**Please remember to rate and review the podcast – it really helps others to find it.**

Simon Arnold joins us from Unity Logistics – a UK based freight forwarding company specialising in shipping goods internationally to and from the UK, including importing and delivering goods directly to Amazon warehouses in the UK (or wherever required) on behalf of Amazon sellers.

READ THE BLOG POST FOR THIS EPISODE

Listen in to hear Simon share:

  • What we mean when we talk about shipping and what a freight forwarder does (1:50)
  • What Incoterms are and what each one means to you as a buyer (4:01)
  • The importance of ensuring you’re receiving and comparing supplier quotes based on the same shipping terms (7:28)
  • How to work out which terms might be best for you (9:52)
  • How to know if you’re being quoted accurately (12:44)
  • Why DDP shipping might not be best (14:31)
  • Why it’s worth insuring your products during transit (22:14)
  • How to work out what import charges and VAT you’ll pay – plus who pays and when (23:14)
  • Why you need an EORI number (26:54)
  • The different modes of transport you can choose for shipping your products (28:19)
  • What you need to get an accurate quote from a freight forwarder (32:37)
  • Using a freight forwarder versus asking your supplier to handle your shipping (36:14)
  • What you need to be aware of if you’re planning on sending products into Amazon FBA (39:52)
  • The top (quick!) things you need to know if this is your first shipment (47:40)

USEFUL RESOURCES:

Unity Logistics website

Get an EORI number

Read the blog post for this episode

LET’S CONNECT

Find me on Instagram

Work with me

Transcript
Speaker:

Welcome to the, bring your product ideas to life podcast,

Speaker:

practical advice, and inspiration to help you create and sell

Speaker:

your own physical products. Here's your host Vicki Weinberg.

Speaker:

Before we start, I'd just like to say that this

Speaker:

week's interview with did have a few problems with background

Speaker:

noise. I apologize for that. And I really hope it

Speaker:

doesn't affect your enjoyment of the episode. Hi, say I

Speaker:

get asked a lot of questions about shipping and I

Speaker:

thought it was really about time that we spoke to

Speaker:

an expert about this. So today I have Simon Arnold

Speaker:

from Unity logistics. Aren't seeing all your and mine. If

Speaker:

I'm honest shipping questions, unity logistics are UK based freight

Speaker:

forwarding company, specializing in shipping goods internationally to inform the

Speaker:

UK, including importing and delivering goods directly to Amazon warehouses

Speaker:

in the UK or wherever required on behalf of sellers.

Speaker:

So this is a great introduction to all things shipping.

Speaker:

Even if you've been in business for a while, maybe

Speaker:

you are already selling your own products. Maybe you've already

Speaker:

managed a couple of shipments. I still think there's something

Speaker:

to learn here. I certainly learned a few things from

Speaker:

this conversation and I've definitely been doing this awhile. We

Speaker:

cover a lot of ground, so it might be an

Speaker:

idea to take some notes or perhaps you might need

Speaker:

to listen to this episode more than once because it's

Speaker:

quite detailed. And there's also a blog page for this

Speaker:

episode, which you can get at blog.tinychipmunk.com. If you prefer

Speaker:

to be able to go and refer to that as

Speaker:

well. So I won't make you wait any longer. Here's

Speaker:

Simon. So hi Simon. Thanks so much beam here.

Speaker:

Hello.

Speaker:

Hi. So can you start by please telling us about

Speaker:

yourself and your business?

Speaker:

Yeah, so I own a small freight forwarding company called

Speaker:

Unity Logistics. What we do is we basically help people

Speaker:

to arrange shipments, so in, from wherever around the world,

Speaker:

but we specialize really and, and shipments that are to,

Speaker:

or from the UK and whatever people need. We, we

Speaker:

look for solutions basically.

Speaker:

Perfect. Thank you. I know I've invited you here today

Speaker:

to talk about shipping, which is a massive subject. I

Speaker:

know. And so we're going to keep this conversation really

Speaker:

aimed at absolute beginners or people who are perhaps working

Speaker:

on their first or maybe second shipment, or perhaps aren't

Speaker:

even there yet. We'd like to know a bit more

Speaker:

about the process. So first of all, I guess it's

Speaker:

be good if we can clarify. So what do we

Speaker:

mean when we talk about shipping?

Speaker:

I guess most people will come to this or to

Speaker:

this point, if they're new and starting out, when they

Speaker:

have an idea about what they want to sell, that

Speaker:

they found, maybe they found a product that they want

Speaker:

to sell and they, they found, they found someone that

Speaker:

can buy the goods from, and then it's the next

Speaker:

point in the chain. Okay. So now I found a

Speaker:

supplier and now I found what products I want to

Speaker:

buy and I can going to start finalizing things on

Speaker:

that front. How am I actually going to get these

Speaker:

goods to where I need them to go? And there's

Speaker:

quite a lot of disquiet, lots of processes that actually

Speaker:

take place within the international shipments. And I think this

Speaker:

is where some people become a little bit confused and

Speaker:

unstuck where there's not actually a lot of information out

Speaker:

there, but a lot of people do then tend to

Speaker:

rely on, on someone like ourselves, a freight forward to

Speaker:

take care of it for them.

Speaker:

Yeah. Thank you. And absolutely, there's definitely a lot that

Speaker:

goes into it. And I thought the first thing we

Speaker:

might talk about if that's okay, because I think it

Speaker:

makes sense is that is the Inco terms and what

Speaker:

that means and what they are. So I know that

Speaker:

say, let's say you're sourcing from abroad. Generally you'll get

Speaker:

quoted either ex works or fees on board by your

Speaker:

supplier. That's certainly been my experience. Can you talk a

Speaker:

little bit about the difference between these, these two terms

Speaker:

for people who, you know, might have seen this on

Speaker:

their quote for example, but don't actually understand what it

Speaker:

means.

Speaker:

Okay. Yeah. So very simply the, the Inco terms, it's

Speaker:

an abbreviation international commercial terms and that, that basically sets

Speaker:

out as a legal basis so that you, as the,

Speaker:

presumably the buyer and your supplier, as the seller, you

Speaker:

can distinguish very black and white, who was responsible for

Speaker:

what aspects of the shipping process, whose, whose risk is

Speaker:

it at which parts in the shipping process and who

Speaker:

is also paying for which costs in the shipping process.

Speaker:

If you, if you were to expand it out, EX

Speaker:

works is like one end of the spectrum where the

Speaker:

buyer is responsible for absolutely everything door to door, all

Speaker:

the risks, all the costs, no exceptions fob

Speaker:

That EX works. Does that, is that from the moment

Speaker:

the goods leave the factory. So they leave the factory

Speaker:

door.

Speaker:

Yeah. So even the extent of, if, if you agreed

Speaker:

the terms EX works with your supplier, even from the

Speaker:

point that your supplier is loading those goods on to

Speaker:

a collection vehicle, you as the buyer are responsible, should

Speaker:

something happens to those goods at that point in time.

Speaker:

Really?

Speaker:

It's very unlike. Yeah, it's very likely, but that is

Speaker:

strictly speaking. What, what the points at which you would

Speaker:

become responsible fob Fob it would be somewhere, a little

Speaker:

more in the middle where the, the seller, your supplier

Speaker:

would be responsible for submitting the export customs clearance in

Speaker:

China, presumably, or whatever country they're going to come in

Speaker:

from. And they're also responsible for delivering the goods to

Speaker:

the, the port of exports, which you would presumably have

Speaker:

pretty agreed with them. And when we say port, in

Speaker:

most cases, we, we possibly don't mean a physical port

Speaker:

or instead, probably our bear house in the vicinity of

Speaker:

that port, when maybe they all collate goods to consolidate,

Speaker:

to ship them all off together before, before they'd reached

Speaker:

the ports of exports.

