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Regarding products with very low product value
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TRACKING NO. 20260307 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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We sell small jewelry pieces, with a unit price of just $2 to $3. Customers only order a few hundred pieces at a time. The shipping fees often exceed the value of the goods, and the customs broker said that the low value of the goods might lead to a higher rate of inspection. In this situation, is it still feasible to continue doing this business? What should I do? How should I discuss the issue of freight allocation with the client?

Grace WangYears of service:10Customer Rating:5.0
Senior Foreign Trade ConsultantStart a Chat
Exporting low-value products first requires adhering to compliance standards. Regardless of the value of the goods,the declared value must be accurate and truthful. The risks of under-declaring or concealing the value far outweigh the potential savings in tariffs. Although there are tariff exemption thresholds below USD 800 in the US and EUR 150 in the EU,customs will conduct enhanced inspections on declarations that are significantly lower than market prices. Recommendations。
1) Ensure accurate HS codes. Small accessories have highly specific classifications,and misreporting may be deemed as evading customs regulations。
2) Retain cost accounting documents to address customs price inquiries。
3) Utilize the customs clearance convenience of official postal packages or express delivery channels,but avoid exceeding the threshold value per shipment。
4) If clients require formal customs declarations,even for zero-tariff products,complete declarations are essential to avoid subsequent audits. Remember: Low value does not equal low risk—compliance costs are a necessary investment.
Michael ZhangYears of service:6Customer Rating:5.0
Customs Declaration & Compliance ExpertStart a Chat
The inverse relationship between product value and shipping costs is a dilemma for low-value products, which requires a complete overhaul of logistics strategies. For hundreds of jewelry items with a total weight of less than 2 kg, prioritize ePacket or dedicated small package services. Shipping costs can be controlled at around dozens of RMB, with delivery times of 15-25 days – as long as customers are willing to accept these terms. For weights exceeding 2 kg, opt for express forwarding accounts, which are 40-60% cheaper than official rates. Never use traditional air or ocean freight LCL services, as their volume-based pricing models will erode all profits. Insist on EXW or FOB terms to transfer shipping decision-making to clients, while you focus solely on delivering goods. If clients insist on you covering shipping costs, clearly list all logistics options and corresponding costs for them to choose from – don’t shoulder this responsibility yourself. Additionally, consolidate small orders and ship them once a week, which simplifies customs clearance and saves significant hassle.
Evelyn LiYears of service:3Customer Rating:5.0
Cross-border Compliance SupervisorStart a Chat
The core of negotiating low-value products is shifting the focus of costs. When customers complain about high shipping fees, don’t dwell on the numbers—instead, offer solutions directly: "We understand the logistical pressure of small orders. We suggest you can: 1) Consolidate orders to 500 pieces to reduce shipping costs by 30%; 2) Choose economical postal channels, which are slower but cheaper; 3) Use express delivery for samples and dedicated logistics for bulk orders." Present these options as a choice. For payment methods, only accept PayPal or credit cards for orders under $1,000, and include transaction fees in the quote—don’t add them later. Emphasize value in your pitch: "Our MOQ settings already account for your trial order costs. The product itself has slim profit margins, so our priority is to establish long-term cooperation." Remember: low-value products must earn money through high turnover rates. Don’t dwell on individual orders—instead, prioritize quick responses and stable supply chains as your negotiation leverage.