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First time importing, should I hire a customs broker?

by er90
6 replies
Hey all,

First time importing and hoping those with experience can help with some advice.

Will be importing a light weight product from Alibaba to try out on amazon FBA.

I live in Canada and want to sell the item on Amazon FBA in the US. The product is very simple, after ordering a sample to check quality is it possible to ship the order directly to amazon or would it be a huge risk?

Importing into Canada would mean paying import fee's in both Canada and the US plus expensive Canadian shipping afterwards.

The first order will only be for between $250-$500 would this be worth getting a customs broker for and if so on a small order like this how much does that normally cost? Without a customs broker is it possible to just pay import duties online or by phone since I will be in Canada and it's getting imported into the us?

Thanks for reading
#amazon fba #broker #customs #hire #importing #time
  • Profile picture of the author DWaters
    Use the search feature of this forum to locate posts by Import/Export. Walter has a lot of knowledge in this area and you will find his suggestions to be very helpful.
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  • Profile picture of the author THK
    I read something interesting about that. If you import products in order to export the whole lot, there might be an exemption on import fees. It sounds unusual but I vaguely remember it to be the case.

    But if the import fee doesn't, the shipping will definitely kill your profit.

    Check if you can use DHL and still make a profit. Expensive but fast and reliable. You will know quickly if your product is a winner.
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    • Profile picture of the author er90
      Thanks for the info, that does sound interesting. The product is in the $12-14 range so although there is a huge mark up profits won't leave much room for canadian shipping costs. Is it unrealistic to think I could just ship it directly to amazon after checking the samples?
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    • Profile picture of the author Importexport
      Originally Posted by THK View Post

      I read something interesting about that. If you import products in order to export the whole lot, there might be an exemption on import fees. It sounds unusual but I vaguely remember it to be the case.

      But if the import fee doesn't, the shipping will definitely kill your profit.

      Check if you can use DHL and still make a profit. Expensive but fast and reliable. You will know quickly if your product is a winner.
      Costs for people in Canada wanting to sell in the US are way too high, so the OP should ship to the US first.

      I don't recommend shipping direct to Amazon from your suppliers to Amazon's warehouse. If a product sells exceptionally well, there is the risk that it will be sold direct on Amazon by the seller's supplier once they know where you're selling, and they can look up their listing and find how much so they can undercut them.

      Also, it is not uncommon for Amazon to decide to sell the same product in competition with their sellers. After all the sourcing work has been done for them and they know where to buy.

      Shipping costs are only a problem if you are buying from traders pretending to be manufacturers, and there are huge numbers of those listed on the major and most popular B2B sites.

      You could have the goods delivered to you for you to inspect first as suggested by valencia99, and then ship to Amazon FBA. It is possible to recover the duty and taxes paid on goods imported for re-export. There's a lot of red tape, and you will have to wait quite a while before you see your money again.

      Ask your supplier to quote for door to door air courier delivery. The courier service will act as a Customs broker for you. They pay the duty and taxes and you reimburse them, and then they will deliver to you. Make sure you keep all the documentation if you plan on seeking reimbursement.

      For more information on safe sourcing an easy importing, see my AMA thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.

      You can ask questions there and get helpful answers. I have been involved in exporting since 1978 and importing since 1987.

      Walter Hay,
      Provenchinasourcing.com
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author er90
        Thanks so much for the in depth info Walter. Very helpful and I will for sure check out your import thread. On the note of importing direct into the US but not to amazon FBA two options are since I am in a border city either shipping them to a PO box where I can come across the border and inspect them before sending them to amazon or shipping them to a different fulfilment company other than amazon. Any thoughts?
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        • Profile picture of the author Importexport
          Originally Posted by er90 View Post

          Thanks so much for the in depth info Walter. Very helpful and I will for sure check out your import thread. On the note of importing direct into the US but not to amazon FBA two options are since I am in a border city either shipping them to a PO box where I can come across the border and inspect them before sending them to amazon or shipping them to a different fulfilment company other than amazon. Any thoughts?
          I think that is a brilliant idea! Once you have inspected them and removed supplier ID, you could then choose to send them to Amazon FBA because the chain has been broken.

          Walter Hay
          Provenchinasourcing.com
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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