Drop Shipping to UK should definitely be considered not only because of our common language, but also the size of the market. There is an incredible amount of online purchases made in the UK every day and being able to drop ship into the United Kingdom can create a great launch point for drop shipping into France, Germany, Spain, and major Scandinavian markets. Drop shipping to the UK is critical to help you become closer to your European clients and take advantage of the excellent transportation system for parcel delivery that originates in the UK, especially around London’s Heathrow Airport.
Drop shipping in the UK, means that you will have an incredible amount of companies vying for your business as well. There are so many different parcel delivery services with their headquarters in the UK that the competition is fierce and this will benefit your business greatly. Unlike the small number of competitors we have here in the US market, there are companies in the UK that specialize in home delivery for drop shipping, retail delivery for drop shipping USA to UK, and specialized routes that many carriers have providing drop shipping into the Danish market, Swiss market, German market, Spanish market and just about every major market in Europe. Drop shipping to the UK can encompass excellent options throughout all of Europe.
It is important when choosing a drop shipping partner in the UK, that many points be discussed prior to making a final decision. As you will be providing product to your eventual fulfillment partner, serious conversations need to happen around the subjects of VAT tax and who will be responsible party for paying the VAT taxes. Some drop shipping companies will gladly be the ‘importer of record’ for the bulk shipment of products that will fill their shelves, and they may even pay the VAT tax on your behalf up front and charge you back for the tax. If your online store or business is not set up to charge VAT taxes by country and collect those taxes, some fulfillment companies as part of their drop shipping services will allow connectivity to their systems from your e-commerce platform.
Duty and VAT taxes typically are paid upon the entry of your goods into the UK or wherever your drop shipping is going to occur. It is important to remember though, that a pallet of goods can have a VAT tax applied based on the ‘replacement value’ of the items, and your UK drop shipping company could pay that VAT tax on your behalf and then collect those funds they paid back through their VAT chargeback account. Here is where things can get a bit tricky if you are not careful though…if you start generating orders from your website and your drop shipping partner in the UK or Germany or whichever country has applied for return of the VAT tax on the bulk shipment, you had better be collecting the retail value VAT tax for that item. VAT tax still has to be paid when the sale occurs, and there are employees in the tax offices whose only job is to order products online all day, receive the parcels and find out if the VAT tax has been collected. The worst day can be the one where you receive a letter from the in country tax office accusing you of averting VAT tax.
If you are considering doing business in another major English language market country like drop shipping to Canada or drop shipping to Australia, these same issues can occur. Australia has a liberal 1000 AUS Dollar threshold before VAT taxes kick in, but Canada and the United Kingdom have much smaller thresholds and it is important that you learn them. Drop shipping into Canada is an excellent idea and one of the specialties of my company Custom Parcel Solutions. We help clients get stock placed and ready for delivery within the Canadian market and drop shipping into Canada is a great way to grow your business, simply because the online purchasing community in Canada is HUGE. Currently, our US dollar has a quite strong advantage over the Canadian dollar, and this means you should be getting your drop shipping for Canada in order immediately! Why would you not want to take advantage of the lower fulfillment costs and lower delivery costs that the Canadian Dollar offers currently? Custom Parcel Solutions Drop Shipping Logistics Company works with an excellent partner in the GTA ( Greater Toronto Area) that provides the highest level drop shipping and fulfillment services and the value that in country drop shipping provides will allow you to grow your northbound Canadian client base and propel profits.
Drop shipping to Canada is a smart business move and it is a great starting point to accelerate future drop shipping points around the world. Let’s face it, the old way of transporting goods to a warehouse, waiting for delivery of an ocean container to arrive in port, then clear customs, and then be trucked to your local fulfillment center is extremely time consuming and can lead to hang-ups along the way. Drop shipping into the UK, drop shipping into Canada, and drop shipping into other foreign markets can make a lot of sense and you receive the added advantage of focusing on your business and not your logistics.
Drop shipping by its very nature means get the product delivered quickly and at the lowest cost to my customer. That is why drop shipping to the UK, to Australia, to Canada and just about anywhere else in the world makes so much sense. Remember, FedEx Drop Shipping, USPS Drop Shipping, and UPS Drop Shipping do not rule the world outside of the United States, there are parcel delivery companies that have been delivering parcels locally and trans-nationally for HUNDREDS of years especially in Europe. The local delivery community is wired with many competitors and provides multitudes of options that will fit your business model. Every aspect of the transaction process is automated especially the returns process and notifications process to the end consumer, so the sooner you start drop shipping USA to UK or drop shipping USA to Canada the faster you will see sales grown and profits increase.
International Drop shipping to the UK | Domestic Drop Shipping UK