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Offshore Fulfilment
Offshore fulfilment, in the context of direct retailing, describes the direct importation of goods via postal means by consumers to the European Union (EU) from a fulfilment location in a non-EU territory, supplied by a non-EU company.
In practice offshore fulfilment affords the direct retailer supplying from outside the EU into any EU country, a number of structural, locational, service, and some VAT free import, benefits. The VAT benefit is known as Low Value Consignment Relief (LVCR), and stems from an EU Directive. Somewhat maligned and mostly misunderstood, LVCR will often provide significant competitive advantage.
Direct Consult is highly experienced in this field being, as far as we are aware, the sole UK consultant specialising in comprehensive consultancy and project management in Offshore Fulfilment. We work with advisers and providers in the UK, Switzerland and The Channel Islands and can work with you to:
- review your existing or new direct business to evaluate and define the benefits, opportunity, risks, structure and processes
- introduce appropriate professionals, suppliers and providers
- develop a plan and supervise implementation
We estimate offshore fulfilment becomes economic at a turnover over £1m. Every case is different and requires evaluation. Case example: £1m benefit on £7.5m sales for a national brand expanding from in-house fulfilment to outsourced offshore fulfilment. Read our article explaining offshore fulfilment read article.
