In my continuing series on simple and easily avoided mistakes that have massive impact on your importing and eCommerce business we are going to talk about one of the easiest to correct, but most often overlooked mistakes. Country of origin.
If you do not think that you need to worry about having the country of origin put on your products or insuring it is by your supplier before shipping it into the US, come with me to find out what recently happened to a customer who did not and shipped her goods (via supplier) to GDW.
2 weeks ago we received notice of a shipment of goods coming to GDW that needed customs clearance and FBA prep. The goods arrived and were chosen for random inspection by US CBP and were subsequently held-up. After contacting CBP to find out why they were being held up we were told that the goods did not have a country of origin label as required by US LAW. We negotiated on behalf of our customer and were allowed to go to the customs warehouse and apply a made in china label to the goods.
Then we contacted US CBP and informed them we had completed the task, they sent an inspector over reinspected all of the good (1000 units) and cleared it to be picked up by GDW.
Here is the impact of this issue.
1000 units of blue widget were sourced by customer for 1.00 per unit. =$1,000.00
customer air freight costs 1.50 per unit =$1,500.00
made in china labels .20 each x 1000 =$ 200.00
trip charge apply labels =$ 150.00
CBP warehouse fee =$2,800.00
local delivery =$ 150.00
2 weeks delay of goods being processed and for sale in Amazon =$ Priceless
So as you can see the impact was additional warehouse fees (per day) and trip charge to go to customs warehouse and apply labels (if you happen to have someone willing and able to do this for you at all?)
So in actuality the per unit cost of the item went from $2.85 per unit if there were no issue to $5.65 per unit from something as easy to avoid as a made in china sticker.
The 2 weeks plus of extra time getting these goods to market. If you’re out of stock and do this you will lose sales and BSR on your listing.
Plus any profits that may have been available on this item were chewed up from a label.
GDW is the premiere provider of product development, branding, third party logistics, fulfillment and other business solutions for eCommerce businesses. We have over 15 years of online retail and fulfillment business experience, including launching and growing our own brands and products. This level of ‘hands-on’ experience is unmatched in the eCommerce services industry and why we know we can be the key component and difference maker in your long-term eCommerce business growth strategy. We look forward to working with you. Here are some places to get started:
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