Selling products online. There has never been a better time to start. In the previous article, we spoke about finding suppliers and things you should be aware of when purchasing physical stock. We advise highly that you read that article before you read this one because it will surely clear up a lot of things and make things a whole lot easier for you.
In this article, we are going to talk about the steps you need to take when shipping the item to you and the steps you need to take when shipping your goods to your customer. Essentially this article is going to be about shipping. The reason why because shipping is what can make or break an e-commerce store and you need to take it seriously if you want to get anywhere with your online store.
Shipping can be a pain if you don’t know what you are doing. It can also be extremely expensive if done wrong and yes it is a tedious job at first. However, after this, you will know how to not only save money when shipping but also valuable time which is even more important. You need to know about what taxes you need to pay, the customs fees, the laws, etc oh and most of all policies.
But let’s start with actually getting the product to you first.
Shipping The Product to Yourself First
This is the first thing you have to do. Get the product to your warehouse, living room, garage, etc. This can be a costly and complex process especially when you do this for the first time. Here are some things you must read up on before you consider shipping anything
- Custom Charges.
- State Taxes, VAT, etc.
- EORI Number (Europe)
- Importer Number (USA)
- Storage Space
- Time of The Year (Chinese New Year Holidays have delays)
- The Shipment Size
- If They Are Allowed INto Your Country
- Any Licenses Required
- Business Bank Account Set Up
- The Minimum Order Quantity
- Shipping Agents
These are all things you need to research yourself as it varies from country and state. However, you need to be confident that you know about what you need before you even consider importing your goods. Can you afford it? Is it profitable? The best way to find all of these is to check your local government’s website in your state or country. You can also connect with those on forums. Linkedin, Facebook, or even local businesses about what rules or regulations you need to follow and what papers, licenses, etc you need to legally ship your goods into the desired country.
Alternatively, you can ship to a fulfillment center that will assist you in dealing with the needed taxes, etc. You can also contact a shipping agent. However, be careful who your shipping agent is because some can be an absolute scam.
To find a perfect shipping agent you need to ask them:
- Are you regulated at all?
- How Long Is Your Experience? (Don’t go with anyone who is under 3 years)
- What is Your License(s) Number
- Who Else Do You Act For?
- Are You Aware Of the (insert your country/state) Laws, Taxes, and Customs?
- Do You Know The Fastest/Cheapest Shipping Methods? (research these after they have answered them)
- Where Are You based (Usually Shanghai or Shenzen etc)
- What Is Your English Like?
- Have You Dealt With Western Clients Before?
- What Are Your Reviews Like? (at least 4.5 stars)
- Can You do Factory Audits?
Most shipping agents will be Chinese. There is no issue with this but be wary that you really have no protection from getting ripped off if you live in a Western country such as the US unless it is serious, then you can go to court. You need to make sure that they are reliable and you need to interview each one thoroughly. Do not just choose the cheapest or the friendliest. Choose the one who gets the job done properly.
A shipping agent will help you get faster shipping, better shipping rates will help you pay the customs and will be there to advise you on what to do if you have any issues, etc. They do cost and no they are not always needed. Most suppliers have their own agent they work with or they use a large international agency such as TNT.
You can find a shipping agent on:
- ChinaBrands
- AliExpress
- Alibaba
- Forums for Business
Be wary of taxes. It is different in each state or country. The tax and customs are calculated on the value of goods and the shipping price added together. Do not whatever you do try to lie about the content value by getting your supplier to write a smaller number. This is tax evasion and long-term you will get into trouble with people like the IRS, HMRC, etc. Keep things legal.
Make sure your goods are tracked. Things are usually sent by air however, they sometimes will be shipped. If they are sent by sea you need to remember to pay for:
- Storage Costs
- Handling Costs
- Pickup/Delivery Costs
- Paperwork Fees
- Any Other Fees That Arise
- Customs, Taxes, and Clearance
You CANNOT collect your goods until everything is paid off at the border. That is the law and no there are no special gateways for you.
There is an option for door-to-door shipping whereby the large shipping agent will clear things for you (you have to re-pay them after a month or so). The delivery costs may be higher or lower depending on the package size. The items are usually air-shipped in this case and you do not have to collect them from any border whatsoever. How simple is this? Just ask your supplier first as sometimes it can shoot high up in value.
Never ever put down a false value by the way on any documents for your goods and also make sure they are insured when you are taking them over. The reason why because if anything happens to them, the insurance will cover the WRITTEN value, and if that value is lower than what your goods are worth then guess what happens? You will be paid that amount. So do not try to avoid paying taxes and fees because you will regret it in the long run.
Logistics For Sending To Your Customers
The goods have arrived. Before you send them out check the quality, packaging, etc. Make sure everything is up to scratch and whatever you do, make sure everything is to your standard before you tell your supplier you accept the goods. If you reject the goods they have to pay you the money back especially if you paid via Paypal or Alipay. Do not just accept the goods prior to inspection.
Sending your goods out to customers can be hard. But to make things simple you can do these two things.
- Set up a business account with a company like FedEx or USPost so that rates are cheaper because you send more things
- Send your items to a fulfillment center and have them do the leg work.
Do not try even sending your goods via normal mail. It costs an arm and a leg. Instead, apply for a business account with a reputable shipping company. To do this simply visit their website, find the part where it says “for business” and then you need to click that. Once clicked you need to either fill out an online form or call the business customer service number for that company.
To get business rates very easily you need to lie a little. Overexagarte how much stock you are going to send out and how much stock you have. Go over the top with future plans, etc. Make sure though that insurance and protection, as well as tracking, is always included. Also, make sure delivery is within a day or two.
Make sure logistics are set perfectly. make sure you have set days when packages will be going out. make sure your shipping policy on your website clearly states the handling time, the shipping time, etc. These are vital just in case regulators like the Better Business Bureau (BBB) get involved. Make sure the shipping policy is legal and not nonsense. Include your handling time, average shipping time, tracking links, etc in there. Do not include nonsense.
Also, you are not responsible for paying your customer’s taxes or customs fees. You cannot calculate this into your pricing therefore, it is their issue. Make sure you state this in your shipping policy.
The logistics are what makes or breaks a business. Make sure you are organized and that if you are using a fulfillment center you are sending out the order Excel (spreadsheet) files each day. Make sure to tell your customers too on the packaging, product pages, or in shipping policy that if their product is broken upon arrival, they need to reject it from the delivery company. This saves hassle, time, and money for you and them.
You Can Find Fulfilment Centres On:
- Forums
- Domestic Supplier Websites
Featured image credits via: absfulfilment.com