In economics, there is a term called arbitrage that large companies utilize in order to save more and increase overall profit margins. Essentially, arbitrage means to purchase the same asset from a different market, which will offer the buyer lower prices for an identical product due to variations or fluctuations in the commercial arena.
Done on a macro level, these companies can save up to 6 digits in their annual purchases just by using this stratagem- but do you know that such macro economics can also be scaled down and applied by the everyday shopper to get more value out of their dollar? Today, we’ll show you how the arbitrage concept can be utilized to save on purchasing your favorite products when you shop and ship direct ly from Australia with the help of vPost’s forwarding service.
First up, let’s look at a few high quality brands that are available in Australia. We have the all-time cult favorite beauty brands like Aesop and the bio-dynamic company Jurlique, ubiquitous shopping meccas like K-Mart and Target; and Gen-Y and Gen-Z athletic behemoth Lululemon- which is pretty well-known to be cheaper in Australia than in any other Asian market s. In fact, all the brands and shops listed above ARE ALL either well-known to bring quality products at cheaper prices to consumers, or are straight-up cheaper when purchased directly in Australia. And since we have moved into the era of online shopping, every single one of these retailers now offer that cost advantage to their consumers - with the caveat that shipping is to native Australian addresses only. Which, for Singaporean shoppers now, is no longer a barrier to entry- with vPost’s cheapest forwarding service that will ship your parcels from Australia to Singapore.
One of the best value hypermart which stocks everything from food to fashion, books, children’s toys, swimwear, household appliances and stuff you never realized you need . K-Mart is almost a mall by itself and has brought value to Australians over the years, with one outlet located in every neighbourhood. Their online shop is every bit like their physical stores, filled with massive selection of products for your shopping. We located a Lego Duplo set within its stores, and a quick comparison between prices gives us enough reason to understand why Australians flock to this well-loved hypermart. If you love Lego for your kids and ever wished they could be priced cheaper as party favours or birthday presents, this is another place you shouldn’t miss.
1. LEGO Duplo - Ny First Number Train 10847 (weight approx. 1kg)
Price in Australia: $19 AUD
Price in Singapore: $34.90 SGD
2. LEGO DUPLO Classic Deluxe Brick Box - 10914 (weight approx 2kg)
Price in Australia: $54 AUD
Price in Singapore: $84.99 SGD
Vpost shipping from Australia to Singapore: $7.50 SGD (base price) + shipping weight for train set ($0.99 SGD x 10) + shipping weight for box set ($0.99 SGD x 20) = $7.50 SGD + $9.90 SGD + $19.80 SGD = $37.20 SGD
Total Cost for two LEGO Duplo items from K-Mart INCLUDING vPost shipping to Singapore: $54 AUD(Lego BoxSet) + $19 AUD (Lego Train Set)+ $37.20 SGD =$110.20 SGD ( based on recent average exchange rate AUD1:SGD1)
Cost savings for both toys bought directly in Australia compared to purchase in Singapore: ($84.99 SGD + $34.90 SGD) - $110.20 SGD = $119.89 SGD - $110.20 SGD = $9.69 SGD
But wait, there’s more. K-Mart also stocks one of the most ubiquitous toy cars that you see around- the V-Tech Toot Toot Drivers series.
Photo Credit: K-Mart Toot Toot Drivers - Assorted
Equipped with V-Tech’s intelligent technology that produces a variety of unique sounds depending on the track platform every vehicle is on, each of these cars cost $19.90 SGD in Singapore. And it does not matter where you purchase it from. They are all priced the same no matter how many department stores or toy shops we checked. Guess how much K-Mart Australia stocks it for?
V-Tech Toot Toot Drivers (300g)
Price in Australia: $9 AUD
That’s half the asking price in Singapore, making one vehicle virtually free for every two of these that you purchase direct from K-Mart Australia. And with over 30 of these V-Tech cars to choose from- ranging from Police Cars and Jets to Tractors and Camper Vans complete with mini surfboards- you could get 10 of these for just 90 AUD to make a little Singaporean boy somewhere really, really happy.
Cost of shipping: Base Price $7.50 SGD + ($0.99 SGD x 3) x 10 toy vehicles = $7.50 SGD + ($2.97 x 10 toy vehicles) = $37.20 SGD
Total Cost for 10 Toy Vehicles including vPost shipping to Singapore: toy vehicles (10 x $9) + shipping $37.20 SGD = $90 SGD + $37.20 SGD = $127.20 SGD
Total Cost of vehicles if purchased in Singapore: $19.90 x 10 = $199 SGD
Total Cost Savings: (purchase in SG) $199 SGD - (Purchase in AU) $127.20SGD = $71.80 SGD (based on recent average exchange rate of AU1:SGD)
Same toy, make and quality~ but a world of difference in pricing based on the market that they are purchased from.
Are you visiting www.kmart.com.au yet?
Photo Credit: Lululemon Swift Speed High-Rise Tight
Lastly, we have American athletics brand Lululemon, which has got word going around that a similar pair of leggings costs 20% cheaper in Australia than it does in Singapore, even if both are purchased from the Lululemon website (country of purchase being AU vs SG). Just how true is this?
Price Compare: Lululemon Swift Speed Hi-Rise Tight 28” (300g)
Price in Australia- $139 AUD
Price in Singapore - $203.70 SGD
Price difference: $64.70 SGD (or 31%)
A whopping 31 percent off the price by virtue of the purchase location. How much would the total cost be if we included direct shipping to Singapore via vPost?
(Leggings) $139 AUD + (Base Price) $7.50 SGD + (Weight) $0.99 SGD per 100gm x 3 = $139AUD + $7.50 SGD + $2.97 SGD = $149.47 SGD
Total cost savings (inclusive shipping): $203.70SGD - $149.47 SGD = $54.23 SGD
So there you have it: - you could save a lot more on premium products by purchasing directly from Australia and shipping them to Singapore with vPost- the cheapest forwarding service available to Singaporeans. In fact by utilizing vPost, your cost average will work out to be lower the more you purchase. It’s time to make use of this money-saving tactic to get more value for your dollar~ so hop over to the links we’ve shared to start your own arbitrage journey today. We are already loading our shopping carts as we speak!