How To Design Your Own Product In 2021

Most small businesses, while starting, due to lack of first investment refrain from approaching producer groups across the world. The usual approach is to source locally from domestic suppliers. With the increase in internet penetration across the world, it has become increasingly simple to approach producer groups at the source and customize things like t-shirts, etc. For example, making your own shirt with all value-driven variables has become simpler, transparent, and more effective. Most of these producer groups give real-time visibility of real progress with images and videos, therefore preventing no last-minute surprises.

In the debate of direct vs wholesale, most brands find it challenging to approach, and do a cross border transaction due to lack of trust, in this blog we disrupt myths on why it’s far easier to produce small-batch goods from producer groups across the world. 

Small business owner, fundamentally need trusted partners, who act as project managers to help you with legal, production, supply chain-related processes.

The three common myths are 

1.     Cross border e-commerce is expensive

A common myth, Shipping is far easier and cheaper than what most people think, with a cost of around £2-£5(Ex-factory Indian subcontinent) for an average package size of > 50Kgs-500Kgs on Air and, 0.1-0.5 Pence per Kg via Sea (of course takes longer) and needs a Minimum of 2 CBM (2000 kgs.)   

Fig 1: Rural Handmade, helps with complete project management for sourcing and commissioning an assignment.

2.     Import duty: Import duties are high and complex to manage

Depending on the HS (harmonized code) you can calculate the approx. cost of Import custom duty and VAT. For organic cotton t-shirts, the VAT of 20% and the Custom duty are 12% on the cost of product+ shipping + insurance. A detailed estimate on Import VAT and duty in the link below. Also, with the help of modern freight forwarders, it's fairly simple to clear the shipment, most shipping companies also give a Duty delivery paid option for the consignment, thus making it a simple crate-to-gate process.

These links provide a great source to find the duties and import VAT

1. Tax and duty on goods-sent-from-abroad