The United States of America is one of the coveted markets for e-commerce sellers worldwide. Sellers chase the American dream because of its increased share of digital consumers, shoppers with high purchasing power, and advanced retail and sales infrastructure. Often referred to as an e-commerce superpower, the United States also has one of the highest retail e-commerce ratios. In 2023, the e-commerce share stood at 15%, peaking at 16% in the second quarter of 2024. This makes it an ideal market for e-commerce sellers from China to expand into.
E-commerce in the US is looking to generate 1.2 trillion U.S. dollars in revenue in 2024, attracting global sellers. To crack this competitive market, sellers must cater to shoppers’ wants and sell it at the right price. This is why it is no surprise that most e-commerce sellers look at shipping from China to source their products and sell them to American shoppers.
Shipping from China to the US can be costly due to rising freight costs and changing regulations. E-commerce sellers entering the US market can still boost margins by optimizing key areas across inventory storage, fulfillment, and sales.
This guide offers e-commerce sellers strategies and ways to fine-tune shipping from China to the US to maintain a healthy supply chain and propel their business forward.
How China influences the e-commerce Landscape in the United States
China is the world’s leading manufacturing superpower. The country’s production exceeds that of the nine next-largest manufacturers combined. In 1995, China represented a 3% share of world manufacturing exports, but by 2020, its share had risen to 20%. This meteoric rise shows how much countries depend on China’s manufacturing prowess.
In the US, a significant share of e-commerce sellers are either from China or source their inventory from Chinese wholesalers. To sustain this cross-country e-commerce market, there is an increased demand for the China to USA shipping route. Container Trades Statistics by Xeneta reveals that nearly 1.36 million Twenty-Foot Equivalent Units were shipped from China to US. According to the Global Times, the number of 20 ft containers moving from Mainland China to the USA increased by 15%. This spike indicates sellers moving inventory into the United States ahead of the peak sales season.
Whether you’re a seasoned seller sourcing inventory or new to e-commerce selling, shipping to the United States can impact your business growth. Choosing the right shipping method can help you cater to the demand and cut costs.
Top Preferred Methods for Shipping from China to the US
Before choosing the ideal shipping method, sellers must familiarize themselves with the widely-used shipping methods for e-commerce first mile.
Sea Freight or Ocean Freight
Sea or ocean freight is one of the standard methods used by e-commerce sellers importing from China to the USA. China’s world-class ports give way to superior maritime connectivity and simplify e-commerce’s first mile to the US. Sellers often opt for sea freight due to its affordability, ability to handle large-volume goods and minimal weather-inflicted delays. Sellers importing into the US from China can choose between a Full Container Load (FCL) and Less than a Container Load (LCL).
Ocean Freight FCL From China to the US
In full container Loads from China to the United States, sellers fill either a 20-foot or 40-foot container with their inventory. E-commerce sellers opting for FCL can access flat rates for shipping high-volume inventory.
Ocean Freight LCL From China to the US
E-commerce sellers looking to import to the US from China will have their inventory grouped with other boxes. LCL ocean freight from China to the US will take longer since the inventory will have to be combined into the container in China. Once the shipment reaches the US, it will be broken down into smaller packages at the US port.
Popular Shipping Routes To Move Inventory from China to the United States
Carriers follow three preferred shipping routes from China to the United States of America. These routes derive their names from the oceans they traverse.
Pacific Ocean Route:
One of the most important shipping routes, the Pacific Ocean Route, connects China and the United States. In this route, carrier ships pass through the south of the East China Sea, move north to the Sea of Japan, and enter the North Pacific Ocean. The Pacific shipping route is ideal for shipping inventory from China to the west coast of the US.
This route faces some challenges since shipments will pass through disputed territories of the East and South China Seas. Geo-political tensions could lead to delay in carrier movement or blocking of the shipping route.
Atlantic Ocean Route:
Container ships using this route help sellers import shipments from China to America’s east coast. The ships go south of China, move to the Indian Ocean and the Cape of Good Hope, and reach the US east coast.
Indian Ocean Route:
A popular shipping route for transporting oil, the Indian Ocean Route can also help sellers import from China to the US. Ships start from Chinese ports, move to the Indian Ocean, and traverse the Suez Canal. From there, they cross the Atlantic Ocean to reach the United States. This route connects China to the Persian Gulf, Africa, and Western Europe before reaching North America.
Air Freight
Air freight is Considered to be faster than ocean freight. This method of importing inventory to the US from China works for low-volume, high-value shipments. Sellers who want their inventory comparatively faster can choose Air Freight as the preferred first mile. Generally, the gross weight limit for air freight ranges between 100 and 500 Kilograms, roughly 330-1102 lbs.
