Introduction
International shipping is the process of sending goods to clients in other nations across national borders. International shipping is different from domestic shipping since it uses more than one carrier, has more customs processes, and has more rules that might change pricing, paperwork needed, and delivery times.
There are big variations between local and international shipping. Costs usually go up because of greater distances, more places to handle the goods, and extra costs for customs clearance. It gets harder to keep track of things since you need business invoices, packing lists, and customs declarations. Delivery periods are much longer than usual, usually taking 7 to 30 days depending on the location and shipping method chosen. For most domestic orders, delivery times are between 1 to 5 days.
Why International Shipping Matters
Because it enables you to sell to customers located all over the world, Shopify may be of great assistance to the expansion of your company. The first benefit is that it significantly broadens your market reach outside the borders of your own country. This provides you with access to billions of people all over the world and has the potential to double your client base. Additionally, because of this geographic variety, you are less dependent on fluctuations in the local economy and the circumstances of the market.
Customers from other nations typically place larger purchases because they are ready to pay a higher price for things that may be difficult to locate or distinctive in their own marketplaces. Customers typically purchase a greater quantity of commodities with each transaction in order to maximize their value. This is due to the additional shipping expenses and labor that are associated with purchasing items from other nations.
Around the world, online buying and e-commerce are expanding at an ever-increasing rate, and it is anticipated that business conducted across international borders will reach new heights each year. The majority of people all around the world are getting more at ease with the idea of purchasing goods from retailers located in other nations, particularly when such stores offer transparent regulations regarding pricing, shipping, and making returns. This development presents a significant opportunity for Shopify merchants that enter overseas marketplaces at the beginning of their respective markets.
Building an International Shipping Strategy
3.1 Identify Destinations and Products
Pick your first markets carefully so that they have the best mix of potential and reasonable difficulty. This will help you expand your business around the world. Think of countries or regions nearby that speak the same language, use the same money, or have similar cultural tastes. If you live in the US, Canada can be a good first foreign market because it is close by and the customs process is simple.
Look at your products’ weight, size, fragility, and any rules that might apply to see if they can be sold outside of the country. Most of the time, products that are light, strong, and have a high value-to-weight ratio do well in other countries. Shipping costs could be too high for big or heavy things, and fragile things need expensive protective packing that can eat into profits.
Think about the seasons and what people in your target markets like. Products that do well in your home market might not do as well in other countries because of differences in climate, culture, or local competition.
3.2 Research Regulations Per Destination
You must be aware of and abide by the import regulations, which differ depending on the country of destination. Start by identifying the restricted and prohibited products for every target market. Products made of particular materials, food items, cosmetics and personal care products, and electronics with certain certifications are examples of common limitations.
Restrictions on dangerous goods vary widely between nations and carriers. Products that contain aerosols, lithium batteries, or other potentially dangerous substances might require special handling, documentation, or even be prohibited from using specific shipping methods.
Country-specific compliance requirements include things like local language labeling, product safety certifications, and compliance with local consumer protection laws. By thoroughly reading these regulations or speaking with local compliance experts, you can prevent expensive delays or returns.
3.3 Set Clear Expectations and Build Trust
Transparency is critical to international shipping success. Be open about all prospective costs, such as tariffs, taxes, and shipping charges. Use prominent banners on your website to express foreign shipping regulations, and establish policy pages that cover the whole international purchasing experience.
Provide product-specific information such as shipping limitations, expected delivery timeframes, and any additional fees. Consider using geolocation technologies to automatically show appropriate shipping information based on the visitor’s location. This proactive strategy lowers customer service questions and cart abandonment rates.
Build confidence by communicating clearly about your overseas shipping procedure, including tracking information, anticipated customs delays, and your strategy for dealing with concerns such as damaged or lost products.
Calculating International Shipping Costs
To stay profitable and competitive, you need to know how to figure out international shipping costs correctly. The main costs are:
The cost of shipping starts with the packaging. The sizes of the boxes you use should fit your products while keeping dimensional weight charges as low as possible. Buy protective materials that are safe for international shipping, which usually involves more handling than shipping within the country. Look into packaging sources that offer international shipping supplies at good prices, since some places may need special materials.
