Shipping
|

International e-Commerce Shipping Guide: 3 Steps to Target Your Market

Wednesday, July 31, 2024
|
by
Skypostal
|

The global marketplace is more accessible than ever, but that doesn’t mean international e-commerce shipping is simple. Luckily, with careful planning and the help of this guide, you can turn those international sales into a profitable and growing part of your business.

You’ll learn to determine which markets suit your products, choose a shipping method, and handle customs forms and fees like a pro.

Expanding beyond borders and reaching a global customer base eager for what you offer has undeniable appeal. The potential rewards of international parcel delivery are enormous.

Key Takeaways:

  • Efficient International Shipping: Planning and strategic decision-making are crucial for turning international sales into profitable growth.
  • Market Research: Analyze website data, gauge product demand, and start with familiar territories to effectively target the right international markets.
  • Regulatory Compliance: Understand each country’s import regulations and restrictions to avoid delays and additional costs.
  • Strategic Pricing: To maintain transparency and reduce cart abandonment, use free shipping thresholds, carrier-calculated rates, and flat-rate shipping.
  • Optimized Solutions: Specialized shipping solutions like SkyPostal offer efficient, cost-effective options for shipping to Latin America, enhancing delivery speed and customer satisfaction.

Getting Started With International E-commerce Shipping

Before diving headfirst into international e-commerce shipping, you must lay a solid foundation for a smooth transition.  This process starts with some essential prep work and strategic decision-making.

Research and Target Your Market with These 3 Steps

According to Oberlo, the world is ripe with buyers, with 2.71 billion online shoppers globally. However, to make international e-commerce shipping worthwhile, focusing your efforts on the right market is key. It may be tempting to cast a wide net, but strategically choosing your target market can significantly impact your success.

Here's a step-by-step guide to help you zero in on your ideal international market:

  1. Analyze existing website data: Analyze international traffic to your site. Identify regions showing interest in your products. Consider targeting these markets with localized content and purchasing options.
  2. Gauge product demand and viability: Research international markets with high demand for your product type. Analyze consumer trends and unmet needs. Consider seasonality and potential for year-round sales in target markets.
  3. Start with familiar territories: Start with nearby markets or those with existing trade agreements. This simplifies logistics and sets realistic expectations for costs and delivery. For U.S. businesses, expanding to Brazil offers valuable international e-commerce experience.

Country Rules, Regulations, and Restrictions

Now that you have a target market, let's ensure your product can be sold there. This part is vital - neglecting to do so can result in shipments being held up in customs or returned, leading to delays, frustration, and unnecessary expenses.

The first step involves carefully reviewing each country’s import regulations regarding the types of products permitted, labeling requirements, and any necessary certifications or permits. You’ll also want to confirm that certain items are not restricted. 

For example, shipping artwork from the US to Brazil requires specific documentation and adherence to customs regulations, but it is not prohibited.

When shipping artwork to Brazil, ensure you have detailed invoices, certificates of authenticity, and clear descriptions of the artwork. Customs duties and taxes may apply based on the declared value, so proper valuation and documentation are crucial.

Consider working with companies that specialize in shipping to Latin American countries. SkyPostal has spent decades building valuable relationships with these countries and can simplify the shipping process.

Determine Your Product Viability

You might find some items that sell like hotcakes at home but aren’t the right fit for the international market, especially as you are just starting. Factors to consider for product selection include:

  • Shipping costs
  • Product durability
  • Local demand
  • And competition

Assess which products offer the most profitable potential. Smaller, lighter products are usually a good starting point.

The reason is simple: they minimize shipping costs.  As you become more familiar with the ins and outs of international e-commerce shipping, you can explore incorporating more oversized items.

Always remember to package items carefully using durable, protective packaging materials. Proper packaging is non-negotiable to ensure your products reach their destination in pristine condition.

Strategize Pricing and Shipping Costs

According to a study by Baymard Institute, nearly half of all shopping cart abandonments in 2024 stemmed from extra fees like shipping costs. Transparent pricing is critical to winning over those international customers.  

Let them know what they’re paying for every step of the way. Surprise shipping costs are a surefire way to send potential customers running.

When it comes to incorporating shipping costs, there are several popular strategies:

  • Free shipping. Offer free shipping on orders above a specific value, enticing larger purchases. Customers love feeling like they're getting a deal, and offering free shipping incentivizes them to add more to their carts, ultimately benefiting both you and your customers.
  • Carrier-calculated shipping rates. Shopify and other popular e-commerce platforms seamlessly integrate with renowned carriers like SkyPostal, providing real-time shipping costs based on package weight and destination during checkout. While it may mean customers absorb the total weight of shipping costs, it provides transparency and offers the most accurate pricing, ensuring you aren’t absorbing unnecessary shipping costs.
  • Flat rate shipping.  Consider this straightforward approach for its predictability and positive impact on the overall shopping experience, increasing cart value for your business. While easy for customers to understand, establishing a fair flat rate across various international destinations might involve more work, mainly if your product catalog is diverse. Once you determine a suitable rate for your product line, it streamlines shipping costs for everyone.

