The International Shipping Guide for E-Commerce Owners

Authored by Matt Lessard

Since 2001, Matt Lessard has started numerous projects, from an E-commerce SaaS to an online store shipping to over 80 countries. Creator of Buster Fetcher®, a technology reducing shipping costs. Passionate about personal development and business growth.

Did you know that global e-commerce sales are expected to reach $8.1 billion by 2026, up from roughly $5.7 billion in 2022? That’s a big pie, isn’t it? Don’t you want a piece for yourself?

Expanding your business operations internationally through e-commerce shipping can turn that dream into reality. International shipping unlocks the potential for global trade, boosting your business’s growth, brand exposure, customer experience, and sales.

But where do you start?

This guide will take you through the essential steps to get your e-commerce business ready for the global stage.

Why You Should Care About International E-Commerce

Let’s dive deeper into the concept of international shipping and how it helps your e-commerce business unlock its full potential.

First off, what is international shipping?

E-commerce international shipping refers to the exchange of goods and products between countries and across borders. It differs from domestic shipping, where all of a business’s operations are only executed within the origin country.

Here’s why going global is a game-changer for your business:

1. Market Diversification: The world is a big and massive marketplace. And guess what? Your products have the potential to be on every doorstep! By going global, you can access markets you never even dreamed of.
2. Revenue Growth: International shipping increases your potential customer base and leads to higher sales and revenue! Put simply? Not putting all your eggs in one basket creates more opportunities and mitigates risk!
3. Brand Recognition: Boosting your brand’s visibility internationally and across continents gives more credibility and reliability.

How to Get Started with International E-Commerce Shipping

Before we get started, let’s make sure we all start off on the same base. Let me define some jargon or technical language you might encounter along the way.

• Customs: This refers to the government authorities and regulations that control the import and export of goods across borders. Just think of them as the guardians of a country’s borders.
• Duties and Taxes: These are fees imposed by customs authorities whenever products or goods cross the borders. Now, keep in mind that the values of these duties and taxes vary from one country to another! You can use tools like the USITC Tariff Database to estimate duties and taxes for products entering the U.S.
• Import/Export Regulations: When you go global, this rulebook contains all the policies and regulations you must follow. Before you decide to ship products to one particular country, make sure that you first understand and follow its Import/Export Regulations.

Preparing for International Shipping

Before diving into international shipping, it’s crucial to conduct thorough research on your target markets and find out the regulations.

• Research and Planning: Identify the countries where your products have the most potential, and understand the shipping challenges specific to those regions. This includes understanding cultural differences, consumer behavior, and any logistical hurdles you may encounter.
• Customs and Regulations: Customs are the government authorities regulating the import and export of goods. Alongside, duties and taxes are fees imposed by these authorities when products cross borders, and these vary by country. It’s crucial to understand and comply with each country’s import/export regulations to avoid issues.

Once you have completed your analysis, you will be able to decide on the markets with the most potential and the least barriers to entry.

Choosing the Right Shipping Partners

Now that you have identified the markets where you want to expand your business, you’ll need to decide on a shipping partner.

You’ll first need to select a shipping method. And just like picking the right outfit—it has to fit the occasion. Your three main options are:

• Postal Services: Budget-friendly and reliable, but slower.
• Carrier Services: Faster, ideal for urgent packages but more expensive.
• Freight Services: Best for shipping large quantities, using various transportation modes like air, sea, and land.

Each method has its advantages and trade-offs, so choose based on your business needs.

Third-Party Logistics (3PL) Providers:

Partnering with a 3PL provider allows you to focus on your core business while they handle the logistics. A 3PL can manage everything from warehousing to shipping and returns, offering expertise in international compliance, freight information, and transport documentation. They provide the flexibility to scale operations up or down, depending on market demand, and help minimize costs while improving efficiency.

Managing Costs and Pricing

Just like when shipping locally, you also have to consider the cost and your pricing for your international shipments. To increase your chances of success in the international shipping arena, you must be smart and efficient. This involves everything from negotiating with carriers to taking advantage of bulk shipping discounts.

