For international deliveries, there is specificity due to several factors:
- Higher shipping costs due to long distances and higher risks of transport by sea or air
- Increased number of permits that need to be obtained before shipment
- Special packaging requirements of the transport company
- Licenses or certificates of conformity to be obtained
- There are special requirements to process the transaction. All international shipments are checked by a special government service called “foreign economic activity”. If we do not execute the documents correctly or do not provide all documents for verification, we can get a very high penalty and ruin the reputation of the company
- A wide choice of companies who can transport goods. They offer different deadlines, but the price can be very high. Choosing the right transport company is important
- The cost of shipping one item at a time is reduced by organizing the delivery of a batch of goods. For wholesalers, shipping one unit for an order of 10 will be lower than shipping only 1 unit to the end user.
- Because of these factors it takes longer to arrange delivery. Therefore you should be prepared for a longer processing time.
All these points impose their own difficulty factor on the organisation of transport. But nevertheless, because of the low cost of goods produced in Russia, they will often cost less together with delivery than to produce them in another country.
The cost of international shipping is made up of the following components:
- We pay for the processing of customs documents. We pay for the work of special customs brokers as well as for the state duty to record the export application
- Customs duties on export of goods from the sender’s country
- The cost of transporting the goods by a transport company. Depends on the distance to the recipient’s address
- Customs duties in the recipient country for the importation of foreign goods. These duties may vary from country to country
- Value added tax. In some countries it also has to be paid. It is important that the recipient is prepared to pay the duties and VAT when the goods arrive at the border. Therefore, we ask the recipient to find out in advance from the customs office the amount of duty and VAT
It is important to understand that items 1 to 3 are paid for in advance by the buyer at 100% before dispatch. This value is stated on the invoice and on the contract. This settlement format is called FAS or FOB according to the international standard INCOTERMS.
And the fourth point is paid when the goods appear at the border in the consignee’s country, and the customs service carries out an inspection. It usually notifies the consignee of the goods and sends an invoice for the duty.
If the customer does not know the cost of the import duties in advance and is not prepared for the additional costs, he may refuse the goods. The goods will then be returned to the sender. In this case, we cannot refund the customer the full amount of the goods. We will have to deduct the cost of returning the goods and only return the balance.
We looked into several transport companies and found out the cost and conditions of international delivery.
- Large well-known companies, with an international network of partners: EMS, TNT (Fedex), DHL. The shipping costs of these companies are usually quite high.
- Small private companies that are close to the border and have their own transport. They usually offer more favourable terms and lower costs. But for each individual country, these may be different companies and you have to look for them. For example, shipping to Sweden or Finland is conveniently handled by this company.
- There is also another way to collect the shipment in person. This method is convenient for customers who are in Russia on holiday or for work. In this case, the payment must be made in Russian roubles according to Russian law. Or for example, you live close to Russian border and can come to Russia to pick up your shipment for 1 day. This is a more time-consuming way, but for some clients with experience, it might be more acceptable.
Of course, the size of the packaged goods as well as the weight have a direct impact on the shipping costs. We are constantly improving our products and working to reduce weight. But the dimensions are directly related to the dimensions of the components, which we cannot reduce without losing important features.
There are two important points on the subject of international shipping dimensions:
- Standardised transport pallet dimensions. The international standard is 120 x 80 cm. Anything that fits on a pallet with these dimensions is a standard size and can easily be built into the logistics chain when organising a consolidated shipment (different goods in one container or vehicle). Companies can deliver larger items, but if one of the dimensions exceeds 120 cm, then the cost of delivery rises sharply. Thus a shipment of 130 cm x 80 cm can be 1.5-2 times higher, despite the small difference.
- Some companies impose restrictions not only on the maximum size but also on the maximum weight of a single item. For example, the cheapest service EMS limits the weight of a single piece to 25-30kg, depending on the recipient’s country.
So far, we see that the best solution for shipping a single item is to split the set into 2-3 pieces (up to 25-30kg per piece) and send it by EMS :
- The cost of delivery is drastically reduced because EMS offers very favourable delivery terms. The cost will often be two to four times lower.
- But it may be necessary to assemble the goods from two boxes, and this work is the responsibility of the recipient. If the customer is prepared to assemble the two-box set himself, following our instructions, this will save a lot of money on delivery. It is important to discuss this in advance and be prepared to assemble it. Assembly is not complicated, taking 1-2 hours. We send enlarged units so the complexity is minimal. In addition, it is fun and exciting to assemble on your own.
- When we divide the goods into 2-3 boxes, they may arrive at different times with a slight delay (2-3 days). This is no big deal, but you have to be prepared for it.
To understand why we describe the process in such detail we need to compare the shipping costs of different companies. We have estimated the approximate delivery cost of the same shipment by different shipping companies. For the calculation we took a steel frame Surron kit – a load of 48 kg with dimensions of 120 x 45 x 60 cm for delivery from Russia (Samara city) to Canada.
These are the shipping costs for the different companies:
- EMS – $437 (2 parcels up to 24 kg)
- TNT – $1340 (1 parcel)
- DHL – $1345 (1 parcel)
You can check for yourself and see for yourself that the difference is 2.5 times and the benefit is obvious, so it’s “worth the effort”. Despite the fact that we divide the shipment into 2 parts (parcels) and pay for each one separately, the delivery cost is still lower than in other companies.
Payment for an international order can be made in several ways:
- Direct transfer to the seller’s account using bank details
- Payment via eBay or Alibaba platforms. On these platforms, the cost of delivery is already taken into account and there is a convenient and transparent payment and order control system.
Tell the manager which method is best for you.
We have already tested this delivery option via EMS. So far, all deliveries have been successful. We officially work with EMS on a contract basis. We can track the delivery status of each parcel using a special number. We provide tracking numbers to the recipients
If you have experience in organising deliveries to your country, we would be happy to hear from you. This will make it easier for you to organise the delivery. Also, if you know any special conditions or restrictions, please let us know as well.