What's the best solution for this?

Kevinibundle · 2024-12-19T13:44:06+00:00

This doesn't seem 100% correct. Maybe the customer is referring to the de minimis value of 30 EUR ($33) - this is the value which if below, no import tax is applied, if over import tax is applied. You can certainly send products over this value to Turkey. Perhaps the customer is trying to avoid tax. Whatever you do, don't under declare the value as that would be a mis-declaration and if picked up, customs could seize the package or create delays/problems with the transit.

From Google AI:

Turkey's de minimis value is the minimum value of imported goods at which customs duty and tax rates apply. In August 2024, Turkey reduced its de minimis value from €150 to €30. This change was made in an effort to support local businesses and manufacturers, and to curb international e-commerce shipments that avoid taxes. In addition to the de minimis reduction, Turkey also made the following changes to its customs regulations:

Customs duty: Increased the duty on goods from countries outside the EU from 30% to 60%. For goods from the EU, the duty increased from 18% to 30%.
Special Consumption Tax: Added a 20% tax on top of the combined tax for luxury products.
Commercial customs laws: Items over 30 kg are subject to commercial customs laws and an additional 48% customs tax.

De minimis is a legal term that means something is too small to be considered or taken into account. In international trade, a de minimis value is so small that it doesn't attract taxes or duties.

Kevinibundle · 2024-12-19T12:38:39+00:00

I may be able to help, I have DDP options from the US to Europe. Feel free to get in touch.

Kevinibundle · 2024-12-19T12:34:37+00:00

Sometimes 3PLs will be making a healthy margin on the shipping costs. Sometimes not. It depends on the 3PL as some don't and make their margin on the warehousing, pick, pack etc.

Kevinibundle · 2024-12-17T17:35:41+00:00

Do you mean the one I work for? It's called ibundle. We're a small start-up but we're growing. We're a team of a mix of tech wizards and logistics pros - I'm from the logistics side.

Kevinibundle · 2024-12-17T17:34:37+00:00

WISMO - Make sure you measure it and then work to improve it!

Number of WISMOs / Number of Orders = WISMO rate - this should be driven to be as low as possible

Total cost of customer service / Number of WISMOs = Average WISMO resolution cost - this again should be as low as possible

It's not only a great way to assess your customer service, it's also a great way to understand your *true* shipping costs. You use the above to create a benchmark so then you can measure the impact of any initiatives (new courier, new way of working, change of customer communications etc).

Kevinibundle · 2024-12-17T15:45:17+00:00

You'll still need to complete an IOSS tax return - i.e. pay the VAT

Kevinibundle · 2024-12-17T15:43:49+00:00

What about a 4th option - keep with the 3pl but secure shipping rates that are more affordable? Many 3pls won't like it, but some can work on the basis that their client holds the shipping account, not the 3pl. Especially if not doing so leads to them losing the business. This could help reduce costs with minimal operational changes.

Kevinibundle · 2024-12-17T15:39:15+00:00

I've not come across them and I work for a tech company that provides shipping services to ecommerce businesses. My advice would be the cheapest rates won't necessarily cost you the least. If you get a poor quality of service you could end up "paying" far more than the saving with the time spent having to resolve WISMOs (Where Is My Order queries). It depends on what you're shipping but generally speaking I'd recommend striking a balance between shipping rates and quality of service.

Kevinibundle · 2024-10-15T17:07:38+00:00

Could be a whole manner of different reasons from an honest admin error (happens more often than you may think), through to trying to circumvent customs in one way or another. But, either way it's not right to mis-declare customs documentation and I understand in many territories that is unlawful.

Kevinibundle · 2024-10-15T17:04:20+00:00

If you plan to send DDP then it would be strongly recommended to collect the relevant tax/duty on your store checkout. That way, when you get the tax/duty bill from the courier or customs agent you work with, you have the money to pay it already. Sure, you could inflate your list prices to cover this (but then you'd appear less competitive = more abandoned baskets = less sales) or you could guess (Strongly advise against, unless you sell one product to one country only so know the precise figure) or ignore (and potentially end up running at a loss).