The cost of shipping can change a lot depending on the carrier and the package. FedEx, UPS, and DHL are some of the biggest shipping companies. They figure out rates based on either the actual weight or the dimensional weight, whichever is greater. When you use dimensional weight pricing, it can cost more to ship big, light packages than small, heavy ones. To find the best balance between cost and delivery speed, compare rates from different carriers and service levels.
Handling Charges cover the extra work that goes into getting international orders ready. This includes the time it takes to fill out customs forms, put on international shipping labels, and make sure that the package meets the requirements of the destination country. When you figure out your handling fees, don’t forget to include the extra time your team spends on international orders.
Duties and taxes are a big part of international shipping. You can choose between DDU (Delivered Duty Unpaid), where customers pay when they get the package, and DDP (Delivered Duty Paid), where you pay ahead of time and include these costs in your prices. Each method will affect your cash flow and the way customers feel about your business.
Profit When doing business in other countries, it’s important to protect your margins. Make sure that your international pricing strategy keeps healthy margins even after you add up all the extra costs. To cover the extra work and risks that come with shipping goods internationally, many successful international retailers add a markup to their domestic prices.
Shipping Pricing Models
Choose from several pricing models based on your business strategy and customer preferences:
Free shipping or threshold-based shipping can be highly effective for international markets, though you’ll need to build shipping costs into your product pricing. Consider offering free shipping for orders above a certain threshold to encourage larger purchases that justify the international shipping investment.
Carrier-calculated real-time rates provide transparency and accuracy but can sometimes shock customers with high shipping costs. This model works best when you offer multiple shipping options at different price points and delivery speeds.
Flat-rate shipping simplifies the customer experience and can be profitable if you optimize your packaging and carrier relationships. However, you’ll need to carefully analyze your shipping patterns to set rates that are fair to both nearby and distant customers.
Duties, Taxes & Customs Documentation
Understanding the distinction between DDU/DAP (Delivered at Place) and DDP (Delivered Duty Paid) is crucial for international success. Under DDU/DAP terms, customers pay duties and taxes upon delivery, which can create surprise costs and potential delivery refusals. DDP terms mean you pay all duties and taxes upfront, providing a smoother customer experience but requiring more complex pricing and tax calculation systems.
Tax collection at checkout is becoming increasingly important as countries implement new regulations requiring foreign retailers to collect local taxes. Shopify offers tools to help calculate and collect appropriate taxes, but you may need additional compliance support for complex tax jurisdictions.
Required documentation for international shipments includes several key components. The commercial invoice details the contents, values, and purpose of the shipment. Packing lists provide detailed breakdowns of quantities and descriptions. HS (Harmonized System) codes classify products for customs purposes and determine applicable duty rates. Country of origin information helps customs officials apply appropriate trade agreements and duty rates.
Accurate documentation is essential for smooth customs clearance. Errors or omissions can result in delays, additional fees, or even seizure of goods. Invest time in training your team on proper documentation procedures or consider partnering with experienced logistics providers who can handle these requirements.
Reducing International Shipping Costs with Shopify Tools
Shopify has a number of built-in tools that can help make international shipping easier and cheaper. Shopify Shipping gets lower shipping rates from big carriers, which makes it easier for retailers of all sizes to ship internationally. These negotiated rates can save you a lot of money compared to the usual prices for shipping from stores.
Auto-generated customs forms cut down on mistakes made by people and speed up the process of filling orders. Shopify automatically fills out customs forms with information about the product and the order, making sure that everything is the same and meets carrier standards.
Shopify Markets Pro gives Shopify Plus merchants advanced ways to sell their products around the world. This solution lets you collect duties up front, which makes the customer experience better by getting rid of surprise taxes when the package arrives. Technologies that make compliance and fraud protection easier help you deal with complicated international rules while also protecting you from fake transactions. Pre-cleared customs processing can cut shipping times by a lot and make customers happier. Shopify’s deals with foreign carriers can help you make more money on cross-border purchases by lowering the prices of labels.
