Can I offer international shipping to my customers through CALA Fulfillment?
Absolutely! All of the warehouses in the CALA network are capable of shipping orders internationally.
What are the costs associated with international shipping?
Shipping cost: Here, we're talking about the cost of the shipping label to get the item from the warehouse to your customer. International orders generally cost more than domestic orders to ship. This cost does not include duties or taxes.
Duties: When an order gets imported into a country, that country generally imposes a duty on the import. Each country sets their own duty rates, and the duty rates are different for different items. For example, the duty rate on a television is probably different than the duty rate for a t-shirt. The duty rate is applied to the value of the item. Let's say you are shipping a $50 hoodie to a customer in a country who has a 20% duty rate on that hoodie. That would mean the duties owed on the import would be $10.
Taxes: When an order gets imported into a country, the country may assess taxes on that import. Different countries have different import tax rates and thresholds.
Brokerage Fee: Some shipping carriers (but not all) charge a brokerage fee to help clear a shipment through customs.
Here's an example of the cost breakdown on an international shipping order for our $50 hoodie situation:
Shipping cost: $20
Duties (assuming 20% duty rate): $10
Taxes (assuming a 20% tax rate): $10
Who pays for the duties and taxes?:
Through CALA Fulfillment, we have three options:
Option 1 (default): The customer pays duties and taxes upon import. This means that when the shipment reaches customs in the recipient's country, the shipping carrier contacts the recipient for payment of the duties and taxes.
Option 2: The customer pays duties and taxes at checkout to you (the seller). You (the seller) then pay the shipping carrier for any duties and taxes owed on the shipment. Note: this option requires an additional plugin in your E-Commerce store and you may incur additional fees for the plugin.
Option 3: You (the seller) pays the duties and taxes on the customers behalf. If you choose this option, you'll want to set your retail prices high enough to cover any duties or taxes that will be assessed on international shipments. In this situation, your CALA Fulfillment & Logistics expert can help estimate average duties/taxes for your products, and will work with you to build that cost into your retail prices. For more info on this, see our article on Free Shipping vs. Shipping at Checkout.