How Amazon LTL Shipping Works for FBA Sellers?

When selling on Amazon, understanding how LTL (Less Than Truckload) shipments work is crucial, especially when your inventory reaches a volume where shipping efficiency becomes key. LTL trucking helps sellers save significantly on inbound FBA shipping costs once their shipment quantities hit a certain threshold. But what exactly is LTL, and how does it function within the Amazon FBA framework? Let’s explore this in detail.

What Is LTL Shipping?

LTL (Less Than Truckload) shipping is a transportation method used when a shipment doesn’t require a full trailer. Essentially, multiple shippers share space in a single truck, each paying only for the portion they use. This makes it a cost-efficient solution for businesses that ship medium-sized loads.

Typically, LTL shipments weigh between 150 and 15,000 pounds. Because they occupy only part of a truck, the cost is divided among shippers, significantly reducing expenses compared to full truckload (FTL) shipping.

Benefits of LTL Shipping

If you operate an online business, LTL shipping can be highly advantageous for several reasons:

1. Enhanced Security:

LTL shipments are generally packed on pallets before loading, providing greater protection than multiple smaller packages shipped individually.

2. Cost Efficiency:

Since you pay only for the space you use in the truck, LTL shipping can greatly reduce your logistics costs.

3. Better Tracking:

Each LTL carrier offers robust tracking systems, providing shipment details like PO numbers, reference IDs, PRO numbers, and pickup dates.

4. Service Flexibility:

LTL shipping allows access to additional services such as liftgate options, scheduled pickups, and faster delivery times.

5. Environmentally Friendly:

By consolidating multiple shipments in one truck, LTL shipping helps reduce fuel use and carbon emissions.

When to Choose LTL Shipping

You should consider using LTL shipping if:

You want to minimize shipping costs.
Your shipment weighs less than 15,000 pounds.
Your freight does not require a full truckload.

Factors That Affect LTL Shipping Rates

Several factors influence LTL shipping rates, including:

Mode: Expedited deliveries usually cost more.
Dimensions: The shipment’s weight and size affect its freight class, which determines pricing.
Distance: The farther the shipment must travel, the higher the cost.

Overview of Amazon LTL Shipments

Amazon works with partnered LTL and FTL carriers to move inbound shipments exceeding 150 pounds. These carriers offer deeply discounted rates, billed to Amazon first, and later reflected as “Inbound Transportation Charges” on your settlement reports. This partnership simplifies the process while reducing overall costs for sellers.

How to Arrange an LTL Delivery to Amazon

When sending inventory to an Amazon Fulfillment Center via LTL, you must follow specific guidelines to ensure smooth delivery.

Pallet Label & Pallet Requirements

Use pallets measuring 1200 mm x 1000 mm. Any other size may be rejected.
Include the vendor name, addresses, PO numbers, pallet count, and labels clearly visible.
Label mixed pallets as “mixed SKUs” or “mixed merchandise.”
Wrap all pallets securely in plastic and mark with “Do not break the stretch-wrap.”
Avoid damaged pallets; they will be rejected.
Single-stacked pallets must not exceed 1.5 meters in height.
Boxes over 33 pounds must be marked “Heavy Weight” in large letters.
No merchandise should extend more than 25mm beyond the pallet’s edge.

Packaging Requirements

To ensure that your products arrive safely, adhere to Amazon’s packaging standards. Proper packaging helps prevent damage and delays during delivery.

Seller Responsibilities

As an FBA seller, you are responsible for:

Building and labeling pallet shipments correctly.
Using standard pallet sizes and materials.
Scheduling delivery appointments.
Providing a Bill of Lading (BOL), shipment ID, PRO tracking number, and reference ID to your carrier.

Carrier Responsibilities

Your carrier must:

Include shipment IDs and tracking details on the BOL.
Follow Amazon’s vehicle condition requirements.
Schedule delivery appointments ahead of time.

Failure to meet these standards may result in shipment refusal.

Carrier Requirements for LTL Deliveries

It’s your responsibility to ensure your chosen carrier complies with Amazon’s policies. Non-compliance may lead to rejected deliveries.

Carriers must:

Include shipment details (Shipment ID, PRO number, reference ID) on the BOL.
Communicate box and pallet counts before the appointment.
Provide a valid BOL (either physical or digital) upon arrival at the fulfillment center.

Scheduling Advanced Appointments

Amazon requires all carriers to schedule delivery appointments in advance. Only registered, professional carriers are allowed to make deliveries.

Key points to remember:

Appointments must be booked 24 hours in advance.
Missed appointments by 30 minutes or more will require rescheduling.
Amazon will not accept shipments without a booked appointment.
Weather delays should be communicated to Amazon for rescheduling.

Steps to schedule an appointment:

Download and complete the FBA Booking Form.
Send the form to your carrier along with the Carrier User Manual.
Have your carrier log into Carrier Central and request an appointment.
Amazon will verify details and confirm within 24 hours.

When submitting a request, ensure your carrier states the shipment is for FBA and includes the FBA Shipment ID.

Vehicle Condition Requirements

Amazon enforces strict standards for delivery vehicles:

Floors must be able to support a loaded pallet jack.
Corrugated or uneven floors are not allowed.
Vehicles must be clean, odor-free, watertight, and safe for unloading.
Straps should be secure.

If Amazon staff cannot unload the vehicle safely, the shipment may be refused.

Amazon Seller Requirements for LTL

Box Limits

A single LTL shipment cannot exceed 4,999 boxes. If you need to send more, create a separate shipment.

Pallet Requirements

Use 4-way access, 40-inch x 48-inch wooden pallets.
Avoid fragile materials like particleboard or cardboard.
Grocery items must use 1A Grade GMA Standard pallets.
Beauty, personal care, and health products can use 1A or 1B Grade GMA Standard pallets.
Damaged pallets will be rejected immediately.

How to Calculate Amazon FBA LTL Charges

To estimate your LTL shipping costs:

Go to Prepare Shipment on Amazon Seller Central.
Under Shipping Service, choose “Less than truckload (LTL).”
Select Amazon-Partnered Carrier.
Enter pallet dimensions, weight, and quantity.
Avoid checking the “Stackable Pallets” option if they are not stackable.
Add your freight class (usually 100) and declared value.
Click Calculate to view the estimated charges.

Common Reasons for Delivery Rejection

Deliveries can be refused for several reasons, including:

No scheduled appointment.
Late or early arrival.
Unsafe vehicle or pallet conditions.
Damaged or tampered freight.
Incorrect paperwork or missing documents.
Shipments exceeding the booked quantities.

Final Thoughts

Amazon’s LTL shipping program offers an excellent opportunity for FBA sellers to optimize costs and streamline bulk inventory transport. By sharing truck space and adhering to strict shipping and packaging requirements, sellers can ensure safe, timely, and cost-effective deliveries to Amazon fulfillment centers. Paying close attention to pallet standards, carrier compliance, and appointment scheduling will help avoid rejections and delays—keeping your Amazon business efficient and profitable.