If you want to expand your e-commerce firm, going worldwide
might be a wonderful next step. However, you\’ll need to figure out how to ship
overseas first.
You\’ll need a plan that works for you and your company if
you want to handle international shipment correctly. You don\’t need to be an
expert in shipping, but you do need to be aware of your possibilities and
choose a strategy that will meet your demands in the long run.
There are many reasons why you might not be exporting at the
moment. Perhaps you\’re only now beginning to think about it. Perhaps you
considered shipping internationally but concluded it would be too difficult.
Even if you tried using an overseas shipping service, you might have given up
after one or two negative incidents.
How to develop a global shipping
strategy
There are a few key choices you\’ll need to make for your
international shipping plan, even while it\’s challenging to compile a complete
list of best practices for every firm.
·
What and where you will ship
·
Prior to shipping any goods, you must decide
which nations and areas and which things you will send.
·
Uncertain of which markets to enter first? Here
are a few clues that can help you focus your search.
Close after a modest start. You can create reasonable
recipient expectations for delivery times and costs by keeping the final
destination of your shipments close to home, such as Mexico for a San
Diego-based retailer. Beginning locally and modestly also enables you to acquire
a sense of what it takes to increase your cargo volume.
Watch the demand level. See which markets or nations have
already visited your online store by looking at the traffic metrics for your
store. Direct consumer requests to sell to their market are another way to
measure interest. High traffic or repeat visits may indicate that customers are
interested in your offerings.
Any market that you want to expand into should be
considered. Dealing with customers effectively requires effective communication.
If you speak many languages well, you could want to start by expanding into
those nations. Find other nations or markets where that language is widely
spoken if you only speak one.
Make sure your target country\’s product and market fit. Do
you believe that certain global marketplaces are more suitable for your company
than others? Here, some research may be necessary. Investigating the level of
e-commerce adoption could be a useful beginning step (explore that data here).
Look at the dietary preferences and consumer trends in those markets. For
instance, a present given as a celebration in the US can have a different
meaning in South Korea.
You must now decide what to send. You might wish to sell
whatever you have to offer. However, take a moment to consider these
characteristics of your items and your company before you begin shipping
globally.
Are there any products, based on the aforementioned points,
that would be appealing to the international market(s) you\’re intending to ship
to?
Smaller, lighter things will be less
expensive to ship and simpler to package.
The packing will be better the more robust it is. Shipping
delicate goods that could be harmed in transportation if improperly wrapped can
raise the likelihood of an unsatisfactory delivery. If you choose to ship them,
make sure you purchase robust product packing.
Learn the country\’s laws and
regulations
It\’s time to research national laws and regulations once you
have a general concept of which areas offer the most immediate potential and which
products you\’ll be sending.
Some nation’s outright ban some things while others may only
limit them. Having a thorough understanding of the laws and guidelines that may
apply to your shipments will help ensure a successful delivery.
You can get this data in a few different ways:
A tool provided by UPS lists country-specific laws and
regulations by the nations of origin and destination.
Check to verify if your goods can be imported into a
specific country of destination. For instance, it is illegal to send artwork
from the US to Saudi Arabia.
Check to determine if any of your items—or the parts of your
goods—are being sent as \”dangerous commodities.\” Generally speaking,
a \”hazardous good\” is a product that could be harmful while in
transportation. The government website of a nation would be the finest source
for this information. Great examples are provided by Canada and the UK.
If in doubt, get in touch with the regional import or
customs office at your intended destination for more details on shipping your
goods.
Be open and honest about costs.
The most crucial element of any foreign shipping strategy
would be to be as open and honest with your customers about delivery prices as
you can. Avoid shocking your consumers at the checkout with an unexpected
total.
Our own research focuses on how customers\’ trust grows as
they make purchases from new online merchants. According to the study, a
store\’s shipping policy when sending overseas must specify who is responsible
for paying duties and taxes in order to win over a customer\’s trust and close a
deal.
Your policy pages are one location where you can mention
these expenses. Explain in detail how and where you send your products overseas
as well as any potential fees.
To display your shipment availability, you may also take a
simple step like adding flags to your top navigation. It\’s not only about
expenses when you let clients know where you deliver. You can advertise your
shipping and rates to a worldwide audience by using a product like the Free
Shipping & Hello Bar.
It\’s best to make advantage of all accessible channels,
whether on your homepage, product page, or policy page, to inform customers
about shipping prices—or possible charges. It will lay out your mutual
expectations, which may provide the customer more assurance to finish the
transaction.
You may compare their prices because Shopify gives retailers
in the US, Canada, and Australia access to discounted rates with international
shipping firms including USPS, UPS, DHL Express, Canada Post.
