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Need to know
- Freight-forwarding services let you buy items from the US that aren't available in Australia
- You won't know how much you'll pay in freight until your package hits their warehouse – and it may be more than you thought
- A service that repacks and removes excess packaging, or consolidates items into one package, could save you money
Any Aussie who regularly shops online will know the frustration of picking out purchases on an American website, only to discover at the checkout that the company doesn't ship to Australia.
Freight-forwarding services look like the answer to this problem, but are they everything they're cracked up to be?
We look at how it works, what the costs are and compare popular freight-forwarding companies such as Shipito, US to Oz and more.
What are freight forwarding services?
Freight forwarding services let consumers shop from US stores that don't ship to Australia.
Consumers order their product to be delivered to the freight forwarder's US address – often a warehouse in a state with no, or low sales tax – which receives their purchases and forwards them to Australia for a fee.
These services exist in a number of countries, but this article focuses on US to Australia freight forwarding services.
How do they work?
Freight forwarding services receive your packages from US retailers, store them in their warehouse and provide other optional services like repacking and consolidating.
They then post your package to your Australian address using their own postal service, the US Postal Service or a courier service (DHL, UPS, FedEx etc). The freight forwarding service charges you the postage fees along with a range of their own fees depending on the services provided.
Step-by-step guide
- Sign up for an account with your chosen freight forwarding service.
- You will be provided with a US address which you use as your delivery address when shopping from US retailers.
- If the store doesn't accept your Australian credit card, many freight forwarders also offer a shopper service which can make the payment for you, for an additional fee.
- You will be notified when the package(s) arrive at the US warehouse. If you're receiving multiple packages you can usually have them consolidated into a single package to reduce the cost of postage. You can also have a single item repacked to reduce bulky packaging.
- Most services will require you to declare the value of your item so they can add a 10% GST charge to your order which is paid to the Australian Tax Office on your behalf. If the freight forwarding service doesn't collect GST, you must pay it to the postal carrier upon receipt of your item.
- When your package is ready, the freight forwarder will notify you of the total cost.
- Log in to your account and pay your outstanding total. Some services may also require you to provide an invoice as evidence of the declared value of your item.
- The package is sent to your Australian address.
What are the costs?
Freight-forwarding was a particularly great deal for Aussies back when we could bag overseas bargains at a favourable exchange rate, and it's still useful for buying items that aren't available here at all.
But it's not a perfect system. Generally the freight-forwarding company can only give you a definitive quote on the freight costs for your product once they take delivery of it.
They need to weigh or measure it (usually both) to determine the cost, so you won't know exactly how much you'll pay until your package hits their warehouse. And sometimes it can be more than you bargained for.
It's not a perfect system … you won't know exactly how much you'll pay until your package hits their warehouse
You may need to contact the retailer directly to ask for the package's weight and size – amazon.com can be useful for this. Freight forwarder US to OZ recommends getting three weight estimates to find the average.
But shipping isn't the only cost to take into account – here's a list of some of the common costs and fees you may encounter with a freight forwarding service.
Note: These prices are based on the base/free membership level. Lower rates or free services are often available for paid members.
Shipping
Cost to ship a 2kg item: from around $30 to over $100.
Each company calculates shipping costs differently. Factors which may affect shipping rates include weight, dimensions, number of packages, declared value and postal carrier.
Admin/Processing fee
Free to $5.
Some providers change a flat rate fee for every package sent.
Membership
Free to $60 per month.
Most services offer a free membership option as well as paid membership which offers users some benefits and discounts.
Account set-up
Free to $23.
Most services offer free account set-up but some charge a one-off fee.
Storage
$1 to $6 per package per day (some charge based on weight).
All services provide free storage for a set period of time (usually around 30 days) and start charging you once your free storage has expired. Most services also have a cap (around 60–90 days) on the total amount of time you can store an item.
Repacking
Free to $8.
Your parcel is removed from its original packaging and repacked to reduce shipping fees.
Consolidation
Free to $10.
Multiple packages are repackaged into one box to reduce shipping costs.
Shopper service
7% to 13.5% of purchase cost.
If the shop you're purchasing from doesn't accept Australian credit cards, some service providers will purchase the item on your behalf. They usually charge a percentage of the item's cost and in some cases also an additional flat-rate fee.
Extras
Many service providers offer a range of extra services at an additional cost, including:
- Photos – Receive photographs of your items when they arrive at the warehouse
- Insurance – Insure the value of your package in case of damage or theft in-transit. (Some providers, like ComGateway, automatically include insurance on all orders)
- Special requests – Request special packaging for fragile items, gift wrapping, etc.
