Direct purchase from a supplier
International purchases are accompanied by overhead costs. Among them: registration of export, import, transit declarations, packaging of goods, preparation of shipping documents, VAT reimbursement, bank commission for cross-border transfer, currency exchange costs. Overhead costs can reach more than 100% of the purchase cost of inexpensive goods, which inevitably leads to higher prices for the end buyer. Direct purchase from a supplier is profitable only when the cost of the transaction is high, cargoes are homogeneous and shipped in large batches.
There are three ways to make an international purchase
Purchase from a “donor”
Many companies use the “donor” scheme to optimize costs associated with the purchase of small batches of goods. In this case, the company buys goods through its office or branch office, which is located in the same country as the supplier they need. This approach reduces only part of the costs and is not available to all companies.
Consolidated purchase through a specialized service
Consolidated international procurement allows you to significantly reduce the amount of overhead costs when purchasing small batches. Companies-customers from Russia place their purchase orders through a special service. The consolidator company buys goods and services from legal entities in the EU by pre-order at pre-agreed prices with the buying company. Companies registered in foreign jurisdictions are used as consolidator – for example, we use our legal entity located in Germany to consolidate goods from the EU territory.
Consolidator
- Purchases goods from suppliers
- Manages warehouse operations
- Ensures delivery of cargo to the customer
- Forms transport, financial and customs documentation for the order being processed
Quickinim’s international consolidated purchasing service allows companies to purchase even small quantities without overpaying.