Why is it profitable to shop in duty free?

As it is easy to guess from the name itself, the Duty Free chain of stores is a special trading system that is not taxed, basically, this phenomenon is common at international airports, as well as on board passenger ships (airplanes and cruise ships).

In fact, here you can buy a certain number of goods that are not subject to duty, which means that its cost will be much cheaper than in the city.

As a rule, the main goods in duty-free products are alcohol (one of the highest excise taxes), tobacco, sweets, toys, cosmetics, and sometimes clothes from famous brands, jewelry and various local souvenirs.

How it works?

What is duty free is a bit understandable, but how does it really work? Why are goods not taxed? In fact, the goods are indeed exempted from duties, but only partly. There is nothing surprising about this: most often,goods are exempt from import duties, because, in fact, the traveler will take the goods with him, that is, abroad, and this is closer to export.

True, freeing goods from import duties, the state must be fully confident that they will leave the country, which is why such stores are located in airports and ports, that is, in a special zone, after passing through border control.

Although, it is worth noting that there are interesting exceptions: in some countries, these stores are located not only in the usual areas of departure, but also in the arrival halls, for example, in Argentina or Malaysia.

Such duty-free places of trade can be found on the border of two states, for example, as the principality of Andorra. Usually, when making a purchase in duty-free, you must present a boarding pass, and sometimes a passport, which is evidence that you are leaving or entering the country.

What are the features worth knowing?

If you go on a trip, do not rush to spend all the available funds directly in the country, leave free money to make yourself a farewell gift in duty free.Most often, there really can be found high-quality and original products, without fakes, for very decent money, however, this is not always the case.

The fact is that the price for the same type of product can be very different (sometimes up to 50%) in price from the same in duty-free goods of another country. And the point is not that in one place it is worse or better, this phenomenon is explained by different pricing policies of duty-free trade, overvalued exchange rates at the airport or the country of the manufacturer.

It would seem that the price in duty-free should be extremely low, in any case, much cheaper than in regular stores. But not everything is so simple: sometimes the same products in the network of duty-free can cost, if not more expensive, then about the same as in the shops of the city.

Why is that? The fact that the seller, although exempt from taxes, but still not all: there are costs for salaries to shop staff, as well as a fairly high rental of retail space, which in the same airport can be sky-high, eating most of it possible difference in price. In addition, sometimes the seller himself wants to earn more, and, therefore, the product puts the price higher.

The most inexpensive are de-tifri in Moscow, Berlin, London, Copenhagen and Budapest, the most expensive - in Dubai and Singapore.

However, it should be remembered that this is relative information: prices for specific categories of goods can vary greatly in one direction or another. Of course, if you get into any Malaysian duty-free, then the prices there will pleasantly surprise you, though, and the quality will leave much to be desired.

But in Dubai - a luxurious and, perhaps, one of the most enormous duty-free complexes, in which you can find literally everything: from alcoholic beverages in the widest range, ending with official representative offices of world apparel brands, jewelry and tobacco products.

Going on shopping

So, what is it possible and necessary to buy in the duty-free, if, of course, there is such an opportunity? Of course, ideally, you need to understand the real prices for the product you are interested in and, if you see that the offer in the store is really profitable, then do not deny yourself the purchase.

  • Alcohol and cigarette products. It's no secret to anyone that alcohol and tobacco products are heavily taxed by the state, which means that by purchasing it in duty free, indeed,you can save about 25% -50% of the amount! The price of goods will vary depending on the manufacturer, in addition, in these stores you can find rare and unique brands of tobacco products. Another nice bonus - you can not worry about the quality of this product.
  • Cosmetics and perfume. The most beloved section, in which there are always many women, is, of course, cosmetics. Typically, perfumes cost about 20% cheaper than in city stores, while you can be sure that you bought original perfume or carcass, though, most importantly, always look at the shelf life of the product.
  • Sweets. Chocolate is also a pleasant bonus of such stores, always of high quality and relatively inexpensive.
  • Souvenirs. But souvenir products are better to buy in any other place, as in duty-free it always costs unreasonably expensive.
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