How to Save Money on Your International Orders? | 11 Money-Saving Tips
Anyone who has ever tried to shop for something from an international retailer knows the struggle. How to save money shopping online and find the best deal?
There are many facts to consider, such as delivery charges, country of origin, and additional fees like customs duty and VAT.
Also, there is always a risk of overpaying for something and spending way more money than you initially intended to.
But don’t despair! With a bit of research and planning, you can make international shopping more affordable. In this blog, we will share tips on how to save money on your next international order and cover:
- What customs fees can you expect
- Tips on how to save money on customs duties
- How to reclaim customs duties and VAT on returned goods.
Without further ado, let’s get started!
8 Money-Saving Tips When Shopping Online
If you love to shop online, you know just how easy it is to spend too much money. You just keep adding to the cart, but once you go to checkout and see how much everything costs in total… You’re completely shocked!
Well, you don’t really have to break the bank every time you decide to order something online. You just have to find good deals, and we will teach you how.
1. Create a Budget
First things first – you have to set a clear budget.
Sometimes, you may have a few extra pounds to spend, but in other situations, money is tight, and it is better to set an exact amount you can spend on that shopping spree.
Have a clear plan so you are not tempted by fake deals like “spend £150 and get free shipping”.
2. Create a List
The next thing you must do is create a list.
You will have to be clear about what you need vs what would be just lovely to have but you could go without it.
For example – you are preparing for the holiday in the mountains and need a jacket. Or else you’ll freeze on that trip. You go online and start searching for a jacket but soon spot cute boots on sale.
You already have boots, but these are 30% off… Quite difficult to resist them.
Well, in this case, it is time to go back to your shopping list – boots are not on it, but the jacket is, so just close the tab with the boots and go back to finding the jacket.
Also, it would be good to tie each item on your shopping list to the budget. Write down how much you are willing to spend on each thing so it is easier to stick to both the budget and the list.
3. Use coupons and discount codes
One way to get a good deal is through coupons and discount codes.
You can find coupons on different websites like CouponFollow.
However, sometimes these websites don’t have coupons for items you want to buy. But that is when different browser extensions come in handy. Once you add something to your cart, the extension will search for a coupon and apply it. Good extensions are Honey and Cently.
Also, don’t forget that timing is everything! If you are shopping close to a big holiday, there are better chances of finding a good coupon.
Social media are also great for discount codes. Influencers often share discount codes that give you 10-15% off your next purchase, so use hashtags to search for any.
4. Sign up for a newsletter
Brands love to share special promo codes with their most loyal customers.
Once you sign up for a newsletter, you will most likely get a promo code. Also, they will send you information about special sales first.
5. Don’t complete the checkout
If you LOVE shopping, it will probably be difficult to put everything you want in your shopping cart but not complete the checkout.
But trust us – this trick works almost every time! Online retailers love to encourage their shoppers to complete their purchase.
Once they notice that you started the checkout, they will try to push you to complete it. At first, it will just be a reminder or an ad, but you will most likely receive a discount code.
6. Compare prices
That dress you’ve been eyeing for some time might be cheaper on a different website.
Don’t worry – you don’t have to check whether it is available somewhere else on your own. There are websites that will do it for you. PriceBlink, Honey, VoucherCodes, PriceRunner, and Twenga are just some of them.
You can still get a great deal with the additional shipping fee!
7. Outsmart dynamic pricing
Online retailers use dynamic pricing to adjust the price of an item according to your location or spending habits. But there are tricks to outsmart it!
You can delete your browsing history and cookies, log out of your Google account and social media accounts, use incognito mode when shopping, or even better, use anonymous browsing.
8. Don’t shop on weekends
Retailers are aware that most people shop on the weekends, as they have more free time to browse through different online stores. They are taking advantage of this, and you probably won’t find good deals on Sundays.
So, the next time you decide to buy online, do it on Wednesday or Thursday.
How to save money on customs charges?
You placed an order, happy with what you chose and the deals you got.
But then you get surprised by the lavish bill from customs authorities. Instead of saving some money, you now have to spend even more. How did this happen?
Well, don’t worry – we have a few tips on how to save money on customs fees too, but first, let’s learn about customs charges.
What are customs charges?
Customs charges are fees that are charged on goods that are imported into the UK. These charges are based on the value of the goods and are used to help cover the costs of processing the imports.
The threshold for paying customs fees in the UK is £135. UK shoppers are responsible for paying customs duty, import VAT, and courier fees.
Customs duty is a tax levied on goods imported from a foreign country into Great Britain. The rate varies and is determined according to the Trade Tariff and commodity codes. For example, clothes are taxed at a different rate than electronics, but different clothing pieces can also be taxed at different rates.
Also, alcohol and tobacco are subjected to excise duty, and the rates could be a bit higher.
Another tax levied on imported goods is the import value-added tax or import VAT. The purpose of import VAT is to level the playing field between domestic and foreign businesses by ensuring that all businesses are taxed in a similar way. This helps to create a fair and competitive market for businesses operating in the UK.
Before the Brexit transition period, you had to pay VAT at the point of sale, but now, you have to pay import VAT when your goods arrive.
The import VAT rate is the same as the normal UK VAT rate – 20%.
