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 carried out when an address that can be served by the company is required to purchase this product. Often, such a service is used when buying any product in online stores in other countries. When placing an order on Amazon, you do not indicate your delivery address, but the address of a 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.
When choosing the services of a forwarding company, you need to understand what is included in the payment for the services of forwarders. After all, when ordering any product abroad, you must pay customs fees. The forwarder can provide a similar service when filling out a customs declaration or repackaging goods, which may affect the customs duty.
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).
Since the determination of the value of the goods of the customs service may not coincide with the expectations of the client, sometimes difficulties arise in the payment of customs duties. In such cases, it will be appropriate to keep documents that will confirm the value of the goods.
Benefits of Forwarding Company Services
The main benefit of contacting forwarders is that they check 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
Forwarder services simplify the process of acquiring foreign goods and more and more people choose to make an order themselves than order in an online store of imported goods. However, in a number of disadvantages of forwarding services, it is worth indicating the time spent on receiving the goods. If you need the goods urgently, then ordering goods abroad and using the services of a forwarding company is not the best solution.
Also, a number of potential customers assesses the minimal risks and prefers to see the goods, measure, test and overpay for this by making a purchase on the spot.
Types of goods favorable for forwarding
- Adult and children’s clothing.
- Electronic devices.
- Docker items.
Here is just a small list of products in which a service such as forwarding will be relevant and beneficial to the customer. And the main thing to remember is that the forwarder must provide the services specified in the contract.