Speaker:

Okay. That makes sense. And from that warehouse, the freight

Speaker:

forwarder would be, would them be the one responsible for

Speaker:

not necessarily accountable, but responsible for taking those goods and

Speaker:

moving them to wherever they need to go? Is that

Speaker:

how it works?

Speaker:

Yeah, essentially. So it's with the fob shipments, how it

Speaker:

typically works is we w we would instruct our, our

Speaker:

agents in the, in the country that the goods are

Speaker:

coming from and say, look, there's a shipment. Is it

Speaker:

should be ready to go around this date. The buyer

Speaker:

and seller have agreed the terms fob, and this ports,

Speaker:

can you, can you get in touch with a supplier,

Speaker:

just check the details, check with them when it's ready,

Speaker:

and then tell them where they need to deliver the

Speaker:

goods to, and by what dates, and then we will

Speaker:

pick it up from there on if you like. So

Speaker:

once the suppliers deliver the stuff to our agent's warehouse,

Speaker:

then we'll oversee it from there on that's.

Speaker:

That's generally how, how it works, put the that's, where

Speaker:

the costs transfer and the risks transfer that over to

Speaker:

the buyer should something happen. So those goods during transit,

Speaker:

Thank you. And also as if you're, when you're the

Speaker:

buyer of the products, I think it's also where people

Speaker:

knowing that, depending on what terms your supply equates you

Speaker:

on, they'll give you a different price as well. Because

Speaker:

generally, if you ask EX work terms, they're slightly cheaper.

Speaker:

It might not be March, but in general, the prices

Speaker:

will differ not for the shipping, but for the product

Speaker:

itself.

Speaker:

The only thing I think that happens that I really

Speaker:

is, if they can quote you a cheaper price, because

Speaker:

they're not paying for any shipping costs, but rather than

Speaker:

itemize it outwards, I think what they tend to do

Speaker:

is they'll, they'll factor in a cost. If they give

Speaker:

you like an fob price, they'll say, look, it's more

Speaker:

expensive for the product, but they're building in a cost

Speaker:

into that for the cost that it's going to, that

Speaker:

they will incur for submitting the, the customs clearance for

Speaker:

delivering the goods to the port.

Speaker:

Absolutely. I just wanted to make that clear for people,

Speaker:

because if you're getting quite some multiple suppliers, you just

Speaker:

want to be sure that all of them are quoting

Speaker:

you on the same terms, because otherwise you're not really

Speaker:

comparing, like, like for like, so I just wanted to

Speaker:

highlight that for people. And are those the only terms

Speaker:

available or are they the most, just the most common

Speaker:

ones?

Speaker:

The two of the most common ones, there are, there

Speaker:

are other terms just this year, there's been a new

Speaker:

batch released every 10 years. The international chamber of commerce

Speaker:

will update them, but typically they only make minor changes.

Speaker:

Those are two of the most common ones. The other

Speaker:

one you come a lot of the time is DDP,

Speaker:

which is the opposite. And two acts works is the

Speaker:

complete opposite where now the seller of the gods is

Speaker:

responsible for absolutely everything door to door. Instead, lots of

Speaker:

people take this option initially because they think it's the

Speaker:

easy option, but there are risks and drawbacks associated with

Speaker:

that, that, but there are, there are other ones each

Speaker:

with their own each with their own merits and risks,

Speaker:

but the safer ones, I would say for new people

Speaker:

starting out would be either the EX works or the

Speaker:

fob.

Speaker:

Thank you. And we'll come into DDP. We'll talk about

Speaker:

that a little bit more in a moment, because I

Speaker:

know that when we've spoken before this interview, you've mentioned

Speaker:

that might not always be the best option for people,

Speaker:

but when it comes to EX works and fob, do

Speaker:

you have any thoughts on, you know, which might be

Speaker:

best for someone starting out first shipment? Or is there

Speaker:

not much in it?

Speaker:

There's probably not much in it. It probably comes down

Speaker:

to preference. So some suppliers will have a preference. So

Speaker:

maybe they're happy. They're more happy to agree to one

Speaker:

term than the other. They might have their own reasons

Speaker:

that they don't wish to agree to a certain term,

Speaker:

but there's, there's really not too much in, it makes

Speaker:

no words towards certainly. I mean, we, we really just

Speaker:

act on, on the instruction of what, what a buyer

Speaker:

has agreed with SLA, but there's really not much in

Speaker:

it. If it, if it's, if it's EX works, essentially

Speaker:

you could go to a freight forwarder and say, look,

Speaker:

can you just quote me all the costs door to

Speaker:

door? And that's quite often what happens.

Speaker:

And if it's fob, it's, we'll look at we've agreed,

Speaker:

FOB, Shanghai, port terms, can you just quote me all

Speaker:

the costs from Shanghai port to door in the UK

Speaker:

or, or wherever.

Speaker:

Thank you. And it looks like depending on which terms

Speaker:

you choose different people are liable for different costs of

Speaker:

example. If you use fob, the seller is liable for

Speaker:

paying the export fees. So who pays the fees, the

Speaker:

various fees. And when I think it's something that people

Speaker:

need to know about

Speaker:

Okay, well, ultimately as the buyer, you will be paying

Speaker:

all of the fees. The dis the distinction is where

Speaker:

those, how those fees are split. So if you imagine

Speaker:

that, if you mentioned that a door to door shipment,

Speaker:

hypothetically costs 500 pounds. So whether the seller arranges that,

Speaker:

or the buyer of ranges that you imagine that give

Speaker:

or take a little bit of fluctuation, you imagine that's

Speaker:

like a true cost. If you agreed something in the

Speaker:

middle, let's say fob, then maybe the, maybe the seller

Speaker:

of the goods will incur 150 pounds. Maybe the buyer

Speaker:

will then incur sort of 350 pounds from their side,

Speaker:

from their freight forwarder, but the seller of the goods,

Speaker:

is going, to charge that 150 pounds onto the buyer,

Speaker:

they'll include it in their, in their costings.

Speaker:

When they, when they quote an ex works price or

Speaker:

an fob price they'll account they'll account for some of

Speaker:

that cost. So you've got to, you've potentially got two

Speaker:

different payments terms. And most, in most cases, the sellers

Speaker:

will, will want payment up front before they release the

Speaker:

goods. So when you pay for the goods, you then

Speaker:

also pay for any aspects of the shipping price that

Speaker:

they are covering. But we, as a company on the

Speaker:

imports, we tend to charge our freight charges when the

Speaker:

freight arrives or around the time the freight arrives into

Speaker:

the ends of the country.

Speaker:

Perfect. Thank you. So it looks like whatever, whatever terms

Speaker:

you agree on, you're going to be paying roughly the

Speaker:

same amount for the shipping. It just might, you know,

Speaker:

is who you're paying it to, that will differ, but

Speaker:

the amount should be roughly the same.

Speaker:

Yeah. Yes, you should be. You should be. If people

Speaker:

do, if people are doing things properly, then there should

Speaker:

be a true cost. And there shouldn't be too much

Speaker:

fluctuation in that price. But we do find sometimes, and

Speaker:

they don't do things properly, and the challenge has become

Speaker:

a bit distorted and it can look all of a

Speaker:

sudden, like they're charging a much cheaper rate initially. Maybe

Speaker:

it will work out more expensive in the, in the

Speaker:

long run, or maybe they're doing something fraudulent.

Speaker:

What would an example of, of that be and how

Speaker:

come it can be? Is there something we can look

Speaker:

out for?

