How Amazon Do Chooses Their Freight Forwarder Service Provider?
By: Rene Payne
Tags: Third Party Logistics, Freight Forwarder, Amazon, Choosing, Fba

Photo by Priscilla Du Preez on Unsplash

When we see on the global maps of the international online market, there is one name flashing around the whole map, i.e., Amazon. Being the most prominent company that sells almost everything in the world, Amazon has to do a lot of tasks. From picking up the shipment to delivering it to the door of the person, Amazon is responsible for every single work.

Now, as the company’s workload increased, they have started hiring many freight forwarder companies all around the world who can take up their whole task related to logistics. Now the amazon is a huge company that has gained popularity in a very long period. It means that they will choose the logistic company only after seeing something special that can match their work level.

Photo by David Travis on Unsplash

Let us discuss in detail what the points that Amazon notices in the logistics company before hiring them for their logistics task are?

Checking the destinations

The first thing that amazon checks in the freight forwarder service provider are that they must be delivered to all the world destinations. Some providers write on the website description that they provide the services, but later when it is time for the delivery, they say a single line that this area is not serviceable. That is why while giving work to the freight forwarder, amazon always checks out that do they provide service in all the areas that they need.

If the answer is yes and they provide the services, then the company will choose them.

Insurance

The damages caused in the shipment are a very common aspect of the shipping. Now the amazon has to pay the customer if the product delivered is found damaged by the customers, and in return, the value o the product becomes zero. While choosing the freight forwarders, the amazon chooses that the person who is providing them the services also provides the insurance for the same.

This way, the company’s money is the same, and the freight forwarders have to pay out if they make a mistake. Two types of insurance are the basic and damage types of insurance. The company selects both of the insurance types but according to the fragility and the pricing of the product.

Tracking system

Whenever you make an order, then after some time, you keep on checking your order’s status. Almost every person in this world has this habit of tracking their order from time to time till the order doesn’t arrive. Now, this tracking of the orders comes under the services that Amazon provides to its customer. If Amazon is handling all the stuff by themselves, they will surely provide the shipment’s detailing.

But in the case of third-party logistics, this task is handled by the freight forwarders. Now the Amazon will surely demand that the tracking system that is available with the company should be precise. The more precise reading the system provides, the much better is the service that Amazon will provide. That is why Amazon chooses the company that can provide them the best and precise tracking every time during the shipment.

Packaging services

Amazon also gives away the packaging services work to the freight forwarders. All they need to do is pick up the shipment from the seller or the FBA center and take them into their warehouses. Now they have to pack up the shipment and later on do all the stuff of the transportation accordingly. The packaging needs to be done in order to provide proper safety to the shipment. Let us suppose that the equipment present with the company for the packaging is not good enough. Due to this, the chances of destroying the shipment are very high.

If the packaging material and system are of high quality, then the shipment will be much safer during transportation. That is why Amazon always chooses the providers that have higher packaging services quality.

Conclusion

So these are the points that Amazon takes care of when they are looking out for freight forwarding services. There is one more factor that Amazon looks out for, that is the money factor, but this factor is not that persistent. The reason behind this is that Amazon always looks out for the quality of the service instead of the money they have to spend due to their reputation in the market. But if there are some points when the quality of the service of both the companies are good, then the price factor matters.