International Express shipping

AlanM · #1 05-22-2013

Good evening. I just joined the forum after browsing several threads, but was particularly interested in the 'Shipping' forum since that is the industry in which I work. I saw a lot of questions and mis-information out there with regards to international express shipping, earning discounts, etc. I'm an authorized re-seller of DHL Express in the United States and have a very good grasp of many of the topics being discussed.

I want to be careful that I don't just come on here and boldly advertise since I know that's against forum rules. In lieu of that, I'll just say that I'll do my best to answer any of your Q's in the realm of international express shipping, volume discounts and the like.

(I'll leave it upto the Admin/Mods to decide where the line is between advertising and giving advice

)

Thanks.

GreenBean · #2 05-30-2013

We are widening our scope for the benefit of users in this complex area that is integral to our business.

Read Alan's post carefully.

Address your questions equally as carefully.

I have my ban hammer nearby.

Ask but do not demand

Callidus · #3 05-30-2013

What I would like to know is on a package that's 22KG coming from China to the UK - Express AirMail - does it really cost them the $250 that they put on the invoice as a shipping charge?

Bare in mind the rates they must get!

rsot · #4 05-30-2013

Quote:

Originally Posted by hdavey10

What I would like to know is on a package that's 22KG coming from China to the UK - Express AirMail - does it really cost them the $250 that they put on the invoice as a shipping charge?

Bare in mind the rates they must get!

Think about it - they will profit too - try different suppliers to compare then? Or speak to members here in the know.

AlanM · #5 05-31-2013

Quote:

Originally Posted by hdavey10

What I would like to know is on a package that's 22KG coming from China to the UK - Express AirMail - does it really cost them the $250 that they put on the invoice as a shipping charge?

Bare in mind the rates they must get!

Hi there. While I don't have the rates in front of me for China-to-UK shipments, I'm sure that there's not a great deal of difference bt. those and China-to-US.
A 22kg shipment from China to USA with DHL Express Worldwide (regular 'end of day' service, not a 9:00am or 12:00pm Time Definite service) has a list price of $619 + fuel surcharge. The price they are actually paying will (likely) depend on their negotiated discount which is based almost entirely on their monthly spend with DHL. Even the smallest of shippers can get a 20-25% discount just by asking...beyond that, DHL (and UPS, FedEx, etc) have a pretty rigid set of parameters which their account managers must adhere to when allocating discounts. If your supplier ships everyday they'll likely be on a 50%+ discount. The deepest discount I've ever encountered was 82%, but then again that was for a Top 10 customer.

So, does it really cost them $250? Unfortunately it's impossible to answer without knowing the shipping volume of the shipper. They might be giving it to you at cost or they might have a 10-15% mark-up, if they do sufficient daily volume.

Hope this helps.

AlanM · #6 05-31-2013

Quote:

Originally Posted by rsot

Think about it - they will profit too - try different suppliers to compare then? Or speak to members here in the know.

On average, my clients mark-up their shipments 20-25%. I would guess that there are several factors that go into the decision - for instance, my industrial clients will be required to put more time & effort into the packaging process, so 'reward' themselves by adding margin. Another client would charge a 10% mark-up when they shipped with their previous carrier. However after they changed carriers, got a better shipping rate, so they have increased their mark-up to 20% and their customer still pays the same amount as before!

It's often over-looked, but getting your own shipping account and having your supplier put all shipments on that account number can really reduce your costs, as it removes the ability for your supplier to add the dreaded Shipping & Handling mark-up. The flip-side of this is if your supplier is a mega-shipper and their discount is so large that they are still able to give you a better rate, despite their mark-up.

jeffweico · #7 05-31-2013

I think AlanM has given some good advice. From a negotiations and analysis standpoint, I never ask what their cost is to ship, as I am too small time for that. As a businessman, I care about three things when ordering items:

1) How much is my cost per unit?
2) How much can I sell each unit for?
3) How long will it take to sell the batch I am ordering?

