Cross-Border Costs and Product Choices

Japanese culture

It was another beautiful sunny morning today. The temperature was not too high, so it was very comfortable. However, the wind is a little strong, perhaps because another typhoon is approaching. This is Typhoon No. 27, which means it is the 27th typhoon of this year. Not all of them have directly hit Japan, but we have had more typhoons than usual this year. This typhoon will probably only come close to Japan without making landfall. However, it may bring a lot of rain and strong winds next week.

The boxes I am currently making for the Hakone market are nearly finished, so I have decided to make the 3-sun 7-step puzzle box next. Most of these boxes will be made for overseas shops. The design combines traditional Yosegi with Walnut. It can be described as a 7-step version of the 12-step puzzle box that I often make. Next year, I am thinking about gradually stopping production of small puzzle boxes with only a few steps. However, I have not yet decided what to do with this 3-sun size. Overseas shops sometimes want more affordable puzzle boxes, so I may continue making at least one type. I will probably sell fewer of these boxes directly to customers through my own website. As I wrote in my newsletter, affordable international shipping and duty-free rules for low-value imports helped make this kind of international trade possible. However, these services and exemptions have now been greatly reduced or removed in many countries, making direct overseas sales more difficult.

For around 20 years, this kind of international business was very active in Japan. It is called “cross-border e-commerce” here, and many experts and companies offered advice on how to start such a business.However, many of these businesses have now disappeared, and I have heard that many Japanese sellers have also stopped selling on eBay etc.. In reality, shipping costs and import duties have become so high that it is becoming difficult to make a profit by reselling Japanese products overseas.

I understand that countries are raising tariffs to protect their own industries, so I think these changes may be necessary in some ways. However, some companies will lose sales because of them, so finding the right balance is difficult. Since I sell items that I make myself, I can adjust my production plans quite easily. Even so, I have made fewer small puzzle boxes in recent years. My age may also be one reason for this!..haha Small boxes must usually be made in large quantities, and that requires more physical energy. At the same time, I have had more opportunities to make higher-priced boxes. However, making and shipping puzzle boxes with a very large number of steps, such as 54, 66, or 78 steps, can be difficult because of the differences in climate between countries. I sometimes hear from people overseas who own older puzzle boxes that have become difficult to open. A 14-step or 21-step puzzle box can often be opened after a small adjustment, or sometimes with a little force, as long as it is not seriously damaged. However, I have seen some 54-step puzzle boxes that could no longer be repaired at all.

I have moved a little away from the main topic, but during the Christmas shopping season, the puzzle boxes offered from Japan may become more expensive. Some Japanese shops may still sell 2-sun or 3-sun puzzle boxes, but their prices will probably be much higher than the usual value of the boxes, so I cannot strongly recommend buying them at those prices. For these reasons, the most affordable box in my online shop may now be the 4-sun 14-step puzzle box. I also introduced it on social media today. I think this box offers a good standard balance of size, price, and mechanism. From now on, I will continue looking for puzzle boxes that offer good value even at a higher price and are also strong enough to handle international shipping.

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