The forwarding meaning is simple at its core: it's about shipping goods from one location to another, usually from a supplier abroad to your warehouse or fulfillment center in the Netherlands. But behind this simple definition lies a complex logistical process that can make the difference between a profitable e-commerce business and one that drowns in unexpected costs. In this comprehensive article, we'll explain the forwarding meaning, discuss all types of forwarding, dive deeper into costs, Incoterms, customs formalities, and provide you with practical tips to optimize your logistics as a bol.com seller.
What is forwarding? The full meaning explained
Forwarding - also known as expediting or freight forwarding - is the entire logistical process where goods are transported from a manufacturer or supplier to the final destination. A forwarder (or expeditor) is the specialist who coordinates this process. The forwarder doesn't transport goods themselves, but acts as an intermediary who arranges the entire journey: from picking up at the factory, booking transport capacity, arranging customs documents to delivering to your doorstep.
The forwarding meaning for e-commerce has become particularly relevant now that more and more Dutch sellers are importing products from countries like China, India, Vietnam, and Turkey. Without a good forwarder, you risk delays, extra customs costs, damaged goods, or even seized shipments.
What does a forwarder do exactly?
A forwarder performs several crucial tasks in the logistics chain:
- Transport planning: Determining the optimal route and shipping method based on volume, weight, urgency, and budget.
- Booking freight space: Reserving container capacity with shipping companies, airlines, or road transporters.
- Customs clearance: Preparing all import and export documents, calculating duties, and handling customs clearance.
- Insurance: Offering cargo insurance options to protect your goods during transport.
- Tracking and monitoring: Providing real-time insight into where your shipment is.
- Storage and distribution: Optionally arranging temporary storage and forwarding to your warehouse or fulfillment partner.
Types of forwarding: which method suits your business?
There are three main types of forwarding, each with its own pros and cons. The choice depends on your budget, the urgency of your shipment, the volume, and the type of product you're importing.
1. Sea freight forwarding
Sea freight is the most commonly used method for importing large volumes from Asia. You can choose between an FCL (Full Container Load) - a full container just for you - or an LCL (Less than Container Load), where you share container space with other importers. Sea freight is the cheapest option per cubic meter, but the slowest: a shipment from China takes an average of 30 to 45 days.
2. Air freight forwarding
Air freight is the fastest option: your goods usually arrive within 5 to 10 days. This is ideal for small, lightweight products with a high value, or when you need to restock quickly. The downside is that air freight is significantly more expensive than sea freight, especially for heavy or bulky shipments.
3. Road freight forwarding
For shipments within Europe, truck transport is the standard. This is flexible, relatively fast (1 to 5 days within Europe) and requires less customs documentation as long as the transport takes place within the EU. Ideal if you have suppliers in Europe or work with a European fulfillment center.
| Forwarding method | Speed | Costs (per kg) | Suitable for | Delivery time (from Asia) |
|---|---|---|---|---|
| Sea freight (FCL) | Slow | €0,05 – €0,15 | Large volumes (>15 m³) | 30 – 45 days |
| Sea freight (LCL) | Slow | €0,10 – €0,30 | Smaller volumes (<15 m³) | 35 – 50 days |
| Air freight | Fast | €3,00 – €8,00 | Light, high-value, urgent | 5 – 10 days |
| Express (DHL/FedEx) | Very fast | €5,00 – €15,00 | Samples, small shipments | 3 – 5 days |
| Road transport (EU) | Average | €0,08 – €0,25 | European suppliers | 1 – 5 days |
| Rail freight (China-EU) | Average | €0,20 – €0,50 | Middle-sized volumes | 18 – 25 days |
Forwarding and e-commerce: three logistical models
As an e-commerce entrepreneur, you have several options for using forwarding. The model you choose has a significant impact on your cash flow, delivery times, and customer satisfaction.
Model 1: Own warehouse
In this model, you have the forwarder transport your goods directly to your own storage space. You have full control over your inventory, can perform quality checks yourself, and pack orders. The downside is that you have storage costs and are responsible for shipping to customers yourself. This model works well if you have a stable sales volume and want to maintain control over your logistics.
Model 2: Fulfillment via bol.com (LvB)
With Logistiek via bol.com (LvB), you send your inventory to bol.com's warehouse. They then take care of storage, packaging, and shipping to the customer. This is ideal if you don't have your own warehouse or want to shorten your delivery times. Your forwarder can have the goods delivered directly to the bol.com fulfillment center. Use the LvB Box Size Checker to check if your products are suitable for LvB and what packaging requirements apply.
Model 3: Dropshipping
In dropshipping, you don't have your own inventory. The supplier ships the product directly to the customer. Forwarding plays a less direct role here, but can still be relevant if you work with a European intermediate warehouse where your supplier ships to. The advantage is minimal risk; the disadvantage is longer delivery times and less control over quality.
Costs of forwarding: what to look out for?
The costs of forwarding go beyond just the transport price. As an e-commerce entrepreneur, you need to take into account multiple cost factors that affect your profit margin. Use the Profit Calculator to include all these costs in your margin calculation.
| Cost Item | Description | Indication |
|---|---|---|
| Shipping Costs | Transport from supplier to the Netherlands | Depends on method (see table above) |
| Import Duties | Percentage of customs value | 0% β 17% (depending on product category) |
| Import VAT | 21% VAT on customs value + import duties | 21% (can be shifted via article 23) |
| Customs Clearance | Clearance by customs agent | β¬50 β β¬150 per shipment |
| Storage Costs | Temporary storage at port/airport | β¬5 β β¬25 per pallet per day |
| Forwarder Commission | Service costs of the forwarder | β¬75 β β¬300 per shipment |
| Inspection Costs | Possible inspection by customs or NVWA | β¬100 β β¬500 (if applicable) |
Incoterms: the agreements between buyer and seller
In international forwarding, incoterms (International Commercial Terms) are essential. These are standardized trade terms that determine who is responsible for transport, insurance, and risk at each point in the logistics chain. The most common incoterms for e-commerce importers are:
- EXW (Ex Works): You are responsible for everything from the factory gate. Cheapest purchase price, but you arrange all forwarding yourself.
