What are forwarders and forwarding
Forwarder is a specialized intermediary in international delivery. Forwarding is one of the types of services for the transportation of parcels from the sending side to the recipient when using virtual (intermediate ) addresses. According to this principle, the purchase of goods is made. To purchase a product, you need an address that the company can serve. Often this service is used when buying any product in online stores in other countries. When placing an order on Amazon, you do not indicate your shipping address, but the address of the forwarder located in the United States. Thus, the agent receives the goods and then forwards it to the customer.
Since, directly ordering delivery to Ukraine from foreign online stores, you often have to overpay. And sometimes foreign sellers do not provide delivery services to Ukraine at all. In such cases, forwarding companies help solve each of these problems.
It is necessary to understand what is included in the payment for forwarders’ services. After all, when ordering any product abroad, you must pay customs duties. A forwarder can provide a similar service when filling out a customs declaration or repackaging goods. This may affect customs fees.
The goods crossing the border of our state takes place in the following sequence:
- Stopping the parcel at customs.
- Assessment of the cost of goods, if the price is higher than the limit of duty-free import of one and a half hundred euros, then the excess amount is charged 10% duty + 20% VAT + additional excise tax (for certain types of goods).
The determination of the value of the goods by the customs service may not coincide with the client’s expectations. Sometimes there are difficulties in paying customs duties. In such cases, it will be appropriate to keep the documents confirming the value of the goods.
Benefits of Forwarding Company Services
The benefit of contacting forwarders is checking for authenticity and originality before delivery. And the opportunity to purchase a wider range of goods, seasonal and massive discounts.
Also often in online stores of other countries it is initially cheaper than the same products in Ukraine. For example, branded items of clothing and accessories. This is especially beneficial when ordering a mass market of goods with a total value of up to $ 200. Indeed, in this case, it will not be necessary to pay for the disinhibition. Thus, when summing the original cost and forwarder services, the product will cost less than the same product purchased in the local store of this brand.
If the brand or company you really need is not distributing your goods in Ukraine, then forwarding companies are the most convenient option for you to purchase and deliver goods.
Disadvantages and competition with small online businesses
First of all, forwarder services simplify the process of purchasing foreign goods. More people are choosing to order themselves rather than ordering from an online import store. The disadvantage of forwarding services is the time it takes to receive the goods. If you need a product urgently, then ordering is not the best solution.
Also a number of potential customers assess the minimum risks and prefer to see the product. But also measure, test and overpay for it by making a purchase on the spot.
Types of goods favorable for forwarding
- Adult and children’s clothing.
- Electronic devices.
- Docker items.
This is few products in which forwarding will be relevant and beneficial for the customer. The forwarder must provide the services specified in the contract.