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CAPLINQ's order fulfillment service gives your company a distinctly European presence and puts you on a level playing field with European suppliers without the hassle and expense of setting up a European company.
There is a lot more to CAPLINQ's order fulﬁllment service than simply a logistics supply chain into Europe. Though logistics and supply chain services are important elements, our order fulfillment service is more about making your company look, act and feel like a European company.
If you walk into your local hardware store, you don't question how they calculated the sales tax on the hammer that was made in Vietnam. If you go into your local supermarket, you don't ask whether duty has been imposed on the bananas from Costa Rica.
You just assume that these business owners have complied with the necessary import guidelines to be able to offer their products at their listed prices. CAPLINQ's order fulfillment service complies with European customs authorities to do the same with your products in Europe.
European customers expect their suppliers to have products on stock when they need them. CAPLINQ's order fulfillment service makes this happen.
Play like a big boy. CAPLINQ's order fulfillment service allows you to use the same techniques and legal strategies that multinationals use to import goods into Europe and serve their European customers.
Multinationals have advantages over small foreign companies, they:
Foreign companies however, sell their goods ex-works their place of business and make their European customers pay duties against the delivered sales price.
CAPLINQ's order fulfillment service uses our fiscal representation license to allows you to import the goods against the manufacturing cost rather than the sales price. Learn more about our fiscal representation licence.
CAPLINQ's order fulfillment service uses our VAT deferment license which allows your European customers to not pay VAT on goods sold. Learn more about our VAT deferment license
CAPLINQ's cutting edge logistics and distribution systems allow us to ship, custom-clear and ﬁnally deliver the product to your customers cheaper and faster than either you or your customer could do.
Beyond simply supply chain monitoring software, CAPLINQ employs state-of-the-art technology to monitor and track stock levels and sales activity. Our monthly reports, let you know exactly how much of each product is sold, what the monthly usage of each product type is and how long each product has been on stock.
Suppliers using our order fulfillment service enjoy offering their customers a local stock. With 75% of customers within a 24 hour drive and 99% of customers within a 3 day drive, customers consider this a local safety stock.
Having a warehouse outside of Europe makes European customers nervous. Having a stock held locally in Europe, puts foreign suppliers on a level playing fields with European suppliers
CAPLINQ has regular shipments of 40 foot (12m) containers traveling from overseas into Rotterdam. Yearly, CAPLINQ moves more than 500MT (metric tonnes) of goods through the Rotterdam port.
Due to the volume of goods moved, CAPLINQ has preferential rates and arrangements with UPS, FedEx, DHL and others to move goods directly from the supplier’s loading dock to the customer’s receiving dock.
Every day, CAPLINQ takes orders from customers and dispatches products from our Rotterdam warehouse to locations all over EMEA. By refrigerated truck (if needed), we can reach 99% of our customers within 72 hours.
CAPLINQ’s order fulfillment services allow you to keep and maintain a specific sales price list for your European customers. Our simple logistics adder means no more guessing how much duty, taxes and delivery charges you need to charge separately.
Unlike traditional distributors or agents, our costs are completely transparent and you know exactly how much your customers paid for your products, duty, shipping and delivery charges. That is our order fulfillment service.
CAPLINQ provides a simple, clear logistics adder that is easy to understand. Regardless if you're shipping pails, drums, barrels, pallets or boxes, our logistics adder follows a clear simple formula. Learn more about how the logistics adder is calculated.
CAPLINQ's order fulfillment service acts as an enabler to save your European customers money. The benefits of those savings are for you and your customer. The payments for those goods are still between you and your customer directly.
Unlike traditional agents or partners, we do not charge commissions or fees for our services. Everything above is included in the logistics adder. We like to say that CAPLINQ's order fulfilment services are free. We make our money by taking a part of the savings!
Below is the User Guide on how to use CAPLINQ's order fulfillment services, and what is expected from each party.
