If you’re an Amazon seller considering how to streamline your supply chain, you’ve probably come across Amazon Global Logistics (AGL). Unlocking global shipping can be complex, and AGL promises to make it easier. In this article, we’ll walk through what it is, how it works, the pros and cons, how to evaluate if it’s worth it for your business, and tips for making it work if you go for it.
What is Amazon Global Logistics?
Amazon Global Logistics is Amazon’s own international shipping and freight-forwarding service for sellers who use Fulfilled by Amazon (FBA) or otherwise need to import inventory into Amazon’s network. This is Amazon’s in-house option to move inventory internationally into Amazon fulfillment centers.
The standard workflow for AGL is something like this:
- You pick your manufacturer or supplier (often overseas, e.g., China).
- Amazon arranges the pickup, consolidation, export, international freight (ocean or air), customs clearance, and delivery to Amazon’s fulfillment center.
- From there, your stock is in Amazon’s network, ready for FBA fulfillment. It’s essentially an end-to-end logistics option, rather than you managing each leg separately.
If you source from overseas (especially from China), you’re typically dealing with freight forwarders, customs brokers, inland transport, and delivery to Amazon’s FCs. For many sellers, that’s a lot of moving parts.
AGL tries to bring many of them under one roof (Amazon’s logistics roof). That means fewer vendors to manage, better integration with Seller Central, and, in theory, less friction.
How Does It Work?
Before deciding whether Amazon Global Logistics (AGL) fits your business, it’s useful to understand how the service actually operates from start to finish. The process generally breaks down into three main phases. Each step is designed to streamline how your inventory moves from your manufacturer to Amazon’s fulfillment centers.
Onboarding
First, you’ll need to check if you are eligible for AGL via your Amazon Seller Central account. Amazon doesn’t always make all markets available. Once accepted, you provide manufacturing details, decide on shipping terms, and Amazon gives you access to quotes, booking tools, etc.
Booking and Shipping
You pick your shipment type (ocean freight or air, depending on budget/time) and schedule a pickup from your supplier. AGL will manage export clearance, freight, and import side tasks. You can track the shipment, receive notifications, and see when inventory arrives at the fulfillment center. The integration with Amazon’s system is tighter than many third-party freight setups.
Costs and Fees
Here’s where things get interesting: you’ll pay for pick-up, freight, import duties/taxes, delivery to Amazon’s fulfilment center, etc. While Amazon doesn’t publish a standard public rate card for all shipments, you will see what’s quoted in your dashboard.
Because Amazon is handling many of the pieces, some sellers find that the landed cost (all-in) becomes more predictable. But as with any freight, it depends heavily on volume, shipping method, origin, destination, and commodity.
The Upsides: Why Many Sellers Choose AGL
Amazon Global Logistics offers several compelling advantages for FBA sellers. From simplified freight management to tighter integration with Amazon’s network, the benefits often go beyond just shipping efficiency.
Let’s look at the key reasons many sellers opt for AGL:
Simplified Logistics Workflow
One of the biggest benefits is reduced vendor management: fewer freight forwarders, customs brokers, and transporters. Instead, you deal mainly with Amazon’s supply-chain stack. That can save time, headaches and coordination costs.
Better Integration With Amazon’s Fulfillment Network
Since the final destination is Amazon’s fulfillment center anyway (if you use FBA), this may reduce the risk of mis-routing, delays at FC arrival, or errors in transport documentation. It aligns your inbound logistics more closely with your fulfillment partner.
Potential For Cost Savings At Scale
If you ship frequently and in volume, Amazon’s negotiated freight rates (via their network) may be competitive. Some sellers say that the “all-in” landed cost via AGL may be lower than piecing it together yourself. Also, because Amazon handles customs and delivery to FCs, you may reduce unplanned costs or delays.
Reduced Risk Of Compliance Issues
Customs clearance and import documentation can be costly if mistakes happen. AGL handles much of this for you (depending on country of origin/destination) which lowers risk.
The Downsides: When AGL Might Not Be a Fit
While AGL streamlines many logistics challenges, it’s not perfect for every seller. Depending on your shipping volume, product type, or flexibility needs, there are situations where traditional freight forwarding may still make more sense. Below are the main trade-offs to consider before committing fully to Amazon’s system:
Limited Flexibility And Choice Of Carriers
When you go with Amazon’s logistics footprint, you may have less choice in carriers, routing, or special services (e.g., cold chain, special freight) than if you use your own freight forwarder network. That could limit optimization.
Availability And Eligibility Constraints
Not all origins/destinations or sellers may be eligible for AGL. If you source from multiple countries or ship to non-Amazon fulfillment locations, AGL may not cover your needs. Also, because Amazon may prioritize bigger sellers or certain volumes, smaller sellers might not get the same benefits.