While most of the costs are clearly outlined in the freight forwarder's pricing tables, other fees, taxes and surcharges may only be mentioned in the small print.
Exchange rate fee
The official USD to AUD exchange rate is altered so that your Australian dollars don't go as far.
Fuel surcharge
Some postal delivery services may charge a fuel surcharge which varies based on fuel prices.
Remote area surcharge
Related to fuel surcharge, some postal delivery services charge extra for delivery to "remote" areas.
Discard/destroy fee
A fee to get rid of a package that you don't want delivered to your Australian address.
US sales tax
If the freight forwarding warehouse is located in a US state which has a sales tax, this will be added to the cost of your item. Sales tax is paid to the US retailer, not the freight forwarding service.
Australian GST
As of July 2018, GST is applied to low-value (ie. less than $1000) goods imported into Australia. The cost of GST is 10% of the total cost of the value of the item(s) you are shipping to Australia, including shipping fees from the US retailer, local taxes paid to the US retailer and the cost of shipping paid to the freight forwarding service.
Some freight forwarding services collect and pay GST on your behalf, while others do not, meaning you have to pay it directly to the courier on receipt of your item.
Repacking and consolidating
Repacking is when your item is removed from its original packaging and repacked into a smaller box/bag to reduce cubic weight. Consolidation is when multiple items are removed from their original packaging and repacked together in one box.
Most services will only repack or consolidate packages if it's likely to achieve a significant reduction in shipping costs (for example, an item of clothing in a plastic satchel is unlikely to benefit from repacking). Your freight forwarding service may also advise you that your package is not eligible for repacking or consolidation if it contains fragile or oversized items.
All of the freight forwarding companies we looked at provided both a repacking and consolidation service, although some only offered the services to paid members. Some companies repack or consolidate for free, while others charge a flat fee or a percentage of the savings in shipping costs.
Most services will only repack or consolidate packages if it's likely to achieve a significant reduction in shipping costs
Some of the other freight-forwarding services we looked at had similar restrictions on repacking fragile or oversized items but most had no problems repacking leather items, gift-wrapped packages or items within a satchel/plastic packaging bag.
While some services have blanket rules about how much packaging they remove, Shipito leaves the decision up to the consumer, allowing them to choose to keep the outside box, the inner packaging or just the item itself.
What if the store won't accept an Australian credit card?
Not only do some US retail websites refuse to post to non-US addresses, some will refuse payment from non-US credit cards too.
For a fee, some freight-forwarding services can make a purchase on your behalf. This service goes by a variety of names, such as Assisted Purchase (Shipito) and BuyForMe (ComGateway and HopShopGo), among others. US to Oz can bid on US eBay or buy US iTunes gift cards for you.
Some companies, like ComGateway, let you search for products and brands via their site, so you know you're already shopping with participating retailers.
What if something goes wrong?
If you're not happy with the service provided by a freight forwarding company, the first step is to contact the provider directly to try to seek a remedy and resolve the issue. You can use the ACCC's complaint letter tool to draft a letter or email to the company. If this is unsuccessful, the next step will depend on whether the company is based in Australia or overseas.
Companies based in the US are required to comply with US consumer protection laws as well as Australian Consumer Law. You can contact the US consumer protection agency, the Federal Trade Commission, to see if they can help resolve the dispute. While these companies are bound by Australian Consumer Law, it can be more difficult to enforce your consumer rights with overseas companies. However you can also try contacting your local state and territory consumer protection agency to ask for assistance resolving the dispute.
You can also try asking your bank for a chargeback (a reversal of the charge on your credit card) or if you've used a third-party payment service like PayPal you can try lodging a dispute to get a refund.
How has COVID-19 impacted US freight forwarding?
While freight forwarding services are still up and running during the COVID-19 pandemic, customers should expect delays and, in some cases, extra fees.
Delays are caused by a number of factors:
- Delays from US stores sending packages out
- Freight forwarders taking extra safety precautions, with some introducing 24–72-hour quarantine periods for packages they receive to their warehouse
- Shipping delays from some US postal carriers
- Australia Post implementing precautionary measures on all inbound parcels.
ComGateway is also charging customers a 7% "crisis delivery surcharge", while other providers note that customers will need to pay return shipping fees for packages that are undeliverable due to a COVID-19 related issue.
Tips for using freight-forwarding services
- Don't base your provider choice on shipping price alone – service can be just as important.
