If you’re looking to grow your ecommerce business, expanding beyond your borders could be a great next step—but that means you need to figure out how to ship internationally.
To do international shipping right, you’ll need a strategy that works for you and your business. You don’t have to know everything about shipping, but you do have to understand the available options, and find an approach that will fulfill your shipping needs in the long run.
There are a lot of reasons you might not be shipping internationally right now. Maybe you’re just considering it for the first time. Maybe you looked into shipping overseas and decided it’s too much of a hassle. You may have even tried international shipping services, then given up after one or two bad experiences.
In any case, here’ s what you need to know to make better ecommerce shipping decisions and expand your business on your terms.
Why offer international shipping?
Selling beyond your borders can be an important growth area for your business, even if you only ship some products internationally, so it’s worth tackling the logistics head-on. Consider these figures:
These figures show that online shoppers around the globe have come to expect international shipping, and ecommerce businesses are increasingly meeting that expectation. Shipping internationally creates an opportunity for stores like yours to sell to a larger audience.
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How to build an international shipping strategy
While it’s difficult to create a definitive list of best practices for every business, there are a few central decisions you’ll need to consider for your international shipping strategy.
Where and what you’ll ship
You’ll first need to identify which countries and regions you’ll ship to, and which products you’ll ship.
Unsure which markets you should expand to first? Here are a few indicators that can help narrow it down.
You’ll now need to consider what to ship. You may want to offer your entire product line. However, before you start delivering all over the world, think about these aspects of your products and your business.
Get familiar with country rules and regulations
Once you have an idea of what regions offer the most immediate opportunities and which products you’ll be sending, it’s time to check into country-based rules and regulations.
Some countries prohibit items outright; others may limit them. Being informed on the rules and regulations that exist and which may impact your shipments can help ensure a smooth delivery.
There are a few ways you can access this information:
Be transparent about fees
This might be the most important part of any international shipping strategy: Be as transparent and communicative as possible with your customers about delivery costs. Don’t surprise your customers with an unexpected total cost at checkout.
According to the Baymard Institute, nearly 50% of the cart abandonment they surveyed on ecommerce sites in 2020 was due, in part, to extra shipping fees and costs:
Our own research studies how customer trust develops during the purchase journey of shoppers who buy from a new online store. The study reveals that when shipping internationally, a store’s shipping policy that clearly states who pays duties and taxes is a must-have to build trust and win a sale with a brand new shopper.
One place you can communicate these costs is on your policy pages. Clearly lay out how and where you ship products internationally, and what costs may be associated.
You can also do something as simple as adding flags to your top navigation to show your shipping availability. Letting your customers know where you deliver to doesn’t have to just be about costs. A tool like the Free Shipping & Hello Bar can help you promote your shipping and rates to a global audience.
It’s best to use all options available to communicate shipping costs—or potential costs—to a customer, whether it’s on your homepage, product page, or policy page. It’ll set expectations for you both, which can help give the customer added confidence to complete their purchase.
Ship internationally with Shopify Shipping
Shopify offers merchants in the United States, Canada, and Australia access to discounted rates with international shipping companies like USPS, UPS, DHL Express, Canada Post, and Sendle so you’re already set up to compare their rates.
When you purchase international shipping labels through Shopify Shipping, the correct customs forms and documentation are automatically generated for you and can be printed on any standard printer. When you use DHL Express to ship from the US, this documentation is electronically transmitted to customs—no additional paperwork necessary.
When you’re ready to get your shipments out the door, you also have the option to schedule a free or discounted pickup for any UPS, DHL Express, or Sendle shipment or link out to schedule one directly with USPS.
Using more than one shipping company can help you reduce your shipping costs overall.
Postal carriers are often more affordable, but may not offer many options for package types and speeds. Express carriers tend to be faster, can accommodate heavier or larger packages, and provide more service options, but can be more expensive. Regional courier services can solve any “last mile” problems for your international package, but can be tricky to source and communicate with.
Do your research and price out postal, express, and courier options. We’ll cover how to charge for international shipping below, but it’s good to have a sense of service availability for your international shipping strategy.
Delivery options
Some customers will want their purchases right away, and others will be more willing to wait.
To best serve your customers, offer a good mix of delivery options. Providing a range of choices gives them the option to balance the tradeoff between timeline and price, and that might be the difference between a sale and an abandoned cart.
Tracking and insurance
Most international shipping companies provide shipment tracking, so you and your customers can easily see up-to-date shipment statuses. You can also add ePacket tracking to give customers end-to-end tracking options and a searchable tracking number.
If you’re worried about a shipment becoming lost or damaged, insuring your parcel against failed delivery is the way to go.
Insurance is offered by just about every global express shipper. If it isn’t automatically included in the cost of shipping, it’s relatively affordable and straightforward to add.
If you are a US-based merchant, you can add Shipsurance insurance to any shipment, regardless of shipping method or order destination.
When using postal carriers like USPS or Canada Post, some international shipping services include insurance in the price of shipping. You can use mail classes like Priority Mail International and Priority Mail Express International for USPS or Priority Worldwide, Xpresspost-USA, or Xpresspost-International for Canada Post, to get automatic coverage. You can always pay for coverage using a different shipping service—usually a few dollars per $100 USD of declared value.
Whatever you choose, consider adding insurance to any parcel over $200 being shipped to another country. Doing so will add some peace of mind to both you and your customer.
What to charge for international shipping
There are four key components for determining the costs of international delivery. All four contribute to how effectively you’ll ship around the world.
