Buyers Beware - Shipping Quotations

[BMW86]

Just a heads up to those that purchase parts from vendors from overseas, especially the USA. When shopping online for a good deal keep in mind that shipping quotes differ between vendors quite substantially. What initially seems like a deal that's too good to be true usually is, because the shipping is marked up or involves you making arrangements to pick up the shipment from the airport.

I've had quotations for the same parts from different vendors ranging from $200 to $500 so keep this in mind and shop around. Some vendors might claim to "guarantee the lowest price" but tax you using this method which is very sneaky and dishonest in my opinion. Those vendors I'm speaking of know who they are.

At the end of the day do your homework, research your product and ask around on your local forum to see what others paid. No names need to be dropped but it helps you work out if you got a consistent deal. There are some members on here that live no more than 5 minutes away that receive shipping quotations that differ by $300. Just remember, as nice and approachable every vendor may seem, they are all on here trying to make money and run their business.

This thread isn't designed to bash any vendors but to help buyers make an informed choice and get the best deal they can.

[x5mad]

I agree. Shipping costs vary quite a bit. I had fat 20 inch tyres x4 shipped from tire rack for <300 usd door to door. I got qoute for coilovers and the shipping was $350 usd ?? How does a set of coilovers which is much smaller and lighter than tyres cost more to ship?

[jksgoh]

thanks for the heads up. i hope this isnt a stupid question, but if its pick up from the airport do you expect to be charged extra at pick up? and if its door to door you dont pay extra? or is it a little more complicated than that?

[gts135]

The key is to watch for the total price, to your door. The high shipping cost, if compensated to a degree by a lower item price, may have the advantage of getting a lower item price on the duty declaration. If the country you live in charges duties/excise, etc - that is usually only charged on the item price - not the shipping charges. So, a higher cost to the vendor may still result in a lower cost to your door.

Another thing to watch for, and is probably country dependent, is what shipper is used. If an American ships to Canada using US Postal Service for smaller packages anyway, it rarely attracts duties, taxes, broker fees, etc. If shipped by FedEx, UPS, etc, they almost always charge for those items.

Bottom line is be be aware of all the various methods of delivery and be aware of what attracts charges along the way.

[m 135]

Originally Posted by x5mad

I agree. Shipping costs vary quite a bit. I had fat 20 inch tyres x4 shipped from tire rack for <300 usd door to door. I got qoute for coilovers and the shipping was $350 usd ?? How does a set of coilovers which is much smaller and lighter than tyres cost more to ship?

I have been getting quotes this week from US vendors to do mods i said i would not do,i got a quote for coilovers from one firm on this forum and they said the cheapest shipping they could do was $550.00us, which is crazy,another vendor quoted $100.00us,the first vendor had the cheapest price for the product by hundreds of dollars,but both came to $2000.00 in the end.

It makes you want to go with the company with the standard price product because the other company is treating you like an idiot,a bit deceitful i think and was quite surprised.

[x5mad]

$550 for delivery! Holy Cow, thats a bit exorbitant. You can get 20 inch wheels and tyres delivered for less than that.

[harpoon]

Yeh I'm getting 8 tyres (a set for a mate included) delivered to my door for US$300 from tirerack. I think that's bloody good value.

[gts135]

Originally Posted by m 135

I have been getting quotes this week from US vendors to do mods i said i would not do,i got a quote for coilovers from one firm on this forum and they said the cheapest shipping they could do was $550.00us, which is crazy,another vendor quoted $100.00us,the first vendor had the cheapest price for the product by hundreds of dollars,but both came to $2000.00 in the end.

It makes you want to go with the company with the standard price product because the other company is treating you like an idiot,a bit deceitful i think and was quite surprised.

See my post previous to yours. The higher shipping cost can work out to your advantage - don't automatically jump to the conclusion they are treating you like an idiot - depends on your import tax and duty structures.

[Jeef Beef]

Originally Posted by gts135

See my post previous to yours. The higher shipping cost can work out to your advantage - don't automatically jump to the conclusion they are treating you like an idiot - depends on your import tax and duty structures.

So technically, if you were on good terms with the vendor, you can ask them to charge you $1 for the item, and the rest of the cost into "postage and handling".

$500 item with $100 shipping instead becomes $1 item with $599 shipping. You would pay no duties or import tax whatsoever.

Interesting....

[gts135]

Originally Posted by Jeef Beef

So technically, if you were on good terms with the vendor, you can ask them to charge you $1 for the item, and the rest of the cost into "postage and handling".

$500 item with $100 shipping instead becomes $1 item with $599 shipping. You would pay no duties or import tax whatsoever.

Interesting....

Exactly - I didn't think of it that way either until a few weeks ago when my wife, who is an eBay seller mentioned the potential advantages. I'm not saying all vendors who do the 'elevated postage' strategy do it for that reason, but it can be.

