Five-step guide to start international shipping for ecommerce businesses

Are you planning to take your business globally and need help shipping for ecommerce this 2017?

That is a very bold move that requires careful thinking, research and analysis which includes the following:

  • Knowing country-specific duties and taxes
  • Estimating shipping costs
  • Cost analysis for each target destination

Is this already giving you a bit of headache? Probably, yes! But wait, we are here to help and make things less complicated.

We have helped first time importers with their ecommerce shipment and we would love to do the same for you.

Let’s begin!

Step 1: Perform a market research before shipping for ecommerce

Anything done in haste often ends with troubles and mishaps.

 

Perform market research before starting international shipping for ecommerce

Perform market research before starting international shipping for ecommerce

Performing a thorough market research should always be the first step you should take before investing in an international expansion. However, you should limit your destination to one or two overseas territories first such as Canada, United Kingdom or Australia.

Things to consider when doing your market research prior to starting international shipping for ecommerce

  1. Product demand
  2. Competitor study
  3. Customer analysis

You’ll need concrete data of these factors so you can clearly define if your unique selling point (USP) can compete with the price and quality of your competition. This will also give you a better perspective on what specific value you should offer your new target customer base.

Step 2: Know the regulations, duties and taxes in your chosen country for expansion

Now that you have narrowed the countries where you want to expand your business, you can move a step further by checking the following:

  1. Import regulations
  2. Duties
  3. Special taxes

Know the regulations, duties and taxes in your target countries

Know the regulations, duties and taxes in your target countries

Why is it necessary to know all of these fees prior to shipping for ecommerce?

You are setting up a global expansion in hope that you can earn more from it. However, to attract customers you need to ensure the cost of goods and shipping are reasonable. Otherwise, no one will buy them. Thus it is vital for you to know all the shipping fees that will be eventually added to the total cost.

Step 3: Assessing the delivery timeframes and costs

After looking into the cost of fees, taxes and regulations; you are now ready to assess the costs and delivery timeframes offered by freight companies.

Assessing the delivery timeframes and costsAssessing the delivery timeframes and costs

However, don’t get too excited as this could get a bit tricky. You got to remember that you are performing this study to know the average delivery costing you will be charging your customers.

This implies that it is not a one time deal with these freight forwarders. Rather it is a long time relationship with your chosen freight forwarder.

Immediately pitch this information to freight companies and you’ll be very surprised with the cost of rate they will soon offer you.

Types of shipping rates to offer your customers

As a guide, here are the various types of shipping rates you may offer your customers based on your cost analysis:

  • Free shipping
  • Flat rate shipping
  • Price based shipping
  • Weight based shipping
  • Real time shipping rate

Perform a complete research by including the documents and forms you need to fulfill. Need help? Talk to us.

Step 4: Optimising your packaging prior to shipping for ecommerce

You’ve done your part in finding the best freight forwarding rate for your goods. However, do you know that you can further reduce your international shipping rate whilst keeping your products safe and sound by optimising your packaging?

How much is lost due to poor packing of shipping items

$270 billion – that’s how much businesses lose in sales from merchandise returns. This includes items dinged during shipping.

The below data shows additional facts:

  • 50% is the amount of strength a box can lose during shipping
  • 20% of returns result from damage to products during shipping
  • 5 to 7% increase in costs from addressing errors, mostly incorrect postal codes and street numbers

What has to be done to make safe shipping happen?

When packing items, it is highly recommended that:

  • 2 inches be the depth of additional cushioning between the item and the box
  • 3 inches be the amount of bubble roll or foam sheets to surround fragile items

Additional notes to remember for safe shipping

It is best to remember the following additional safe shipping tips to ensure your items will remain in good condition during shipment.

Use of poly bags for small items
Safeguard small items with twist-tied or reusable bags

Choose heavy-duty tape rather than storage tape
Shipping tape can be 20x stronger than storage tape

Place box in box
Place electronics and other delicate items in an interior box

Additional protection for specialty pack
Use foam, mailing tubes or padded envelopes for added protection

This infographic shares you the details.

Best practice guide for packaging when shipping for ecommerce

Best practice guide for packaging when shipping for ecommerce

Step 5: Implementing an international shipping policy

Just when you think you have already sorted the tricky stuff, here comes another piece of the puzzle you need to solve – the international shipping policy.

What you need to create for your international shipping policy

These are the following things you need for your international shipping policy:

  1. Delivery timeframes and processes
  2. Handling international product returns
  3. Shipping insurance
  4. Change of mind returns

You should also sit and think of the various customer disputes you’ll encounter. List these down and see how you plan to resolve these. Ultimately, be as clear as possible when you put these into writing.

With these five steps into mind, you are now ready to brave 2017. Get your goods in top condition and those marketing strategies into full force.

Do you need help with shipping for ecommerce?

Use our online calculator anytime. You are most free to use it as many times you want in a day and we will be most happy to send you a free quote each time.

Cheers!