Expanding your e-commerce business beyond your home country is a great way to reach new customers and increase sales. However, international shipping is different from domestic shipping and requires unique skills.
Choosing a suitable carrier is essential to your success in global commerce. Learn about the four key factors to consider when evaluating carriers.
Cost
Whether your company is shipping globally to meet customer demand or expanding internationally, understanding international freight costs can help you plan your budget. Many different factors go into calculating the cost of international shipping. These include freight, duties, taxes, and customs clearance. Getting familiar with these costs before making any significant business decisions is essential.
International shipping costs depend on your shipment’s size, weight, and destination. It also depends on the mode of transportation and any special services you may need, such as insurance or expedited shipping. More efficient shipping methods will usually be cheaper than slower methods. Consider any destination charges or fees imposed on your cargo at the destination port. These can add up quickly, and you should communicate these fees to your customers so they know them before ordering your product.
You should also be prepared for additional costs like duties and taxes, which are based on the value of your goods and can vary between countries. These can be paid by either the buyer or seller, and they are often a significant portion of your total landed cost. It’s best to consult a qualified freight forwarder like CSA Transportation to estimate your shipping costs and determine your customs duties and taxes.
Time
Shipping is a challenging endeavor, especially when dealing with international customers. Collecting the correct information for each shipment requires a lot of research and time.
To avoid any problems, you must understand the specific policies of each country you are shipping to. This will prevent delays and ensure your products pass through customs quickly. It is also essential to know which documents are required and when. This includes a commercial invoice, packing list, and bill of lading. Additionally, you may need to provide a Material Safety Data Sheet (MSDS) for hazardous materials.
There are several ways to ship internationally, each with pros and cons. You can use postal services or freight forwarders, which offer various shipping options. Postal services connect with local international partners to deliver your packages. However, they are often more expensive than other methods and can take longer to reach rural areas. Freight forwarders are more streamlined and work with multiple international carriers to deliver your packages.
Whether you want to expand your business into new markets or increase sales, international shipping can be an excellent way to achieve your goals. It will require you to learn a few new processes and calculate additional costs, but it can be an excellent opportunity for your small business to grow.
Documentation
Shipping is one of the most important aspects of running an e-commerce business. But it’s not just about getting the products from your warehouse to your customers – it’s also about ensuring you have all the necessary paperwork.
International shipping requires several documents, including a commercial invoice, packing list, bill of lading, and any other customs forms or certificates required by the destination country. These documents act like a passport for your goods, and they must be complete and accurate to ensure that your shipment can clear customs without any issues. In addition to these documents, you may need a specific import license or permit for your goods.
Whether you want to expand your business or offer more options for your customers, international shipping is an excellent way to grow your brand and increase sales. However, this process has challenges, including high demurrage fees and strict compliance requirements. The good news is that there are steps you can take to avoid these hurdles and keep your shipments moving smoothly.
Customs
Most shipments that cross borders are assessed duties and taxes by the importing country’s government. These fees are a normal part of shipping but can add up quickly. Understanding how these charges work is essential to save your customers money and avoid unnecessary delays.
To better understand the cost of international shipping services, you should familiarize yourself with customs procedures. Then, you can start to plan your e-commerce shipping strategy more effectively. First, you should check with freight forwarders specializing in the countries and regions you want to ship to. They can also help you determine which forms are necessary and give you a general idea of what to expect when shipping internationally.
It would be best to familiarize yourself with incoterms, a set of terms that spell out which party is responsible for various costs and details throughout the shipment. These rules are internationally accepted and can help you make more informed decisions about which international shipping services to choose for your business.
Finally, check whether your shipping carrier provides service to the remote, rural locations you want to ship to. For example, some carriers may partner with third-party providers to handle last-mile delivery in rural areas. This can affect your shipping costs and service quality, so you should know this before selecting a carrier.