- How will your package be shipped? Couriers are generally faster and more secure, and they're not always more expensive than airmail.
- Is this a one-off purchase or are you a regular international shopper? Some companies offer lower rates to members, and some are members-only.
- Have you calculated the cubic weight of your parcel? You could save on shipping if you choose a service that can repack and remove excess packaging.
- Buying multiple items? Look for a service that can consolidate your items into one package. And if your items are likely to arrive on different days, check whether you'll be charged storage fees for keeping them at the warehouse.
- Buying something bulky? Check size and weight limits. Some companies offer sea freight for very bulky items.
- Buying something dangerous? Check the fine print. Some companies may not be able to ship liquids, chemicals, weapons, tools, items with lithium batteries and other items classed as 'dangerous goods'.
Consider GST Some services may offer a lower quote because they don't collect and pay GST on your behalf. You will still have to pay GST on receipt of your package so make sure you factor in an extra 10% of the total costs of goods and freight.
Is there an alternative to using a US based freight forwarder?
Not anymore. Australia Post launched its own freight-forwarding service, ShopMate, in November 2014 - and it closed in 2022. While we were pleased to see Australia Post getting in on the freight-forwarding game, in 2015 a number of CHOICE readers told us they weren't happy with ShopMate's service – so we decided to take a closer look.
Customer service criticism
The Postal Industry Ombudsman's office received 83 complaints about ShopMate in 2014–15 (out of a total 5600 complaints about Australia Post and private postal operators). Many of the complaints were during the peak Christmas period, not long after ShopMate launched, and most were in relation to delays and call centre wait times. Other gripes were about shipping charges, package dimension calculations and size limits.
Complaints about ShopMate have decreased significantly … however it's reputation doesn't seem to have improved
While most freight-forwarding services use couriers like FedEx, UPS or DHL, ShopMate operates through the US and Australian postal services, so it's not all that surprising that there were some complaints about slow service and missing packages. Couriers generally offer faster and more secure delivery than traditional mail.
Since launch, complaints about ShopMate have decreased significantly – down to 10 complaints in 2019–20.
However, ShopMate's reputation didn't seem to improve, with many customers still taking to online review sites to criticise the service.
Packing problems
In its infancy, one common complaint about ShopMate was its lack of a consolidation service. Some customers were hit with unexpectedly high shipping bills when US retailers sent their items in separate packages.
When CHOICE reader Louise from South Australia ordered 2.9kg of clothing from US retailer Banana Republic in 2015, she calculated the freight forwarding to cost $52.65 based on ShopMate's charges of $22.95 per parcel, plus an additional $4.95 per 500g – but her actual bill came to over $120.
"It turns out that the retailer sent my order in four separate packages even though it was ordered and paid in one transaction. As a result, each package attracted the $22.95 charge and each package was charged a minimum of 500g. One package contained one pair of socks, valued at $US4. In the end I paid the extortionate postage for most of my items. The socks missed out. I won't be using ShopMate again."
ShopMate now offers a consolidation service for a fee
ShopMate remedied this by offering a consolidation service for a fee. But the catch was they'd only consolidate packages from the same retailer – so you couldn't combine shoes from one retailer with a book from another, for instance. For parcels from different retailers, ShopMate offered a bundling discount. You paid the full fee for the first package, then received an $8.25 discount per subsequent packages.
All of the other freight-forwarding companies we looked at for this article can consolidate packages from different retailers either for free or for a fee, which is likely to reduce the overall shipping bill.
Cubic weight vs actual weight
When calculating shipping charges, ShopMate measured the cubic weight (also known as volumetric or dimensional weight) and the actual weight of your parcel, and charged for whichever measurement is greater. This is standard practice for most postal and courier services.
To measure a parcel's weight in cubic centimetres, ShopMate used the formula height x length x width ÷ 6000.
For example, a pair of lightweight running shoes might weigh only half a kilo – but if they came in a standard shoe box measuring 35 x 25 x 12cm, their cubic weight would be 1.75kg. Odd-shaped packages could cause even bigger price shocks.
CHOICE member Carolyn found this out the hard way when she ordered a special CPAP pillow to assist with her severe sleep apnoea in 2017. ShopMate managed to lose the parcel in its warehouse due to an admin bungle.
"After multiple emails being sent and resent and several phone calls over the following weeks stressing that this wasn't just a 'nice-to-have' item but a medical aid, I received an automated message at 2.38 in the morning to say my package had been delivered to the warehouse in Oregon," she says.
