Shipping to US royal mail DDP

US sales represent around 15% of my cross platform business. So I've started an experimental ship to US before peek trial.

I'm a royal mail account customer and on Thursday they introduced their Delivery Duty Paid (DDP) service.  Its billed as invoicing account customer for the duty and a 50p handling charge.

 

I don't know what the postage rate will be - its billed as what you were paying before, I had to send as a parcel not large letter as large letter service wasn't available DDP.  I've used code MPR 

International Business Parcel Tracked DDP (01 / X8162259) (£50 compensation)MPR

 

The account form was practically the same as previous:

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The fill in customs form as you can see from above is very similar to previous with the addition of the customs duties costs box top left - it auto filled from the imported order.

 

The order also required a phone number and email - previously either/ or sufficed.

 

The label shows DDP - highlighted so customers shouldn't get a nasty surprise.

 

I'll update the thread with what its all cost, charges etc as they appear on the account.

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Re: Shipping to US royal mail DDP

Am I seeing £118.91 for customs duty cost during step 4?  😳   

 

Unless I am mistaken, goods manufactured in Thailand being shipped to the USA are supposed to be charged 19% . Or is some flat rate being applied here?  How did this amount to £118.91 ? 

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Re: Shipping to US royal mail DDP

@kangamoose_shop You're right - Customs duty cost should be country of origin tariff percentage calculated. 10% for UK origin, 19% in this instance for Thailand.

It was an error that fortunately I spotted before it was manifested. 

I use third party software and it auto populated with full order value.  Its a learning curve!

Its in the system now so I'm curious about how smoothly it all goes.  The cost of sending international tracked can't have been too bad I had one large letter to Australia and this parcel to USA and the total additional charges was £14 something.  

 

 

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Re: Shipping to US royal mail DDP

@ojewellery  

 

Thanks for sharing.

 

Like you I do (used to do) a fair bit of trade in the US, trade I will be disappointed to loose.

I am still thinking about a strategy to get my listing back up over there although a fair few of my items originate from China and I think the 55% duty will kill off potential sales anyway.

 

If you don't mind me asking did you decide to take the hit on the duty payment yourself or did you adjust your listed prices to cover the duty percentage plus a little extra to cover the increased FVF and the 50p RM admin charge.

 

If you did adjust your prices I assume you only have the listings on the USA site only as I am am unaware of any facility to dual price on any eBay site.

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Re: Shipping to US royal mail DDP

I have introduced paid postage for USA which includes the duty.  I am VAT registered so I offset the VAT, take into account the duty and eBay/ platform fees and then have created multiple policies.  I used to sell free post to US. 

 

I think we've talked web interpret before, plus other international site listing tools, I think if you use these you can create international/ by site, pricing so could incorporate into the price and show as free post.

 

My items are similar size and weight so I've created policies with roughly a £25 price bracket.  At bottom end of the bracket profit will be a bit down, at top end a bit less down/ close to break even.  I'm absorbing a bit and decided that what I need to do is keep trading for a bit then when I'm armed with actual facts can do a more thorough review and come up with an actual strategy.  I may have messed up with second items - I set it same as first but do offer a multibuy discount when people buy 2 or more items in one transaction so there is still reason to buy several items.

 

The two items ordered this morning both had a £10 charge, so £20 extra on an order just under £100 which a week ago was zero.  I offer very expensive, in my eyes, fast international delivery on Etsy - New York by midday if ordered by midday day working day before.  I charge £25 and whilst items don't fly out, people do use the service enough to easily justify a DHL express business account.  This made me think just try it with the majority of the cost built into the charges, test the market.  Then take stock as more info comes out.

 

I don't feel I've yet, or anyone yet, has all the information needed to make real business decisions - its frustrating. 

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I wonder how long before Americans discover that   Ray-Ban sunglasses are NOT made in the USA?

 

For now, "my" Swedish postal system is not accepting packages to the USA, so I applaud Royal Mail for implementing SOMETHING. Their handling fee of 50p sounds quite reasonable, and I hope other countries follow suit. If I hope to attract buyers, there is no other shipping solution available for me, the commercial couriers charge 3X as much as the Post office for lightweight items. 

 

SInce the calculation of tariffs is based on manufacturing origin and VALUE, I plan on raising my shipping fee and lowering the item price on my "buy it now" items. No tariffs on shipping fee, so shouldn't lower item price also lower the tariff amount? Or is that wishful thinking?

  

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I wonder how long before Americans discover that   Ray-Ban sunglasses are NOT made in the USA?

 

Indeed, RayBan also have factories in China as well as Italy, many times over the years it has been suggested I have sold someone a fake pair of RayBan's where they have "China" printed on the inside of the arm !

