What Is Package Forwarding and How Does It Work?

Overview

Package forwarding is a service that allows you to buy products from online retailers that don't normally ship to your country. The package is delivered to an overseas address provided by the forwarding company, which then sends it on to you.

This can be particularly useful if you live outside major shopping markets such as the USA, UK, Germany or Japan, where many retailers only offer domestic delivery.

Package forwarding companies effectively give you a local delivery address in another country. You can use this address when shopping online, and once your purchase arrives at the forwarder's warehouse, you can arrange for it to be shipped internationally.

The process is relatively straightforward, although the exact services and fees vary between package forwarding companies.

How does package forwarding work?

The basic process usually involves the following steps:

  • Choose a package forwarder:Select a company that provides an address in the country you want to shop from. Some forwarders offer addresses in several countries.
  • Register and receive your address:Once you have created an account, the forwarder gives you a personal delivery address. This will normally include an account or suite number so the company can identify your packages when they arrive.
  • Shop online:You can now shop with retailers that deliver to your forwarding address. Enter the address provided by the forwarder as your delivery address during checkout.
  • Your package arrives:The retailer sends your purchase to the forwarder's warehouse. The forwarder identifies the package using your account or suite number and adds it to your online account.
  • Choose what you want to do with your package:Depending on the forwarder, you may be able to request photographs, remove unnecessary packaging, combine several packages or store the package until you are ready to ship it.
  • Select international shipping:You choose your destination and an available international shipping service. The options might include DHL, FedEx, UPS, USPS or another international or regional carrier.
  • Pay the forwarding and shipping costs:You pay the forwarder's applicable service fees along with the international shipping cost. Depending on the service and destination, taxes and customs charges may also apply.
  • Your package is shipped:The forwarder prepares your package for international delivery and hands it to the selected carrier. You can then track the shipment until it reaches you.

Why use a package forwarder?

The main reason to use a package forwarder is to access retailers and products that aren't available in your own country.

For example, a US retailer may only deliver within the United States. By using a US package forwarder, you can have your purchase delivered to a US warehouse and then forwarded to your home address overseas.

Package forwarding can also be useful when a retailer does offer international shipping but the cost is high, the available shipping options are limited or the retailer doesn't deliver to your particular country.

Some forwarders also provide access to multiple shopping destinations. This means you may be able to use the same company to shop from retailers in the USA, UK, Europe or Asia, depending on the addresses they provide.

Another reason is that you may want to purchase multiple things from different stores in the same country. If you get them delivered to a forwarder they can repackage and consolidate them into one package, which might save you money.

What is package consolidation?

One of the biggest advantages of using a package forwarder is the ability to consolidate multiple purchases into a single shipment.

For example, imagine you buy three products from three different US retailers. Instead of having each retailer send the purchases directly to you, all three packages can be delivered to your forwarding address.

The forwarder can then combine the packages into one shipment and send them to you together.

This can reduce the overall cost of international shipping because you are paying for one international shipment rather than three. However, not all forwarders offer free consolidation and some charge a fee for each package that is combined.

It is also worth remembering that consolidation doesn't always guarantee a lower price. The size and weight of the combined package can affect the shipping cost, particularly where the carrier uses volumetric or dimensional weight.

What other services do package forwarders offer?

Package forwarding companies offer different services, so it's worth comparing what is included before choosing one.

Common services include:

  • Package consolidation
  • Repacking and removal of unnecessary packaging
  • Package photographs
  • Package inspection
  • Free or paid storage
  • Returns to the original retailer
  • Assisted purchasing
  • Additional insurance or package protection
  • Special packaging for fragile or unusual items
  • Multiple international shipping options

Some companies specialise in particular markets. For example, a Japanese forwarder may focus heavily on Japanese retailers and marketplaces, while others operate warehouses in several countries.

The services included in your membership can also vary considerably. Some forwarders offer free package receiving and consolidation, while others charge separate fees for these services.

How much does package forwarding cost?

The cost of package forwarding varies between companies and depends on the services you use and where you are shipping from and to.

Some forwarders offer free accounts with no monthly subscription, while others offer paid membership plans that provide lower fees or additional services.

Common charges can include:

  • Membership or subscription fees
  • Package receiving or handling fees
  • Storage fees
  • Consolidation fees
  • Repacking fees
  • Package photography
  • Assisted purchasing fees
  • Returns and special handling
  • International shipping

The international shipping charge is usually the largest cost. This will depend on factors such as the package's weight, dimensions, destination and the shipping service you select.

You may also need to pay import duties, GST, VAT or other taxes when your package arrives in your country. These charges are normally separate from the forwarding and shipping fees.

Are package forwarders safe?

Established package forwarders are generally designed to securely receive, store and ship your purchases. However, the level of protection offered can vary considerably between companies.

Before choosing a forwarder, check how long your packages can be stored, what happens if a package is damaged or lost and whether insurance or compensation is included.

You should also check the company's rules about prohibited and restricted items. A retailer may be willing to sell and deliver an item to the forwarder's warehouse, but that doesn't necessarily mean the item can be shipped internationally.

What can't you send through a package forwarder?

Package forwarders and international carriers have restrictions on what they can transport. These restrictions can vary depending on the country you are shipping from, the destination and the carrier you choose.

Common restricted or prohibited items can include batteries, aerosols, perfumes, certain liquids, food, medicines, alcohol and other potentially hazardous or regulated products.

Some forwarders may be able to ship certain restricted products using specialist services, while others may refuse them completely.

Always check the forwarder's prohibited-items policy before making a purchase if you are unsure whether an item can be shipped.

Shipping HAZMAT items

Shipping HAZMAT (hazardous materials) internationally can be more complicated and expensive than standard parcel delivery. Items such as lithium batteries, aerosols, perfumes, chemicals and certain liquids may be restricted or prohibited by the carrier or destination country. Some package forwarders can ship specific HAZMAT items using approved services, while others won't accept them at all.

Always check your forwarder's HAZMAT policy before buying, as accepting an item at the warehouse doesn't necessarily mean it can be forwarded internationally.

What should you look for when choosing a package forwarder?

There are now a large number of package forwarding companies, and their pricing and services can be very different.

When comparing them, consider:

  • Where the forwarder has warehouses
  • Whether it ships to your country
  • Membership and service fees
  • Free storage periods
  • Consolidation costs
  • Available shipping carriers
  • Processing and dispatch times
  • Insurance and package protection
  • Customer reviews and reputation
  • Any restrictions on the products you want to buy

You should also consider how often you are likely to use the service. A forwarder offering a paid membership might provide excellent value if you regularly receive and consolidate packages, but may not make sense if you only plan to use the service once or twice.

Final words

Package forwarding gives you a relatively simple way to shop with international retailers that don't normally deliver to your country.

You receive a local address in the country you want to shop from, have your purchases delivered there and then arrange for the forwarder to send them internationally.

The best forwarder for you will depend on where you want to shop, how often you expect to use the service, what you are buying and where you need your packages delivered.

Don't just look at the advertised shipping price. Consider the complete cost, including handling, storage, consolidation and any additional services you might need.

Compare package forwarders, check the available services and compare the actual shipping costs before choosing the option that works best for you.