Express Shipping
Like air freight, express shipping lets e-commerce sellers import shipments faster. Due to its expedited nature, express shipping is also the most expensive method of shipping from China to the US. Like air freight, express shipping is best when sellers have to import high-value, low-volume shipments but require them in the United States very quickly. Sellers who notice a sudden growth in demand for their products or need to replenish inventory quickly can rely on Express shipping.
Documents required for shipping from China to the USA?
Sellers can verify the documents required to import on the Customs and Border Protection Agency (CBP) website. Here are the primary documents that sellers need to provide for shipping goods from China to the US:Entry manifest (CBP Form 7533) or Application and Special Permit for Immediate Delivery (CBP Form 3461)
| Paperwork | Description |
| Arrival Notice | Includes details of shipper, location, consignee, and arrival time. |
| Entry Manifest/Summary Form [ CBP Form 7501] | Details relevant information (e.g., appraisement, classification, origin, etc.) regarding the imported goods. Helps calculate the duties towards entry into the United States. This form should be filed within 10 working days of the shipment’s arrival in the United States. |
| Special Permit for Immediate Delivery CB Form 3461 | The customs release form is submitted electronically to Customs and is used to speed up the inventory release once the consignment arrives at the destination port in the United States. The seller or the importer has up to 15 calendar days to file the release of the shipment. |
| Import License – Partner Government Agencies Import Licence | Issued by government agencies that authorize the trade of goods across the borders of the United States. Importing into the US, sellers need to secure a PGA licence specific to the consignment they wish to import into The United States from China. Some of the Partner Government Agencies in the US include: – Department of Agriculture – Department of Health and Human Services – Department of Commerce – Department of Transportation – Department of Justice – Department of Interior – Department of the Treasury – Environmental Protection Agency |
| Packing List | Itemizes the contents of each package in the shipment. It is often attached to the outside of the package and details weights and measurements. |
| Commercial Invoice | Offers information for the customs officials to understand what the consignment contains along with source and destination information. The commercial invoice contains shipper and consignee information, invoice date, country of export, terms of sale (Incoterms) and destination, weight of goods, HS code. |
| Bill of lading | Details the type, quantity, payment terms, port of loading, port of discharge and bill type. This is a legal document issued by the carrier to the shipper. |
| Insurance Certificate | Clarifies the coverage offered by the company to cover losses or damages to the consignment during its transit from China to the US. |
| Customs Power of Attorney | Grants a customs broker the authority to process customs clearance on behalf of the seller when the consignment arrives at the destination port. |
Once you have all the paperwork, you are ready to export from China through air or ocean freight. The import process begins as your consignment approaches the port of landing in the United States.
Customs clearance in the United States for Shipments from China
Customs clearance for goods shipped from China to the US required sellers to hand over the required paperwork and pay import taxes and other applicable fees.
Sellers must enlist a broker or an importer of record to import shipments worth over 2,500 USD or when the shipment contains controlled goods.
Shipments from China will go through the following process at the destination port:
- The shipment arrives at the port of entry – A port in the United States
- The Importer of Record (IOR) then files paperwork mandated by the United States for the goods from China. The broker/ Importer of Record files these documents with the port director at the goods’ port of entry.
- Once the customs clears the paperwork, the Customs and Border Protection authorizes the shipment to be imported.
- The Importer of Record, on behalf of the seller, will pay the applicable taxes and duties.
- Customs will thoroughly scrutinize the shipment; once cleared, the goods will be released for entry into the United States.
Why Sellers experience Delays while Shipping from China to the US?
Mode of transportation and logistics used
Sellers who import to the US from China must choose the proper freight mode to move their inventory. For inventory that needs a quick replenishment, air freight is ideal. However, sellers must be mindful of the limitations of moving inventory through cargo flights. The nature of the goods, size, and weight are factors that determine whether sellers can ship the goods by flight or should consider an ocean vessel instead.
Port Congestion
As consumer demand spikes and import guidelines are subject to changes, port congestion occurs. With the US being an economic powerhouse, it is natural that the ports experience heavy inbound traffic. These delays can affect e-commerce businesses, especially those who rely on China for inventory. Sellers can verify the current status of port traffic through real-time port congestion maps that detail the expected delays at major ports across the United States of America.
Incorrect Documentation or Duties
The lack of proper brokers or excessive partners at different stages of shipping goods from China to the US can cause slips and gaps that delay your shipment’s entry into the US. Incorrect entry documents, miscalculated taxes, or import duties result in your shipment getting stuck at the port for a long time.