Another aspect to consider is insurance. International shipping involves greater risks, such as loss, damage, or theft. Investing in shipping insurance provides peace of mind and financial protection against potential mishaps. Many carriers offer insurance options, or you can opt for third-party insurance providers specializing in global shipping coverage.

Another key aspect is determining the right shipping cost. Pricing your products right for international customers involves balancing shipping costs with what your customers are willing to pay. Competitive pricing, combined with a clear understanding of local markets, can help you find that sweet spot.

Choosing the Right Packaging

Optimizing your packaging to avoid excessive fees and ensuring your product is delivered intact is also key. Proper packaging is essential for international shipping to protect your products from damage during their long journey. Use sturdy materials and consider the environmental conditions of the destination country. Also, be mindful of the packaging’s weight and dimensions, as they can significantly impact shipping costs.

Most carriers will take into account the dimensional weight of your package when determining the shipping cost. Make sure to strike the right balance between protection and volume to avoid unnecessary costs and poor customer experiences.

Navigating Customs and Compliance

Each country has its own laws and regulations. Before expanding your business to a new market, you have some work to do to make sure that your products are compliant with local laws and that you’ll be able to import your shipped goods into the destination country.

Navigating customs can be intimidating, but with the right knowledge and preparation, it becomes manageable. Key things to keep in mind include ensuring all necessary documents (e.g., commercial invoices, bills of lading) are complete and accurate. Missteps in this area can lead to delays and penalties.

Accurately classifying your products using Harmonized System (HS) Codes and determining the correct value of your goods helps you avoid unnecessary fees and demonstrates your commitment to complying with trade regulations.

Shipping Tracking and Customer Experience

Providing an excellent customer experience during international shipping is crucial. Customers expect to be informed about the status of their orders at every stage of the shipping process. According to a Seven Senders whitepaper, customers value transparency in shipping, with many preferring to receive updates when their package has shipped, is out for delivery, or has been delayed. Implementing a robust tracking system that allows customers to follow their package's journey can significantly improve customer satisfaction.

Sustainability in International Shipping

With the rise in e-commerce, sustainability has become a significant concern for consumers. Many are willing to pay extra for environmentally friendly shipping options. The Seven Senders study reveals that using recyclable packaging and bundling shipments are among the most appreciated sustainable practices. As a business, consider partnering with carriers that offer carbon-neutral shipping options or invest in offsetting the carbon footprint of your shipments.

Managing Return Logistics

Handling returns efficiently is critical to maintaining customer satisfaction in international markets. A seamless returns process encourages repeat business and builds trust. You can refer to this article on return management for strategies to simplify the returns process, such as offering easy-to-print return labels, multiple drop-off locations, and clear return policies.

Conclusion

Expanding internationally through e-commerce shipping is within your reach, and with the right strategies, your business can thrive on the global stage. By understanding the nuances of international shipping, selecting the right partners, managing costs, and ensuring compliance, you’ll be well on your way to global success.

Sources

1. Seven Senders Whitepaper - Insights on customer expectations regarding shipping tracking, sustainability, and delivery preferences in European markets.

   Document: Seven Senders Whitepaper on Online Shopping Preferences in Europe, May 2021.

2. DCL Logistics - 5 Vital Roles of 3PL Logistics in the Supply Chain - Information on the benefits of partnering with 3PL providers for international shipping and logistics.

   Website: DCL Logistics - 5 Vital Roles of 3PL Logistics in the Supply Chain, May 2024.

3. Guide to Exporting - Guidelines on international trade regulations, customs compliance, and navigating export challenges.

   Document: A Basic Guide to Exporting, publication by U.S. Commercial Service, 11th Edition.

4. TCS Step Guide - A step-by-step guide for expanding into new markets, including research and logistical considerations.

   Document: Step-by-Step Guide to Exporting, publication by Global Affairs Canada.