She then logged into her ShopMate account to find that the postage fee would be AU$67.55 – far more than she'd expected. "According to Australia Post, the actual item weight was 1.8kg and yet repacked it was 3.8kg (the 'chargeable weight') – they more than doubled the weight with their so-called 'cost-effective packaging'!"
Eventually, Australia Post waived all delivery fees and delivered the pillow to Carolyn in Australia. "My order was finally received on 27 June 2017 after being ordered on 24 April 2017. I haven't tried the service since!" she says.
Cassie used ShopMate to forward a parcel weighing a little over 4kg. "Much to my shock, when the parcel arrived at their warehouse in the US I got an email saying that my postage would be $150 for a cubic weight of 10kg! ... If it is in a branded box (which everything would be!) their policy is not to repack it."
In response to Cassie's situation, Australia Post told us, "We will not repack the item if there is a risk of the package being compromised by doing so."
Shopmate wouldn't repack items that are oversized, fragile, flammable or leather, or packed in special cushioned packaging, gift packaging or within a satchel/plastic packaging bag.
Freight-forwarders compared
There are dozens of companies all over the world offering similar services to ShopMate. We looked at some of the main players shipping from the US to Australia.
Note: Prices and details correct as at August 2020. All dollar amounts are in US dollars unless otherwise specified.
We have had some negative feedback around comgateway and HopShopGo.
ComGateway also runs Hop Shop Go, which provides an identical service, but is linked to your Paypal account.
How shipping is calculated
US$24 (Standard) or US$28.80 (Express) for the first 0.5kg, then US$4. (Standard) or US$4.80 (Express) for every additional 0.5kg.
Online shipping calculator
Yes – has a live-quote feature.
Cost to ship 2kg package to Australia
US$36 standard delivery (5–8 business days) or US$43.20 Express/Prime delivery (3–4 business days) plus 1% insurance and a surcharge (comprising of a fuel surcharge and 7% crisis delivery surcharge).
Warehouse location/sales tax*
Oregon/0%.
Membership
Free Standard membership. Every three shipments entitles you to six months of Prime membership.
Package consolidation
Up to three packages for free; additional packages US$1. Free for Prime members. The "consolidation" service offered by ComGateway is actually a bundling discount making it cheaper to send multiple individual packages at one time. If you want your items repacked into one box to reduce the total weight (as most other services do for their consolidation service), you will have to select the OneBox service, which costs $10 for the first five packages and $2 for all subsequent packages.
Repacking
- Standard: US$7 for box cutdowns; US$5 for box to bag
- Prime: US$5 for box cutdowns; US$3 for box to bag.
Shopper service**
Yes – 10% of transaction cost; 7% for Prime members.
Storage fees
- Standard: free for 30 days, US$1/day after
- Prime: free for 60 days, US$1/day after.
Other features
Ships primarily via DHL Express and FedEx Express.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
Based on weight, regardless of package size and count.
Online shipping calculator
Yes.
Cost to ship 2kg package to Australia
US$35.99(delivered in 5–10 days by FedEx Economy) up to US$47.99 (delivered in 1-4 days by DHL Express).
Warehouse location/sales tax*
Florida / 6%. (Although MyUS has an exemption, giving customers tax-free shopping).
Membership
Free for a single package; 30-day free Premium trial ($7/month thereafter).
Package consolidation
Free for premium members.
Repacking
Free for premium members.
Shopper service**
Yes – download the MyUS shopping extension for Chrome; 8% fee or minimum of $10 per order.
Storage fees
30 days free for premium members only, then charges increase up to a maximum of $6/day after 90 days, for an oversized package.
Other features
- A large company with more than 5 million members in 220 countries and territories
- Ships via USPS, UPS, FedEx and DHL
- Has the ability to ship dangerous goods.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
$2 per package, plus your choice of shipping. (Shipping varies by destination, carrier, weight, dimensions and value of item)
Online shipping calculator
Yes
Cost to ship 2kg package to Australia
From US$38.78 (4–7 business days with FedEx International Economy) to US$70.61 (10–12 business days with USPS Priority).
Warehouse location/sales tax*
California/minimum of 7.25% and Oregon/0% (only available to Premium members).
Membership
Free standard membership. Premium $10 per month or $50 annually.
Package consolidation
Only available to premium members. $5 for the initial repacking, plus $2 for each additional package added to an already repacked item.
Repacking
$5 per package.
Shopper service**
$5 service fee and 7% of total cost of items purchased.
Storage fees
Free storage for 10 days (free members) or 45 days (Premium members) then $0.01 per pound (454g) per day.
