Online selling has gained more attention since the pandemic as more and more people earn a profit even from the comfort of their homes.
It also provides excellent opportunities for business owners to expand their reach and boost their sales.
So, selling goods online is really a hot trend, especially since customers also choose to buy online for convenience.
Amazon is one of the famous eCommerce platforms that offer a place for business owners and stay-at-home parents who want to venture into selling goods online.
However, like any other thing, selling on Amazon is challenging, especially if you’re new in the industry.
So, it’s essential to learn and understand the process of Amazon from listing the products up to the shipment process.
In this article, we’re going to talk about the available shipping methods on Amazon to send your products to your future customers. This article will help you decide which way is best for your online business.
Amazon Shipping Methods
In opening an Amazon store, you have two ways to ship your order. First, you can partner with shipping carriers outside Amazon, but this method is not recommended since it has a lot of work.
Fortunately, Amazon started partnering with carriers to provide a more convenient shipping method for the sellers.
The eCommerce platform created the Partnered Carrier Programs of Amazon, which are the SPD or Small Parcel Delivery and LTL or Less Than Truckload.
These two programs are designed by Amazon to cater to the needs of all types of Amazon sellers with a discounted service fee. Let’s get to know more about these programs and see for yourself the best method for your business.
What is a SPD Shipment?
Small Parcel Delivery Shipment is used to ship individually packed and labelled products in bulk to replenish your inventory and process orders seamlessly.
Typically, the parcels are forwarded through UPS to deliver your products successfully to multiple customers. This program was created by Amazon to provide sellers with the opportunity to ship small packages at low rates.
How to Use SPD Shipment?
If you are operating a small business on Amazon and send individual small packages to your customers, the SPD shipment method is ideal.
You can navigate this method on Amazon Seller Central once you have packed your orders ready for shipping.
Then, on Seller Central, you are required to set the accurate dimensions of the boxes, such as the size, height, and weight.
These data are essential to determine the shipping service fees. You also need to enter the general information of the boxes you are about to ship.
Afterward, you can select the partner courier and print the labels for the parcel. Finally, your delivery boxes will be transported to an Amazon Fulfillment Center to process your customers’ orders and ship their packages on time.
Advantages of Using SPD
Unlike shipping through a non-partnered courier, using SPD only lets the sellers pay the delivery trailer’s space portion rather than the whole service.
Thus, the service fee deducted from sellers is not so expensive compared to when they choose to ship through other carriers. Moreover, it’s also reliable since you’ll have access to track the parcel you’re sending.
Cons of Using SPD
Using SPD is convenient and affordable, but it also has some downside, especially for businesses with huge monthly sales.
One disadvantage of SPD is its limit of boxes per shipment with partnered carriers of Amazon. Usually, you can only ship 200 packages for every shipment you’ll process on the platform. So, it’s not recommended for sellers who send more than 200 parcels.
Moreover, if you want to ship using a non-partnered carrier through SPD, the process is a bit complicated.
The carrier should register first with Amazon to complete the process. So, as much as possible, it’s more convenient if you choose a partner carrier of Amazon when using the SPD method.
What is LTL Shipment?
Amazon also offers another great program called Less Than Truckload (LTL) Shipment for businesses to have a seamless process of selling and managing their inventories.
Amazon designed this to provide a solution for you to ship your products in pallets from your warehouse to the designated Amazon Fulfillment Center.
LTL Shipment is suitable for businesses shipping less than one hundred items, providing the opportunity to ship with the products at lower rates.
Typically the method of transfer under this program is palletized, wherein the sellers are allowed to ship up to twelve pallets. This kind of method is also ideal for packages weighing more than 150 lbs.
How LTL Works?
Similar to SPD, the process of shipping through the LTS program is accessible on your Amazon Seller Central.
From here, you can navigate the partnered carrier that will ship your items in pallets going to the fulfillment center and send them to your customers. You can also track the progress of the shipment through seller central.
Advantages of Using LTL Shipment
Shipping your items in pallets will offer you great benefits like saving money on the service fee since you will not be paying the cost for the items individually.
It’s also worth mentioning that this method will help you improve your inventory management since you can track the progress of your shipment through seller central.
You will not also worry about delivery time since Amazon is partnered with carriers that prioritize the shipments processed using this program.
Cons of Using LTL Shipment
The only problem when using the LTL Shipment is the strict requirements to process the shipment without delay.
In addition, there are particular rules about the standard pallets that you need to follow for Amazon to complete the shipping of your pallet.
If you happen to disregard the requirements, there is a possibility for your package to be rejected at the Amazon fulfillment center, which can significantly affect the operation of your business.
So, it’s still best to know and understand the following rules when transporting your goods through LTL.
LTL Shipment Requirements
Regarding the dimension of standard pallets recommended by Amazon, you can use a 4-way access pallet measuring 1 meter by 1.2 meters.
However, you can use a larger pallet if your items are larger than the recommended size of the pallet.
Additionally, the condition and built pallets are also required to be in good condition, providing no damage to the storage.
You can’t also opt for pallets made of cardboard or any other weak material as they will be rejected. So, ensure that you use strong pallets that can handle your goods safely.
Moreover, Amazon also suggests that you ship your products on the standard GMA pallets under Grade B or, if possible, even higher.
It’s also essential to remember that when shipping food, grocery goods, or beauty and health products, you should use GMA Grade 1A and 1B.
Lastly, shipping your items in PECO pallets is not acceptable when using the LTL method since these kinds of pallets are complex and heavy to transport.
What is the Difference Between SPD and LTL?
SPD and LTL shipment is both helpful and convenient for Amazon sellers. However, they have differences that you might want to consider when choosing the suitable method for your business. Spd vs ltl, which is really better? Let’s figure it out.
In terms of Process
Amazon designed the APCP or Amazon’s Partnered Carrier Program to make the shipment process on the platform seamless and affordable. However, in comparing the small parcel vs ltl method in terms of the ease of operation, one of them stands out the most: the SPD.
SPD offers a more straightforward process than LTL, which requires lots of factors to consider before you can ship your units. But on the contrary, the LTL method is more ideal if you want to optimize your inventory management and meet the demand of orders on time.
In terms of Limits
Depending on the goods you’re selling, the limit of boxes and pallets to ship using SPD and LTL can vary. SPD shipment is on the advantage the items you’re shipping are small and do not exceed the 200 boxes. It’s perfect for small business owners or those who are just starting their journey on Amazon.
However, if your products are big units, Less Than Truckload can be your ideal shipment method. You can send up to 12 pallets at a time. It’s also suitable for you to have enough stock of your products in the inventory.
Final Verdict
In SPD vs LTL, there is no definite answer to which one is better since it will really depend on the needs of your business. Do use the table above to help you make a decision.
You will need to consider factors such as the number of units you’re selling, the rates, and the kind of shipment process you want.
However, one thing is for sure when using these amazon programs, they can both save you time and money when managing your online selling business. In addition, they can provide you with a seamless transaction to help your business thrive.