In this blog, we will discuss Amazon’s Partnered Carrier Program’s Small Parcel Delivery (SPD) and Less Than Truckload (LTL) and help explain which shipping method best suits your business.
Amazon’s Partnered Carrier Program is a discount shipping service offered by Amazon to its sellers. With it, you have the options for Small Parcel Delivery (SPD), Less Than Truckload (LTL), and Full Truckload Shipments. This program lets Amazon sellers quickly and easily restock their inventory, create shipments, and print shipping labels all in one place. With Amazon’s Partnered Carrier Program you can view real-time tracking information of your stocks and be always on top of the transit status.
Small Parcel Delivery
SPDs consist of units packed in individual packaging already labeled and ready for delivery to customers. SPDs are usually smaller shipments that are forwarded using UPS for US and Canada and DHL in Mexico.
Small Parcel Delivery (SPD) has a limit of 200 boxes if you are using a partnered carrier and up to 500 boxes when using a non-partnered carrier. When using a non-partnered carrier, it is best to take note that Amazon only allows a professional carrier to make an appointment with Amazon’s Fulfillment Center. Your preferred carrier must first register with Amazon before they can make an appointment. They must also adhere to Amazon’s delivery requirements and safety standards. In short, your preferred, non-partnered carrier must first register and seek amazon approval before they can make their first delivery to any of Amazon’s fulfillment centers.
If you are using one of Amazon's partnered carriers, you must enter accurate dimensional data for your small parcel delivery boxes. These dimensions are used to calculate dimensional weight, which may be used to determine fees if the dimensional weight exceeds the actual weight.
Using the Small Parcel Delivery Method can be done in 3 simple steps.
- Enter your general information. When you click “Confirm”, available fulfillment centers will be generated based on the information you provided.
- Enter your ship date, under Shipping Mode, select “Small Parcel Delivery (SPD)” and under the Select Shipping Carrier, you can select your carrier via the dropdown menu. Once you have done these, you will have to click “Accept Charges” and “Confirm Shipping”
- You can now print your labels. Please note that Amazon will be providing two (2) labels; your fulfillment by Amazon and the carrier label for either UPS or DHL. Do not reuse these labels and ensure that these are unobstructed during scanning. Once your boxes and shipments are pickups by the carrier, on the same step, you can now click the box which says “Mark all as shipped.
Tracking information will now be automatically provided in your seller central account and transit updates will be provided every time your shipment is scanned at a transfer point. Once your box is scanned at the final transfer point ( the fulfillment center you chose) your inventory will be updated and your products will be available for customer purchase.
Less Than Truckload (LTL)
Amazon's LTL model is a great way for businesses to save money on shipping. Amazon provides its sellers with an opportunity to ship their inventory with the help of an Amazon partnered carrier, who will bring the product from your warehouse to an Amazon fulfillment center.
Amazon’s Less than Truckload Shipping could be the solution for your business. The company has now gone beyond providing sellers a platform to sell their product, it is now also providing solutions for its seller base the most efficient and affordable way to replenish their stocks. The Less than Truckload Shipping Method is offered to businesses that have less than 100 items that need shipping. It is a palletized method of transfer and under this offer, each seller is allowed to ship items up to 12 pallets at a time. LTL is a cost-effective way for companies to ship their inventory without the high costs of shipping trucks.
Amazon adheres to standard pallets only and pallets that are outside its regulations may be rejected at the fulfillment center.
- Use 1.0 m x 1.2 m, 4-way access, wooden pallets. If a single, large Unit cannot fit on a 1.0 m x 1.2 m pallet without overhanging the edges, use a pallet size and type that is suitable for the Unit.
- Ship only on pallets that are in good condition.
- Do not ship Units on pallets made of a weak material such as cardboard or particleboard.
- Broken and damaged pallets are not acceptable and may be rejected at the seller’s expense.
- Ship Units on GMA Standard Grade B or higher pallets.
- Ship food and grocery products on GMA 1A grade pallets. Pallets meeting the GMA grade 1A and 1B are acceptable for Grocery and Health and Beauty products only.
- Do not ship Units on PECO pallets, which cannot be moved using a standard pallet jack.
When using Less Than Truckload (LTL), Amazon sends the logistics order to the lowest cost carrier available. This eliminates the need for the Amazon seller to shop around looking for the best logistics deal. This guarantees you that you can piggyback and benefit from Amazon’s strong economies of scale position.
To track your LTL shipment, you can go directly to your carrier’s website and enter your carrier’s pro number and the PO number which can be found on the Bill of Lading (BoL) generated and ready for printing at your seller central account.
Regardless of which phase your Amazon brand is in, there are benefits to using a partner carrier program. Apart from the economic benefit, sellers also enjoy the streamlined process when using a partnered carrier program. Factor in the expertise of these carriers, and you have a less stressful logistics process as these carriers handle the appointment experience for you.