When foreign suppliers start selling in the European countries, they only import the products according to the customer requirements leading to a waste of time and money.
Consignment sales service lets the suppliers sell their goods in Europe without having a legal European entity and warehouse. The products are held in Europe on a consignment basis and are directly shipped to the customers from their distribution centers.
The supplier owns the goods till the time they are sold to the consumers and becomes the consignor. CAPLINQ services let you hold the products as a consignee, and European clients become the buyers. This service saves both time and overhead costs while providing faster deliveries to the clients.
Read on to know more about the other benefits of CAPLINQ’s Consignment Sales services in Europe and how they can help you provide better service in the European Union-
1. Introduces your products into new sale channels
With the consignment sales services, the suppliers can measure the response on their new products without running on heavy financial losses. You are assigned a duration of 12 months in which you can decide whether you want to import the products or not.
2. Reduced overheads like inventory costs
Neither you require a European entity such as a bonded warehouse to keep your products, nor you need to hire your agents in Europe. With CAPLINQ’s order fulfillments service, you get European presence, and with consignment sales service, you can hold the products in their warehouses leading to reduced logistics and inventory costs.
3. Reduced taxes and duty on import
As the goods are present in Europe on a consignment basis, the supplier does not have to pay the import and duty charges unless you’re sure that you will be able to sell them to the European buyers.
4. Lets you keep a safety stock for European Customers
The consignment sales service avoids the lag times between the selling and shipping time. The inventory is always replaced as soon as the stock sells through which a heavy loss can be avoided.
5. Reclaim the duty and taxes imposed on unsold inventory
In case, if you don’t have the expected sales of your products, you can either put the products in the bonded warehouse or have the whole stock returned.
If you do this within the 12 months of good entering the Europe, the import charges can be reclaimed.