The cost of using a package forwarder can vary considerably depending on the company you choose, where you are shopping from, where you live and how many services you need.
The international shipping charge is usually the biggest cost, but it is not necessarily the only one. Package forwarders can charge for receiving your purchases, storage, consolidation, repacking and a range of other services.
Some forwarders offer a simple pay-as-you-go service with no membership fee, while others charge a monthly or annual subscription in return for lower service fees or additional benefits.
Understanding the different costs can help you compare forwarders properly and avoid choosing a service that looks cheap but becomes expensive once you add the fees you actualy need.
Compare Package Forwarders
There are several different charges you may encounter when using a package forwarding service.
Not every forwarder charges all of these fees. Some include several services as part of their standard offering, while others charge separately for almost everything.
Some package forwarders are completely free to join and only charge you when you receive or ship a package. Others offer paid membership plans, usually on a monthly or annual basis.
Paid memberships can sometimes provide lower handling fees, longer storage, cheaper consolidation or discounted international shipping.
Whether a membership is worthwhile depends largely on how often you use the service. A frequent shopper who regularly receives several packages may save money with a paid plan, while an occasional shopper may be better off with a free account.
Some forwarders charge a fee every time a package arrives at their warehouse. This might be a flat fee per package or a charge based on the package or service you have selected.
Others include package receiving as part of their standard service.
This is an important fee to check if you regularly place multiple orders. A small fee on each incoming package can quickly add up if you are consolidating several purchases into one international shipment.
International shipping is usually the largest individual cost when using a package forwarder.
The price will normally depend on the package's weight, dimensions, destination and the shipping service you choose. Express services such as DHL Express, FedEx International Priority and UPS Express are generally more expensive than economy or postal options.
Some forwarders have access to discounted commercial shipping rates because they send large volumes of packages. This can make forwarding considerably cheaper than buying international shipping directly from a carrier.
However, the cheapest shipping option isn't necessarily the best choice. You should also consider delivery speed, tracking, insurance and whether duties and taxes are included.
Shipping companies don't always charge based simply on how much your package weighs.
Large but lightweight packages can be charged according to theirvolumetric or dimensional weight. This is calculated using the dimensions of the package and a carrier-specific formula.
For example, a large box containing lightweight clothing may take up more space in a delivery vehicle or aircraft than its actual weight suggests. The carrier may therefore charge based on its dimensional weight instead.
This is one reason why repacking and removing unnecessary packaging can sometimes make a significant difference to the final shipping cost.
Most package forwarders give you some amount of free storage after your purchases arrive at their warehouse.
The free period can range from only a few days to several months, depending on the forwarder and membership plan.
Once the free period expires, you may be charged a daily or monthly storage fee. Some forwarders also have a maximum amount of time they will hold a package before taking further action.
Storage fees are easy to overlook if you are comparing forwarders based solely on their shipping prices. They can become particularly important if you are waiting for several purchases to arrive before shipping them together.
Consolidation allows you to combine several purchases into one international shipment.
This can save money because you may pay for one international shipment instead of paying to send each package separately.
Some forwarders offer consolidation for free, while others charge a fee for each package included in the consolidated shipment or for the consolidation itself.
You should also check whether the forwarder removes the original packaging as part of the consolidation process. Reducing the size of the combined shipment can help lower its dimensional weight.
Repacking involves removing unnecessary packaging and placing your items into a more suitable box or package.
Some forwarders include basic repacking as part of their standard service. Others charge a separate fee.
Repacking can sometimes save more money on international shipping than it costs, particularly when retailers use oversized boxes or excessive packaging.
However, a smaller package isn't always cheaper. If the original packaging provides important protection or the new package still falls into the same shipping weight category, the saving may be minimal.
Many forwarders can photograph packages when they arrive at the warehouse. This can be useful if you want to check that the correct item has arrived before paying to ship it internationally.
Some companies provide a basic photograph for free, while others charge for photographs, detailed inspections, measurements or videos.
These services are particularly useful when you are buying expensive, fragile or second-hand goods, or when you want to confirm the condition of an item before sending it overseas.
Some package forwarders will also buy products on your behalf if you cannot purchase them directly from the retailer.
This can be useful if the retailer doesn't accept your payment method, requires a local payment card or doesn't accept an overseas billing address.
Assisted purchasing usually carries an additional fee. This may be a fixed charge, a percentage of the purchase price or a combination of both.
When comparing these services, remember to consider the retailer's domestic shipping costs as well as the forwarder's purchasing fee.
Some forwarders include a basic level of insurance or package protection, while others charge for it separately.
The amount of protection can vary considerably. Some services cover the first portion of the declared value, while others allow you to purchase additional cover.
Always check what is covered and whether there are exclusions. Certain products, types of damage or specific shipping services may not qualify for compensation.
Customs duties, GST, VAT and other import taxes are generally separate from the forwarder's own fees.
The amount you pay depends on the destination country, the type and value of the goods, their country of origin and the customs rules that apply.
Some shipping services offer DDP (Delivered Duty Paid), where applicable duties and taxes are collected in advance and included in the shipping arrangement. Other shipments are sent on a DDU or similar basis, leaving the recipient responsible for paying import charges.
Make sure you understand which arrangement applies before you compare prices.
There isn't one package forwarder that will always be the cheapest.
Shipping costs can vary depending on the origin, destination, package size, weight and shipping method. A forwarder that offers the cheapest service for a small package may not be the best option for a larger shipment or a package that needs to be consolidated.
This is why it is better to compare the total cost of a shipment rather than focusing on one individual fee.
When comparing package forwarders, look at all of the costs that are likely to apply to your particular shipment.
For example, imagine you have three packages arriving at a US warehouse. You want them consolidated, repacked and sent to New Zealand.
The total cost could include:
A forwarder offering free international shipping would not necessarily be the cheapest if it charges significant fees for receiving and consolidation.
Likewise, paying a membership fee may be worthwhile if it gives you lower shipping rates and free consolidation.
Price isn't the only factor worth considering.
A slightly more expensive forwarder may offer faster processing, better package protection, more shipping choices or a longer storage period. These services can be valuable if you regularly shop internationally.
On the other hand, if you are only forwarding one small package, paying for a premium membership or a long list of additional services may not make financial sense.
The price shown by a package forwarder's shipping calculator isn't always the final amount you will pay to receive your package.
Depending on your destination, you may also have to pay customs duties, GST, VAT, brokerage fees or other import charges.
These costs can be particularly important when comparing international purchases because a product that looks substantially cheaper overseas may no longer be a bargain once shipping and import charges are added.
The total amount paid to get a product delivered to you is often referred to as the landed cost.
The cost of package forwarding is made up of several different components, and the cheapest advertised shipping rate doesn't necessarily mean the cheapest overall service.
Look at the complete fee structure, including receiving, storage, consolidation, repacking and any membership charges. Then compare the actual international shipping price for your package.
Finally, consider customs duties, taxes and other import charges so that you have a realistic idea of the total landed cost.
The best package forwarder isn't necessarily the one with the lowest individual fee. It is the one that gives you the best combination of shipping cost, service fees and features for the way you shop.