Wholesale

International Shipping for Wholesale Backpacks: A Retailer's Guide

Shipping containers stacked at a freight terminal

International freight is what turns a $22 unit price into a $28 landed cost, and it is where most first-time importers lose the margin they thought they had. The freight itself is rarely the problem. The problem is the lines nobody quoted you: duty, brokerage, the last leg to your warehouse, and the six weeks nobody budgeted into the calendar.

This is how a backpack order actually gets from a factory to your shelf, with the costs and the timings at each stage.

Sea, air, or courier

Sea freight

The default above about 200 units. A full container gives you the best rate, and below that you share space with other importers on an LCL booking and pay a bit more per unit for the privilege.

  • Cost: roughly $1 to $3 a unit on a 1,000 unit order.
  • Transit: 25 to 45 days, depending on the route.
  • Use it for: anything you have planned far enough ahead.

Air freight

Three to four times the cost and a fraction of the time. It exists for when you got the forecast wrong on a style that is selling.

  • Cost: $4 to $12 a unit on a 100 unit order.
  • Transit: 5 to 10 days door to door.
  • Use it for: urgent restocks of a proven seller, where the lost sales cost more than the freight.

Courier

For samples and emergencies only.

  • Cost: $15 to $40 a unit on a handful of pieces.
  • Transit: 3 to 5 days.
Gantry crane working over stacked shipping containers
Sea freight is cheap per unit and expensive in calendar time. The mistake is not choosing it, it is choosing it in July for stock you need in August.

Landed cost, worked through

Landed cost is the unit price plus freight, plus duty, plus brokerage, plus the last leg. Here is 1,000 units at $22 into a US warehouse:

Line Cost
Goods at $22 a unit $22,000
Sea freight, LCL $1,800
Import duty, around 17% $3,740
Customs broker $150
Last leg to warehouse $400
Landed $28,090, or $28.09 a unit

That is 28% on top of the price you were quoted. Price your retail off the bottom line, never off the unit price. It is the single most common way a line that looked profitable turns out not to be.

Duty rates, and why you must check them yourself

Backpacks generally fall under HS 4202.92, and the rate moves with the destination and with what the bag is made of.

Destination Indicative duty
United States around 17%, lower under some trade agreements
European Union around 9.7% on textile backpacks
United Kingdom around 9.7%
Canada around 10%
Australia around 5%, plus GST

Treat every figure in that table as an indication, not a quote. Rates change, they vary by country of origin, and the exact classification depends on the material and construction of your specific bag. Confirm with a customs broker in your market before you build a margin model on it. A two point error on duty is a two point error on every unit.

The Incoterm is the most important line on the quote

  • EXW, ex works. You collect from the factory. Lowest headline number, most work, and every cost after the factory gate is yours.
  • FOB, free on board. The supplier gets the goods onto the vessel, you take it from there. The most common wholesale term.
  • DAP, delivered at place. Delivered to your address, but the import duty and clearance are still yours.
  • DDP, delivered duty paid. Everything included, duty as well. The highest number and the fewest surprises.

Two quotes without Incoterms attached are not comparable, and a supplier who will not state one is hiding where the costs land. We quote EXW, DAP or DDP and the term is on the quotation.

The calendar, honestly

A 500 unit order into a warehouse by sea:

Stage Days
Deposit clears, materials sourced and cut 1 to 7
Production and inline checks 8 to 40
Final inspection, balance paid, collection 41 to 48
Sea transit and customs clearance 49 to 85
Last leg to warehouse 86 to 90

So plan on roughly 75 to 90 days from deposit to shelf by sea. Air pulls that back to around 50 to 55 days at several times the freight cost.

Our own production runs 30 to 35 days for 100 to 300 units, and 40 to 45 days at 500 and above, before any freight. Work backwards from the date you need the stock, not forwards from today.

Build in Chinese New Year. Factories across the region close for two to three weeks, and the fortnight either side is chaos as everyone rushes to ship before the shutdown. An order placed in January for March delivery is an order that arrives in April. Ask your supplier for their shutdown dates before you commit to a season.

Bags that ship well in volume

Inspection before it sails

On anything above about 500 units, a third party inspection costs $300 to $500 and checks a sample of the run before it leaves the factory. That is cheap against the alternative, which is discovering a defect after the container has cleared customs, when your options are a discount or a return shipment that costs more than the goods.

There is a full checklist of what to inspect and when in the quality control guide.

Mistakes that keep recurring

  • Quoting the FOB price internally as though it were the cost. It is about 75% of the cost.
  • Declining cargo insurance to save a fraction of a percent, then finding out what a delayed container is worth.
  • Forgetting the factory shutdown, every single year.
  • Not asking for a packing list with carton dimensions and weights, then being unable to book the last leg accurately.
  • Not telling the supplier the goods are going to a fulfilment centre. Those have labelling and carton rules, and they reject shipments on paperwork long before anyone looks at the bags.

What we handle

We ship internationally to most destinations and quote on EXW, DAP or DDP with the term stated. Delivery into Amazon FBA, a third party logistics provider or your own warehouse is all supported, as long as the receiving requirements are in the enquiry rather than raised after production. Tracking is provided where the carrier offers it.

Shipping cost and term are not final until they are written on the quotation or the invoice. If someone gives you a freight number over chat, get it in the document before you plan around it.

Want the landed number, not the unit price? Send the styles, the quantity and the delivery address, including whether it is your warehouse or a fulfilment centre. You get back a quotation with the Incoterm, the freight and the lead time, so you can build the margin model on real figures.

Request a quote

Frequently asked questions

How long does it take to import backpacks by sea?

Around 75 to 90 days from deposit to warehouse, of which production is 30 to 45 days and sea transit plus clearance is another 30 to 45. Air freight cuts it to roughly 50 to 55 days at several times the cost.

How much is import duty on backpacks?

Backpacks generally classify under HS 4202.92. Indicatively around 17% into the US, 9.7% into the EU and UK, 10% into Canada and 5% plus GST into Australia. Confirm the exact rate with a broker in your market, because it varies by origin and construction.

What is the difference between FOB and DDP?

FOB means the supplier loads the goods onto the vessel and everything after that is yours, including freight, duty and clearance. DDP means the supplier delivers to your door with duty paid. DDP looks more expensive and often is not, once you add up what FOB leaves out.

What does landed cost include?

The unit price plus freight, import duty, customs brokerage and the final delivery to your warehouse. On a typical backpack order it runs 25% to 30% above the quoted unit price.

Can you deliver to Amazon FBA or a 3PL?

Yes, provided the receiving requirements, labelling and carton specification are in the enquiry before production starts. Fulfilment centres reject shipments on paperwork, so this has to be agreed up front.

Related reading: wholesale profit margins, how a bulk order runs end to end, and 10 bulk buying mistakes to avoid.