And the last fee you have to pay is the courier or handling fee. No, we don’t mean paying for parcel delivery from the EU to the UK.
The courier company levies this fee for customs handling.
This is how it works: the courier company will cooperate with customs authorities on your behalf. They will pay VAT and import charges, and your package will be released from customs.
However, they will charge a small fee for doing this.
Before they deliver your package, they will send you an email or SMS to inform you how much customs charges are and how to pay them. Once this is done, you will get your package!
4 tips to save money on import charges
It is understandable if you are annoyed that you must pay duty and import VAT.
The rates of import charges can be quite high, but luckily, we have a few tips and tricks to share on how to possibly make them a bit lower.
1. Double-check how much you should pay for import charges
Customs authorities rarely make mistakes when calculating customs fees, but if something seems off when your receive that bill, you can always check it yourself.
However, calculating customs charges is difficult – finding the right commodity code is tricky, and different courier companies have different handling fees.
Luckily, you can always use our Import Duty Calculator. It is simple to use, and all you have to do is enter the value of your goods, courier company, and type of goods. You will get the complete breakdown of customs charges in a few seconds.
2. Avoid paying customs duty
UK and EU are sticking to the Rules of Origin under the Trade and Cooperation Agreement. This means you don’t need to pay customs duty on goods manufactured in the European Union. You are only responsible for paying import VAT and courier fees.
So, whenever you are buying online from EU retailers, you can save a few pounds as you don’t have to pay customs duty.
Just make sure to check with the retailer about the origin of your items. You won’t save money if you are simply buying goods from the EU that are manufactured outside the EU.
3. Choose a delivery company with lower handling fees
As said, different courier companies charge different fees. For example, Royal Mail may charge £8, while another will charge either £11 or 2.5% of combined duty and VAT.
| Courier company | Handling fee |
| DHL | £11 or 2.5% of duty+VAT, depending on which amount is higher |
| DPD | £5 |
| Parcelforce | £8 |
| Royal Mail | £8 |
| FedEx | £12.5 or 2.5% of duty+VAT, depending on which amount is higher |
| UPS | £11.50 or 2.5% of duty+VAT, depending on which amount is higher |
Well, we know that the retailer is the one that chooses the courier firm. But you are the one choosing the retailer.
Since you cannot reclaim courier handling fees, always check this information. If you prefer to spend less on handling fees, shop from retailers that cooperate with couriers with lower fees.
4. Get a refund of customs charges on returned goods
So, you ordered something, but it didn’t fit. Now what?
You can return the package to the retailer for up to two weeks under the Consumer contracts regulations.
But what about customs duty and import VAT?
Don’t worry! Not everything is lost!
You can reclaim import VAT and duty from HM Revenue and Customs in certain circumstances.
For example, UK shoppers can reclaim import duties on returned goods and get their money back. It won’t matter whether you returned just one of the items or the entire order.
Also, the online marketplace you ordered from is completely irrelevant.
Even in situations where there is a problem with your parcel, and you never received it, but the retailer refunded you the money, you can file a claim.
As long as you have the proof of return from the retailer and the necessary customs declaration, you are eligible for a refund of customs charges.
Wondering how? Duty Refunds can help!
Reclaim customs charges with Duty Refunds
Reclaiming duty and VAT can be quite stressful when you are doing it on your own, so all our experts at Duty Refunds take that stress off your shoulders.
We know the ins and outs of the refund process and will handle everything for you.
All that we need to initiate the process is your tracking number. Our experts will deal with the courier, gather the documents, and fill and file the claim.
You can just sit back and relax!
Once a claim is approved in three to six weeks, you will simply have to provide a bank account number on which you would like to receive a refund.
We charge a 15% commission fee, but you don’t have to pay us a pence if your claim is denied.
Final thoughts
As you can see, shopping online and searching for good deals doesn’t have to be a chore. And with our few tricks, you can save a few pounds on your next online shopping spree.
Unfortunately, you cannot avoid paying import VAT and duties… But that doesn’t mean you have to break the bank.
If you are unsatisfied with your purchase for any reason and have decided to return it to the retailer, remember that you can also get a refund of customs charges.
Initiate a claim with Duty Refunds today and get your hard-earned money back!
FAQ
We understand that you probably have a lot of questions about the process. Here are the answers to some of the most common ones:
Can I get a refund of customs charges if I ordered two items but decided to return just one?
Yes, you can!
Just because one item from your entire order doesn’t fit well doesn’t mean you have to kiss your money goodbye.
There is an option to receive a partial refund. You can file a claim if you have proof of return from the retailer. The money you can potentially get back will simply be recalculated according to the value of the item you wish to return.
How do I pay for customs duty when I order something online?
This will depend on the postal service.
In most cases, you will receive an email with the link for online payment or an SMS.
Parcelforce also allows phone payments or stopping by one of their depots and paying in person.
UPS also allows cash payment upon delivery.
Can I receive my package if I refuse to pay customs fees?
No, the courier won’t deliver your package until you pay the import fees.
Also, refusing to pay customs duty is quite risky, and we don’t recommend it.
The courier doesn’t have to return the package and has an option to destroy it. If this happens, you cannot even request a refund from a retailer.
Here is our solution: pay import charges and receive your parcel. Then return the goods to the retailer, and contact Duty Refunds to help you reclaim customs duties.