Cheap purchase on Amazon: when an American company will go to Ukraine

Amazon may appear in Ukraine by the end of this year. Products of Internet sites will be cheaper, because you do not have to pay intermediaries for delivery. To this end, the Cabinet will have to solve the problem with customs, logistics and legitimize the international payment system. The correspondent of the site “Today” found out whether Amazon in the Ukraine and the Ukrainians now order products from the Internet.

Amazon will be in Ukraine until the end of the year

Amazon operates in 14 countries, including USA, India, China, Germany and other countries. The Ukrainians have to order the goods through intermediaries. Online store popular because of affordable prices, said Denis Kubrak, Director of Unitrade Express. The company delivers the purchase from the United States to Ukraine.

Recently the General Director of “Ukrposhta” Igor smilanski said that Amazon may appear in Ukraine by the end of 2017.

“We want to have Amazon in our country. Now working with partners because it’s international mail circulation and it takes time. Logistics we are ready. However, this international agreement, in this case, we need to work with the U.S. mail. The rest is cooperation with our customs authorities. They should increase the staff, to quickly flowing products. Really want to the end of 2017, but promise I will not, not sure yet,” said smilansky in the air “5 channel” on March 27.

To Ukraine goods with Amazon forwarded through intermediaries. Photo:

“Ukrposhta” don’t divulge details of negotiations with the American company. Head of international trade PwC Ukraine Denys Shendrik thinks that as a result in Ukraine there should appear a division of Amazon with their warehouses and shipping in the post-Soviet countries.

“The issue is that Amazon in Ukraine have created your hub. To the country the goods were brought from all over the world and shipped to other countries. If we are talking about how to “Ukrposhta” delivered goods to Ukraine from the United States, and now I can do. But it won’t be “Amazon in Ukraine”, as claimed. It will be in the country if the company will build warehouses that will create jobs and will deliver packages to other countries. I think smilansky meant that such a major player in the market of international retailers should work in Ukraine”, – said the expert.

According to the Shendrik, for the company in the country to legalize the operation of the payment system PayPal and electronic money. Also in Ukraine it is necessary to legalize the customs warehouse, which will house the goods before sent to the buyer. To work Amazon need a good logistics infrastructure and warehouses with automated sorting processes. According to experts, the Ukrainian infrastructure do not meet the requirements of the American company. To speed up will have the work of the customs service that the goods were sent without delay.

Denis Kubrak doubt that the “Ukrposhta” will lead to the country Amazon. “I think the bureaucracy of the “Ukrposhta” will not allow to run it quickly, effectively and for the right price. If they run, then it will be a raw product. Six months ago they anonsirovana delivery of packages by drones. As for me it has to do with PR than with real service,” he says.

The Ukrainians are buying the product on Amazon

Customers Amazon from Ukraine to purchase goods, use the services of intermediaries. The buyer, placing the order, indicates the American address of delivery. Then the broker delivers the purchase to Ukraine.

Denis Kubrak says: the buyer may ask the intermediary to order and deliver the package, then the company itself will pay for the goods. The customer pays for the purchase and mediation upon receipt of the parcel. Second option: the buyer pays for the item on Amazon credit card, and the reseller only it delivers. According to him, 80% of the orders are electronics and clothing, other goods that are not sold in the country.

For example, Amazon Kindle e-reader costs 69,99 dollars. For weight 191 g will have to pay $ 2.5, the Commission for the intermediary and 7% to 4.9 us dollars., insurance 1% – 0,7 USD examining the contents of the parcel – $ 2. Together with the delivery device will cost $ 80,09 or 2158 UAH. From order to receipt of purchase may take two to three weeks. On the “Socket” the same book will cost 2500 UAH.

If the purchase is more than 150 euros, customs will have to pay a tax of 32% for every “extra” euros. For example, the cost of goods 200 Euro. The amount exceeding the customs limit is 50 euros. The fee is 5 Euro (50×10%). VAT – € 11((50+ 5) ×20%). The total cost of customs clearance is 16 euros.

However, the average check reaches 150 euros, says the Director of Unitrade Express. Sometimes, however, customs officers assess the merchandise in a bigger amount than the one specified in the invoice.

“Sometimes customs doesn’t believe stated value. Roughly speaking, a customer buys the iPhone for $ 100, have proof of payment, invoices. But customs may assess it at 200 euros and not to give up until you pay taxes. But the question is not even tax, and that you have to pay the broker for the paperwork at customs. Conventionally, the tax may be 50 USD, and broker – 400. Then the product is not so cheap it turns out,” says the entrepreneur.

However, according to Denis Kubrak, the number of orders from foreign marketplaces with growing every year. On average, delivery takes two weeks from the us to Ukraine send the goods three times a week.