(Click to view)
CAPLINQ is particularly skilled in the delivery of specialty chemicals from outside Europe to European customers. This includes but is not limited to epoxies, urethanes, and silicones. What makes this supply chain so tricky is that the products need to be shipped, customs-cleared and comply with REACH regulations while often needing to be kept cool. This makes it a very time-sensitive supply chain operation, to be sure that all steps are completed without the goods being damaged in the process.
Absolutely. In fact, you have just described our typical customer. On the very low end, we have customers who have orders only every couple of months. The flexibility of the model allows you to start with very low volumes and therefore have very low fixed costs. As the business grows, the model scales up as well - keeping your costs always in line with your top line sales performance.
Our services are equally relevant for B2B and B2C EU customers. Customers without a valid VAT # (ie most B2C customers) will have VAT levied. The rate of VAT levied is determined by the company that ultimately invoices the customer.
Absolutely. We can normally give you all the prices in a day or two once we load the foreign supplier's products into our system. We need only to know the dimensions, gross weight, COGS, and sales price, and the system provides these numbers immediately. The number we give you is fixed for each product. Fixed, predictable, and known ahead of time - this is why we tell you that you can have a European price list.
At the time CAPLINQ and the foreign supplier enter into an order fulfillment agreement, there is also an agreement to appoint CAPLINQ as the foreign supplier's fiscal representative.
It's simple, we don't. The companies listed above are freight-forwarding companies that ship goods from A to B. The supply chain management of goods to manufacturers is totally different. In this supply chain, there are borders, duties and tariff codes. On top of that, there are warehouses, delivery schedules, and order call-offs. Add to that just-in-time delivery, consignment stocks and minimum inventory levels and you see that there is a lot more to it than simply the delivery of goods. DHL, UPS and FedEx supply delivery services, CAPLINQ provides a logistics platform.
The fee is the "order fulfillment fee" which is a price per order processed and includes picking, packaging, labeling, shipping and invoicing (if supplier prefers CAPLINQ to invoice). It also includes the accounting required as part of the fiscal representation agreement. There are no other transaction fees.
Several ways: 1. We minimize the number of transactions by grouping all transactions into one per month instead of all individual. 2. We have very competitive foreign exchange rate fees that are a fraction of banks, PayPal, or other. 3. We can accept most payment directly in the end customer's original currency.
No. We can ship anywhere. The fiscal representation portion is only relevant for EU countries where we facilitate the actual import.
Yes you can. There is a pick-up fee associated with the last mile delivery however if you do not use our carriers. The pickup fee depends on the billable weight of the product.
Of course. What we need specifically are the box dimensions and the gross weight. We also need to know if you will provide products in "ready-to-ship" boxes or if we need to repack them into shipping boxes.
This depends on the customer. If the customer likes, CAPLINQ can handle the communication of the delivery to the customer, or we will provide you with tracking information to provide to the customer. If there are any questions, refunds or returns necessary, we can also handle these for you.
The idea of the example is to try to give you a "cost per unit" so that you can really calculate a "European Price List" based on these numbers. In reality, each of the steps will be invoiced separately: Inbound Shipping, Order Fulfillment Fee, Last Mile Delivery and Warehousing. In the case of a 500pcs shipment there will be one charge for inbound, separate charges for each order (or multiple items together), and then the warehousing charge is per unit.
It is never the foreign company that pays VAT, but the domestic European customer. If the customer is a European company with a valid VAT number, then the product can be sold to them without VAT. If it is an individual or a European company without a valid VAT (all legitimate European companies have a VAT number), then you are responsible for collecting the VAT and submitting it to CAPLINQ to pay on your behalf as your Fiscal Representative. More details are available in our user guide.
Lots of questions in one, but the core message is this: Once you appoint CAPLINQ as your Fiscal Representative, it is CAPLINQ's responsibility to ensure you comply. CAPLINQ has insurance for this purpose and the risk to the foreign company is limited once the Fiscal Representative is appointed. By appointing CAPLINQ as your Fiscal Representative, there are no more "reporting" obligations other than the responsibilities to CAPLINQ as your fiscal representative.