I then look at eBay/PayPal/Amazon fees and my shipping costs in order to calculate my Return on Investment (ROI). The longer it takes to sell the items, the higher the ROI needs to be in order to fit my business model.

Of course, the more volume you do, the more it pays to at least ATTEMPT to negotiate the shipping charges.

Gamefreak · #8 05-31-2013

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

If there is, is the benefit of paying the higher price really that big of a difference in terms of you receiving your package?

AlanM · #9 05-31-2013

Quote:

Originally Posted by Gamefreak

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

If there is, is the benefit of paying the higher price really that big of a difference in terms of you receiving your package?

Never heard of it. Are they referring to the actual shipping service/carrier being branded/non-branded? I would love to hear the explanation from the supplier on that.

Callidus · #10 05-31-2013

Quote:

Originally Posted by AlanM

Never heard of it. Are they referring to the actual shipping service/carrier being branded/non-branded? I would love to hear the explanation from the supplier on that.

Its called Chinese talk! Some of the stuff these guys come out with on email is unbelievable! haha

Gamefreak · #11 05-31-2013

Branded goods and non branded goods is what i meant to say..

If you import branded goods shipping is WAY more expensive

slim jim · #12 05-31-2013

Quote:

Originally Posted by Gamefreak

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

If there is, is the benefit of paying the higher price really that big of a difference in terms of you receiving your package?

I am guessing they are factoring in costs for lost branded item shipments for the 'branded ' pricing

AlanM · #13 05-31-2013

Quote:

Originally Posted by Gamefreak

Branded goods and non branded goods is what i meant to say..

If you import branded goods shipping is WAY more expensive

Hmm, if you are being charged more for shipping a 'branded' item then that's solely at the discretion of the supplier, not the carrier.
It's not like DHL have two sets of pricing and are asking 'well, what brand is it?' before they'll give you a quote - they just care about the size & weight of the box and where it's going.

I would push back on this.

libbo · #14 06-01-2013

Quote:

Originally Posted by Gamefreak

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

If there is, is the benefit of paying the higher price really that big of a difference in terms of you receiving your package?

Branded goods(counterfeit) costs more to clear Chinese customs when leaving the country.........Apparently???

rsot · #15 06-02-2013

Quote:

Originally Posted by libbo

Branded goods(counterfeit) costs more to clear Chinese customs when leaving the country.........Apparently???

That sounds nice and fishy from your supplier to grab some more $ from you ....

teedon · #16 06-06-2013

Branded goods cost more 2-3 USD than un branded goods by DHL per KG .

GreenBean · #17 06-06-2013

There's bribery happening?

Imagine that.

rsot · #18 06-06-2013

Quote:

Originally Posted by teedon

Branded goods cost more 2-3 USD than un branded goods by DHL per KG .

Still a highway robbery since the 2-3 USD more does not do anything to protect or aid in customs clerance - unless the fee is for custom brokerage...oh well - good to know

Sandy D · #19 06-06-2013

Quote:

Originally Posted by Gamefreak

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

If there is, is the benefit of paying the higher price really that big of a difference in terms of you receiving your package?

What?

I believe this is the first I have ever read this here.

AlanM · #20 06-12-2013

Quote:

Originally Posted by Gamefreak

Simple question, my supplier charges me 2 prices for shipping goods. One is BRANDED and NON BRANDED. Is there such a thing?

Please ask your supplier who the eventual recipient is of this mystery charge.
I call shenanigans.

rsot · #21 06-13-2013

Quote:

Originally Posted by AlanM

Please ask your supplier who the eventual recipient is of this mystery charge.
I call shenanigans.

Reminds me of the ominous "Usury fee" - cash grab indeed.

Gamefreak · #22 06-13-2013

They're saying its for stuff getting taken by usa customs so the extra fee like teedon says of 2-3 bucks extra per kilo is to cover their loses when something does get stuck in customs