The appropriate customs forms and documentation are
automatically prepared for you when you order international shipping labels
through Shopify Shipping and can be printed on any common printer. This
documentation is electronically forwarded to customs when you ship from the US
using DHL Express; no further paperwork is required.
You also have the choice to book a free or discounted pickup
for any UPS, DHL Express, or Sendle cargo when you\’re prepared to ship your
packages, or you may link out to schedule one with USPS directly.
When deciding which shipping companies you may utilize,
there are four aspects to consider.
Costs
You can lower your overall delivery costs by working with
many shipping providers.
Although postal carriers are frequently less expensive, they
could not have a wide range of package kinds and delivery alternatives. Express
airlines can be more expensive but they frequently travel faster, can handle
bigger or larger parcels, and offer additional service alternatives. Local
courier services can take care of any \”last mile\” issues with a
foreign cargo, but they can be difficult to find and work with.
Examine your options and compare the costs of mail, express,
and courier services. It\’s a good idea to have an idea of service availability
for your foreign shipping plan even if we\’ll cover how to charge for international
shipping later on.
Options for delivery
While some clients will be more eager to make their
purchases straight away, others will be more patient.
Offer a variety of delivery alternatives to better serve
your consumers. Giving consumers a variety of options provides them the chance
to weigh the trade-off between urgency and cost, which can be the difference
between a sale and a cart that has been abandoned.
Tracking and protection
The majority of international shipping companies offer cargo
tracking, allowing you and your clients to quickly view the most recent
shipment statuses. To provide clients with end-to-end tracking choices and a
searchable tracking number, you may also add ePacket tracking.
The best course of action is to insure your package against
failure delivery if you\’re concerned that a cargo will get lost or damaged.
Almost all international express shippers provide insurance.
It is reasonably priced and simple to add if it isn\’t already included in the
delivery price.
Regardless of delivery method or order destination, US-based
merchants can add Shipsurance insurance to any shipment.
Some international shipping businesses include insurance in
the shipping cost when using postal services like USPS or Canada Post. To
receive automatic coverage, you can send packages using postal classes like
Priority Mail International and Priority Mail Express International for the US
Postal Service or Priority Worldwide, Xpresspost-USA, or
Xpresspost-International for the Canada Post. A separate shipping service can
always be used to pay for coverage; this normally costs a few dollars per $100
USD of claimed value.
Whatever you decide, think about including insurance with
any package going overseas that costs more than $200. Both you and your
customer will feel more at ease if you do this.
How much should international
delivery cost?
The four main factors that affect how much overseas delivery
will cost are as follows. Your ability to ship goods internationally depends on
all four.
Packaging
You\’ll need to purchase packaging materials before you ship
anything. To accommodate shipments of various sizes, you might require a few
different box sizes. Additionally, stuffing or bubble wrap may be needed as
padding. Your packing can be purchased online, at post offices, or at office
supply stores.
Generally speaking, it\’s preferable to keep your package
solid but uncomplicated. When receiving a single product from your company, no
recipient wants to deal with three boxes of various sizes.
It might take some research to try to strike this balance
between affordable pricing and durable packaging. Where you can, look for
discounts. You can order boxes for nothing, for instance, if you use USPS for
commercial purposes.
It should be simple to factor the cost of packing into your
final product pricing. The average piece of packaging should cost between $1
and $5, depending on its size and quality.
Shipping costs
Setting prices appropriately requires factoring in the cost
of shipping into your pricing strategy. You don\’t want to overcharge customers
or incur shipping losses. To make sure your strategy works, consider through
these steps:
Think about and contrast
Do you frequently transport items of the same size? Or
perhaps a few different box sizes or weights? Naturally, this variation has an
impact on the shipment price.
Here is one method to figure out how much international
shipping will cost:
·
Take your typical domestic order and price it
using a rate calculator for the carriers you\’ll be using, just as if you were
shipping abroad.
·
Then, for your smallest domestic sale, apply the
rate calculator.
·
Calculate the costs for your biggest domestic
sale right now.
These three numbers will give you an idea of how much
international shipping will cost. You can use it to assess which shipments
might be more expensive than others.
If you\’re in the US, use our shipping calculator to find out
how much it will cost to ship abroad with Shopify.
Here is a list of shipping calculators for several significant
carriers for your reference.
·
USPS
·
London Royal Mail
·
POSTAL CANADA
·
A Post Australia
·
UPS
·
FedEx
Here are two instances of this strategy:
A. Retailer
·
For the smallest domestic transaction, overseas
shipping was $5.33.
·
For every domestic sale, international shipping
costs $15.47.
·
The biggest domestic transaction required
$124.55 in shipping expenses abroad.
B. Merchant
·
For the smallest domestic sale, overseas shipping
was $1.33.
·
For every domestic sale, foreign shipping costs
$2.75.
