Distance Selling
     
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FAQ

1. What is consignment?

Consignment is an international service of transfer, customs clearance and mailing of postal items to one or a number of addressees. Consignment is ideal for distance selling companies performing regular mailing from one country to another or to a number of countries within В2С and/or В2В segments. Upon application of the consignment scheme for parcels up to 200 EURO in Ukraine, customs duties and VAT are not paid.

2. What is the maximum amount for a parcel sent on consignment?

There are no limitations for the amount of a parcel. Still, if you are interested in zero customs duties and VAT, the cost of the goods sent to one recipient should not exceed 200 EURO per month.

3. What postal operators provide services of delivery on consignment?

In Ukraine services of delivery on consignment are provided by National Postal Operator Ukrposhta and Ukrainian-Canadian company Rosan. Ukrposhta already has a consignment agreement with Slovak, Czech, Finnish and German postal services.

4. What distance selling companies already work in Ukraine?

Today the following distance selling operators successfully work in Ukraine: Yves Rocher, Bon prix, Magnet Blanche Porte, 3Pagen, Neckermann, Mir Knigi, Cellbes, IMP, 4Home and others.

5. What companies are open for cooperation in the field of distance selling startup in Ukraine?

Such companies as OS-Direct and Rosan have successful experience of launching distance selling businesses at the Ukrainian market; they can provide any consulting services required and become your reliable partners in Ukraine.

6. What are the main channels of accepting orders in Ukraine?

The main channels of accepting orders are telephone and Internet. Orders by phone make up more than 50% of the total number of consumer requests.

7. What are the peculiarities of Ukraine compared to European countries?

Ukraine is one of the largest countries in Europe. The majority of its population lives rather far from big cities. These consumers are solvent, but at the same time unspoiled and loyal to distance selling companies.

8. What are main advantages and disadvantages of Ukraine compared to European countries in terms of distance selling?

The Ukrainian distance selling market is young and has good potential. Besides, it possesses all necessary instruments for developing distance selling business. A main disadvantage for consumers and at the same time an advantage for distance selling companies is low level of competition compared to European countries.

9. What is the share of product refunds in Ukraine?

Ukrainian consumers only return purchased goods as a last resort. The share of refunds in Ukraine is much lower (less than 10%) than the average indicator in Europe.

10. What methods of payment for parcels are available in Ukraine?

Among the most popular methods of payment for parcels in Ukraine are cash on delivery, advance payment/postpayment and payment in cash. The share of online payments with the help of plastic cards is currently insignificant.

11. What kinds of goods need certification in the territory of Ukraine?

Under the consignment scheme for entering the Ukrainian market, only kid products, cosmetics and personal hygiene products are subject to obligatory certification. Under the direct import scheme, certification is required for all types of goods.

12. What ways of entering the Ukrainian distance selling market are available?

At the launch stage you can use the consignment scheme or create a separate legal entity. Most distance selling companies successfully work in Ukraine on consignment, trusting their Ukrainian partners to solve all problems arising in the territory of Ukraine.

13. What minimum budget does a distance selling operator need to enter the Ukrainian market?

To enter the Ukrainian market a distance selling operator needs about 100,000 EURO under the online scheme and about 200,000 EURO under the offline scheme (forming and distributing printed catalogues).

14. How much time does it take a distance selling operator to enter the Ukrainian market after all details have been settled?

Three weeks to three months.

15. What are main differences between the existing schemes for entering the Ukrainian market by a distance selling operator?

Comparison table for direct import schemes and peculiarities of Ukrposhta and Rosan postal operators

Name of service

Direct import

Ukrposhta

Rosan

Certification

YES

NO

NO

Representative office in Ukraine

YES

NO

NO

Payment of customs duties/VAT

YES

NO (up to €200)

NO (up to €200)

Delivery

To Ukrposhta branch /door to door

To Ukrposhta branch

Door to door

Term of delivery over the territory of Ukraine

3-15 days (from Lyiv)

25-30 days (from Europe)

10-12 days (from Europe)

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