Remember, these options don't exist in isolation; they work best in harmony. Implementing a hybrid strategy, for instance, combining free shipping thresholds with flat rate options for heavier or larger products, caters to a broader customer base.  Communicate your international shipping policies, methods, and costs upfront, as doing so prevents any confusion and enhances transparency.

Navigating Customs, Duties, and Taxes

International shipments require maneuvering the complexities of customs forms, duties, and taxes, each contributing to the total cost. This step requires an understanding of Delivered Duty Unpaid (DDU), more recently known as Delivered At Place (DAP), and Delivered Duty Paid (DDP).

DDU/DAP makes your customer responsible for these fees. It’s simpler to set up as an e-commerce merchant, but you risk turning your customers away because of extra charges at delivery. To calculate these fees beforehand, you can utilize one of the available duty calculator tools online.

With DDP, those responsibilities shift to you, incorporating the cost of any additional import fees upfront during checkout. While this can appeal to consumers by offering greater price certainty, be mindful that these fees differ from country to country and involve additional legwork. You’ll need to familiarize yourself with each country's regulations and documentation and determine if it's right for your business.

Understanding the Different Shipping Solutions

International e-commerce shipping options range from established postal services to specialized carriers like SkyPostal. Understanding each method helps you find the one best suited for your e-Commerce business.

1. Postal Services

Postal services (e.g., USPS, Royal Mail) offer budget-friendly international shipping for smaller items. They partner with local services globally but have longer transit times and size/weight restrictions. Compare service levels, considering cost, delivery time, and package limitations.

2. Private Couriers

Major couriers (DHL, FedEx, UPS) offer fast delivery, global reach, and advanced tracking. It is ideal for large, valuable, or time-sensitive shipments, especially to Europe and North America. It is more expensive but provides speed and reliability, suiting high-volume or premium e-commerce businesses.

3. Specialized Shipping Solutions (SkyPostal)

This is where specialized shipping solutions come into play. SkyPostal is recognized as a leading provider of services to Latin American markets. We offer an economical and efficient option for anyone selling within those regions, and it is becoming a more common choice for companies shipping small-to-medium parcels, international mail, and advertising mail. 

SkyPostal can ship packages from Miami to major Latin American countries, usually for about half the cost and double the speed of USPS, which often relies on local postal providers.

We deliver packages quickly, typically saving companies 7-20 days in transit time. Our end-to-end tracking, designed to give merchants and final-mile customers real-time updates, does not go unchecked.

If something goes wrong, you can contact SkyPostal directly; our dedicated customer service team can handle customs forms and address any pending issues. 

SkyPostal has earned the trust of many e-commerce sellers, making us a leading provider in the industry. Our extensive network, proprietary technology, and specialized knowledge provide greater visibility, control, and efficiency for your shipments. 

To determine whether it's right for you, compare and contrast pricing, speed, and service level options for outbound deliveries and returns to maximize your partnership.

FAQs About International e-Commerce Shipping

What is the cheapest way to ship internationally?

The cheapest option often involves utilizing established postal services, leveraging their economical solutions for lighter, smaller parcels and packages. They are best when working with a budget.

Which shipping company is best for e-Commerce?

Private couriers like DHL Express are excellent for swift delivery and robust tracking for high-value or time-sensitive shipments. That said, determining the best fit hinges on specific requirements such as destination, shipping frequency, budget considerations, and preferred speed of delivery.

SkyPostal stands out for Latin America. The optimal carrier for your e-commerce venture aligns with your unique shipping profile. Careful evaluation ensures you partner with the one that seamlessly complements your business goals.

How much does it cost to ship internationally?

International shipping costs depend on the destination country, package dimensions, weight, and chosen shipping method. Requesting quotes from different carriers helps you estimate your costs accurately.

Which is the best platform for international shipping?

SkyPostal can integrate with companies such as Shopify, ShipStation, and Easyship. These platforms streamline tasks such as label printing and customs documentation and provide various shipping options. 

Prioritizing key features for your e-commerce operations helps pinpoint the best international shipping platform. Conduct thorough research and compare pricing structures and available features. Look for free trial options or demo versions to explore before committing.

SkyPostal: The Best International e-Commerce Shipping Solution

Embracing the potential of international e-commerce shipping allows your business to tap into the vast global market. But like any venture, it demands research, strategic thinking, and adaptability to navigate a dynamic landscape successfully.

To work with the most reliable partner for shipping to Latin American countries, contact SkyPostal today!