Customs Cargo Inspection
After filing the paperwork and clearing the tax and duties, the shipment goes for inspection. This might be a random or compliance check required by the Partner Government Agencies. Discrepancies arising during the inspection will impact the release of your shipment, impacting its movement from the port to your destination warehouse in the United States.
Most e-commerce sellers overspend while shipping inventory from wholesalers and manufacturers in China to the US.
In 2024, shipping rates for 40-foot containers spiked from $3777 (USD) in January to $5937 in July. With rising shipping rates and increasing tariffs on goods originating in China, sellers struggle to make healthy profit margins through sales.
With improved trading agreements in place, sellers need to have the right fulfillment partner when shipping from China to the US.
How Sellers Can Efficiently Ship from China to the US
- Choosing the right shipping route will help Sellers minimize delays and cut down shipping costs.
- Opting for the right freight mode based on the inventory that you are importing into The United States.
- Partnering with a reliable shipping carrier who picks the right shipping route is essential.
- Liaising with shipping partners who are aware of current delays and potential bottlenecks to zero in on optimal routes to reduce shipping costs and expedite shipping time.
- Familiarising with local regulations and state laws specific to importing can help sellers find the best ways to legally import goods via faster customs clearance and at economical rates.
- Consolidating freight with other businesses wanting to import into the US from China during less than Full truckload. This lets sellers access negotiated rates that otherwise may not be applicable.
- Submitting the required paperwork electronically before the carrier is set to enter the port of entry to speed up customs clearance.
How much can Sellers potentially Save through Section 321 while importing from China to the US
Imagine a company importing Golf Shoes from China to the US.
The company imports 15,000 units into the US from China every month. The cost of each golf shoe is $50.
The seller calculates the duty fee based on the HS code. In this case, the HS code for Golf Shoes is 6402.19.05, and the duty fee is 6%.
This means the consignment value will be $15,000 * 50 = $ 750,000
Now the duty fee will be: $750,000 * 0.06 = $45,000
With a fulfillment provider offering 321 fulfillment to the US for sellers importing from China, this duty will be reduced considerably.
Company A tends to save thousands of dollars per month, by modifying how they import from China to the US.
How Sellers Can Find the Best Way to Ship from China to the USA?
- Choosing between International Shipping and Localized Delivery
When sellers observe an interest in products, they have two options: offer international shipping on a case-to-case basis or wait for the order to arrive. The downside of shipping orders internationally from a Chinese warehouse to the US would be that it would take a long time and complicate returns. The second option is to move inventory to a local warehouse to speed up fulfillment and handle reverse logistics. - Leveraging 321 Fulfillment
For sellers bringing goods from China to the US, section 321 is an effective way to bypass stipulated 301 tariffs. These provisions offer e-commerce sellers a cost-effective way to import their shipment from China to the US through a Mexican warehouse.
- Working with Reputed Fulfillment Partners
Having the right fulfillment partner that offers integrated freight solutions help sellers manage inventory movement from China to the US and end-to-end fulfillment. This eliminates multiple middlemen and improper handoffs. Sellers will no longer have to deal with independent partners for different stages of inventory movement. Having reputed fulfillment partners will let you centralize paperwork and processes effectively. - Real-time Tracking of Shipments
Real time tracking and monitoring of shipments and coordinating arrival at the warehouse are critical for the e-commerce supply chain. Invest in the right fulfillment partner who offers real-time tracking and monitoring of shipments from China to import in the United States.
How Locad Can Help in Shipping Inventory from China to the US
Freight, customs regulations, and trading agreements are subject to periodic changes, making it difficult for e-commerce sellers to track. Partnering with a reputed fulfillment provider that offers integrated freight services like Locad helps sellers provide products at competitive rates and sell at better margins.
- Freight management for affordable Inventory movement: Ship your inventory from China to the US with Locad. Track your consignment’s journey from China and stay updated until it reaches the destination warehouse.
- IoR and SoR services for faster customs clearance: Get real-time assistance with customs clearance and import paperwork, duties, and taxes to help goods move past customs without hiccups.
- 321 Fulfillment Services: Leveraging benefits under section 321 de-minimis while importing to the United States through Locad’s warehouse network presence in Mexico.
- Flexible warehousing for cost-effective storage: Avail nationwide coverage by distributing inventory across the West Coast and North America.
- Fast Fulfillment via best last-mile partners: By partnering with top last-mile carriers in the United States, sellers can offer their customers diverse, quick, and affordable shipping.
- Tech-enabled Fulfillment: Locad’s Logistics Engine automatically syncs with popular e-commerce marketplaces and custom websites to unify order management and streamline multi-channel selling.