Before you ship anything, you’ll need to get packaging supplies. You may need a few sizes of boxes to accommodate different-sized shipments. You might also need cushioning, like bubble wrap or stuffing. You can get your packaging both online and at post offices or office supply stores.
In general, it’s best to keep your packaging sturdy but simple. No recipient wants to deal with three boxes of varying sizes when getting a single product from your business.
Trying to strike this balance of sturdy packaging and low cost may require some homework. Look for deals where you can. For example, if you use USPS as a business, you can order boxes for free.
Working the cost of packaging into your total product cost should be pretty straightforward. Depending on the size and quality, most packaging should cost somewhere around $1 to $5 each.
Cost of shipping
Building the cost of shipping into your pricing approach is an essential part of correctly setting your prices. You don’t want to lose money on shipping or overcharge your customers. To make sure your approach works, think through these steps:
Consider and compare
Do you ship a lot of similarly sized products? Or maybe a few sizes or weights of packages? This difference, naturally, affects how you’d price a shipment.
Here’s one way to find the costs of shipping internationally:
With these three figures in place, you’ll have a sense of pricing for international shipping. It’ll also help you determine which shipments may cost more than others.
If you’re in the US, see how much it will cost to ship internationally with Shopify in our shipping calculator.
For reference, here’s a list of shipping calculators for some major carriers.
Here are two examples of this approach:
Merchant A
Merchant B
Merchant A has a broader range of shipping costs to cover. And Merchant B’s range is relatively narrow. Merchant A may be selling heavier and more varied products, while Merchant B’s offerings seem more consistent in size and cost.
Once you’ve determined your range, you’ll need a pricing structure that’s a good fit for you and your customers.
Structure your pricing
There are three main pricing structures when delivering around the world: Free shipping, carrier rate shipping, and flat rate shipping.
Handling charges
Along with the cost of your packaging and materials, consider adding a handling charge.
International shipments pass through many more additional facilities than the typical domestic order. You should be packaging these shipments with more care, and that’s included in your handling. To determine your handling charges, ask yourself:
Now you can determine your handling costs. Here’s an example:
It usually takes 10 minutes to prepare an order for shipment. And at $11 per hour to prepare these packages, you would add a $1.83 handling charge to cover the cost.
(10 minutes / 60 minutes) x $11 = $1.83 handling cost
Again, adding in a handling cost is entirely up to you, and you need to do what’s best for your business. Keep in mind that international orders are typically a bit more expensive, and international customers usually expect to pay a bit more for quality shipping. A big part of a quality shipment is how it’s handled and packaged.
Duties and taxes
International shipments can be subject to duties and taxes depending on a number of factors. It’s important to do your research and factor any duties and taxes into your pricing strategy, especially for any key international market you are targeting. You can use this duty calculator to get an idea what duties and taxes may apply to your products per destination country.
Taxes are based on a fixed percentage per destination country (and sometimes state or province). Duties, on the other hand, depend on a number of factors such as:
By default, the importer (i.e., your customer) is responsible for any taxes or duties on the shipment and will need to pay them before they can receive their order. This is called Delivered Duty Unpaid (DDU) or, more officially, Delivered At Place (DAP). It’s very important to be transparent with the buyer about additional fees to manage their expectation and avoid returns and chargebacks. Make sure to set up a clear return policy on your website.
To provide a smoother and surprise-free buying experience to your customers, you can choose to be responsible for paying these fees, this is called Delivered Duty Paid (DDP). In this case, you need to collect these fees upfront.
From a logistical standpoint, you will buy the appropriate shipping label DDU/DAP or DDP and include customs documentation with your international shipment. Check with your domestic postal service as a local resource to make sure you know which documents you need to ship internationally. They’ll typically have these documents for you.
When you buy your shipping labels through Shopify Shipping, you’ll be provided with the necessary customs documentation needed to fulfill international shipments.
The correct customs paperwork required for an international shipment can vary by country. But typically these two documents will be required: a commercial invoice and an export packing list.
Commercial invoice
This is the bill for the shipped product from the seller to the buyer that helps prove ownership and payment. Used to determine the true value of the product(s) being shipped, this document helps the country assess customs duties and taxes. Here’s some essential information that should be included:
Depending on the shipping company you are using, the customs information may be embedded in the shipping label. DHL Express provides Paperless Trade to most countries, reducing the need for extra printed documents.
Export packing list
The typical detail on a packing list is on this form (buyer, seller/shipper, invoice number, date of shipment, etc.) but it also includes more extensive information like:
Send your first international shipment with Shopify
The first step to ensuring international shipping success is to have a strategy in place. From what and how you’ll ship, to where and at what cost, giving these factors some thought and research will better prepare you to grow your business around the world.
As well, remember to try out new approaches and techniques. Shipping is a fluid and seasonal industry. Be sure to re-apply and refine your strategy as new offers or changes take place.
Set your business up for international success
Selling globally can be a great way to boost your revenue and get more international customers to buy your products. Shopify’s cross-border products provide simple easy to use tools that help you set up your store for international visitors.
International shipping FAQ
What is the cheapest way to ship internationally?
If you’re only shipping a small number of international packages, USPS is one the most affordable options. However, if you plan to ship a large volume of goods to international customers, a combination of freight and local carriers may be cheaper in the long run.
Why is international shipping so expensive?
International shipping is more expensive due to a combination of factors, including import duties, more complicated logistics, and the high cost of fuel to ship goods overseas by air or sea.
Why do international packages take so long?
International shipping often takes longer than domestic shipping due to long distances traveled, multiple exchanges between different carriers, and potential customs delays.
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