What is Amazon Global Logistics, and should I try it

Amazon keeps expending its logistics network. Not long ago the company has launched another service of freight delivery – Amazon Global Logistics (AGL). Some sellers have already started to experiment with this service, while most are still trying to figure out if this is the right solution for their supply chain.
In this article we will try to simplify AGL service and help you determine if whether you should try this service or not.

What is Amazon Global Logistics, and how does it work?

Amazon Global Logistics (AGL) is Amazon’s freight service. It allows you to import items directly from your supplier in China to different Amazon marketplaces, and basically replace any freight forwarder you have used so far for shipping your items to Amazon.

Sellers can sign up for AGL and order a shipment through Seller Central, which is now available in the United States, the United Kingdom, the European Union, and Japan. As of writing, AGL offers standard sea freight as its main service.

What are the Advantages and Disadvantages of Amazon Global Logistics?

Amazon Global Logistics Benefits

Since your forwarder is Amazon itself, we can assume that

• Your shipments will be delivered and received faster than before.
• Probably won’t have a problem of missing units. For example, 99 units were received instead of 100 units.
• Your shipping plan probably won’t be cancelled if the shipment didn’t arrive within the time frame Amazon sets (as of writing this article, 90 days).
• We can assume that in some situations, Amazon prices will be more competitive.
• Saves time and money on your supply chain by eliminating touchpoints and lead times (that is mostly true if you need to use a 3pl, as for writing this article Amazon didn’t change their shipping plan limit of 90 days to 30, so many sellers won’t need a 3pl)
• Sign up and purchase shipments using Seller Central, which is a one-stop-shop for both registering and ordering.

Amazon Global Logistics Disadvantages

• Amazon has access to more information about your supply chain. In order to use AGL services, you will have to expose more details about your manufacturing process, such as, details about your supplier, provide invoices, etc.
• Many sellers use DDP shipping. Amazon can’t offer DDP services. For sellers who sell products with high tariff rates, AGL might not be such a profitable solution.

• Increasing reliance on Amazon

• High costs (compared to most freight forwarding companies)

• Not ideal for items with unique delivery or handling procedures.

• Custom clearance – if you are not LLC, Amazon will not be able to perform custom clearance.

Is Amazon Global Logistics the Right Option for Me?

In addition to the advantages and disadvantages mentioned above, we recommend you take another 2 points to consideration:

1. According to some large marketplaces’ vendors, AGL suites people who transport a lot of big goods since it allows you to directly send these huge products into your FCs. On the other hand, for those who sell products with short life shelf or refrigerated ones, and other items that require specialized fulfillment and transportation, AGL is considerably more difficult.
2. Customer service – you are familiar with the customer service that you receive from Amazon on other issues, and you are also familiar with the service you receive from the freight forwarder that you have been using so far. Compare between the two based on your own experience. Think who do you believe will provide smarter and faster solutions for you, who will be more available for you and will provide answers quickly.
3. The global supply chain has yet to fully recover from the major disruptions that occurred during the previous two years. If you want to speed up your supply chain procedure and be able to replenish (and sell) your inventory quickly, Amazon Global Logistics may be a good fit for you. However, there is a lot of debate about whether allowing Amazon greater access to your items and suppliers is a good idea. 

In conclusion

Amazon Global Logistics can appear as a good alternative for inexperienced vendors who are unfamiliar with freight forwarding companies. If you’re an experienced seller with a solid rapport with a freight forwarder company or agent, and already understand the ropes of freight forwarding, you may save a lot of money and have a peace of mind without using AGL.