Previously we gave you some of the top methods to improve cash flow as an Amazon seller. One of these tips involved the reduction of product lead times, but we didn’t go into detail. We received several questions about this topic and thought we would provide some lead time reduction tips.
1. Use Air Shipping
Yes, there are additional costs involved with shipping via air, but you might be surprised what these shipping companies can come back with if you negotiate. We found that for our products it was higher but well worth the benefit of reduced lead times.
2. Ship Directly To Amazon
Shipping your product from the supplier to your house or warehouse is just an extra step. If at all possible, we suggest shipping directly to Amazon’s FBA facility. This is another reason that using air freight makes things a lot easier. You can ship directly to Amazon using sea freight, but you need to use Shapiro as the freight broker.
3. Negotiate with Suppliers
Sometimes it only takes some negotiation to push a supplier to decrease the lead time of their product. If it helps to increase sales, then that will certainly help your cause.
4. Faster Payment
If your supplier waits for your payment before they begin manufacturing or packing your order, then you need to find a fast payment option. Ask your bank for the international wire transfer cutoff time. Meeting this deadline helps to ensure that your payment is received the very same day you make the payment.
It is important to note that lead time reliability is just as important as the lead time itself. Your suppliers should know that you need a reliable lead time estimate for each order and that you’ll hold them accountable for that estimate. Unreliable lead times can wreak havoc on your supply chain and inventory forecasting. You can’t accurately forecast demand if you don’t know how long it will take to get inventory back in stock.