover the 3 best FBA shipping companies.