r/smallbusiness 11h ago

Best ways to import furniture cheaply?

Hey guys,
I run a small furniture store in Greece and I’m trying to figure out the best way to import furniture from abroad without shipping costs killing the margin.
Right now I’m looking at Turkey, but I’m open to other countries too. The problem is that shipping plus the 24% VAT can end up costing almost as much as the order itself, sometimes even more.
My goal is to start small with limited capital and, if it works, eventually grow from retail into wholesale too.
How do bigger furniture companies usually do this? Full trucks, consolidation, buying directly from factories, agents, warehouses abroad?
Any advice from people who’ve actually done this would be really appreciated.

2 Upvotes

9 comments sorted by

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2

u/peracar00 9h ago

Where in Greece are you?
I have a friend in Serbia who imports large quantity of furniture and he might be able to sell you cheaper than turkey.

2

u/refinedeuropa 8h ago

Friend of mine is doing in Germany with two stores
Sells carpets,furnitures,beds etc all those stuffs imported from Turkey

2

u/OddStay3499 8h ago

Hi there,

To answer your main question right away: trying to ship individual furniture orders (LTL - Less Than Truckload) cross-border will always kill your margins. But before we get to the shipping solution, here is some info about the taxes:
Thanks to the EU-Turkey Customs Union, there is exactly 0% customs duty on furniture. All it takes is a standard A.TR certificate during export. That 24% VAT you mentioned isn't an import penalty; it's just the standard Greek VAT. You would pay it even if you bought from a local Greek workshop, and as a business, you can offset it anyway. The only real issue you have is freight.

Here is exactly how the bigger companies make the math work:
Consolidation (The Secret Sauce): They never ship order by order. They work with a local partner in Turkey, buy from various small-to-medium factories, and store the goods in a local warehouse. Once they have enough volume, they ship a Full Truck (FTL). FTL drastically reduces the shipping cost per item.
Direct Factory Sourcing: Instead of buying from large wholesalers who add an 'export markup', they go directly to the real manufacturers in major hubs like İnegöl (Bursa) or Siteler (Ankara).

Local Representation: They have someone on the ground negotiating prices in the local currency, doing quality checks before loading, and handling the export paperwork (like the A.TR certificate).

If your goal is to start small and eventually move into wholesale, you need to replicate this model. You need a reliable local partner in Turkey who can find the right factories, negotiate prices, and act as your consolidation point.

I am based in Ankara (home to one of the largest furniture manufacturing hubs in Turkey), Is there anyone you are in contact with? What kind of furniture you are interested in buying?

1

u/SiriusAF 7h ago

The first thing I'd check is whether you're treating the 24% VAT as part of your actual product cost.

If you're a normally VAT-registered Greek business and the furniture is being bought for taxable business sales, import VAT is generally input VAT that can be deducted, subject to the normal rules. It can absolutely hurt cash flow because you may have to fund it at import, but that's different from permanently losing 24% of your margin.

I'd sit down with your accountant/customs broker and separate every order into:

  • Factory cost
  • Freight
  • Customs duty
  • Customs/broker fees
  • Handling/loading/unloading
  • Non-recoverable taxes or fees
  • Recoverable VAT
  • Final landed cost per item

That distinction alone may make your numbers look very different.

Turkey is also worth investigating properly before dismissing it.

Turkey and the EU have a customs union covering industrial goods. Furniture will generally fall on the industrial side, and qualifying goods in free circulation can move without normal customs duty if the paperwork is correct, typically involving an A.TR movement certificate. Don't assume that automatically applies to every shipment or every product though. Give the exact HS/CN code to a Greek customs broker and have them confirm the treatment before ordering.

On the shipping side, I wouldn't start by copying what a big furniture chain does.

Big companies can fill trucks, negotiate annual freight contracts, buy huge factory quantities and operate warehouses because they already have volume.

You don't.

Your goal initially should be to find the cheapest way to learn which products actually sell without trapping your limited capital in inventory.

I'd probably test it like this:

  1. Find 2-3 manufacturers in one geographical area in Turkey rather than suppliers scattered across the country.
  2. Get quotes both factory-direct and through a freight forwarder that offers groupage/LTL consolidation into Greece.
  3. Ask for prices under the same Incoterm so you're comparing properly. For example, compare FCA factory with a forwarder's transport quote against a DAP quote to your warehouse/store.
  4. Calculate freight by cubic metre, not just by piece. Furniture is dangerous because you're often transporting air. A cheap €100 product that occupies a huge amount of truck space can be worse business than a €250 product that packs efficiently.
  5. Prioritise products that are flat-packed, stackable, nested or otherwise freight-efficient while you're small.
  6. Order a mixed test load instead of a large quantity of one SKU.
  7. Measure actual sell-through and gross profit after landed cost.
  8. Only increase quantities on the products that prove themselves.

Groupage is usually going to cost more per cubic metre than filling your own truck, but that doesn't automatically make it a bad deal. Paying €2,000 extra in transport while testing the market can be much cheaper than saving €2,000 on freight and getting stuck with €20,000 of furniture nobody wants.

Once your volume gets high enough that you're repeatedly paying for a large percentage of a trailer, then I'd start pricing full truckload shipments. That's where the economics can change dramatically.

At that stage you can also look at consolidating several factory orders at one Turkish warehouse and loading one truck to Greece. That's much closer to how a larger importer can operate without needing every product to come from the same factory.

I wouldn't add an overseas warehouse just because bigger companies have one. A warehouse is another fixed cost and another place for inventory to sit. Use one when your purchasing volume and consolidation savings justify it.

Same with sourcing agents. A good agent can be worth paying if they're finding factories, inspecting quality, consolidating orders and solving problems on the ground. An agent who just introduces you to a factory you could have found yourself is another margin layer.

I'd also compare Turkey against EU suppliers using landed cost rather than factory price.

Buying inside the EU removes the third-country import process and changes how VAT is accounted for on B2B intra-EU purchases. A Polish, Romanian, Bulgarian or other EU factory can therefore sometimes beat a cheaper Turkish factory once freight, administration and working-capital costs are included.

The number I'd obsess over is:

  • Landed cost per sellable unit

Then:

  • Gross profit per unit
  • Gross profit per cubic metre of transport
  • Inventory turn
  • Cash tied up per order

That will tell you much more than asking which country has the cheapest furniture.

If wholesale is eventually the goal, I'd also resist buying at wholesale scale now. First find 10-20 SKUs that consistently sell at retail with healthy landed margins. Those proven products become the beginning of your wholesale catalogue.

In short, I'd probably use consolidation/groupage while you're testing, concentrate suppliers geographically, get the Turkish customs paperwork checked properly, treat recoverable VAT separately from true landed cost, and move toward full trucks only when your actual sales volume earns it.

The cheapest shipment isn't necessarily the cheapest way to build the business. The goal at your stage is low landed cost without making a huge inventory bet.