Whether for personal or business purposes, the logistics involved in international shipping can vary from easy to complex, depending on the skills and knowledge at hand. If you are an online business owner or a company planning to go global, shipping your products internationally requires additional expertise. In this guide, we will highlight key areas to focus on to facilitate smooth international shipping.
What You Need to Know About International Shipping
1. Understanding Shipping Costs
Understanding the various types of costs is the first and most critical step in mastering international shipping operations. These costs include the following:
- Shipping Rates: This is the actual cost of moving goods from one country to another. It depends on the volume, weight, and distance of your consignment.
- Customs Import Tariff: Taxes collected on foreign goods brought into a country, with variations dictated by the product type and importing country.
- Freight (Marine) Insurance: It is essential to insure the freight due to the risk of loss or damage, especially during international trade.
- Additional Handling Fees: Excess billing occurs when handling a shipment in particular locations or under certain conditions, such as bulky freight with lengthy handling processes or when specific licenses are required for transport.
When determining the total shipping price for your customers or planning for your company, it is essential to consider all these potential expenses.
2. Choosing the Right Carrier
Selecting the right carrier for international shipping is key to ensuring timely delivery and cost efficiency. Major carriers like UPS, FedEx, DHL, and national postal services offer international services, but they vary in pricing, speed, and reliability.
Consider the following when choosing a carrier:
- Shipping Speed: Express services are faster but often more expensive, while standard shipping takes longer but may offer significant savings.
- Coverage: Ensure the carrier delivers to all the regions you want to serve.
- Tracking and Support: Reliable tracking and customer service support are essential for international shipments to avoid complications in transit.
3. Customs Documentation
Proper customs documentation is the foundation of smooth international shipping. Missing or incorrect paperwork can lead to delays, additional charges, or even rejection of your shipment at the border.
Typical documentation includes:
- Commercial Invoice: This provides basic information about the product or service being shipped, its value, and how it will be sold.
- Packing List: This includes the contents of the package, as well as the dimensions and weight of each item.
- Bill of Lading (BOL): This covers the contract between the carrier and the consignee and provides information about the type and quantity of freight being carried and its destination.
- Certificates of Origin: Required by some countries, this certifies the country where the goods were manufactured.
Ensure all documentation is accurate and complete to avoid delays at customs.
4. Understanding Import and Export Regulations
International shipping can be complicated due to varying import and export laws in different countries. It is essential to review the laws of any country you are shipping to before proceeding.
Some countries have restrictions on the importation of products such as electronics, medicine, and food. Others may require additional certifications or labeling. Non-compliance with these regulations can result in delays or even refusal of your shipment at customs.
Another factor to consider is tariffs. Some countries have Free Trade Agreements (FTAs) that eliminate tariffs on specific products, making trade easier.
5. Packaging for International Shipping
Proper packaging is crucial to ensure that materials reach their destination safely. International freight often travels long distances and undergoes multiple stages of handling, so the packaging must be durable enough to withstand rough treatment.
Here are some tips for international shipping packaging:
- Use Strong Materials: Use sturdy boxes, preferably double-walled, and quality padding materials if shipping fragile items.
- Seal Properly: Apply high-quality tape to secure all packages and prevent them from opening during transit.
- Label Clearly: Ensure your shipping label is clear, well-placed, and legible. Include the receiver’s full address, contact number, and any relevant instructions regarding the package.
6. Insurance for International Shipping
Even if you believe your shipment is secure, it is advisable to purchase shipping insurance for international deliveries. International shipments are riskier than domestic ones because they take longer, pass through more hands, and go through customs.
Insurance helps cover the cost of goods that are lost, damaged, or stolen in transit. While most carriers provide basic insurance, depending on the value and nature of the goods, you may need additional third-party insurance.
7. Shipping Internationally as a Small Business
Small businesses may find that international shipping opens up new possibilities, but it’s essential to plan carefully to ensure profitability and customer satisfaction. Here are some best practices for small businesses:
- Work with a Fulfilment Service: If international shipping feels daunting, consider outsourcing to a fulfilment service provider. These companies can handle packaging, shipping, and returns on your behalf. Shopify, for example, offers dropshipping solutions to minimise hassle.
- Offer Multiple Shipping Options: Let customers choose from different shipping services, such as express or economy, and clearly communicate the pros and cons, including costs and delivery times.
- Keep Customers Informed: Inform customers about shipping times, potential customs delays, and any additional charges they may incur, such as duties and taxes.
8. Tracking and Customer Communication
In today’s digital age, especially with international orders, consumers expect full transparency regarding their shipment status. Most major carriers offer tracking services, enabling both you and your customers to monitor the shipment’s journey.
Maintaining clear and proactive communication with customers is crucial for a positive shipping experience. Provide tracking numbers, advise customers of potential delays, and give them an estimated delivery time to avoid any surprises.
9. Returns and Refunds for International Orders
Handling returns for international orders is often more complex and expensive than domestic returns. This is why it’s essential to establish a return policy specifically for international customers.
Consider the following for a hassle-free return process:
- Clear Return Policy: Clearly communicate who is responsible for return shipping costs and under what conditions returns will be accepted.
- Local Return Centres: If possible, partner with return centres in key international markets to reduce return shipping costs and enhance the customer experience.
10. Staying Updated with Global Shipping Trends
International shipping is constantly evolving. Staying updated with the latest trends and technologies helps businesses remain competitive. Whether it’s adopting eco-friendly packaging, implementing automation, or leveraging blockchain technology for supply chain management, embracing these developments can improve efficiency.
Conclusion
While international shipping can seem daunting, it can open new doors for global business expansion when done correctly. Understanding costs, laws, paperwork, and packaging options will enable you to provide a reliable international shipping service that keeps customers satisfied. Choose the best courier for each service, manage expectations, communicate effectively with clients, and keep up with developments in the shipping industry to maintain your success.