Demand picks up for US mailing address service
Mailboxes Unlimited boss Steve Thomson expects a surge in online shopping and buying locally over the next few months as residents put off overseas holiday shopping trips.He said in the economic downturn people can’t afford to fly away to shop like they used to.In addition, travellers have been hit with costly checked baggage fees and higher Bermuda airport duty.Mr Thomson said his US Express service has grown to 11,000 customers and he expects hundreds more to sign up as the holidays approach.“I have been signing up 10 to 15 people a day for US Express,” he noted.US Express provides customers with a private New Jersey address to ship to when shopping online and faced with US merchants who do not ship outside America.Another plus to the service is lower shipping costs because packages are consolidated at the US Forwarding Center in New Jersey. And duty on purchases is also much lower than if you come through the airport.Mr Thomson, who started Mailboxes Unlimited in 1990 offering private mailbox rentals, is currently offering a half-price special from now through autumn. Instead of the regular $20 membership fee to join US Express, he has lowered it to $10 and is giving away LED torch key rings to customers who use the service.Customers can sign up for the service online at Mailboxes Unlimited’s website.Mr Thomson said shipping to Bermuda by a regular courier can cost up to 50 percent more than his service- some $65 to $80 for the first pound plus clearance and handling charges.But with US express: “Everyone’s shipment comes in together so we can charge $17 for the first pound, and there are no additional clearance and handling charges.”Each additional pound is $4.75 if weight is from two to 30 pounds, and $4 if weight is over 31-150 pounds.Insurance costs two percent of the invoice value.US Express charges duty at the rate of 6.5 percent for clothing, 8.5 percent for cameras and 10 percent for shoes. Books are duty-free and cost only $4.75 a pound.By comparison, if you come through the Bermuda airport, you pay a flat 25 percent duty on your purchases abroad. And that duty rate on goods declared at the airport by returning residents is set to rise as high as 35 percent November 4.Mr Thomson said he only recommends his service for smaller online purchases. He said it is best to go with an ocean shipping company for larger items such as furniture and appliances.The top items residents ship in through his service are: clothing, cameras electronics / TVs / computers, shoes, handbags, vitamins and supplements.He added his company encourages Buy Bermuda whenever possible, however, he also considers his company to be part of the retail sector.And rather than compete with the courier companies, FedEx Bermuda has been a longtime partner of Mailboxes Unlimited, delivering all its shipments to its door in Hamilton, where it un-consolidates them overnight and then puts them on the shelves for customers to collect.Mailboxes keeps costs low by not delivering, he said. It is open 8am to 6pm Monday to Friday and 9.30am to 5pm on Saturday for customers to come and collect their purchases.Mr Thomson said he pays duty to bring in merchandise - just like other retailers.And he employs a full-time all-Bermudian staff of eight at the company’s locations on Par-La-Ville Road, Church Street and Lovers Lane in Paget.