Global Cross-Border Ecommerce: How much that $100 coat is costing your end customer
Import duties, taxes and its effect on online prices in ASEAN
“The worst thing a retailer can do is to surprise their customer with taxes. Most customers have no idea how much extra they will actually spend when buying a product which opens up potential for a negative customer experience. That’s why for the best customer experience, we recommend that online retailers invest in bulk custom clearance locally versus dropshipping single products from abroad. “ – Peter Kopitz, aCommerce Group Chief Operations Officer.
With many merchandise sold on ecommerce websites being imported from China’s Tmall or Amazon in the US for example, the total tax and duty mark up on purchasing a product causes its landing prices to exponentially rise compared to product value at the port. The amount of import duties and taxes imposed allows each country to price their online goods competitively.
“With the help of a fully integrated system that tracks warehousing and logistics costs, startups will be able to develop a cost to serve analysis. Each destination country will have a different cost to serve rate and the ratio to the product value will provide clarity where most of the costs are consumed enabling startups to make smart decisions to reduce logistics costs and develop further their flexible supply chain capabilities.” – Mitch Bittermann, aCommerce Group Chief Logistics Officer.
Global Cross-Border Ecommerce: How much duties and taxes affect the end product pricing compared to port value
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