Speaker:

Yeah. So the key thing is for people to really

Speaker:

do that diligence and get a, you get a feel

Speaker:

from speaking to people, how sort of genuine and honest

Speaker:

they are about doing business. I mean, this is, you're

Speaker:

trying to do diligence on people in say, China, it's

Speaker:

very, it's very difficult other than speaking to them and

Speaker:

getting a feel for the response. Do they answer your

Speaker:

questions to the answer them thoroughly to your satisfaction or

Speaker:

the sorts of skirting around things or they leave? Do

Speaker:

you have a couple of question marks? Just a bit

Speaker:

of a feeling that I'm not quite sure what the

Speaker:

saying makes sense. It doesn't, some things doesn't tie up,

Speaker:

but in most cases probably, probably because something, something doesn't,

Speaker:

but DDP is one of these that it comes up

Speaker:

all the time, but it, it can be a real

Speaker:

trap for people because the S the, the seller can

Speaker:

essentially hide what they're doing with the paperwork.

Speaker:

And in doing that, they can under declare the value

Speaker:

of goods, or they could miss the cloud them, or

Speaker:

they could perhaps ship them in, in a way that

Speaker:

they're not supposed to. Maybe they amalgamate your shipment with

Speaker:

other people's shipments onto a single sets of documents, which

Speaker:

they're not supposed to, which they're not supposed to do,

Speaker:

or because you can't see what's going on, they could

Speaker:

be taking huge shortcuts that save costs, but could come

Speaker:

back as a risk to you later on.

Speaker:

That's really interesting. Thank you. And I know that lots

Speaker:

of people do including myself for the first shipment I

Speaker:

ever did. I used DDP because I was just a

Speaker:

little bit unsure about shipping. It seemed scary, and it

Speaker:

seemed easier for someone to handle the whole process. But

Speaker:

what I quickly realized is that in doing that, I

Speaker:

had no control over the process because I couldn't track

Speaker:

my ship. Then I didn't really know where it was.

Speaker:

And I was just relying on the supplier telling me

Speaker:

what has happened. And there were huge delays. And I

Speaker:

had just to take their word for why there was

Speaker:

a delay, but ultimately, I don't really know what actually

Speaker:

happened. And as you say, you don't really know what's

Speaker:

been declared at customs if you've paid the right amount

Speaker:

of tax.

Speaker:

And I'm assuming this all can come back on you

Speaker:

at some point down the line.

Speaker:

Yeah. Yeah. And that that's basically it. I mean, in

Speaker:

the short term, most people will be fine. It's, it's

Speaker:

very unlikely really that it would ever come back to

Speaker:

you boards if it did, it's the cost of that,

Speaker:

or the risks of that could be quite severe. So,

Speaker:

I mean, HMRC concern up on your doorstep in four

Speaker:

or five years time and request to see audit trails

Speaker:

and documents. Okay. You've been importing as products. Let's see

Speaker:

your paperwork, let's see your people at trail. Let's see

Speaker:

your customs documents. Maybe you go back to your suppliers,

Speaker:

even, even for recent shipments and then say, well, can

Speaker:

I, can you send me the customs documents in more

Speaker:

often, most cases, or more often than not. When people

Speaker:

will ship on DDP terms, these customs documents never present

Speaker:

themselves.

Speaker:

They always find a reason to not give you them.

Speaker:

But then customs have a right to say, well, brought

Speaker:

this stuff in. You can't prove that you've paid the

Speaker:

tax on it. So we are going to charge you

Speaker:

the tax on it. Now they could come back for

Speaker:

it retrospectively, or maybe they sort of deemed that the,

Speaker:

what you've paid for the products and the price that's

Speaker:

been declared to customs are two different prices. So maybe

Speaker:

they are, could also think that you've underpaid tax or

Speaker:

that the Chinese have under declared it underpaid tax, but

Speaker:

it might be you that they come to, to, to

Speaker:

foot that bill,

Speaker:

They don't really care. Who's underpaid or who hasn't paid.

Speaker:

Ultimately, if you're, you know, if it's your product, your

Speaker:

name's on it, it's going to be you. They come

Speaker:

to for any money, they feel they're right.

Speaker:

Yeah. That's basically it. But it's, it gets into a

Speaker:

bit of a minefield and a bit of a gray

Speaker:

area, because, because you can't see what has been declared

Speaker:

on the customs documents. If you can't see what's been

Speaker:

declared you don't, you've just got no idea what they've

Speaker:

done. You don't know what information they've put on the

Speaker:

customs entry, and you don't know how that might or

Speaker:

might not look so customs if they were ever to,

Speaker:

to check it through. But certainly if they came to

Speaker:

you and said, well, can you produce some kind of

Speaker:

an audit trail or some kind of customs documents? And,

Speaker:

and you said, no, I haven't, I haven't got any,

Speaker:

they wouldn't take very kindly to it because you're obliged

Speaker:

to, as, as an importer, you're bringing stuff into the

Speaker:

country. You're obliged to keep level of records for compliance.

Speaker:

If sometimes what will happen is the goods will be

Speaker:

declared against another importers details.

Speaker:

In which case you could argue, well, maybe that would

Speaker:

never come back to me, but you can't know that

Speaker:

with certainty because something could in some way be tied

Speaker:

back to you. I mean, if the stuff's been delivered

Speaker:

to you, maybe it's been put through on another company's

Speaker:

import registration number. Again, that's something that they wouldn't take

Speaker:

kindly to. They D they don't take ignorance as an

Speaker:

excuse for it. They expect you to know what's going

Speaker:

on, and that it's been done properly. It's just that

Speaker:

DDP one, really, if I think any other raincoats, then

Speaker:

at least you get transparency over those customs documents and

Speaker:

you see, and if you've got a query, you can

Speaker:

ask, you can say, well, what does this mean? What

Speaker:

does that mean? You'll you could do your own research

Speaker:

on the information that's in there, and you can just

Speaker:

come to an understanding or speak to someone or a

Speaker:

freight forwarder, right?

Speaker:

I'd be more than happy to answer questions about it.

Speaker:

It's not the easiest topic. It's not the most interesting

Speaker:

either. I know lots of people kind of just want

Speaker:

to get on with doing what they're good at. I

Speaker:

guess that's kind of where, where we come in. Cause

Speaker:

we'd like that outsource logistics, where you've got a logistics

Speaker:

question, you can ask us and we'll, we'll give you

Speaker:

our advice or our opinion. And I don't, I don't,

Speaker:

I wouldn't want people to feel too bogged down by

Speaker:

it necessarily. It's not anything to be afraid of. It.

Speaker:

It's just about being diligent. And if you can avoid

Speaker:

some simple errors and mistakes that sometimes people make at

Speaker:

the beginning, it should make your life a lot easier.

Speaker:

And in the long run.

Speaker:

So as well as maybe perhaps using DDP shipping, or

Speaker:

maybe not getting ahold of the customs documents, what are

Speaker:

some of the other areas that you see people making

Speaker:

when they're first starting out with them?

Speaker:

There's another ring concern that there's a bit of a

Speaker:

snag with the sea freight shipments, which is, is CFR

Speaker:

or CIF. But essentially when they let the seller of

Speaker:

the goods, ship them up to the UK ports only

Speaker:

that sometimes catches people out because they could challenge you.

Speaker:

They could charge you a very low price, but what

Speaker:

they haven't told you is what charges you're going to

Speaker:

be landed with when the stuff arrives into the UK.

Speaker:

But by the time that they've got your goods into

Speaker:

their control, you then have no, no wiggle room or

Speaker:

argument with them over what costs will be charged when

Speaker:

the freight does arrive into the, into the country. So

Speaker:

there'd be, there'd be a UK agent who's assigned to

Speaker:

take control of the goods once it arrives. And they

Speaker:

could literally just sort of turn up to you and

Speaker:

say, I've got your stuff.

