International Shipping for Small Sellers: 6 Helpful Tips
If you’re considering expanding your small e-commerce business to international markets, it’s crucial to conduct thorough research on international shipping. This will help you avoid customs delays, fines, and dissatisfied customers. Below are some helpful international shipping tips for small sellers to get you started.
Start small. Instead of offering shipping to all countries at once, start with a few neighboring countries to reduce shipping times and the amount of research required. This will prevent you from making major mistakes due to being overwhelmed. Once you get the hang of it, you can expand to other markets if there is enough demand.
Do your customs-related research very carefully. In addition to international shipping restrictions and prohibitions, each country has its own shipping restrictions, prohibitions, and customs rules and regulations. Research these rules and regulations for each country to which you’re offering shipping.
At this stage, you need to decide whether to ship DDP or DDU. With DDP (Delivered Duty Paid), the seller handles customs clearance, duties, and taxes. With DDU (Delivered Duty Unpaid), the buyer handles customs and pays applicable duties upon arrival. DDP is better for the customer experience. However, if you lack international shipping experience and are unsure whether you can manage customs processes in destination countries, DDU may be a better option.
You should also research the required documentation. At the very least, an international package requires an invoice and a customs declaration; the latter is often combined with a shipping label. For the declaration, you will need to research the Harmonized System (HS) codes of the products you’re planning to ship. These codes denote specific product groups and are used by customs authorities to determine correct customs duties and fees.
Research shipping carriers and offer multiple shipping options. Some customers prioritize speed, while others prioritize low cost. Increase customer satisfaction by offering several shipping options that accommodate different priorities. Ensure that each option includes tracking and shipping insurance; valuable shipment may require additional insurance.
Be clear and transparent about shipping terms. Since international shipping is expensive, most customers want to know in advance exactly how much they are going to pay for international shipping and whether it is worth it. Clearly display the shipping cost for each shipping option you offer, as well as any possible fees and duties, on your website.
Stay updated. It isn’t enough to research shipping rules and regulations once because situations can change at any moment. When shipping products internationally, it is crucial to stay informed about export and import regulations, trade agreements, sanctions, service disruptions (e.g., labor strikes), and other factors that can impact international shipping times, costs, and availability.
Establish a return policy. Some countries have a mandatory return period after the purchase date during which customers can return their order for any reason, while other countries do not have such a period. Research the return rules for each country you’re shipping to and determine how you’re going to handle returns to minimize costs and increase customer satisfaction.