{"id":20340,"date":"2022-12-12T03:21:50","date_gmt":"2022-12-12T03:21:50","guid":{"rendered":"https:\/\/www.sellersnap.io\/?p=20340"},"modified":"2023-03-09T00:42:18","modified_gmt":"2023-03-09T00:42:18","slug":"ecommerce-international-shipping-guide","status":"publish","type":"post","link":"https:\/\/www.sellersnap.io\/ecommerce-international-shipping-guide\/","title":{"rendered":"How Does eCommerce International Shipping Work?"},"content":{"rendered":"
The line between international and local markets has been getting blurrier with the rise of international eCommerce shipping. Businesses can now extend their grasp far beyond their home countries to access new markets across the sea.<\/p>\n
Thanks to the internet, companies have been reaching their target markets directly through carefully crafted advertising campaigns. However, if you feel like your business has reached the ceiling of the local market, it\u2019s time to move on to a bigger playing field.<\/p>\n
Driving your business to cater to international clients will require a solid shipping eCommerce\u00a0plan for smooth implementation. Here are some of the things you should know when creating your global dispatch strategy.<\/p>\n
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Retail eCommerce sales worldwide are expected to increase to\u00a0<\/a>8 trillion USD by 2026<\/u><\/a>. This industry has been growing continuously since its conception and it\u2019s showing no signs of slowing down. Given the trend, you can see that there\u2019s a huge opportunity for profit by expanding your business to international markets.<\/p>\n The internet has made it easy to have a global audience for a local brand. Thanks to\u00a0<\/a>social media marketing<\/u><\/a>, companies can now reach anyone anywhere, but that also means that their operations need to follow through with their marketing tactics by having a logistics plan in place.<\/p>\n As with any business move, it\u2019s vital that you have everything you need before launching a service. International shipping is complex compared to its local counterpart because there are more documents that you\u2019ll need to prepare before sending the package out.<\/p>\n Below are some things you\u2019ll need to iron out before dropping your mailer off at the nearest post office:<\/p>\n Once you go global, it\u2019s going to be much harder to have a return process. Some businesses write it off as a loss, while others send detailed instructions to their customers about returning the item. You can minimize these instances by keeping product information on your website updated.<\/p>\n Here are some details you should add to your website for a smooth transaction:<\/p>\n Having product details and shipping FAQs readily available on your site can streamline the buying process for your clients. Painting a clear product picture for your customers can also save both parties a lot of trouble in the long run. You can also hire\u00a0dedicated\u00a0software development team<\/a>\u00a0in\u00a0order to make your website more effective.<\/p>\n Having packaging on-hand isn\u2019t just for ease of product dispatching, it\u2019s also a great way to compute shipping costs ahead of time. Product weight and packaging dimensions are factors that couriers consider when computing shipping costs.<\/p>\n A good practice to have when purchasing packaging is to look for mailers that are optimized for specific shipping rates. Some couriers like USPS, DHL, and FedEx have their own standard mailers.<\/p>\n Packaging peanuts, poly bubbly mailers, and air pillows are just some of the materials that companies use to secure fragile goods. While these items may be light, they can still add to the total care of your packages.<\/p>\n A good trick to have is to standardize your packaging materials to ensure weight uniformity when shipping.<\/p>\n Before you show up at your local post office, you\u2019ll need to have a couple of documents on-hand for a smooth transaction. So, it\u2019s best to come armed with your customs form and sales invoice when shipping out internationally.<\/p>\n Your chosen carrier will usually have customs declaration forms available online.<\/p>\n The incoterm is a statement between you and your customer about the transaction. This agreement states which party will be paying for the duties and international taxes. It\u2019s important to disclose this beforehand to not surprise your clients with additional payments upon delivery. Be upfront and exercise transparency to retain customer loyalty.<\/p>\n You can choose to include these fees in the product cost for better customer service but be careful when doing this practice, because it can eat up your profit margins.<\/p>\n Depending on the option you choose, your package will be marked with either Delivery Duties Unpaid by Sender (DDU) or Delivery Duties Paid by Sender (DDP).<\/p>\n There is no one size fits all solution for shipping services. Certain couriers may not accept your package due to their regulations against expensive or fragile items, while some just don\u2019t cater to the area you want to ship to. Choosing the right international shipping method will depend on some of these factors and your preferences.<\/p>\n A good practice to have is to check a\u00a0<\/a>country\u2019s regulations<\/u><\/a> before printing out your labels. It\u2019s also great to remember that some couriers will offer complimentary insurance of up to 100 USD for the benefit of their users. The speed of shipping and availability of tracking methods can also affect your courier choice.<\/p>\n Ultimately, it\u2019s recommended that you compare the costs and benefits of availing of a certain provider\u2019s services over another.<\/p>\n We\u2019ve listed some famous couriers below and what makes them great logistics partners.