Amazon Global Logistics – What it Is and Why You (Don’t) Need it
If you source from China and sell in the US or EU like most sellers, you know how time-consuming and complicated shipping to the dedicated FBA warehouses can get.
Between coordinating multiple providers, dealing with customs paperwork, and securing competitive rates, you are often faced with delays and extra costs. Amazon Global Logistics (AGL) handles all these challenges for you, so you can focus on the business elements that matter more to you than logistics. But it’s not for everyone. In this article, we’ll be looking closer at what AGL is and who benefits the most from it – and who doesn’t.
What Is Amazon Global Logistics?
AGL is Amazon’s door-to-door freight management solution. It handles your inventory shipping from manufacturing hubs – commonly China – straight to your Amazon Fulfillment Centers or Warehousing & Distribution facilities. Shipments go to anywhere in the U.S., U.K., and E.U., all within one unified Seller Central interface.
Important: Amazon Global Logistics only handles the shipping from the manufacturing hub to the Fulfillment Center or AWD facilities. Anything beyond that must be handled by 3PL providers or by Amazon Supply Chain Management.
How Does AGL Work?
Step 1: Freight Pickup & Ocean Transport
Amazon arranges the pickup from your supplier and offers ocean freight or air freight options – standard (cost-effective) or fast (balanced speed and cost).
Step 2: Customs Clearance
AGL takes care of necessary import documentation and collaborates with customs brokers to get your goods cleared – no hassle for you involved.
Step 3: Delivery to FBA or AWD
Once cleared, your shipments are delivered to Amazon FBA centers or bulk storage in AWD, ready for later distribution.
Step 4: One Central Platform
Everything – from rate comparison and booking to tracking and updates – is managed directly in Seller Central for convenient execution and monitoring.
Do You Need Amazon AGL for Your Business?
The benefits are quite apparent, especially if – until now – you’ve been using multiple 3PL providers that have been draining your time and funds. So, let’s take a look at how AGL helps your business:
Amazon Global Logistics vs Broader Supply Chain Management
AGL is a freight solution for Amazon sellers, shipping from the manufacturer to your Amazon warehouse of choice. Nothing more. The aim is a smooth, hands-off process that reduces the need for third-party freight forwarders.
Broader supply chain management covers much more than this. Supply chain management includes sourcing, production planning, inventory management, warehousing, fulfillment across multiple sales channels, and even last-mile delivery. If you have a business that sells beyond Amazon this level of logistics can help you remain flexible and serve multiple markets more easily.
“Scope” is the important keyword here. AGL shipping is narrow but custom-tailored for Amazon-focused sellers, while broader supply chain management offers solutions across multiple platforms and customer touchpoints.
Which Sellers Don’t Need Either Solution
There are many different business types you can specialize in as an Amazon seller. Let’s take a look at which type of sellers don’t need these solutions.
In a nutshell, if your Amazon business sources inventory domestically or doesn’t deal with bulk international shipments, you won’t need Amazon Global Logistics.
How to Apply & Get Started with AGL
Wrapping Up
If you’re expanding your Amazon business, sourcing more products from China, or simply dissatisfied with your current logistics setup, Amazon Global Logistics offers a strong alternative to juggling multiple 3PL providers. Not only does tracking become easier when everything is managed through one solution, but it can also be more cost-efficient to rely on a single large provider instead of several smaller ones.
FAQs
Amazon Global Logistics (AGL) is Amazon’s end-to-end freight forwarding and shipping solution for sellers who source products internationally. It enables sellers to ship goods directly from overseas manufacturers – mainly in Asia – to Amazon fulfillment centers. With AGL, sellers streamline customs, tracking, and delivery, reducing complexity and costs compared to multiple third-party providers.
Yes, Amazon ocean freight offers services to Europe. This program lets sellers ship products from manufacturing hubs like China directly to European Amazon fulfillment centers. AGL manages ocean and air freight, customs clearance, and final delivery, simplifying international supply chains for Amazon sellers.
Calculating this requires that factors such as carrier capacity, demand, micro + macro trends and carrier base are calculated. However, Amazon freight can do this for you and will let you know your quote 14 days in advance.