Speaker:

And this is how much it's going to be to

Speaker:

release it. That's when people sometimes get stung, because yes,

Speaker:

they've only paid a hundred pounds or 50 pounds or

Speaker:

whatever, to get the stuff to the UK. Then the

Speaker:

stuff arrives. And the UK agent says, okay, it's going

Speaker:

to be 700 pounds to release it. And now you've

Speaker:

overpaid because how'd, you have shipped it door to door.

Speaker:

It might've been cheaper much cheaper than just, just what

Speaker:

you've been charged on the UK charges. Yeah. So that's

Speaker:

one that people, people sometimes get caught out with. And

Speaker:

that's what I, as another reason why the EX works

Speaker:

and the fob. So goods, because you, you have control

Speaker:

over those costs. There's no, those costs are already predetermined.

Speaker:

You know what they are, and there isn't an opportunity

Speaker:

anywhere for anyone.

Speaker:

So to hit you with extra fees or extra illegitimate

Speaker:

fees

Speaker:

In terms of extra fees, I mean, I assume there

Speaker:

are, well, I know that are legitimate fees. You need

Speaker:

to pay when your goods reached the UK., let's talk

Speaker:

about shipping to the UK as an example. So what

Speaker:

are those costs? What are the things that you would

Speaker:

have to pay once your goods get off the boat

Speaker:

or the plane and arrive in the UK? And I

Speaker:

know we can't talk about the actual costs, but what

Speaker:

are the fees that people need to just be aware

Speaker:

of?

Speaker:

Depends. I mean, if you've got surprised that it's door

Speaker:

to door or FOB, those costs are all sorts of

Speaker:

included. But what we quite often do is bundle lots

Speaker:

of small costs into, into one to keep it simple

Speaker:

for people. But really that is obviously made up of

Speaker:

you break it's out. It was lots of small costs

Speaker:

involved. It depends what level of detail you wants to

Speaker:

go into it, really. But in essence, once the goods

Speaker:

arrive, there's some handling costs of getting that container off

Speaker:

the vessel. There's some documentation fees, there's some handling fees.

Speaker:

If it's, if it's a group of shipment, there's a,

Speaker:

there's a few more hundred aunties because a company has

Speaker:

got to physically take your stuff out of a container,

Speaker:

probably palletize it. And then there's a, like an onward

Speaker:

delivery fee to wherever you want the goods to go.

Speaker:

And an import customs clearance fee and whatever taxes that

Speaker:

might need to be paid.

Speaker:

Thank you. But if you are using a forwarder, it's

Speaker:

maybe your goods, presumably you're going to get one cost

Speaker:

that with all of these fees included.

Speaker:

Yeah. That's generally how it, how it works. And then

Speaker:

there's, there's a few main optional extras. So maybe, maybe

Speaker:

people need a tail lift delivery, or maybe people want

Speaker:

insurance on the shipments. So we would usually give one

Speaker:

bundle then cost and then say, look, if you do

Speaker:

want insurance, it's this much extra. If you do need

Speaker:

a tail lift delivery, it's this much extra, and you

Speaker:

can add those on as you need

Speaker:

is insurance, something you recommend people take out, ?

Speaker:

Oh, a hundred percent. If something happened and you don't

Speaker:

have an insurance policy, what you'd be entitled to claim

Speaker:

against what your losses were. It would be very little,

Speaker:

but if you have the insurance, you could claim up

Speaker:

to the full value of the, of the loss.

Speaker:

And what does that insurance cover you for

Speaker:

Insurance will cover for pretty much anything that could happen

Speaker:

in transit. The main thing it doesn't cover is insufficient

Speaker:

packaging. If the goods have just not been suitably packed

Speaker:

at all, and that's the reason that they've become damaged

Speaker:

and consequential loss, which is just loss caused by delay,

Speaker:

because nobody has any control over what might happen with

Speaker:

delays. So sorts of, lots of contracts in to say,

Speaker:

yes, we've got to, we'll get from a, to B,

Speaker:

this is the estimated transit time, but there are things

Speaker:

that can affect that transit time during transit that we,

Speaker:

we can't foresee. So yeah, there's no, yeah, that's not

Speaker:

covered for that.

Speaker:

So coming back to DDP, I think a lot of

Speaker:

the reason people choose that is because as we said,

Speaker:

you know, it's, it's a big topic. It can be

Speaker:

a scary topic. Sometimes people don't want to learn about

Speaker:

it, but it sounds like if you work for a

Speaker:

freight forwarder, then all of the, you know, you'll get

Speaker:

one price, everything will be included. But I guess the

Speaker:

thing that wouldn't be, if you were to choose, say

Speaker:

fob or EX works is import charges, VAT, things like

Speaker:

that. So are those the only two additional costs you

Speaker:

would face if you were, let's say you're shipping on

Speaker:

fib terms and you've got a freight forwarder and you're

Speaker:

paying them a door to door price. How would it

Speaker:

work with the input charges and VAT?

Speaker:

So who would pay that? And how, how could you

Speaker:

even find out what those costs would be

Speaker:

For the import taxes and the cost would be on

Speaker:

the import taxes? So I think this is the big

Speaker:

drawback of DDP, is that it, because it includes the

Speaker:

import and that cost creates like a blurry, blurry figure.

Speaker:

You don't really know what's in there, but it's much

Speaker:

more straightforward if people can keep the import taxes as

Speaker:

something that's very, very separate. So the shipping costs, so

Speaker:

treat it as two costs. You're like, I've got a

Speaker:

cost for my shipping and then I've got a costume.

Speaker:

I import taxes. How, how do I know, or how

Speaker:

can I calculate what my import taxes are going to

Speaker:

be before the stuff arrives? Because obviously people need to

Speaker:

know. And the starting point is to, to find out

Speaker:

what the commodity code for your products are.

Speaker:

And if you don't know where to start without the

Speaker:

best places, your supplier, you just ask them, what is

Speaker:

the what's is the commodity code for the goods and

Speaker:

there'll be, it, it should be a 10 digit code.

Speaker:

And then you can look at on the K commodity

Speaker:

code database, and it will tell you what the VAT

Speaker:

and duty tax rates are. And once you know that,

Speaker:

then you can calculate very quickly, very roughly what the

Speaker:

import VAT and duty will be on your goods. Very

Speaker:

roughly it's a percentage of the cost of the shipping

Speaker:

plus the value of your goods, the cost price.

Speaker:

Perfect. Thank you. And in terms of getting that paid,

Speaker:

so how does that work? So let's say you are,

Speaker:

you're using fees on fees on board, and you've got

Speaker:

a freight-forwarder. So you use an fib terms, you have

Speaker:

a freight forwarder and you've paid them the shipping price

Speaker:

who pays for those fees. And at what point do

Speaker:

you pay them?

Speaker:

Typically the import taxes should always be paid at the

Speaker:

points of entry or when the, when the goods arrive

Speaker:

into the country. That's when, when the data gets submitted

Speaker:

through the customs software and it will generate, this is

Speaker:

the exact amount of VAT and duty to pay. Okay.

Speaker:

So yeah, the, the import VAT duty becomes liable when

Speaker:

the goods arrive into the country. And then in most

Speaker:

cases it will, it will be a freight forwarder or

Speaker:

a courier company. So if the cost of come with

Speaker:

DHL or TNT, in most cases, it will be them

Speaker:

that submit an import customs clearance on your behalf. And

Speaker:

we'll also then bill you the taxes and they will

Speaker:

then act generally as an intermediary between taking the money

Speaker:

from you and then passing it along to HMRC.

Speaker:

Yeah. W we like to try and keep it as

Speaker:

simple for, for people as possible. There are lots of

Speaker:

different ways in which you can pay HMRC, but in

Speaker:

most cases, a fleet forward or a Courier company, just,

Speaker:

just kind of take care of it for you.