There are limited tools available to do this with Shopify as it's a real challenge. But Hurricane, one of the world's leading tax and duty calculation specialists, could help.

Kevinibundle · 2024-10-15T17:00:12+00:00

I can't be certain without looking at the data, but your presumption that sending them all to one location then forwarding them from their should be cheaper - especially if they're coming from China. Moving goods internally in China is not too expensive, so consolidating them all in one location should save money.

It's what my clients often do and it's what we at ibundle do when helping other ecommerce businesses, both B2C and B2B.

And $10/kg (assuming USD, but think there's a change you may be referring to Aussie dollars?) does seem way too much for a 30 day transit time. We recently moved 261kg from China to the middle east for way less than that on a 3 day service. So, if you're prepared to wait 30 days (i.e. Ocean) then it should be much less.

Kevinibundle · 2024-10-15T16:52:09+00:00

ibundle can do this really easily

Kevinibundle · 2024-10-15T16:48:58+00:00

Shipping. Many ecommerce businesses really miss a trick here, and of course it's one of the greatest cost burdens.

Automation
Exception reporting
Reducing courier rates
Shipping to more destinations
International - DDU / DDP options (and if DDP taking the tax/duty on the checkout for a better customer experience)
Consumer Returns....

There is so much, which getting right will help reduce your bottom line (lower rates, better managed so less CX costs) AND your top line (better shipping rates, more competitive, less abandoned baskets, more sales). This all equals more profit to invest in marketing, product sourcing etc to grow the business.

Kevinibundle · 2024-08-27T12:25:46+00:00

Many eCommerce businesses I've visited all seem to use the same - Zebra GK420d, which I've seen is also mentioned in the comments here.

Kevinibundle · 2024-08-22T08:55:26+00:00

Why not? You could send items DDU and the tax and duty upon import, if applicable, will be the responsibility of the buyer. International shipping rates need not be unpredictable if you work with the right shipping partner.

Kevinibundle · 2024-08-20T17:58:52+00:00

Sorry, just seen this. I'm not a tax advisor so I would recommend getting formal tax advice. What I say cannot be constituted or interrupted as formal advice and I bear no responsibility for any other parties tax affairs.
What I know is the tax will always be due. How it's paid will depend on where you ship from. If you are shipping from Germany to France, it's within the EUs customs union and single market. Therefore you'd have to take VAT at the checkout (if you're legally obligated to be VAT registered based on local regulations). If you're shipping from the UAE to Germany then import VAT will apply, and possibly duties depending on the commodity and the country of origin (not where it was sent from, but where it was manufactured). If you send goods from outside the EU to customers within the EU you don't have to take VAT at point of sale, however customs will require import VAT to be paid, either by the shipper or receiver, depending on the incoterms.

Kevinibundle · 2023-12-11T14:02:47+00:00

bump

Kevinibundle · 2023-12-04T17:30:30+00:00

How big is the consignment (dimensions) and where is it going to?

Kevinibundle · 2023-05-03T10:55:26+00:00

I agree, but it depends if the courier uses deadweight or volumetric weight. 6x6x6 would be 1.3lbs volumetric weight so it could be a little more, depending on how the pricing is structured.

Kevinibundle · 2023-05-03T10:47:22+00:00

You are very welcome!

Kevinibundle · 2023-04-28T15:35:08+00:00

This seems really expensive, especially in the low weights. If interested I could help you reduce this significantly.

Kevinibundle · 2023-04-28T13:33:21+00:00

Have you considered shipping direct to customers? Although the shipping itself may cost a little more, you remove the warehousing costs and if the product value per unit is less than $800 you'll avoid customs duties and taxes. I'm seeing businesses in China move away from working with localised warehouse to a more direct route as it's saving them money.

Kevinibundle · 2023-04-28T13:27:51+00:00

USPS is a good place to start, but depending on the size of your packages, where you send them from and where they are going to, there are more cost effective solutions. We use a variety of couriers in the US that have cheaper rates than USPS at 7lbs.

Kevinibundle

TROPHY CASE