·
The biggest domestic sale\’s overseas shipping
was $3.25
Merchant A has a greater range of transportation prices to
cover. Additionally, Merchant B\’s range is not very wide. While the merchandise
offered by Merchant B appears to be more uniform in size and price, that of
Merchant A may be heavier and more diversified.
You\’ll require a pricing structure that works well for both
you and your clients once you\’ve established your range.
Set up your price.
Free shipping, carrier rate shipping, and flat rate shipping
are the three main pricing tiers for international deliveries.
Free shipping: For customers, free shipping is a fantastic
alternative. Consider providing free shipping on overseas orders if your profit
margins let it. Check out this article on determining the order minimums for free
delivery if you\’re unsure.
Carrier rate shipping: Shopify already has integrations with
a select carriers, including real-time shipping quotes and options for USPS,
DHL Express, and UPS clients in the US, Canada Post customers in Canada, and
Sendle customers in Australia. Since carrier computed shipping gives your
customers a choice and takes care of the math for you, it can be very helpful.
Additionally, your buyer will pay the same pricing that Shopify Shipping would cost
you to ship their product.
Flat rate shipping: If your overseas shipping is regular in
terms of the size/weight of your packaging and the shipping price (like
Merchant B above), it could be wise to think about flat or manual rate
shipping.
Managing fees
Consider adding a handling fee to the price of your
packaging and materials.
Compared to a regular domestic order, international
shipments go through many more additional facilities. You need to handle these
shipments with additional care, which includes the packaging. To calculate your
handling fees, consider these questions.
·
What is your minimum hourly rate for shipping
preparation and packing?
·
How long does it typically take you to prepare
an order for shipping, starting with reviewing it and finishing with sending it
out?
You may now calculate your handling expenses. Here\’s an
illustration:
Normally, it takes 10 minutes to get an order ready for
shipping. You would also need to charge a handling fee of $1.83 to cover the
cost of preparing these products, which costs $11 per hour.
(10 minutes / 60 minutes) x $11 is a handling fee of $1.83.
Once more, you are totally in charge of whether to include a
handling fee; you must decide what is best for your company. Remember that
foreign orders are normally a little more expensive and that international
clients typically anticipate paying a little more for high-quality shipping.
The handling and packaging of a shipment play a significant role on its
quality.
Taxes and duties
Depending on a number of variables, international shipments
may be subject to customs and taxes. In particular for any big overseas market
you are targeting, it is crucial to conduct your research and account for any
customs and taxes in your pricing strategy. You can use this duty calculator to
obtain an idea of tariffs and taxes may apply to your products per destination
country.
Taxes are based on a fixed percentage per destination
country (and sometimes state or province) (and sometimes state or province).
Duties, on the other hand, depend on a number of elements such as:
·
The value of the products being shipped.
·
The country of origin or where products were
manufactured.
·
The type of the items being shipped and attributes
such materials used to make them.
By default, the importer (i.e., your customer) is liable for
any taxes or tariffs on the shipment and will need to pay them before they can
get their order. This is called Delivered Duty Unpaid (DDU) or, more officially,
Delivered at Place (DAP) (DAP). It’s very vital to be honest with the buyer
about additional expenses to control their expectation and minimize returns and
chargebacks. Make sure to set up a clear return policy on your website.
To provide a simpler and surprise-free buying experience to
your consumers, you can choose to be responsible for paying these costs, this
is termed Delivered Duty Paid (DDP) (DDP). In this instance, you need to
collect these costs ahead.
From a logistical aspect, you will obtain the necessary
shipping label DDU/DAP or DDP and include customs documents with your
international cargo. Check with your domestic postal service as a local
reference to make sure you know whatever documents you need to mail
internationally. They’ll normally have these paperwork for you.
When you buy your shipping labels from Shopify Shipping,
you’ll be provided with the required customs papers needed to fulfill foreign
shipments.
The correct customs paperwork required for an international
cargo can differ by country. But typically these two documents will be
required: a commercial invoice and an export packing list.
Commercial invoice
This is the bill for the shipped product from the seller to
the buyer that helps prove ownership and payment. Used to determine the true
value of the product(s) being shipped, this document helps the country assess
customs duties and taxes. Here’s some essential information that should be
included:
·
The merchant and customer’s names and addresses
·
The price, descriptions, and quantity of the
products included
·
How the sale was made and the terms of the
payment
·
Shipping method
Depending on the shipping company you are using, the customs
information may be embedded in the shipping label. DHL Express provides Paperless
Trade to most countries, reducing the need for extra printed documents.
Export packing list
The typical detail on a packing list is on this form (buyer,
seller/shipper, invoice number, date of shipment, etc.) but it also includes
more extensive information like:
·
The mode of transport
·
Carrier info
·
Weight and dimensions of the package (usually in
metric measurements) (usually in metric measurements)
·
The type and quantity of packages
·
Package marks