Speaker:

Okay. That's good. Thank you. Cause I think something that

Speaker:

might people might be wondering is, you know, do I

Speaker:

need to do lots of paperwork and that kind of

Speaker:

thing. So it's good to know that the freight forwarder

Speaker:

will take care of all of that for you. She,

Speaker:

of course, that you'll need to give them all the

Speaker:

quiet information.

Speaker:

Yeah. That that's basically it. I mean, all we, all

Speaker:

we really need is essentially what we should get is

Speaker:

instructions from people on what data to submit to customs.

Speaker:

But really most of that data we will take from

Speaker:

the standard paperwork that's produced with the shipment. You get

Speaker:

a commercial invoice from your supplier, you get a packet

Speaker:

list, maybe there's a transport document, like an airway bill

Speaker:

or a bill of lading. And generally all the information

Speaker:

we need should, should be included on there. But if

Speaker:

there's any bits that we're missing, we'll, we'll generally prompt

Speaker:

people and say, Oh, we're just missing this piece of

Speaker:

information. And that piece, can you just confirm for us,

Speaker:

we can submit that to customs.

Speaker:

Perfect thank you. One of the piece information I'm assuming,

Speaker:

well, I know that you need, because my very first

Speaker:

shipment, I didn't have, this was in the EORI number.

Speaker:

And I didn't know that I didn't have it until

Speaker:

my kids actually arrived in the UK. So that was

Speaker:

a bit of an issue. So could you talk a

Speaker:

little bit about what that is? Why you need it

Speaker:

and how to get one?

Speaker:

Yeah. So the easiest way to think of it is

Speaker:

just a bit like your it's like your customs ID

Speaker:

number, it assigns a numerical number to identify you as

Speaker:

a trader, as an importer so that you, that you

Speaker:

you're authorized to import and export goods to, and from

Speaker:

the EU that will change when Brexit comes in. So

Speaker:

it will be UK specifically exports and imports to the

Speaker:

UK specifically, but that's essentially all it is is just

Speaker:

a customs ID number. But without it, you cannot import

Speaker:

or export goods because the custom system just won't recognize

Speaker:

you. It doesn't know who you are, but the process

Speaker:

for applying one is very straightforward. It's just, if you

Speaker:

just Googled Gulf EORI location, it's just an online, an

Speaker:

online form.

Speaker:

I think they said it takes about 10 minutes to

Speaker:

complete. And then maybe a couple of days generally to,

Speaker:

to allocate you a number. And then that number is

Speaker:

yours, yours forever. So it's just a case of filing

Speaker:

it away somewhere. And if you can, as you can

Speaker:

get it included on any sort of documentation that goes

Speaker:

with the shipment, that's also very helpful. If someone is

Speaker:

coming to do a customs declaration, they've got, they've got

Speaker:

that information to hand. They don't need to, they don't

Speaker:

need to ask you for it.

Speaker:

Perfect. Thank you. And I will link to the, the

Speaker:

website where you apply for that in the show notes

Speaker:

for this episode and in the blog post as well.

Speaker:

So if you're listening and you're realizing you need one,

Speaker:

you can very quickly find that and do it. So

Speaker:

we've spoken a lot about the different shipping terms and

Speaker:

sort of how payments and how it all works. Let's

Speaker:

talk a little bit if that's okay about the different

Speaker:

shipping methods. So the different modes of transport you can

Speaker:

use to ship your products and what the main differences

Speaker:

are between them got air. You've got rail, you've got,

Speaker:

see a few different options. And I just wondered, what

Speaker:

was your thoughts on the main differences and things you

Speaker:

need to consider?

Speaker:

Well, you've got the choice between air and sea if

Speaker:

you bring it stuff in from China. And typically sea

Speaker:

as slower and cheaper air is quicker and more expensive.

Speaker:

Rail was designed to be something in the middle or

Speaker:

was advertised, has been something in the middle where the

Speaker:

transit time is kind of in between air and sea.

Speaker:

And the cost is somewhere in between errands. See, personally,

Speaker:

generally, as a company, we don't offer any rail services.

Speaker:

We just found it didn't really give people much value

Speaker:

for money, that the costs were quite a lot more

Speaker:

than C, but the transit times were getting up to

Speaker:

the same as C anyway. So why pay so much

Speaker:

more for something that's only a bit quicker and it's

Speaker:

had some other problems as well, and it will have

Speaker:

more problems come Brexit with customs and how they're going

Speaker:

to get around that because the rail terminates in mainland

Speaker:

Jordan, and then it's, how do we get that stuff

Speaker:

from there to the UK after Brexit?

Speaker:

So I'll not talk about rail too much, but, but

Speaker:

sea freight is, is, is really the, the way to

Speaker:

go. I think for people certainly long-term, if you can

Speaker:

find a way of managing your stock levels with the,

Speaker:

with the lead times that sci offers, I'd say the

Speaker:

quickest, the quickest, we could get something dotted all by

Speaker:

sea. It's about 42 days, but that can, depending on

Speaker:

which port it's coming out of in China, that can

Speaker:

go up to sorts of 55 60. And at the

Speaker:

moment we are seeing lots of problems generally and delays

Speaker:

even more than ever before. Probably. So these transit times

Speaker:

are actually only gets in slower and the prices are

Speaker:

increasing at the moment as well, unfortunately, due to quite

Speaker:

a lot of problems, but the main one sorts over,

Speaker:

over demand and under supply is essentially what's driving that

Speaker:

at the moment.

Speaker:

And it's the, exactly the same with air. It was

Speaker:

always, typically we could probably get your stuff towards, at

Speaker:

all within seven to 10 days, but now it might

Speaker:

be more like two, two or three weeks. It just

Speaker:

depends on what space is available at the time. And

Speaker:

this is just a particularly bad time of year where

Speaker:

we've got, we've got the Christmas rush. We don't have

Speaker:

the passenger aircraft that we are accustomed to have been

Speaker:

where we would put most of the cargo onto passenger

Speaker:

aircraft. So without that we've seen the prices go up

Speaker:

to levels that we've just not really seen before and

Speaker:

even more so because of the time of year, another

Speaker:

option pileated with her. But we, we tend to distinguish

Speaker:

it by calling it courier.

Speaker:

And when we talk about courier, we're just referring to

Speaker:

someone like TNT or DHL or FedEx. Now they will

Speaker:

offer quicker services where maybe sort of three, four, five,

Speaker:

or 10 days, they could get the stuff door to

Speaker:

door. Typically they're more expensive and they're really geared up

Speaker:

for very small assignments. So a few boxes, not that

Speaker:

much weight, sorts of 50 kilograms, total 800 kilograms will

Speaker:

be, but it's just very difficult for us to keep

Speaker:

on top of it at the moment as to what's

Speaker:

really the best option andand are how much things will

Speaker:

really cost because the prices have been changing change and

Speaker:

across all modes of transport so quickly.

Speaker:

Okay. Yeah. So for context, we are in case anyone's

Speaker:

listening to this way in the future, we are recording

Speaker:th of November,:Speaker:

is the run up to Christmas, but the UK is

Speaker:

going into another lock down and yeah, there were very

Speaker:

few passenger flights in and out. So the lead up

Speaker:

to Christmas is always a busy time for freight. Anyway,

Speaker:

Germany, you do see that it goes up, but yeah,

Speaker:

this year in particular, it's very different. Okay. So thank

Speaker:

you for that. That is really useful. So let's say

Speaker:

you're listening and you, you know, you've got an idea

Speaker:

of what shipping method you want to use. You know,

Speaker:

what terms you've got from your supplier? Is there anything

Speaker:

else you need to know to get an accurate quote

Speaker:

from a freight forwarder? So if you go to your

Speaker:

freight forwarder, say, can you please quote me to send

Speaker:

these products by see, this is where they're going from.