Billable weight is the greater of gross weight or dimensional weight.
Dimensions are cascaded. If the largest dimension does not fit into the largest of the sizes, it cascades to the next until all dimensions fit.
CAPLINQ is particularly skilled in the delivery of cooled goods. This means that the entire supply chain has to be refrigerated or even frozen. Along with room-temperature stable materials, we deliver goods that must be stored at 5°C, -20°C and even -40°C. Shipping at these temperatures often requires cold supply chain solutions such as dry ice and temperature monitors to be sure the goods are not damaged during transit. DHL, UPS and FedEx do not always understand these things. We thrive on it.
Absolutely, this is exactly the point of our EU Order Fulfillment service, that both suppliers and customers have essentially a "European Price List" that includes all these so that there are no surprises or hidden costs.
No. The location of the invoicing party is leading, not where the buyer or goods are located. If CAPLINQ invoices Germany or Spain, we add 21% VAT to invoices to customers with a valid EU VAT number.
VAT is not paid on import of the goods, it is paid on the sale of the goods. It's not about reclaiming VAT, but collecting and remitting VAT to the proper EU member state (country). Indeed, it is the fiscal representative's VAT number that would be used in the online store, and that is where the VAT would be remitted.
Yes, we have two standard contracts actually - one for order fulfillment and one for fiscal representation.
This depends on how the foreign supplier prefers to set up the arrangement. They can either have CAPLINQ invoice the customers, or they can have the customer pay them directly, and then you collect the VAT and remit this to the fiscal representative (CAPLINQ).
Absolutely. Unexpected "after-the-fact" costs are very customer unfriendly and leave customers with a bad experience. What CAPLINQ offers is that foreign suppliers can offer a "European price list" that you can advertise on your site (we will calculate that price together). The customer will pay the foreign supplier the invoice and CAPLINQ will send you a monthly fee for order fulfillment based on orders fulfilled - all behind the scenes.
Good question and the answer is it depends. Our processing time is the same day, which means we pick, pack and ship the order the same day it comes in. We work with a number of freight forwarders including PostNL, UPS, FedEx, and DHL and we generally let the customer decide which service and delivery time they want to accept. Shipping times vary depending on forwarder selected and service selected. We have the options to ship from FedEx overnight delivery starting from €17/order to 14 day delivery with tracking starting as low as €1.65/order depending on the final destination.
Yes. One way or another, we define a process that fits into your existing sales platforms.
You can pack as many different products together as you like in the shipping box. Once we receive the box, we unpack it, make an inventory of all goods received and acknowledge them. For the single "order handling" fee, we will take the boxes as received and ship them to your customers. Of course, we can do (almost) anything, including packing, unpacking, repacking or any other special handling, and for this, we charge an hourly rate according to our rate schedule.
You can, of course, continue to use Amazon, but you cannot combine the services with Amazon and CAPLINQ. We hope you will agree that CAPLINQ offers a better, more customized service for a better value than what you would get at Amazon.
Yes. The interaction with your customer is yours to keep. Once an order is placed, notify us using the tools outlined in the Order Fulfillment Guidebook. and we will arrange shipment to your customer.
Yes. The sale is done directly between you and your customer, as is the payment. As always, if you would like CAPLINQ to assist (by assisting with payments in Euros and returning USD to you for example), you may ask us to assist.
Our standard delivery is not insured, but if your goods need insurance, we can absolutely accommodate such a request. The details of how much insurance and the premiums for such insurance can be discussed and agreed upon.
Yes. Our standard service includes returns management. Our user guide explains how these returns are handled.
The intent of the "no repack is that the box gets pulled off the shelf, labelled and shipped. This is more difficult with items that are not already prepacked. The data shows that >93% of orders are single orders. This means that multiple orders are the exception, and for these exceptions, Caplinq absorb the cost to pack multiple items into a single box for delivery and is therefore included in the rate.