Other features
Ships via FedEx or USPS.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
US$3 per package or US$2 for Premium members, plus your choice of shipping. (Shipping varies by destination, carrier, weight, dimensions, declared value.)
Online shipping calculator
Yes.
Cost to ship 2kg package to Australia
From US$42.08 (4–9 business days with Australia Post) to US$91.90 (12-18 business days with USPS ePacket).
Warehouse location/sales tax*
Oregon/0% (available to premium members only), California/minimum of 7.25%, Austria (EU).
Membership
Free standard membership; Premium membership is $10 per month or $60 annually.
Package consolidation
US$5 or US$3 for Premium members.
Repacking
US$8 or US$5 for Premium members
Shopper service**
Yes – US$8.50 plus 4.3% processing fee, plus 8% commission fee.
Storage fees
Free storage for seven days or 45–90 days for Premium members. Storage can be extended for up to 28 days and costs US$7 plus US$1 for each day after storage has expired.
Other features
- Use of the Oregon warehouse is only available to Premium members ($10/month or $60/year)
- Will send you three photographs of your item (for free). Additional photos available for US$5–8
- Express processing US$8 of US$5 for Premium members
- 'US Unlocked program: You can get your own virtual prepaid US debit card, allowing you to shop in the US and have your purchases delivered to a Shipito warehouse.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
$5 per package or $2 for monthly or yearly members, plus your choice of shipping. (Shipping varies by destination, carrier, weight, dimensions.)
Online shipping calculator
Yes.
Cost to ship 2kg package to Australia
From US$50.59 (3–4 business days with DHL express) to US$121.41 (1–2 business days with UPS International Express Plus).
Warehouse location/sales tax*
Oregon/0%
Membership
$5 signup fee for all users. Paid membership $10/month or $99/year.
Package consolidation
$2 for the initial repacking, plus $5 for each addition package added to an already repacked item.
Repacking
$2 per package.
Shopper service**
Yes, for items over US$300. US$8 per ten items plus 8% of the total checkout price.
Storage fees
Free storage for 60 days, then $1 per package, per day up to a maximum of 30 days.
Other features
Ships via DHL, UPS or USPS.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
Varies depending on membership level.
Online shipping calculator
Yes.
Cost to ship 2kg package to Australia
From US$5.37 to US$67.97 depending on membership level.
Warehouse location/sales tax*
Texas/6.25%.
Membership
Four levels:
- Basic $23 set-up fee; no monthly fee
- Standard $15 set-up fee; $10 monthly fee
- Premium $15 set-up fee; $35 monthly fee
- Ultimate $15 set-up fee; $60 monthly fee.
Package consolidation
Free.
Repacking
Flat fee of $5 or 50% of shipping savings.
Shopper service**
Yes – $10–13.50 minimum per order or 10–13.5% of purchase price, depending on payment method.
Storage fees
Free for 30–90 days, depending on membership level, then $1 per pound (454g) per month.
Other features
- Ships via USPS, UPS and FedEx
- Some membership levels entitle you to free shipping each month
- Members can also sell in the US
- Established 2004.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
How shipping is calculated
4.5% of the value of your goods plus shipping, with a minimum fee of AU$12 and a maximum fee of AU$350 (plus optional insurance).
Online shipping calculator
No – quotes can be requested via email or website form; use USPS shipping estimator for shipping cost guide.
Cost to ship 2kg package to Australia
From US$68.15 (10–90 business days with FedEx International Mail Service) to US$121.02 (3–5 business days with FedEx Priority), plus 4.5% of the item cost, plus exchange-rate fee.
Warehouse location/sales tax*
Oregon/0%.
Membership
Free.
Package consolidation
Free.
Repacking
Free.
Shopper service**
Yes $3.50 for up to five items from the same store. Additional items from the same store charged at $1 per item. When using this service a sales tax of 8.5% also applies because the item is first shipped to Washington state.
Storage fees
Will only hold items for a "reasonable" (unspecified) length of time.
Other features
- Australian owned and operated
- Ships via FedEx
- Offers sea freight
- No online shipping calculator – price quotes via email
- Can make US purchases and bid on US eBay on your behalf
- Exchange rate used for conversion from USD to AUD is the current exchange rate less 2.5 cents – eg, if the exchange rate is 0.745 then US to Oz will use a 0.72 exchange rate
- Free photos of your order if requested.
*Sales tax applies to goods purchased in the US and is payable to retailer, not freight-forwarding service.
**Buy from retailers that don't accept Australian credit cards.