Speaker:

This is where they're going to, what else would afford

Speaker:

to need to know

Speaker:

The more information that we, that we can be provided

Speaker:

with the better, the more accurate, the information that we

Speaker:

get, the more accurate the quote we can give. It's

Speaker:

just the case of having a bit of patients at

Speaker:

the moment that if we gave you a quote for

Speaker:

something like an air freight today, maybe next week, the

Speaker:

price might have changed. But generally we will always look

Speaker:

to honor the price where possible, but really if we,

Speaker:

if we know where the stuff's picking up from where

Speaker:

it's delivering to, and we know how many boxes there

Speaker:

are, or how many packages and their weights and dimensions,

Speaker:

that's really all we need. It does help us though

Speaker:

with people, give us a bit more information. Like this

Speaker:

is what my product is. This is the value of

Speaker:

it. This is the commodity code, because then we could

Speaker:

give you a bit more information, really. So we could

Speaker:

say, well, based on that, your insurance would be this

Speaker:

much, your import taxes will be about this much.

Speaker:

We could keep that sort of separate for you. And

Speaker:

we might be able to sort of give you a

Speaker:

point to and say, ah, just with you mentioning that

Speaker:

type of product, it would be worth checking a couple

Speaker:

of extra things. First, the main thing we're looking for

Speaker:

is are there any restrictions? It can affect the price,

Speaker:

but also we don't want to give you a quote.

Speaker:

There's no use to you. So maybe someone tells us

Speaker:

they've got 20 boxes to ship, and these are the

Speaker:

weights and dimensions and we give them a price. And

Speaker:

we say, we presume it's general cargo that it's unrestricted.

Speaker:

Maybe it's okay. I like the price. Can we, can

Speaker:

we go ahead? And then we learn that the goods

Speaker:

are something that contains batteries, or maybe it's something that

Speaker:

might be a liquid that's considered restricted in China, or

Speaker:

maybe something might be even considered as hazardous goods.

Speaker:

We then have to start the process again and say,

Speaker:

okay, we need to check. If we can ship these

Speaker:

goods, what surcharges they may be for shipping that product.

Speaker:

So it's better if we can get all that information

Speaker:

at the very beginning, just as much information as, as

Speaker:

people have got, really some people are sometimes a bit

Speaker:

skeptical about telling us what, what they're shipping. They don't

Speaker:

want us to know. They want us to keep the

Speaker:

cards a bit closer to the chest, which is, is,

Speaker:

is fine in most cases. But we're really just wanting

Speaker:

to know, is there anything else we need to consider

Speaker:

while we're sort of getting into some costs together? Sometimes

Speaker:

we might need extra bits of documents from the, your

Speaker:

supplier. And so in some cases I would even say,

Speaker:

look, before we even start on this process, let's get

Speaker:

our agents talk to your supplier to make sure they've

Speaker:

got the documents.

Speaker:

They need to ship these goods and that our agent

Speaker:

can ship these goods to the UK for us before

Speaker:

we start costing anything. Because otherwise it's, it's just a

Speaker:

waste of time. And you go so far down the

Speaker:

road only to find that actually all this work that

Speaker:

we've done, it's all fallen through because yes, maybe yes,

Speaker:

our agent can ship these goods, but maybe your supplier

Speaker:

hasn't got the documentation that they need to be able

Speaker:

to properly export these goods from China. And sometimes people

Speaker:

get caught out by that where our agent will say,

Speaker:

okay, yeah, we ship these goods. Please provide X, Y,

Speaker:

and Z documents. And then the supplier says, I can't

Speaker:

provide that. Or they do provide something, but maybe the

Speaker:

documents and valid, maybe it's out of date.

Speaker:

Maybe they don't have a license or something that they

Speaker:

need just things to iron out at the start of

Speaker:

the process. So you just know exactly, exactly what you're

Speaker:

dealing with from otherwise. Yeah. We would quote, no problem,

Speaker:

but it's, it's, it's a proviso quote. It said we

Speaker:

presume we have to presume. We don't know for sure.

Speaker:

And if at any of our presumptions are wrong, then

Speaker:

yeah.

Speaker:

Cause it sounds like the more information you can provide

Speaker:

up front, then, you know, the less likely the chances

Speaker:

you being disappointed along the line. Yeah. Thank you. I

Speaker:

mean, you've given us so much useful information so I

Speaker:

can definitely see the benefits of using a freight forwarder

Speaker:

like yourself rather than arranging or shipping another way. Yeah.

Speaker:

I do know that there are lots of people who

Speaker:

do in leave it to their supplier. For example, to

Speaker:

arrange the shipping. That's something that's seems to be fairly

Speaker:

common. I mean, you convince me that that's not a

Speaker:

good idea, but what would, is there anything further you

Speaker:

want to say to that point around why it's best

Speaker:

to work with a freight forwarder rather than letting your,

Speaker:

your contacts in China, sort of arrange all the shipping

Speaker:

for you.

Speaker:

If you've got a good supplier and they're doing things

Speaker:

properly, there's no reason why you shouldn't use them to

Speaker:

ship the goods. Put, I do think it's always going

Speaker:

to be beneficial to just have someone probably in the

Speaker:

same country as you, that you could speak to. You

Speaker:

can just pick up the phone and speak to them.

Speaker:

If you're, if you've got a query, you're unsure of

Speaker:

anything, particularly not so much with the shipping, but with

Speaker:

the customs side of things, what happens? What happens if

Speaker:

there's a problem with the, with UK customs, the goods

Speaker:

arrive, they get flagged for some reason or another. There's

Speaker:

something holding up that process. Or maybe it's something that's

Speaker:

quite innocuous. Maybe it's a random spot check or something.

Speaker:

You now have to go back to your supplier. Who's

Speaker:

in China to ask them to help resolve it.

Speaker:

Or you don't have, you don't have a contact in

Speaker:

the UK necessarily that you can go to. And maybe

Speaker:

there's an agent that's been assigned to handle your shipment

Speaker:

when it arrives, but they don't know you. You don't

Speaker:

know them. There's no trust. There's no history. And maybe

Speaker:

they don't really have the time to answer your questions

Speaker:

because it's not really their job to, to talk you

Speaker:

through that. It's like a value added service, almost that

Speaker:

a lot of freight forwarders will pride themselves on, but

Speaker:

not all. And you just don't really want to be

Speaker:

in a position where you don't have anywhere to go.

Speaker:

I mean, even if it's just that UK customs side

Speaker:

of things is handy just to have someone I think

Speaker:

who can help you through, you know, if you've got

Speaker:

a problem or even if you've got a problem with

Speaker:

a shipment that they've had nothing to do with, if

Speaker:

you've got some relationship with some freight forwarder, that's in

Speaker:

the UK and you've got some, at least somewhere, you

Speaker:

can go literally just to speak.

Speaker:

So, and in the worst scenarios where there may, maybe

Speaker:

there are problems with customs and then not so easy

Speaker:

to resolve, it can cost people quite a lot of

Speaker:

money. A lot of time probably is a given, but

Speaker:

you don't want to be getting fines or essentially penalized

Speaker:

for, for something non-compliance. And the big one that can

Speaker:

rack up on people is, is the storage charges. If

Speaker:

my other stuff store kind of, there's a problem. That's

Speaker:

been resolved with some goods that have been imported into

Speaker:

the country. One of those goods are set and unable

Speaker:

to be released or moved. Someone's going to be clocking

Speaker:

on extra costs somewhere. And typically they're quite expensive and

Speaker:

they're designed to be so that it really prompts people

Speaker:

to keep the freight moving and analysis as quickly and

Speaker:

as sufficiently as, as they can.

