One common question buyers have when sourcing from Alibaba is: Do you have to pay for ocean freight on Alibaba? The answer is yes—while your supplier may include shipping in the price, you are always covering the cost in some way. Understanding incoterms and how to negotiate good terms can help you manage your shipping expenses effectively.
Understanding Incoterms on Alibaba
When purchasing from Alibaba, suppliers may offer different incoterms that define who is responsible for freight costs and logistics. Common incoterms include:
- EXW (Ex Works): You handle all shipping from the supplier’s factory.
- FOB (Free on Board): The supplier gets the goods to the port, and you pay for ocean freight.
- CIF (Cost, Insurance, and Freight): The supplier covers the freight to your destination port, but this doesn’t always mean it’s the best price.
- DAP (Delivered at Place): The supplier arranges everything, including final delivery.
- If your shipment value is under the De Minimis amount of $800, you may not have to pay taxes.
Negotiating Good Shipping Terms
Suppliers may offer shipping, but their rates aren’t always the best. Comparing freight quotes from third-party providers ensures you’re getting the most cost-effective option. Negotiating FOB terms often allows for more control over freight costs.
Choosing Between FCL and LCL
The amount of cargo you’re shipping impacts your costs. You’ll typically choose between:
- FCL (Full Container Load): More cost-effective if you have enough goods to fill a container.
- LCL (Less than Container Load): Suitable for smaller shipments but may involve longer transit times and higher per-unit costs.
Shipping Directly to Amazon
If you’re sending goods directly to Amazon FBA, be aware of their strict labelling and appointment requirements. Amazon requires all shipments to be labeled correctly and scheduled in advance. Working with an experienced freight forwarder ensures compliance and smooth delivery.
Work with a Reliable Freight Forwarder
If you’re wondering, Do you have to pay for ocean freight on Alibaba?, understanding your shipping options can save you money. Simple Forwarding helps you navigate incoterms, negotiate better freight rates, and ensure smooth delivery to Amazon or any destination. Contact us today to optimize your shipping strategy!
