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Say you`re manufacturing and selling a physical object online. The company starts off selling in the USA mainly on line, and then expands to retailers and possibly to distributors or larger retailers. Then the stress of running an online store gets to be too much, and you farm the process out to a fulfillment center.
All is going well, but every so often orders arrive from the UK. Customers are willing to pay the huge postage and handling, but it`s still not a perfect world because each sale is a customs issue, and the fulfillment house really charges a lot for that.
To solve this problem, in the old world, you would find a distributor in the UK, send them a container, and hope that they found customers. Is there an alternative now?
Can we open a parallel site in the UK and take credit cards in pounds?
Do we invent a UK company over there to do this?
Are there fulfillment centers over there that just take care of all of this?
Do we invent a UK company over there to do this?
Are there fulfillment centers over there that just take care of all of this?
In the US `your` product sits in the warehouse at the fulfillment center. While it sits there, its still yours. They are simply storing it for you. When we send a container to the UK the moment is leaves the ship . . it becomes an import, Right?
Who is the importer?
Who owns the product as it waits for that British online order to occur?
Oh yes, and that whole VAT thing.
Who owns the product as it waits for that British online order to occur?
Oh yes, and that whole VAT thing.
In the traditional system, the distributer would own the product as it left the ship, thereby being responsible for the customs process. The internet seems to disrupt the traditional process. Right now we are nowhere near this step, so I`m not about to be calling all over the UK for answers, but I`m defiantly missing some knowledge here.
Let me know if you guys have any experience in this, or special knowledge.