Potential Cost Trade-Offs For Low Volumes
If you’re shipping low volumes, the “convenience” of AGL may come with a premium compared to negotiating your own freight. The quoted Amazon global logistics rates may not always beat your independent freight forwarder, especially if you give them large volume discounts. So you’ll need to compare.
Dependency risk
Using one partner (Amazon) for so many logistics steps may simplify things, but it also means you’re more tightly tied to Amazon’s system. If something goes wrong (e.g., shipment delay, documentation error), you may have fewer alternative solutions. Also, you may need to align your manufacturing or exports timing closely with Amazon’s inbound schedule to their fulfillment centers.
Is It Worth It for You?
Let’s walk through how to evaluate whether AGL is worth it for your business. Ask yourself these questions:
- What’s your source country and volume? If you’re shipping from China (or other major origin) in large volume to Amazon fulfillment centers, AGL has strong appeal. If you’re sourcing from many small factories in lesser-served countries, you may face coverage gaps.
- What’s your desired transit time and shipping method? For ocean freight (cheapest but slower), AGL is viable. But if you need very fast air freight or special services, you may find third-party freight forwarders more flexible.
- What’s your current landed cost (all-in) vs what AGL quotes? Get your historic cost: factory → port pick-up → export clearance → freight → import clearance → delivery to Amazon FC. Then compare the AGL quote for a similar lane/volume. If AGL is similar or better, and you value simplicity, that’s a win.
- How complex is your supply chain? If you already have a freight forwarder, multiple suppliers, many SKUs, etc, simplification via Amazon might reduce overhead. But if your supply chain needs flexibility, custom carriers, etc, you might prefer staying independent.
- Are you comfortable with the slightly reduced carrier choice and flexibility? If yes, then AGL may be a strong option. If no, then maybe not.
When it makes sense
- You are shipping in larger volumes, consistently, to Amazon FCs.
- You value ease of integration, fewer vendors, and simplified documentation.
- Your origins/destinations are supported, and you prefer predictability over maximum optimization.
- You are experienced enough that landed cost is a key metric, and you’re ready to evaluate it properly.
When you might skip or delay
- You’re small-volume, sporadic shipments, many origins/destinations.
- You need very specific freight services (e.g., cold chain, explosion-proof, small parcel) that Amazon doesn’t support.
- You already have a reliable freight forwarder network with better negotiated rates for your lanes.
- You want maximum control and flexibility over carriers, scheduling, and routing.
Tips for Making AGL Work for You
If you decide to try Amazon Global Logistics, here are some best practices to maximize benefits and mitigate risks:
1. Build your landed-cost model
Before switching to AGL, map out every cost component of your current shipping process. Include pickup, export clearance, freight, insurance, duties, delivery, Amazon FC inbound processing, potential delays, and storage costs. Then request a quote from AGL for the same lane/volume and compare. If the convenience gain is worth any cost difference, you’re in good shape.
2. Consolidate shipments when practical
Because fixed pickup/export costs exist, consolidating more volume into fewer shipments can reduce per-unit cost. If you’re sending small lots too often, that may raise your per-unit cost via AGL.
3. Communicate with your supplier early
Since Amazon will pick up from your supplier, you’ll want your supplier to be ready on time. Late shipments or mislabelling can add delays. Ensure your supplier knows AGL’s procedures (packaging, documentation, timing) to avoid surprises.
4. Match your inventory planning to Amazon FC cycles
Since your goods will arrive in Amazon’s fulfillment network, plan your lead times, inventory restocking, and safety stock accordingly. Don’t treat it like a standard freight service alone; integrate it with your FBA planning.
5. Monitor and benchmark
Even if you go with AGL, keep monitoring your cost vs performance. Compare transit times, arrival accuracy, inventory availability, and any damage or issues. That way, you can decide annually or quarterly whether you continue or switch to something else.
6. Know the service limitations
Check origin/destination coverage, container/air-freight availability, and any restrictions (hazardous materials, perishables). AGL may not cover every scenario. Also, check if there are minimum volume thresholds or specific requirements your account must meet.
Conclusion
If you’re an Amazon seller operating at a scale where international freight is a major component of your cost and complexity, and you ship substantial volumes from major origins into Amazon fulfillment centers, then Amazon Global Logistics can offer meaningful advantages.
On the other hand, if you’re still small-scale, shipping sporadically, or you already have a solid freight forwarder relationship with very competitive rates, then AGL might not provide enough benefits compared to your existing setup.
Treat AGL as one tool in your supply chain toolbox. Evaluate it strategically, benchmark it against your actual costs and needs, and make the choice based on your business realities. If you do it right, it could become a valuable component of your global shipping strategy.
