Preparing for Amazon Prime Day 2022
Always a key event on the online seller’s calendar, Amazon Prime Day is fast approaching. So, now is the best time to get prepared.
If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.
So, you’ve got an online business selling products or services to clients locally and, perhaps, abroad. Sales-savvy or new to e-commerce, this guide will outline the steps needed to expand your ecommerce business into South Africa.
South Africa’s customs process can be complex, demanding specialist knowledge and financial investment - arguably the biggest hurdle you’ll face is actually getting the goods from A to B.
The UK government website supplies resources for first-time exporters, and you may be eligible for support from UK Export Finance (UKEF).
There are four kinds of indirect (consumption) taxes. These include (1) customs duties, (2) excise duties and levies, (3) anti-dumping, safeguards and countervailing duties, and (4) VAT. Duties are usually calculated as a percentage of the value of the goods.
*You may want to engage the services of a reputable freight forwarding / customs clearance agent to manage the paperwork for you*
Customs South Africa (Customs SA) requires that importers register and obtain an importer’s code: they then uses a Single Administrative Document (SAD) to facilitate customs clearance.
The following are required from the exporter:
One negotiable and two non-negotiable copies of the Bill of Lading - a document that establishes the terms of a contract between a shipping company and the exporter (or freight forwarder).
A Declaration of Origin Form, DA59 (where a lower-than-general rate of duty is claimed, or for goods subject to antidumping or countervailing duty). One original signed copy of the form must be attached to the original commercial invoice.
Four copies and one original Commercial Invoice, containing a full description of goods’ nature and characteristics.
One copy of the insurance certificate (required for sea freight);
Three copies of the Packing List
Where restricted items are being imported, importers must possess an import permit.
Top tip: citizens of different countries display different consumer preferences. South African consumers are generally brand conscious and price sensitive, appreciating online promotions and shopping around for the best deal: ideally, create marketing materials that address these priorities.
Ensure that navigation around your sales platform is intuitive: signpost international shipping information, including payment and delivery options and international charges. You may want to consider language options- South Africa has eleven official languages, although English is most used for advertising.
Finally- consider multi-channel e-commerce. Selling via eBay or Amazon, in addition to your own platform, will expand your reach: not only that, but it could take some of the headache out of transportation, as several platforms can handle shipping for you.
Make finances a priority- your budget must include customs charges, transportation and potentially insurance.
Remember that you’re likely to lose a cut of your income transferring a foreign currency, unless you take steps to minimise your exposure to risk.
For detailed information and personal business support, contact your local trade office; you may qualify for free support from the UK’s Department for International Trade, which runs an E-Exporting Programme.
Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.