For instance, one would wonder why a vendor is doing it if they don't ship out of their own country - maybe to get around local sales taxes?

[spdrcr]

Duty, GST etc is payable on the value of goods inc shipping so it doesn't make a difference how they structure it unless they 'under declare' the lot with a fake invoice.

[gts135]

Originally Posted by spdrcr

Duty, GST etc is payable on the value of goods inc shipping so it doesn't make a difference how they structure it unless they 'under declare' the lot with a fake invoice.

I assume you are speaking of Australia specifically. I don't think that applies to Canada, and it would be prudent for an individual to check their own specific circumstances, of course.

[andrew@southernBM]

....to which you get no insurance on the products if they get 'lost' in the mail as you have had them devalued and therefore commercially valued at a low amount and you are taking on warranty for your self.

Don't always think overseas is cheaper, why not at least try local.....

[x5mad]

Originally Posted by spdrcr

Duty, GST etc is payable on the value of goods inc shipping so it doesn't make a difference how they structure it unless they 'under declare' the lot with a fake invoice.

+1. Unfortunately this is how it works in Australia.

[Brissie]

Originally Posted by spdrcr

Duty, GST etc is payable on the value of goods inc shipping so it doesn't make a difference how they structure it unless they 'under declare' the lot with a fake invoice.

Is that really true? I didn't have to pay for GST/duty for wheels that were invoiced for $800USD plus $390USD shipping, so it seems to me that the shipping cost is not includded when it comes to assessment for duty and GST.
Of course I got ripped by DBSchenker for other miscellaneous fees.

[Blacky]

Originally Posted by bmw135fan

Is that really true? I didn't have to pay for GST/duty for wheels that were invoiced for $800USD plus $390USD shipping, so it seems to me that the shipping cost is not includded when it comes to assessment for duty and GST.
Of course I got ripped by DBSchenker for other miscellaneous fees.

Yes, to the best of my knowledge GST and Duty is paid for on the landed cost, that includes shipping costs.

However the customs / duty department can work in funny ways for small amounts over the $1,000.00 threshhold.

Something to look at is the custom decleration documents as your supplier may have reduced the overall cost to help in paying duty and GST. This happened to me for a bike frame, I was expecting to pay an extra $150.00 for GST when the frame arrived. When I looked at the paper work the figure was lower than expected.

[BMW86]

I'm not surprised I'm not the only one who's experienced unusual prices from vendors. Another thing to look out for is a vendor providing you with a price that's too good to be true for the product and the shipping. I feel like they do this to gain your interest so you reject any other offers you've had from other vendors only to tell you later that they made a "mistake" and shipping will cost more or something to that effect. I find the same vendor making the same "mistake" over and over again. I've been quoted shipping for $60 and then been told it's closer to $400. I've also had shipping quotes for $500 and my friend been given a quote for $250 and we live in the same neighbourhood. It really doesn't add up. There is definitely a mark up in shipping provided by some vendors.

Also, if you mark the declared value down you will avoid most or all costs to get the shipment into the country but you will only be insured for the declared value by the shipping company if damages occur. This is a risk most people are willing to take but you have to pay to play. Even after paying taxes and other fees I find it cheaper to order from overseas than to order locally in every situation I've come across thus far. The mark up on items here is huge.

[takahashi]

Never like US vendors. Because they insist in the company they use for logistics. This is fair enough because they have to cover the level of insurace they are comfortable with.

The higher shipping cost must use something like UPS, which is well known to be expensive but they have the best service in the world - fast, reliable and on time. FedEx is very popular still, but they have contracter staff so some Joe Blow with a van can bring your precious part to your house... and I don't know where DHL is nowadays.

I like UK. Royalmail is superb and they do courier service for anything, any size for 30 pounds or something (that is for bicycle stuff online). EMS is another way to ship - fast and still cheap and they use AusPost courier service to deliver; used to be Airport express but I think they now change.

[micha3l]

Originally Posted by Blacky

Yes, to the best of my knowledge GST and Duty is paid for on the landed cost, that includes shipping costs.

However the customs / duty department can work in funny ways for small amounts over the $1,000.00 threshhold.

Something to look at is the custom decleration documents as your supplier may have reduced the overall cost to help in paying duty and GST. This happened to me for a bike frame, I was expecting to pay an extra $150.00 for GST when the frame arrived. When I looked at the paper work the figure was lower than expected.

Nope, the A$1,000 threshold is the value of the goods only and is calculated on the exchange rate the day the item is shipped (not the day you paid for it)

If you exceed the $1,000 though, duty is payable on the value of the goods, and GST is payable on the value of the goods + shipping/insurance.

Had this confirmed in an email from a Customs Officer today.

Found this page has some useful information too
http://www.customs.gov.au/webdata/re...sByPostFAQ.pdf