Speaker:

I thank you. That was really reassuring. Okay. So I'm

Speaker:

really conscious of your time. So we've got just a

Speaker:

few final questions and I've left this one till near

Speaker:

the end, because I know it won't apply to everyone,

Speaker:

but many listeners are thinking of selling on Amazon and

Speaker:

specifically Amazon FBA. So I just wondered given your experience,

Speaker:

is there anything you think people need to be aware

Speaker:

of if they're planning on shipping from let's say China.

Speaker:

Cause if you use that example so far, if ship

Speaker:

cheap shipping products from China into an Amazon FBA warehouse,

Speaker:

is there anything that we need to be aware of

Speaker:

Delivery time, as in it's something I would consider as

Speaker:

an, as an extra that unless people tell us the

Speaker:

goods of deliverance, Amazon, we probably won't consider it on

Speaker:

the quote. But if people can say you look, these

Speaker:

goods that go into Amazon, then there are those extra

Speaker:

costs associated with that. The main thing is because we

Speaker:

have to deliver in accordance with Amazon requirements and it

Speaker:

takes more time. This is just a bit more work

Speaker:

involved. There's two ways, two main ways people deliver good

Speaker:

stammers. And one is what Amazon refers to is SPD

Speaker:

is a small parcel delivery, but that's very straightforward. As

Speaker:

long as you've got your Amazon labels on the box

Speaker:

and you could just stick a freight label on it

Speaker:

or ups freight label. And it goes, ups will take

Speaker:

care of that.

Speaker:

But with the larger shipments maybe, or generally it becomes

Speaker:

more cost-effective to palletize those goods and deliver them in

Speaker:

by what Amazon called LTL, which is a, it's like

Speaker:

a pallet delivery, less than truckload, but those have to

Speaker:

be pre-booked with Amazon. Amazon will allocate a time slot

Speaker:

for that delivery. The pallets have to be built to

Speaker:

certain Amazon specifications requirements are not these where the there's

Speaker:

these extra bits of restrictions. There's basically extra bits of

Speaker:

cost involved in, in making sure that we can adhere

Speaker:

to those, to those requirements for Amazon so that we

Speaker:

can still reveal your goods. In what we're finding at

Speaker:

the moment is Amazon can quite quickly change and move

Speaker:

the goalposts on people where they say, okay, you can't

Speaker:

deliver in from this day onwards now, or these products

Speaker:

can't be delivered now, or this product can be delivered,

Speaker:

but you're going to, we're going to restrict the number

Speaker:

of units you can deliver.

Speaker:

A lot of people are coming up against this 200,

Speaker:

200 unit cap at the minute. So what they're having

Speaker:

to do is split the goods at some point, during

Speaker:

transit, where they say, well, look, I've ordered a thousand

Speaker:

units already bought, I can only send 200 units to

Speaker:

Amazon. And unfortunately there's extra, there's extra costs in doing

Speaker:

that as well. Because if we, if we now have

Speaker:

to deliver to two locations and maybe there's different instructions

Speaker:

for each delivery, we want to palletize these goods. But

Speaker:

those we don't, and these are go in there. These

Speaker:

are go in there. It's extra work, extra costs. But

Speaker:

as long as I mean, the main thing is that

Speaker:

we no matter what the restriction is, we can, we

Speaker:

can work around it. It's not getting the stuff delivered

Speaker:

is never really a problem.

Speaker:

It's just what costs are involved and how you decide

Speaker:

is the best way forward for you. So some people

Speaker:

have gone down the route of, well, I'll just find

Speaker:

my own warehouse or my own fulfillment center, or I'll

Speaker:

just have everything delivered to my home address. And then

Speaker:

I will drip feed stuff, my stove to Amazon, or

Speaker:

I'll get to work as an independent warehouse to, to

Speaker:

drip feed stuff to Amazon and do it that way.

Speaker:

Instead. It's just really hard to know with Amazon sometimes

Speaker:

what they're going to, what they're going to throw at

Speaker:

people. And with Christmas coming up, they'll have to have

Speaker:

a date whereby people can't deliver anything into them. I

Speaker:

presume, although I'm not sure what date that might be.

Speaker:

Yeah. I don't think they've yet. Now it's the cutoff,

Speaker:

but yes, there will be definitely be a cutoff. I

Speaker:

mean, advice I would give as well is that if

Speaker:

you're looking to ship to Amazon, it's a good idea

Speaker:

to set your Amazon shipping planner with Amazon. Do you

Speaker:

let them know what's coming before you, if possible, before

Speaker:

your shipment even leaves the supplier. So if there is

Speaker:

an issue where you want to deliver a thousand, do

Speaker:

they only, they're only gonna accept 200. You actually know

Speaker:

that. Cause I've seen the mistake before where things are

Speaker:

perhaps on the way to the, to the UK and

Speaker:

someone's thinking, okay, they're going to come to my house.

Speaker:

And then I'm going to sh you know, if they're

Speaker:

going to go from my house out to Amazon, for

Speaker:

example, not realizing that Amazon are only going to accept

Speaker:

so many and you're going to be stuck with a

Speaker:

lot of stock for, you know, the foreseeable future potentially

Speaker:

Because quite a lot of the time when we, when

Speaker:

we quote for delivery standards and people don't know at

Speaker:

that point, which Amazon instance are, they need to deliver

Speaker:

goods to, but them, we also appreciate that maybe they've

Speaker:

not created the shipping plan yet, but I guess once

Speaker:

they do, they will then know at least what Amazon

Speaker:

can take and, and plan around that accordingly.

Speaker:

Yeah. So it sounds like the best thing to do

Speaker:

is be to sets up your Amazon shipping plan and

Speaker:

then to let your freight forwarder know everything that you,

Speaker:

you know, to give them all the information upfront so

Speaker:

they can quote you as accurately as possible. And that

Speaker:

they've got an idea of, you know, what's going where,

Speaker:

Yeah. As long as we know, I mean, people we've

Speaker:

got some shipments that are coming in at the moment

Speaker:

and people have basically said, well, depending on how much

Speaker:

stock I sell jewelry and shipment of this, of these

Speaker:

goods, I don't, I don't know where I'm going to

Speaker:

be in 30 days time, I don't know where I'm

Speaker:

going to be in 40 days time. So I don't

Speaker:

know how much stuff I even wants to deliver to

Speaker:

Amazon. We've said to them, basically, as long as you

Speaker:

let us know, before the stuff arrives into the UK,

Speaker:

we can instruct the warehouse what needs to be done

Speaker:

with those goods. So we can w we can leave

Speaker:

it quite late, really to decide what exactly we're doing.

Speaker:

The only, the only drawback to that is you don't

Speaker:

know what the exact final cost will be because there's

Speaker:

no final plan in place.

Speaker:

And so very late,

Speaker:

That's it. And that's, you know, that's really reassuring tonight.

Speaker:

Cause I had no idea that a freight forwarder could

Speaker:

be so flexible. And yeah, I was thinking that you

Speaker:

would need to know before your goods even left the

Speaker:

supplier. So that's really good to know that you've got

Speaker:

those, you know, the days that good to be in

Speaker:

transit to actually make a final decision on how many

Speaker:

are going where, so that's. Yeah. So thank you for

Speaker:

that. I think people find that really valuable.

Speaker:

Yeah. As long as people appreciate that, if we don't,

Speaker:

if we don't know the exact plan, we don't know

Speaker:

the exact cost, you know, we say then, yeah. It's,

Speaker:

it's not a problem. The delivery is always very flexible.

