Go Global: Tips And Tools For Streamlining International Shipping

by Marc Zazeela

Every day, the world is getting smaller and smaller. Businesses are going global. The Internet has spawned a brave new world of business opportunities. Why then, the anxiety about shipping internationally? Many companies find that international orders account for 30% of their total business.

Surely, it must be difficult to serve an international market effectively. It must be very expensive. Figuring out how to ship is a nightmare. International customs? How to even begin to think about that? These are all some of the nagging questions that the business owner is faced with… in 1995! Today’s climate is much more conducive to serving your international customers profitably and easily.

First, let’s consider how to reach them. Your web site gives you exposure to the world in ways that would have taken a colossal marketing budget, just a few years ago. Promoting yourself on social media is a great way to drive traffic to your site. Lots of businesses have found great success in creating loyal customers on Facebook, Twitter, LinkedIn,and more. International visitors can find you just as easily as domestic ones. And, you really don’t need to worry much about the language or currency barriers. There are enough people, around the world, who speak English well enough to navigate your site. Plus, most of your selling is done through the use of photos, anyway.

For the sake of brevity, I’m going to skip past the I.T. stuff surrounding order processing and payments. There are plenty of good platforms out there, with web templates, that make setting everything up pretty easy. eBay, Amazon, Google Stores, Yahoo Stores, and more are some of the easiest ways. There are also enough “off the shelf” shipping programs to accommodate almost any situation also. Here’s a link that you might find helpful in getting started:  http://ebay.about.com/od/sellingeffectivel1/a/se_global.htm

So now you’ve gotten some international orders and it’s time to figure out how to ship to your international customer. Many of the same ideas you might consider for your domestic shipments will also apply to international shipping. Make sure you choose a container that is sufficiently strong to protect your product. It is traveling a great distance and will be handled multiple times. Choose a container that is large enough to allow for some extra packing but not so large that there is a lot of extra space. Many carriers charge by volume in addition to weight (dimensional weight).  Also make sure you also use the appropriate packing cushioning to ensure your items get delivered in pristine condition. It is a good idea to weigh your package. Your carrier will usually charge by the weight so it is important to know what you are going to be paying for.

You’re all packed up and ready to go. A proper and complete address label is essential. Take your time and get it right. Foreign addresses can be confusing so make sure you include every element. No abbreviations and no shortcuts. You don’t want your package to go missing because you left out a small detail. Now it’s time to figure out how to ship? USPS provides some ideas here: http://www.usps.com/ship/compare-international-services.htm There are lots of choices and finding the right one can be a mind numbing task. You can use a private express courier. You can choose a postal option. Or, you can use the services of an international consolidator that can help you figure it out. It depends on how quickly you want your item delivered and how much you are willing to spend to do it. Faster equals more expensive. Then you need to decide what to do about any duty and/or tax issues? Here are some of the options:

Courier/express DDU – 2 – 5 days delivery time (delivery duty unpaid) – This is the fastest and most expensive service. It usually includes complete tracking from the point of pick up until your customer signs for the package. Upon delivery, the customer would be required to remit any import fees before they can receive their package. These fees vary from country to country and it is important to make your customers aware of their responsibility BEFORE you accept their order. A package that is refused at the door becomes very expensive to have returned.

Courier/express DDP – 2 – 5 days delivery time (delivery duty paid) – This is basically the same level of service with one exception. The shipper has agreed to pay the import fees when the package is cleared through customs. That means it will reach your customer free and clear with no further responsibility on their part. Of course you need to make sure you have collected the fees at the point of sale or else you will be paying out of your profits.

Priority DDU w/delivery confirmation – 3 – 9 days delivery time (delivery duty unpaid) – This is a second tier service compared to express. Delivery times are longer and there is some visibility (tracking) but not quite as comprehensive as with express. Packages are scanned at several milestones but are more subject to local conditions since a postal operator handles much of the transportation.

Priority DDU – 3 – 9 days delivery time with NO visibility. Even less expensive and is best used for low value items where it is not worth the added expense of the delivery confirmation. Again, make these details clear to your customer so they don’t expect something that is not going to happen.

When you are using one of the services that include visibility (tracking) make sure you can do it online. You can give the tracking details to your customers. International customers feel much more comfortable ordering from another country if they can track the progress of their order. Plus, it relieves you of the added burden of keeping tabs for them. Also, consider package insurance. There are a number of carriers that can provide insurance for a nominal fee and if your items would be expensive to replace, that can add up quickly. No matter how efficient your chosen carrier, nothing works 100% of the time and some packages are going to get lost.

Every package that is shipped from one country to another must pass through customs clearance. This used to be one of the biggest headaches that an international seller was faced with. Many companies simply refused to accept international orders because of all of the complicated rules and regulations. Imagine shutting off 30% of your order pipeline!  While customs clearance rules have actually become more complex, your shipper should be able to minimize the pain. They will be able to provide all of the shipment documents, labels, and manifests that are required. If you are told that you need to provide all kinds of documentation and forms, it is time to find another shipper. In order to head off any delays at customs, it is important to be completely honest in making your customs declarations. Your product descriptions and prices should be completely accurate. Customs officials are not beyond spot checking prices on your website. If they find inconsistencies, they can refuse to clear your shipment and demand payment of penalties and additional fees.

What can you ship? Most goods that you would ship domestically are able to be shipped internationall as well. You will need special licenses to ship items like firearms, food items, plants and animals, and more. There are some restrictions and your carrier should be able to make you aware.

Now you’re ready to ship. Make sure your web page outlines all of the conditions that your customers might encounter. Be clear about delivery times, tracking, duty and tax issues, and insurance. Consumers are generally not savvy business people and you want to be sure to manage their expectations properly. I recommend checking other international shippers’ web pages to see how they do it. Some of popular ecommerce sites do a very good job of describing how things work. Use them as your guidelines. Your goal is to create a satisfied customer. The better you take care of them, the more likely they will return to buy again.

Happy shipping!

Marc Zazeela is a 20-year veteran of international mailing and shipping. He says, “My customers are my friends. They bring issues to me that challenge my imagination and my company’s capabilities. Together, we can discover a unique and creative approach to international logistics.” You can find him on Twitter at @MZazeela or on LinkedIn.