Additional Considerations
You need to weigh the cost, dependability, and service features of different carriers to find the best one. Postal services usually have the lowest prices, but their tracking may not be as good and their delivery times may be longer. FedEx, UPS, and DHL are examples of express carriers. They deliver faster and let you track your package better, but they cost more. Regional carriers may have lower prices and services that are specific to certain areas.
International shipments take longer and are more likely to get lost or damaged, so tracking and insurance options are more important. Give customers detailed tracking information and think about making insurance mandatory for shipments worth a lot of money. Setting the right expectations is easier when you clearly explain the tracking limits in some countries.
It takes more planning to schedule pickups and handle international returns. Set up clear rules for how to handle international returns, such as who pays for return shipping and how refunds are handled. To make the returns process better for international customers, think about working with local return processing centers in major markets.
There are a few important things that need to be included in the paperwork for international shipments. The commercial invoice lists what is in the shipment, how much it is worth, and why it is being sent. Packing lists give a lot of information about the items, including their numbers and descriptions. HS (Harmonized System) codes are used by customs to sort goods and figure out the right duty rates. Customs officials can use country of origin information to apply the right trade agreements and duty rates.
For customs clearance to go smoothly, all paperwork must be correct. Mistakes or missing information can cause delays, extra costs, or even the seizure of goods. Spend time teaching your team how to properly document things, or think about working with experienced logistics companies that can take care of these needs.
Getting Started
When you first begin your road toward international shipping, it is important to select the items you want to sell and the markets you want to target with great care. To get started, you should begin with the items that have the most sales, generate the most revenue, and are simple to ship all over the world. The initial target markets should consist of two or three markets that have a great deal of promise and are not too difficult to work with.
Develop a pricing strategy that provides you with the ability to compete in your target markets while taking into consideration all of the costs associated with your foreign operations. It is recommended that you experiment with various strategies using a limited number of items before expanding your foreign product offering. You could want to consider holding temporary specials in order to encourage consumers to place their initial purchases on the foreign market and to get feedback from clients.
In order to monitor how well your international shipment is performing, you need make use of powerful monitoring and analytics functions. Be sure to keep a close check on vital figures such as the number of successful deliveries, the level of satisfaction experienced by consumers, and the amount of money made in each location. Make use of this knowledge to continually enhance your plan and discover new methods to expand or improve things.
International Shipping FAQ
What are the cheapest international shipping options? Postal services typically offer the most economical rates, though delivery times may be longer. Economy services from major carriers can also provide good value for less time-sensitive shipments.
Why is international shipping more expensive than domestic? International shipping involves greater distances, multiple carriers, customs processing, additional documentation, and higher risk of loss or damage. These factors combine to create significantly higher costs than domestic shipping.
What are typical international delivery timelines? Delivery times vary widely based on destination and service level. Economy services may take 2-4 weeks, while express services typically deliver within 3-7 business days. Factor in additional time for customs processing, especially during peak seasons.
Who is responsible for duties and taxes? This depends on your shipping terms. Under DDU/DAP terms, customers pay duties and taxes. Under DDP terms, you pay these costs upfront and typically build them into your pricing.
Conclusion
In order to effectively deploy international shipping for your Shopify business, you will need to engage in rigorous planning, make smart decisions, and continuously optimize your optimization efforts. By gaining an understanding of the complexities of international commerce, from the assessment of costs to the fulfillment of regulatory requirements, you will be able to devise a plan for successful international expansion. Make it a priority to start small with carefully selected markets and goods, and then expand based on the input and performance of your customers.
Through the use of the proper strategy and resources, international shipping has the potential to significantly expand your market reach and foster the success of your company over the long term. Your firm will be in a position to reap the benefits of the continued growth of international e-commerce if you make an investment in the development of strong international skills.