<\/p>\n FedEx is a household brand that has been offering delivery services since 1971. It\u2019s known for its time-sensitive shipping solutions ranging from overnight to two-day deliveries at affordable costs. Their superb tracking service gives you full visibility of your package\u2019s location at any time. This courier is best for delicate and temperature-sensitive shipments.<\/p>\n In 2020, FedEx has adopted last-mile delivery couriers to their operations for improved efficiency.<\/p>\n The logistical giant, UPS, is renowned for its operations in over 220+ countries worldwide. This courier provides versatility in handling different packages. They\u2019re one of the few couriers that can carry domesticated animals, hazardous goods, and deliver parcels within five days from receipt.<\/p>\n Along with its user-friendly website that can help you fill out paperwork and shipment details easily, UPS is a great starting point for your company\u2019s international shipping.<\/p>\n UPS partners with local post offices to easily deliver to remote areas in the recipient\u2019s country.<\/p>\n A subsidiary of Deutsche Post, DHL is a brand with a global network that can deliver door-to-door. You won\u2019t ever have to worry about the status of your package because DHL provides accurate tracking services for you.<\/p>\n With DHL, you can ship to companies worldwide with ease. They\u2019ve also recently opened up their warehouse and inventory management services for those seeking to export their products with no hassle.<\/p>\n The United States Postal Service is a US government-owned brand that features a flat rate fee. A flat rate fee ensures that the cost of shipping won\u2019t vary according to its weight, making it an economical option for US-based companies. This brand operates under a Universal Service Obligation (USO) making it obligated to offer its services at a uniform price across the United States.<\/p>\n If you\u2019re based in the US, utilizing USPS\u2019s services can afford your company secure and affordable shipping operations that can cater to over 180 countries worldwide.<\/p>\n The USPS is the preferred option for most global couriers when it comes to last-mile deliveries in the USA.<\/p>\n Did you know that the average conversion rate for people who actually buy your products is only 2 percent? This influences cart abandonment numbers, making them very high. Imagine, out of 150 people who add your products to their cart, only three people make the purchase. A reason for this issue is the high miscellaneous fees at the end of the purchase.<\/p>\n When customers see how much shipping, taxes, and handling fees add up to their total, they hit the exit button pretty quickly. This is a common occurrence given how much international shipping costs can add to the final bill. While a solution you might come up with is to\u00a0<\/a>offer free shipping<\/u><\/a>, it may not be the best answer, because free shipping can lead to lower profit margins or worse, a total loss.<\/p>\n International shipping won\u2019t be the same across the board, and there\u2019s a certain formula most companies use to compute for it. Having an idea of how much it\u2019ll cost your business to ship out items will help combat possible financial losses.<\/p>\n The base international shipping cost is calculated according to four factors:<\/p>\n Rates will vary according to a courier\u2019s fees. Thankfully, there are online calculators to eliminate the guessing game for business owners. Each shipping company will have its own quote, but an easier way to see different shipping figures is to check with shipping brokers.<\/p>\n In addition to the regular shipping rates, other costs such as duties, taxes, and insurance can play a part in inflating your customer\u2019s shipping bill. But while insurance can add extra expenses to the total bill, it\u2019s vital to have it for products going overseas, because the likelihood of your package getting lost or damaged increases the farther the item goes.<\/p>\n Shipping across borders is a complex process that can involve several forms of transportation, fuel surcharges, importation duties, and taxes. Sending out packages during peak seasons like the holidays can also add \u201cpeak shipping\u201d fees to the total charges.<\/p>\n In addition to these shipping fees, purchasing packaging that\u2019s up to your courier\u2019s standard and packing materials to secure the item are just some of the main factors that make shipping eCommerce products abroad costly.<\/p>\n In fact, Time<\/i><\/em>\u00a0magazine has published that\u00a0<\/a>shipping costs have been steadily rising<\/u><\/a>\u00a0due to increased consumer demand, container shortages, saturated ports, and a shortage of dock workers.<\/p>\n The rate of international eCommerce shipping solutions\u00a0will vary according to the courier you\u2019ll employ. Waiting times can go between 3 to 17 working days for non-express packages.<\/p>\n Below is a reference table of how long it can take for the shipping couriers mentioned above can take to deliver parcels, along with the price of sending out a 2 lbs package.<\/p>\nWhat Do I Need to Prepare?<\/b><\/strong><\/h2>\n
Website Update<\/b><\/strong><\/h3>\n
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Packaging<\/b><\/strong><\/h3>\n
Mailing Materials<\/b><\/strong><\/h3>\n
Documents<\/b><\/strong><\/h3>\n
Incoterm<\/b><\/strong><\/h3>\n
How Do I Choose the Right <\/b><\/strong>International Shipping Method<\/b><\/strong>?<\/b><\/strong><\/h2>\n
FedEx<\/b><\/strong><\/h3>\n
UPS<\/b><\/strong><\/h3>\n
DHL<\/b><\/strong><\/h3>\n
USPS<\/b><\/strong><\/h3>\n
How Much is International Shipping?<\/b><\/strong><\/h2>\n
How To Calculate International Shipping?<\/b><\/strong><\/h3>\n
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Why is International Shipping So Expensive?<\/b><\/strong><\/h2>\n
How Long Does International Shipping Take?<\/b><\/strong><\/h2>\n
USA to Singapore*<\/b><\/strong><\/h3>\n