If selling goods from Switzerland to EU member nations in relatively low volumes, postal and logistics companies should be able to provide everything you require to get goods across the border and to your customers - for details of the options available, please check out the article here.
The system explained
However, if your business needs to ship in significant volume - or grows into one that does - you could find that it makes sense to work with a partner inside a bordering EU member. Of course, where to look for a partner depends on where in Switzerland you are located - for businesses in Zurich it would make sense to look in Germany, for example, while a company in Ticino would naturally consider northern Italy.
Advantages of working with a partner company
Whichever EU state you choose, you would ship your merchandise to the partner company in one consignment, absorbing the border delay and handling any necessary import VAT and tariffs, if they apply, at that point. The partner company would then typically provide warehousing for your goods, picking-and-packing when an order is placed, and the service of shipping them on to your customers, as well as any required reporting and inventory management.
This means that your customers receive purchased goods with no delay caused by customs clearance, so as quickly as next-day, and of course there is no VAT to handle on delivery.
If you are shipping to consumers - where EU distance selling regulations are likely to enforce a limited right-of-return, in addition to any policies you may have - the partner company will usually handle returns as well.
The costs to you will be the fees charged by the partner company for its storage of goods, shipments and handling any returns, plus those associated with VAT registration in the EU country.
Disadvantages of warehousing in the EU
Of course, there are some downsides of this arrangement to note. Assuming you already sell domestically, holding goods with an EU partner will require you to maintain two inventories - one in Switzerland, and one outside - and to manage the balance of both. This makes it a less attractive option than exporting directly from Switzerland if you sell a relatively low volume of goods.
Key Points
- Shipping from the EU reduces the delay in delivery to customers.
- It requires a partner in an EU member, and VAT registration there.
- The key downside is duplication of your inventory.
About the Author
Marco Di Pietro is Founder and CEO of Ideapura, a boutique consultancy specialising in ecommerce and RFID product tracking. He previously founded Temera Srl, which focuses on innovative technologies for the fashion and luxury industries, and worked as Director of Operations at Yoox and as a director at Prada Group.
