Comment · Thu, November 11, 2021 · ND Owner
EU wherehouse
Original post in this thread
LungsOfSteel · 13 points
Hey-hey!
So it looks like it’s been more than a month since someone last asked. How’s it going with the EU store/warehouse opening? Is there somewhere where I can check regularly to see how it’s going?
What benefits would this have for the european customer in addition to (perhaps) faster deliveries? Would some products be cheaper if they are EU-sourced vs US counterpart or not really?
Thank you! Looking forward to it.
What they were answering
LungsOfSteel · 2 points
So we can consider EU expansion as ‘on hold’ for now? Don’t hesitate to let us know publicly if you are moving forward again - I’m sure many of your EU fans would be interested in seeing the journey.
Nothing will be cheaper in the EU, though. Duties, taxes, VAT, and higher overhead costs will make everything more expensive. The EU is not a cheap place to run a business.
I don’t know if that changes anything but just to clarify that am comparing costs from an EU customer viewpoint.
As ordering from the US we already have to pay +20% VAT. Plus customs tax if the value of the shipment is over €150. As well as additional shipping costs for DHL or comparable method if we want to receive the package in a reasonable timeframe (2-4 days).
Also if there is anything we can do to help in the meantime. We are ready to work for you, fellow human. Most of my useful skills are limited to software development (back-end - plugins/themes for platforms or completely custom solutions, iOS/Android mobile apps). You can ask us for a cost estimate if you ever need a 3rd offer or just for advice but am sure you have that area covered already.
u/MisterYouAreSoDumb · ND Owner
Effectively on hold for now, yes.
I was referring to products being more expensive than on our US store. They would have to be for our EU store. We would still have to charge VAT selling from there, too. We would have collect ourselves and remit to the respective countries. Also, you would have to pay VAT on the higher EU pricing. We also have to pay VAT and import duties when importing the finished goods. This is a big part of the cost increases. This is why manufacturing inside the EU would make more sense. Then we could import all the raw materials and not have as much import duties and VAT. Importing finished goods just adds to the unit cost. Then the shipping costs from inside the EU are expensive! Sometimes it is cheaper to ship something from us here in Arizona than between two EU countries. It's crazy. You would certainly get the packages quicker, though. That is for sure. I think we can make the numbers work, but it will take some time and infrastructure getting set up there to do it. Right now with the labor shortages and supply chain breakdown, we just have to focus on putting out other fires first.