Not surprising really considering the sheer volume of knock off's on eBay

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Re: Shipping to US royal mail DDP

What I hate about the tariffs is there is no account for intellect.  The core elements of any successful product are surely the design, the marketing, the production, the compliance/ testing/ reliability, the customer service and brand reputation. 

 

Production is only one element of what creates a product.

 

For my jewellery items if we take a necklace.  I design my pendants and select the gemstones.  I have the pendant cast in Thailand and gemstone set, the chains come from Italy, packaging from UK and China.  Assembly in UK.  For the purposes of country of origin the item takes substantive shape - the pendant, in Thailand so the whole product is down as produced in Thailand.  The product value is created from all the elements of which I consider the substantive part to be UK.

 

For many American brands this will no doubt be the same - the issue leading to tariffs is the copy cat, cheap, often untested and unregulated mass production that we all no doubt get tempted to buy.  I don't think that the implications of the tariffs have been worked through but at least they're bringing the discussion onto the table and the knock on effect will hopefully be improved trade relations with Europe again.  Nothing like a common frustration to bring people/ countries together.

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I had a 'real', pair of Ray-Bans. Bought them at an airport shop so assume they were real. Terrible quality, the lenses went all funny and chipped off after a few years. Avoid. 

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Re: Shipping to US royal mail DDP

With my royal mail account, I only have one product available. Previously I was using OLA (untracked).   This has been replaced with DE6.  It also does not allow me to send large letters!  

It has the same box for 'Customs duty costs'. This is a mandatory field.  But it is not pre-populated.  So I have to type in the customs duties manually.

 

With regards to ebay. I use ebay's business policies for postage. So I have a policy for multiple items and about 20 policies in total, depending on what each item weighs.  I would not be able to include the customs charges in here.

So I have excluded USA from all my listings.  Until ebay introduce a way of collecting the customs duties and forwarding this to me, I will not have any way to send to USA.

Message 10 of 17
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Re: Shipping to US royal mail DDP

I do not use royal mail. I use another shipper and use their DDP service. I normally sell items which cost about £30 inc shipping. The cost of my large letters under 100g have gone from about £5 to an average of £10. Consequently I have adjusted my costs which my USA buyers incur and absorbed a bit myself.

USA buyers will be paying the bulk of the extra if they want to continue to buy my products. I like the DDP paid model - providing customs pass the merchandise through without a fuss.

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Re: Shipping to US royal mail DDP

@watchfan700uk 

 

Do you have an understanding with your provider how any returns would work, are you able to reclaim reimbursement for the duty you have paid ?

I use Royal Mail and I cant see any published info from them so I am going to have to phone them at some stage.

 

I still have the US withdrawn from my list of destinations but as I have historically done a fair bit of business to the US  I would like to get it back up when possible, if they will still order at the higher prices that is another matter.

 

The biggest challenge I have is how to dual price, I do use Webinterpret where I can adjust my prices by a set percentage for any international eBay site but the prices are initially based on my eBay UK prices but as I have turned off the US as a shipping destination Webinterpret will not list my items on the US site.

 

I guess I could open a 2nd eBay shop just on the US site but as well as the cost it's the faff, Webinterpret make things so easy.

 

I am off on holiday next week so although I always try to switch off from work I will ponder things from my sunbed 😎

Message 12 of 17
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Even before this change I normally refund returns with no need to send back - if it is a SNAD or my fault.

 

If a remorse return I will just write off the duty lost.

Message 13 of 17
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Re: Shipping to US royal mail DDP

there is a way to add the duty without having different ebay.com listings

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Thanks, I am aware I can have separate listings on the .com site but as I said I currently use Webinterpret to place my listings on the different eBay sites including the US site but these all have to originate from my domestic (UK) site but as I have the US excluded from my posting destinations they will not place my listings on the .com site.

 

Regarding writing off the duty costs for returns I guess for lower cost items and and if in a category where returns are typically low that would probably work. However in categories such as clothes and accessories that usually have a higher rate of returns and typically higher priced items writing off duty payments of up to 30% would not be an option for me. 

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Re: Shipping to US royal mail DDP

Just checked my online business account.  The 166g parcel sent business tracked, including handling fee has cost £8.18 including the 50p surcharge.  I think that's the same as the international business tracked country price table.  So I now know how much Royal Mail will cost.  Just waiting on what happens with the duty invoice.

 

The parcel sent Monday night, arrived/ was delivered Thursday morning.  Think lots have stopped sending!

Royal mail DDP MPR 166g.png

Message 16 of 17
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Re: Shipping to US royal mail DDP

is that all included - shipping costs and DDP tax etc? for a tracked parcel to usa?

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