Why Are Designer Bags Cheaper at Duty-Free Shops?
Shoppers all over wonder how to get designer bags at discount costs.
Shoppers all over wonder how to get designer bags at discount costs. One way that some collectors have found to cut down on those price tags is finding their favorites in duty-free shops. But is it really cheaper to buy designer bags from a duty-free shop in an airport or otherwise?
Well, in a lot of ways, yes! If all you’re after is a lower price tag, duty-free shops and outlets are usually a great place to find high end imported luxury brands for less than you would pay in a department store. There is one specific reason why.
Duty-free shops are often exempt from local taxes, import duties, or value added taxes that come with purchasing a designer bag in an American Department store. As with most advice, this comes with some caveats. For one, the pricing in a duty-free shop is not going to be uniform at every single airport or marketplace that you come across. Some of these retailers are going to mark the prices up to negate those savings from the value added taxes or import duties. So, it’s on the shopper to be knowledgeable about the products they’re trying to go get.
Folks in the market for a designer bag should also be aware of some slight regional differences between models that might exist. Anyone who spent a lot of time at outlets can attest to some differences in variety, color, and material between items. There’s also the chance that you could end up paying tax upon arriving back home. (Each country’s duty-free allowance is different, after all!) Another thing to note would be that imported goods should be your priority when visiting another territory. As a lot of this is linked to taxes, goods from another place stand to present the best value for shoppers.
How does duty-free shopping create savings in airports?
Airports help create duty-free shopping hacks because of tax complications. Different governments charge taxes or fees on luxury goods. So, if you’re buying an item in one country and then taking it home, you may be charged a customs fee. If you follow, this means the individual consumer ends up paying the taxes instead of the seller outright. Usually, the seller would be paying to bring the goods all the way into the country. (As we learned from Tom Hanks, airports can be strange liminal zones where things work a little differently.)
There is a little bit of risk in this, some countries have higher value-added tax than others. If the place you’re leaving has, let’s say 20% VAT, then you stand a real chance of securing some real savings from buying from a duty-free shop. But, that doesn’t always mean sky high savings every time you go into one of these places in an airport. Customs Rules of your destination come into play. There is a dollar amount set by the territory you’re entering. That number determines whether or not you’re going to have to pay the tax on the items you bought in the airport you’re coming from. So, don’t load up too hard or you could be in for a nasty surprise
Are those designer bags a good deal?
As always, the question becomes are duty free designer bags and other luxury goods a real bargain? The answer is, frustratingly, maybe?
This really is a case by case basis kind of deal. Duty free shopping largely depends on what items you’re buying and where you’re getting them from. You might not necessarily be paying lower prices at the duty free shop than you would at an outlet. If you catch the right sale or markdown opportunity, compare! But, the savings opportunity due to not having to pay the tax is hard for a lot of people to pass up. So, look into the designer label you’re planning to buy from and sketch out what price range you would be comfortable with.
Once you have that information, you can make the best decision for yourself. Is the currency where you’re coming from weaker than where you’re headed? That could amplify how much money you’re saving! Who knows, you might catch your best deal of the year while waiting for your flight. Happy Travels
(Photo Credit: Getty Images, Gigsky)
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