Global reach is now easier than ever, meaning more and more businesses are selling internationally. When the world is your marketplace, you need to be prepared. From clearing customs to import fees and taxes, an e commerce brand will need to be proactive to avoid getting caught off-guard with additional fees.
There are few things that online shoppers hate more than having to pay extra at delivery after having already been charged at checkout.
It can be easy to get caught out given the constantly changing geopolitical landscape. For example, for goods arriving in the UK on or after 1 January 2021, the rules have changed, not only in respect of goods from EU countries – but also from non-EU countries. This is because as a consequence of leaving the EU, the UK now has the ability to agree the terms of trade with non-EU countries independently.
Now, whenever shoppers order items which are sent from outside the UK, in certain circumstances, they may have to pay some or all of the following after paying for their order, even if you’ve offered free shipping:
Direct injection is the process of consolidating multiple orders for the first leg of their journey overseas, after which they are “injected” into the destination country’s courier network for final delivery. By leveraging direct injection you can simply affix final destination labels for a seamless cross-border shipping process.
As direct injection involves order consolidation, which is the grouping together of individual orders, shipments going to the same destination save on costs and time as customs processes are reduced. You may also be eligible for tax advantages and duties exceptions when using Direct Injection.
Communicating customs and import costs early, or even incorporating them into your prices (changing by region), will give your customers peace of mind that the cost of the item they are paying for is the real cost that will eventually leave their wallet. Unforeseen costs is a huge deterrent in customers repeating purchases from your brand. This leads to loss of faith from your customers and subsequently an erosion of trust in your brand.
Working with a 3PL that has multiple locations across the globe also helps to keep goods locally, and greatly reduces import and customs charges. By keeping inventory locally in customs bonded warehouses you’re also only paying duties as and when orders are purchased, rather than all at once when your goods enter the country. Borderless360 has a global network of warehouses, ensuring customs charges are kept to a minimum, reducing your costs.
