Your Guide to Amazon AGL
Amazon Global Logistics (AGL) is a game-changer in the competitive world of e-commerce, where logistics is the backbone of success. As the global retail giant, Amazon continuously evolves its services to meet the needs of sellers and customers. This article delves into everything you need to know about AGL, including its benefits, potential drawbacks, and tips to optimize your logistics strategy for maximum efficiency.
What is Amazon Global Logistics (AGL)?
Amazon Global Logistics (AGL) is Amazon’s proprietary logistics solution, designed to simplify international shipping for sellers. It provides end-to-end freight services that allow sellers to transport goods from manufacturing hubs, such as China, directly to Amazon Fulfillment Centers in countries like the U.S., U.K., EU, and Japan.
AGL integrates seamlessly into Amazon Seller Central, offering sellers the ability to:
- Book shipments.
- Track cargo in real-time.
- Manage customs clearance and documentation.
- Streamline payment processes.
Unlike third-party freight forwarders, AGL centralizes logistics under one platform, making it easier for sellers to manage their supply chain while reducing costs and improving operational efficiency.
How Does Amazon Global Logistics Work?
- The AGL process is designed to be user-friendly and efficient
Onboarding
To get started with AGL, sellers sign up through their Seller Central account. The onboarding process involves providing essential business details, such as an EIN (Employer Identification Number) or CAIN (Customs Assigned Importer Number).
Planning Shipments
Sellers input shipment details, including the origin and destination of goods. AGL provides various freight options, such as:
Customs Clearance
AGL manages all customs documentation, ensuring compliance with international regulations. This service reduces the complexity of dealing with customs brokers and minimizes errors in documentation.
Transportation
AGL ships products via ocean freight, air freight, or expedited ocean services, depending on the seller’s preferences and needs.
Delivery to Fulfillment Centers
Once the shipment reaches its destination, AGL ensures the goods are delivered directly to Amazon’s Fulfillment Centers, where they are prepared for customer orders.
Key Features of Amazon Global Logistics
Ocean and Air Freight Services
AGL offers both ocean and air freight options to meet the varying needs of sellers.
Customs Brokerage
One of AGL’s standout features is its ability to handle customs clearance. AGL ensures that shipments comply with local laws, reducing delays and the risk of penalties.
Real-Time Tracking
AGL provides real-time shipment tracking, giving sellers visibility into their inventory’s journey and allowing for better planning and management.
Centralized Payment System
Payments for AGL services are processed directly through Seller Central, simplifying financial management.
Value-Added Services
AGL offers additional services such as:
Benefits of Using Amazon Global Logistics
Cost Efficiency
AGL leverages Amazon’s massive logistics network to negotiate competitive rates. Sellers often find that AGL is more cost-effective than traditional freight forwarders.
Example A seller shipping home décor from Shenzhen to the U.S. reported saving 18% on shipping costs after switching to AGL.
Simplified Logistics Management
With AGL, sellers no longer need to juggle multiple freight forwarders and customs brokers. Everything is managed through a single platform—Seller Central—streamlining the entire process and aligning seamlessly with Amazon Supply Chain Management best practices.
Example A small business selling kitchen appliances noted that using AGL reduced administrative tasks by 40%.
Reduced Risk of Rejections
Because Amazon manages the shipping process, there’s a lower likelihood of inventory being rejected at Fulfillment Centers.
Faster Delivery Times
AGL prioritizes shipments, ensuring faster delivery to Amazon Fulfillment Centers. This is particularly advantageous during peak seasons like Black Friday or Christmas.
Transparency and Tracking
Real-time tracking gives sellers peace of mind and helps them plan inventory restocking more effectively.
Drawbacks of Amazon Global Logistics
Limited Regional Coverage
Currently, AGL primarily supports shipments from China and Hong Kong to the U.S., U.K., EU, and Japan. Sellers outside
these regions may need to explore alternative logistics solutions.
Upfront Payments
AGL requires sellers to pay shipping costs upfront. For small businesses, this can strain cash flow.
Risk of Data Sharing
Using AGL means sharing supplier information with Amazon. Some sellers worry that Amazon might use this data to source similar products for its private label brands.
Solutions to AGL Challenges
Managing Cash Flow
- Use financing options like Amazon Lending.
- Negotiate extended payment terms with suppliers to ease upfront costs.
Mitigating Data Risks
Sellers concerned about supplier data sharing can split shipments between AGL and third-party logistics providers to safeguard sensitive information.
Leveraging Hybrid Shipping Strategies
Sellers can use AGL for high-volume or less sensitive shipments while relying on third-party freight forwarders for specialized or confidential cargo.
AGL in Action: Case Studies
Case Study 1: Cost Savings for Electronics Seller
A U.K.-based seller of smart home devices switched to AGL to handle shipments from Shenzhen, China, to Amazon’s Fulfillment Centers. By using AGL’s standard ocean freight, they reduced shipping costs by 22% and improved delivery times during the holiday season.
Case Study 2: Simplified Logistics for a Beauty Brand
A mid-sized beauty brand leveraged AGL’s palletization and labeling services to ensure compliance with Amazon’s packaging standards. This move saved them time and avoided costly delays at Fulfillment Centers.
How to Get Started with Amazon Global Logistics
Step 1: Sign Up for AGL
Log in to your Seller Central account and navigate to the “Growth” section. Under “Programs,” select “Amazon Global Logistics” and complete the onboarding process.
Step 2: Plan Your Shipments
Enter shipment details, including origin, destination, and inventory type. Choose your preferred shipping method (FCL, LCL, air freight).
Step 3: Confirm and Track Shipments
After booking your shipment, monitor its progress in real time using AGL’s tracking tools.
Step 4: Optimize and Review
Regularly review your shipping performance and costs to identify opportunities for improvement.
Why Choose Amazon Global Logistics Over Traditional Freight Forwarders?
Traditional freight forwarders offer customization and personal relationships. However, AGL provides unique advantages:
Example A seller of pet supplies noted that AGL reduced their inventory replenishment time by 25%, giving them an edge over competitors during a product launch.
About FBA Brigade: Your Trusted Partner in Amazon Logistics
At FBA Brigade, we understand that navigating the complexities of e-commerce logistics, especially with services like Amazon Global Logistics (AGL), can be challenging. That’s where we come in.
Who We Are
FBA Brigade is a team of professionals dedicated to helping Amazon sellers optimize their operations and achieve their business goals. With years of experience in e-commerce logistics, Amazon PPC, account management, and supply chain optimization, we pride ourselves on offering comprehensive solutions tailored to each client’s needs.
How We Work
Why Choose FBA Brigade?
Let’s Collaborate
Ready to take your Amazon business to the next level? Here’s how you can get started:
At FBA Brigade, we are committed to your success. Let’s work together to simplify your logistics, maximize your profits, and grow your Amazon business.
Conclusion
Amazon Global Logistics is a robust solution for sellers looking to streamline their supply chain, reduce costs, and improve delivery times. However, it’s essential to weigh its benefits and limitations to determine if it aligns with your business needs.
At FBA Brigade, we specialize in helping Amazon sellers navigate logistics challenges and optimize their operations. Whether you’re new to AGL or looking to enhance your logistics strategy, our team is here to guide you every step of the way.
Visit FBA Brigade for expert insights, tips, and solutions to take your Amazon business to the next level.