Speaker:

It's just with the Amazon stuff. If there's anything go

Speaker:

into Amazon, if it needs to be labeled or if

Speaker:

it needs to be palletized, we just need to know

Speaker:

before that stuff comes out of the container what's happening.

Speaker:

Otherwise it's just not as straightforward to, to get what

Speaker:

you want actioned with these warehouses. What they'll do is

Speaker:

they'll typically we take all the boxes out of a

Speaker:

container and they'll pelletize them by default so that they

Speaker:

can store them, move them and ship them easily. But

Speaker:

they might not necessarily be to Amazon specification if you

Speaker:

then said, okay, well, could you now undo that work

Speaker:

and redo some work?

Speaker:

And the answer might actually even be, no, they say,

Speaker:

well, now we've got an issue of liability where we

Speaker:

don't want to deconstruct these pallets. They'll have to deliver

Speaker:

them somewhere as they are, or maybe on the custom

Speaker:

side, it can become just a little bit more complex

Speaker:

where we've told the custom system that it's just kind

Speaker:

of one consignment and it's all going to go to

Speaker:

one place. And then we start saying, well, actually, we're

Speaker:

going to send some here. Some there, these warehouses are

Speaker:

under quite strict regulation where, because the stuff's been important

Speaker:

to trim outside to the European union. It's not like

Speaker:

they don't really act like a general warehouse where you

Speaker:

could chop and change because the they've now got customs

Speaker:

controls.

Speaker:

They have to abide by those. They have to be

Speaker:

quite strict with who they release stuff to how they

Speaker:

release stuff. If they've sort of considered everything to be

Speaker:

one consignment, when it comes in to then say, well,

Speaker:

actually I want to send some here. Some there, some

Speaker:

there, they might say, actually, this is this isn't straightforward.

Speaker:

Now it's a bit of a mess because we now

Speaker:

have to start on doing customs, customs procedures that are

Speaker:

sort of now set. And so the key is really

Speaker:

is just as long as we know, before that stuffs

Speaker:

here in the country, it's really not a problem after

Speaker:

that. We can, we can sort it, but it's just

Speaker:

a bit of a problem.

Speaker:

That's good to know. Thank you. So I'm aware that

Speaker:

we've gone way over time and I do want to

Speaker:

be respectful of that, but have you got time for

Speaker:

just one final question? Would that be okay? Yeah. Thank

Speaker:

you. Okay. So we've, you've, you know, you've covered such

Speaker:

a lot. You've been really generous of what you've shared

Speaker:

about us is that, is there anything else you'd want

Speaker:

people to know if they are planning their for, let's

Speaker:

say their first shipment roundabout. Now, is there anything we

Speaker:

haven't talked about that you think people should just be

Speaker:

aware of?

Speaker:

No, I think, I think those are the main things

Speaker:

I want to try and keep it as simple as

Speaker:

possible for people really. So if people are applying for

Speaker:

the EORI number, that's just something ticked off the list

Speaker:

that they don't need to worry about. And they can

Speaker:

apply for that. Anytime. I think approach, I think approach

Speaker:

or UK freight-forwarder and at least we weigh up the

Speaker:

shipping costs from both sides. If you're asking supplier to

Speaker:

ship the goods, they're only going to be a point

Speaker:

in a Chinese freight forwarder and that Chinese freight forwarder

Speaker:

will then dictate. So UK freight forwarder probably to help

Speaker:

bring the whole shipping together on less the goods, move

Speaker:

him by a courier company like a DHL. In that

Speaker:

case, they take care of the whole thing door to

Speaker:

door, really, I think just way off from both sides.

Speaker:

If you can find a UK freight forwarder that you

Speaker:

could talk to and ask, ask some questions, if you've

Speaker:

got any, because people always do, they have loads initially,

Speaker:

then at least they will be able to point you

Speaker:

in the right direction or help you potentially avoid some

Speaker:

mistakes that you might make for your specific situation. I

Speaker:

think the other thing would be just to, it's a

Speaker:

huge plus of people can just check, check what the

Speaker:

find out the commodity code, if they're gods. And if

Speaker:

they're not sure that there is help available so that

Speaker:

they can ascertain the right code, but then they can,

Speaker:

they can also see, look as a, is there anything

Speaker:

else that I might need to be aware of for

Speaker:

imports in this product? Most things don't know is, is

Speaker:

there something else that I might need to get this

Speaker:

stuff into the UK, through UK customs?

Speaker:

And also of course you, then you've got at least

Speaker:

a bit more transparency over the import tax costs because

Speaker:

you can just, you can see clearly by educating yourself

Speaker:

a little bit on these things, you consume spot the

Speaker:

suppliers that are perhaps a bit more scrupulous, because if

Speaker:

they let's say they quote you a DDP price and

Speaker:

they say, look, it's 500 pounds. We all of a

Speaker:nk, well, hang on, I'm paying:Speaker:

pound for this stuff. And if I'm paying 20% VAT

Speaker:

on that, the input of the ATL loan should be

Speaker:

600 pounds. So something's not right. And it just raise

Speaker:

a flag straight away that you could then pick them

Speaker:

up on or follow it through. And you say, well,

Speaker:

okay, well, why, why are they quoting 500 pounds?

Speaker:

What's what's not right here.

Speaker:

That's really helpful. Thank you. And yeah, I think a

Speaker:

lot of what you've shared today will really help people

Speaker:

to be a bit just a bit more informed when

Speaker:

starting out. And I assume you're open to questions. If,

Speaker:

if off the back of this people wants to contact

Speaker:

you to find out a bit more, whether it's for

Speaker:

a quote or whether to just, you know, more general

Speaker:

questions about their shipping.

Speaker:

Of course, of course. Yeah. Anytime any questions or five

Speaker:

and three people can come directly. I, I really don't

Speaker:

mind. I just hope it has been helpful. Cause there's,

Speaker:

there's so much ground to cover and you can go

Speaker:

into so much depth on each of them. I don't

Speaker:

want to overwhelm people. I mean, really it's if people

Speaker:

get the basics, right, the rest should fall into place

Speaker:

and it should be quite straightforward if you've got a

Speaker:

good supplier. And if you've got a good freight forwarder,

Speaker:

the shipping aspect, you can largely forgets about what you

Speaker:

should still be. You should still be at least aware

Speaker:

of what's going on and have some transparency over what's

Speaker:

going on. And then really like if the role of

Speaker:

any problems you supply your freight forward to just point

Speaker:

you in the right direction, really, and help you help

Speaker:

you through this, then all of our interest too.

Speaker:

Well, thank you. And I think, I hope, and I

Speaker:

think we've struck the right level of, you know, providing

Speaker:

enough information without making it too overwhelming. And I will

Speaker:

include your contact details in the show notes for this

Speaker:

episodes. People can easily get in touch if they do

Speaker:

have any questions about anything we've spoken about or even

Speaker:

anything we haven't spoken about. So thank you so much.

Speaker:

I think that's been, it's been a really valuable episode,

Speaker:

but I've learned some things. I mean, I've been doing

Speaker:

this for a while, but I've still learned some things

Speaker:

from you today. Something that's really, really beneficial and, and

Speaker:

yeah, I hope it's, I think it's really, really, really

Speaker:

useful episode. Oh, I hope so. Thank you. I hope

Speaker:

you enjoyed that conversation with Simon and myself and that

Speaker:

you now felt a little bit clear about, about shipping

Speaker:

all the different options available to you, what the different

Speaker:

terms mean and what you can do to ensure that

Speaker:

your shipment goes really smoothly.

Speaker:

I would love as always know what you think. You

Speaker:

can send me an email@vickiattidychipmunk.com. And if you've got some

Speaker:

time, I would really appreciate it. If you could rate

Speaker:

and review this podcast episode. So thank you so much

Speaker:

and speak to you next week.