- FOB (Free on Board): The supplier delivers the goods on board the ship. From that point on, you are responsible. This is the most used incoterm for sea freight from China.
- CIF (Cost, Insurance, Freight): The supplier pays for transport and insurance to the port of destination. Handy if you have little experience with forwarding.
- DDP (Delivered Duty Paid): The supplier arranges everything up to your door, including import duties and VAT. The simplest option, but also the most expensive.
- DAP (Delivered at Place): The supplier delivers to an agreed address, but you pay the import duties and VAT.
Which incoterm do you choose as a bol.com seller?
For starting importers, FOB is the most recommended incoterm. You have control over the forwarding from the port, can choose your own forwarder, and save compared to DDP. As you gain more experience, you can consider switching to EXW for even more cost control.
Customs formalities when forwarding to the Netherlands
When importing goods from outside the EU, you will deal with Dutch customs. This is a crucial part of the forwarding process that you need to understand well to avoid delays and fines.
Required documents
- Commercial Invoice: The trade invoice from your supplier with product description, value, and quantity.
- Packing List: Detailed overview of the contents per shipment or pallet.
- Bill of Lading (B/L) or Air Waybill (AWB): The transport document that proves ownership of the goods.
- EORI number: Your European registration and identification number for customs matters - mandatory for every importer.
- CE marking documentation: Mandatory for many product categories. Read more in our guide to CE certification.
Article 23: VAT shifting when importing
As a Dutch entrepreneur, you can take advantage of the reverse charge regulation (Article 23 of the Dutch Turnover Tax Act). This means you don't have to pay the 21% import VAT directly to customs, but instead, you can include it in your VAT return. This is a huge cash flow advantage, especially for larger shipments. Ask your accountant if you need a permit for this.
How to choose the right forwarder?
Choosing a good forwarder can save you thousands of euros and prevent headaches. When selecting one, pay attention to the following criteria:
- Experience with your route: A forwarder specializing in the China-Netherlands route has better rates and contacts than a generalist.
- Transparent pricing: Always ask for an all-in quote, including all additional costs. Compare at least three quotes.
- Tracking capabilities: Choose a forwarder that offers real-time tracking so you always know where your shipment is.
- Customs knowledge: A good forwarder handles customs clearance and knows the correct HS codes for your products.
- Reviews and references: Ask other e-commerce entrepreneurs about their experiences. Join communities and ask for recommendations.
- Flexibility: Can the forwarder grow with you as your volumes increase? Do they offer both LCL and FCL?
Common mistakes in forwarding
Many e-commerce starters make costly mistakes with their first import shipments. Avoid these pitfalls:
- Not ordering a sample: Always order a sample before placing a large order. Check the quality, packaging, and dimensions.
- Incorrect HS code: An incorrect goods code can lead to higher import duties or even fines. Let your forwarder determine the correct code.
- No insurance: Goods can be damaged or lost during transport. Cargo insurance costs only 0.3% to 0.5% of the goods' value.
- Underestimating delivery time: Plan well in advance, especially for sea freight. Take into account delays due to port congestion, holidays (like Chinese New Year), or weather conditions.
- Not applying for an EORI number: Without an EORI number, your goods will be held at customs. Apply for it in time via the Customs website.
Optimizing forwarding with data
Successful e-commerce entrepreneurs don't treat forwarding as a one-time action, but as an ongoing optimization process. By accurately tracking and analyzing your logistics costs, you can improve your margins.
- Use the Profit Calculator to calculate your landed cost (purchase price + all forwarding costs) per product and compare it to your selling price.
- Monitor your inventory levels with the Product Tracker to place new orders on time and avoid stock-outs.
- Analyze your sales dashboard to recognize seasonal patterns and adjust your forwarding accordingly.
- Consider Logistics via bol.com for your best-selling products to shorten your delivery times and reduce your logistics burden.
Frequently asked questions about forwarding
What does forwarding mean?
Forwarding means coordinating and arranging the transportation of goods from the supplier to the destination. A forwarder is the intermediary who organizes the entire logistics process, from pickup to delivery, including customs clearance.
Do I always need a forwarder?
For small shipments via express (DHL, FedEx, UPS), you can work without a forwarder. But as soon as you import larger volumes via sea or air freight, a forwarder is almost indispensable. The savings a forwarder achieves on freight rates and customs clearance far outweigh the costs.
How much does forwarding from China to the Netherlands cost?
Costs vary greatly per method and volume. Sea freight (LCL) costs an average of β¬0,10 to β¬0,30 per kg, air freight β¬3,00 to β¬8,00 per kg. Add import duties (0-17%), 21% import VAT, customs clearance (β¬50-β¬150), and the forwarder's commission (β¬75-β¬300) to that.
What's the difference between a forwarder and a carrier?
A carrier physically transports the goods (e.g., a shipping company or trucking company). A forwarder coordinates the entire process and hires carriers. Compare it to a travel agent (forwarder) versus an airline (carrier).
How long does forwarding from China take?
Sea freight takes 30 to 45 days, rail freight 18 to 25 days, air freight 5 to 10 days, and express 3 to 5 days. Add 2 to 5 working days to all methods for customs clearance in the Netherlands.
Ready to streamline your forwarding process and get more insight into your logistics costs? Start with Boloo for free and use our tools to manage your profit margins, inventory, and sales data-driven.
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