As an eCommerce business owner, you wear many hats while managing your operations, from sales and inventory to marketing and shipping. However, global eCommerce presents a significant growth opportunity you must consider. Nearly a quarter of purchases will happen online by 2026, and 57% of shoppers already buy internationally.

However, expanding internationally brings new shipping and trade compliance challenges around costs, customs, taxes, etc. Overcoming these hurdles requires building strategies around regulations, fulfillment, and providers. You must understand import and export laws, find the optimal logistics setup for your business, and leverage the best freight partners. 

Let's explore critical considerations for shipping internationally so you can grow your customer base globally and boost brand recognition.

1. Review Export and Import Laws

It is crucial to understand export and import regulations when selling products globally. That will help avoid delays and fines in the long run. Follow these key steps to ensure compliance:  

• Review the export controls in your target country to ensure your products are permitted for shipment.

• If required, apply for export licenses from government agencies based on your goods and destination.

• Accurately categorize your products under the internationally standardized Harmonized System codes to determine relevant import duties and taxes.

• Consider the specific import duty rates applied to goods in your product category by the destination country. 

• Provide detailed descriptions of the exported products, their values, quantities, and consignee on these mandatory customs documents.

• Factor any value-added tax (VAT) or other taxes on imported products in the destination country into pricing plans. Use our VAT calculator to determine applicable taxes and ensure accurate pricing for your international orders.

2. Understand Your Fulfillment Options

When it comes to fulfilling eCommerce orders for your international customers, you have three options: 

• In-house fulfillment

• 3PL

• Dropshipping

Each fulfillment option has pros and cons, so choosing the one that best aligns with your business needs is crucial. 

In-house fulfillment involves fulfilling orders within your own facilities. That gives complete control and visibility over inventory, branding, quality assurance, and customization. However, it demands significant upfront infrastructure, employees, and space investments. It is also limited in scalability without substantial further investment.

Third-party logistics (3PL) means outsourcing eCommerce order fulfillment to an external vendor. They store, pick, pack, and ship your products as orders flow in. That empowers you to leverage their established expertise and tech while reducing costs. But, it means you have less control over the order fulfillment process and need more visibility over the supply chain.  

Dropshipping involves working with suppliers who ship products directly to customers when they place an order. Since the supplier is shipping the product directly, there's no need to hold inventory, and you can showcase a wide range of products without stocking them. Conversely, it means less control over inventory availability, shipping speed, packaging, branding, and product quality.

3. Utilize a Freight Forwarder 

Shipping overseas presents unique shipping and logistics challenges. Regulations vary significantly between countries for duties, taxes, and customs clearance. Shoppers also expect transparent pricing, with shipping costs presented upfront at checkout. In fact, 60% of users abandon carts because of unexpected extra expenses such as shipping and taxes. Managing this complexity internally can take a lot of work for small eCommerce businesses.

Working with a freight forwarder as a small business can help handle these complexities. Digital freight forwarders, in particular, offer online platforms to compare shipping rates across carriers, track shipments in real-time, and manage customs and tax requirements. Ship4wd, for example, works exclusively with small businesses to secure affordable shipping prices and helps manage the complicated aspects of the shipping process, such as navigating regulations. Small businesses can leverage their logistics expertise and online dashboards to choose the most cost-effective options that meet delivery expectations.

4. Pay Attention To Packaging

Proper packaging is crucial when subjecting products to long journeys across oceans, through varying humidity and temperature, risky handling, and more. To ensure the safety of your goods, consider the following steps:

• Choose the most appropriate box sizes and shapes.

• Use sturdy and resilient exterior packing materials to protect against external impacts and handling.

• Secure items within the package using internal braces, padding, or cushioning materials. 

• For added protection, especially in environments prone to moisture, consider including waterproof lining inside the packaging.

5. Avoid Common Mistakes 

Ecommerce companies make the most trivial mistakes in labeling and checkout that can hamper their shipping processes. For example, wrong and improper addresses can cause havoc and customer dissatisfaction. In the same way, many customers also experience delays in the website while finalizing the purchase due to technical glitches. 

To address these issues, ensure accurate labeling and employ technology for reading barcodes and printing proper labels to reduce labeling errors. For streamlined processing and global shipping compliance, explore our range of efficient customizable invoice templates ready to match any business model. To avoid website issues and errors, leverage an eCommerce monitoring platform that identifies technical checkout errors and helps you with revenue recovery from cart abandonment. 

6. Document Your International Shipments Correctly 

Complete, accurate paperwork facilitates customs clearance and prevents compliance penalties. Although the documentation required varies from country to country, you should, 

• Generate a commercial invoice detailing the transaction

• Create an accurate packing list of contents

• Obtain any necessary export declarations

• Classify goods correctly for the destination country

• Complete contact information about your business and the recipient.

7. Make Your International Shipping Fees Transparent for Customers

Research indicates that 23% of eCommerce customers abandon their carts because they can’t see the upfront order cost. Therefore, it is crucial to offer transparent shipping costs, mainly when selling online to customers overseas.

According to Ryan Zehl, the founder of Zehl & Associates Injury & Accident Lawyers, explaining your pricing methodology and conditions is essential for customers to help them better understand your final rates and what value they will get from your services. Moreover, it is also vital to make this information accessible on your website and other channels you use for promoting your services.

Therefore, use tools that calculate shipping costs in real time based on the customer's location and the chosen delivery method. Then, ensure that shipping costs are prominently displayed on product pages, cart summaries, and checkout pages. That will prevent surprises later on and reduce cart abandonment rates. 

Final Thoughts

Selling online to customers globally has become easier than ever. However, you must understand import and export regulations, choose a suitable eCommerce fulfillment model, leverage optimal freight providers, and offer transparent pricing, including shipping fees. Addressing these common issues will help you unlock new markets worldwide and grow your business.