This January Shipito announced rate increase for warehouse and consolidation services. Although it is a common practice in mail-forwarding business especially at the beginning of the financial year, many Shipito’s clients posted reviews on corporate forum claiming the prices were already high.
Many have cited that after uplift it takes $5 to $6 to process and ship package from the address in the United States. The company applied the new prices to all served markets — Brazil, Russia, China and Belarus among others. Here is one example:
Because of the price increase many clients start to look for alternatives to ship their orders from US online stores comparing prices and service level among competitors.
Why processing charges are important?
As you may now final price to get an order from Amazon or Ebay comprised of two things. First is a shipping charge which usually based on package weight or dimensions. Second is the processing costs which covers inbound logistics in the US warehouse, storing goods until they ready to ship and all associated repackaging and consolidation operations. Sometimes these processing charges may comprise up to 40% of total cost to get package overseas. That is why it is important to keep eye on ever changing pricing policy.
Below is a quick comparison of Shipito’s tariffs with one of its competitor:
$2 to process incoming order
plus $3 for consolidation every order
plus $50 annual fee
to ship 7 packages together you will pay ($2+$3) x 7 = $35 on top of shipping charges
Although it may seems a small price to process one order when you (as many experienced cross-border shoppers do) consolidate several inbound packages into one shipment the total price may include extra $40-$50. To avoid that learn ahead about such charges and estimate your total price including shipping and processing costs.
Or learn more about how US to Australia trade lane is organized at Shopfans.