Viewing 19 posts - 1 through 19 (of 19 total)
  • International Free Delivery – how do the economics work?
  • bigrich
    Full Member

    I just bought 70 quids worth of stuff from CRC. The shipping was free to Australia. They use Parceforce.

    I reckon if I wanted to send the same stuff it would cost me 75 quid.

    I understand there will be an economy of scale, but how do they do it?

    molgrips
    Free Member

    If it really was parcelforce all the way I’d be surprised. Don’t they have a shop down there? Perhaps they are fulfilling the order that way, or maybe they are already shipping stock themselves?

    cbmotorsport
    Free Member

    They pay Parcelforce a yearly fee that covers all of their shipping, and includes international. Simplez.

    bigrich
    Full Member

    it must be a bajillion pounds then.

    I did read somewhere that whole cargo planes full of stuff get sent by CRC/Wiggle.

    nemesis
    Free Member

    CRC are one of RM’s biggest customers (certainly the biggest in NI). I’m sure they get some fairly good deals along the lines of what cbms suggested that mean they can absorb the overhead across the range and their challenge then is to shift sufficient volume to make it profitable.

    http://www.retail-week.com/multichannel/chain-reaction-10-things-you-didnt-know-about-the-cycles-etailer/5041548.article

    Chain Reaction is the Royal Mail’s largest customer in Northern Ireland and Parcel Force’s largest export account

    devash
    Free Member

    Interesting fact – Royal Mail / Parcelforce don’t want your private parcels. They’re an inconvenience because they require separate infrasturcutre (customer services, agreements with the retail networks etc) and make very little profit.

    They make far more money through block contracts with big retailers such as CRC.

    cbmotorsport
    Free Member

    Parcel companies know how much it cost to run all their planes/trains/vans etc etc. on their daily rounds/flights per year. They will have a number of key companies that pay them yearly fees for any delivery. The fees will cover costs, and allow profit. They will also get profit from ad hoc deliveries.

    They are offering more of a logistics service than parcel delivery.

    mikewsmith
    Free Member

    molgrips – Member
    If it really was parcelforce all the way I’d be surprised. Don’t they have a shop down there? Perhaps they are fulfilling the order that way, or maybe they are already shipping stock themselves?

    It all comes from NI, otherwise we would be paying tax, given that it took nearly 3 week for the random collection of strange sized gloves the missus ordered to get here it’s almost certainly coming on the most economy option possible which reading the box was TNT via Post NL. The economics of it are that they have that factored into the margin already on the pricing. It’s easy to compete when you are tax free.

    nemesis
    Free Member

    It all comes from NI, otherwise we would be paying tax

    No import duty?

    mikewsmith
    Free Member

    No import duty in Oz or no GST (our VAT) on imports under $1000AU (£550)

    hofnar
    Free Member

    You paid it with the item. They price per country if you change tour country price change an item costing 5EUR for uk will be a bit more for france another bit more for spain and quite a bit more for south africa and you.

    Well they definitely used to I used to live at 4 addresses in 4 countries at two different continents and when deciding where to ship to saw items price change and go back to old if going to first destination.

    flamejob
    Free Member

    No import duty in Oz or no GST (our VAT) on imports under $1000AU (£550)

    You what!?

    I live in Canada now and feel like I have moved to the dark ages. I actually ordered stuff from the UK because it was the only place I could find it online!

    bigrich
    Full Member

    No import duty in Oz or no GST (our VAT) on imports under $1000AU (£550)
    You what!?

    I live in Canada now and feel like I have moved to the dark ages. I actually ordered stuff from the UK because it was the only place I could find it online!

    and, if you buy something from a store here, and fly internationally, you can claim the GST (VAT) back at the airport. my mate regularly buys a couple of grands worth of camera gear before work trips.

    mikewsmith
    Free Member

    Even with that I order very little on line, I got my Hope Trex and retainer as they were not out here yet, the missus got some gloves and lights on sale. She also just got some Pikes which are cheaper than the trade price here. The rest of the stuff can be had at a good price locally.

    Also with the prices and delivery and comparison the prices never seem to be VAT free but more like 5% extra. Still looks cheap but cheap in comparison.

    evillittlegoat
    Free Member

    Like Hofnar says. When you change the delivery country to anywhere other than UK the price rises, even if you are paying in £. Bit disingenuous really.

    mikewsmith
    Free Member

    Sample of 1 but it doesn’t
    SRAM XX1 Cassette
    UK Price 209.99
    AU Price 186.23
    If you add VAT to the AU price it comes out as more but the price we pay here is less than the UK price but more than the Ex VAT price
    http://www.chainreactioncycles.com/sram-xx1-xg1199-11-speed-mtb-cassette/rp-prod91007?utm_source=Google&utm_medium=Shopping&utm_name=Australia&gs=1&gclid=Cj0KEQjwmayfBRDo25CR9un4hvEBEiQAv9fBbaMtdoeTZxXzUHvWhggHV8dIh3DXpq2eAuo8HILi0ywaArTd8P8HAQ&gclsrc=aw.ds

    sq225917
    Free Member

    @evillittle goat. Surely the point is that the price to ship to say Germany, is more than the price to ship to the Uk, regardless of what currency you choose to pay in. CRC just want your busines, be it in roubles, sterling or Yen, they don’t give a rats ass if the money in your bank account matches the currency of your chosen location.

    evillittlegoat
    Free Member

    It shows that the price difference isnt due to currency conversion sq225917. The item mikewsmith linked to above is £209.99 for UK buyers but £215.99 for Ireland, yet it says free delivery to Ireland. Its not really free, they just charge extra for the item itself.

    bigrich
    Full Member

    top end stuff is usually comparable in price, give or take – it’s the cheap stuff. I’m ratting up an old carbon road frame and flat bars/levers/cheapo drivetrain.

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