International shipping is a monster. On the surface, it seems like getting products from point A to point B. But doing that involves dealing with complex logistics, handling unpredictable events, and managing your customers’ expectations.
It’s very easy to send items to the wrong address and run out of inventory. Returns are also a common source of trouble. And even if you manage to set up everything correctly, you still need to know what metrics to monitor to make sure processes continue to work properly.
In this article, we’re going to talk about why international shipping is tricky. Then we’ll give you some specific tips you can use today to cut down on international shipping costs for your eCommerce store.
Why is international shipping tricky?
When it comes to shipping, certain parts of the process tend to lead to problems, no matter where you’re sending items. If items are not properly packed, they are more likely to break in the mail. And the odds of this happening only increase with the long distances involved in international shipping.
Sending shipments to the wrong places is also always a risk. This is true of domestic shipping, but every country has different address formatting standards, so this is a far larger problem when shipping internationally as well.
Then there is customs clearance. Every country has customs, and every item imported into a country needs to follow local laws. Otherwise, it might get seized by customs before it reaches its destination. Sometimes, all it takes is a slight mistake on customs paperwork to increase the odds of this happening.
Cynthia Asije, CEO & Cofounder of Craftmerce says that “we once had a shipment delayed for weeks due to customs issues. It taught us the importance of clear documentation and working with trusted logistics partners.”
Customs concerns loom so large in international shipping that it repeatedly came up as a worry of eCommerce professionals when we reached out to experts as part of writing this article.
“Once, when shipping to the United Kingdom, our customer provided her new shipping address after the item had already been shipped to the address she originally provided,” says Shanna Bynes Bradford, CEO/Formulator at Grow Out Oils Clinical Aromatherapy Company. “It was quite a complicated process to track down the packages overseas.”
She was able to resolve the issue ultimately, but only after a lot of troubleshooting. “Thankfully, we had taken pictures of the box and filed a shipping claim while communicating with the shipping center in the United Kingdom. After 10 business days of mayhem, the package was finally delivered to the customer. Our team was incredibly relieved, and this experience prompted us to revise our shipping and handling process and requirements moving forward.”
14 Ways Reduce International Shipping Costs For Ecommerce
Now that you understand the fundamental reasons that shipping, in general, can get expensive, we’ll now cover 14 specific tips that you can follow today to save money on international shipping.
1. Optimize shipping rates with carriers by negotiating or shopping around.
Even though common postal consolidators like EasyShip and ShipStation have to charge more now, it’s still in your best interest to work with one. If your business isn’t large enough to negotiate directly with giants like the USPS, UPS, FedEx, and DHL, don’t worry – fulfillment companies like Fulfillrite will do that on your behalf. Negotiated rates are often far cheaper than retail postage rates, and the savings add up quickly, especially for international shipping.
Asije said something to this effect when we reached out to her as well. Her exact quote on the subject was “when shipping internationally, the best tips for keeping costs low include comparing pricing for international shipping with various carrier services such as USPS, FedEx, UPS, and DHL. This will help you determine the best options for shipping.”
Don’t just accept the first rate you see. Bargain if you can, shop around if you can’t.
2. Use your shipping account number.
We’ll borrow a tip from Enterpreneur.com about a man named Fred DuBois, a laptop battery shipper with a lot of business:
While he originally had suppliers shipping products to him and invoicing for the transport costs, he managed to persuade his domestic suppliers to ship products on his company’s FedEx account number. This not only increases his business’s shipping volume, which can lead to cheaper rates, but it also helps prevent suppliers from padding their shipping costs.
3. Optimize your item dimensions and weight for cheaper packaging.
When you are manufacturing your item, it helps to begin with the end in mind. If you know that you will be shipping your product in the mail, look at the difference in cost for different box/bag sizes and weights. If you can find a way to make your item fit into a smaller box or to weigh less, you can save a ton of money on postage in the long run.
“Keep in mind that packaging can increase the weight of an item,” Bradford advises. “So it’s essential to customize packaging accordingly to ensure it is securely wrapped and ready to go. Use lightweight materials when possible, and consider flat-rate shipping options if they are available, as these can sometimes offer significant savings.”
She also advocates for using a shipping calculator tool to estimate costs based on dimensions and weights of certain types of packaging.
4. Use flat-rate packaging.
We’ve talked a lot about flat-rate shipping before, and for good reason! Postal carriers such as the USPS charge at least partly on how much space your package takes up in their truck. Flat rate packages give them the opportunity to more neatly pack their trucks, which saves them money and allows them to pass on the savings to you.
Flat-rate postage is often cheap in the first place. On top of that, you also have the added benefit of being able to use flat-rate packaging instead of buying your own boxes or bags.
5. Buy supplies in bulk.
Sometimes it doesn’t make sense to use flat-rate packaging. If that’s the case, be sure to buy packing and shipping supplies in bulk. ULINE is a great place to start.
6. Use regional carriers.
If you do most of your business within a regional area, consider following this advice from Easyship:
Regional carriers offer the same services as major carriers like UPS and FedEx but at significantly reduced prices. The only difference is that – as their designation implies – their delivery network is limited as they only operate within a small geographic area. For example, you can partner with OnTrac in the West, LoneStar in Texas, and Spee-Dee in the Midwest. This can be a good option if your deliveries are within their region.
7. Stick to a handful of carriers.
The more you ship with a given postal carrier, the more likely they will be to give you a discount. They want to keep your business, after all. It’s not realistic for a small business to always ship by FedEx or UPS, but it often makes sense to prefer one over the other consistently. That way, you have stronger bargaining power when it’s time to negotiate rates.
8. Swap out boxes with polybags.
Postage rates are going up, but remember: a big part of shipping costs still comes from supplies. While flat-rate packaging and ordering supplies in bulk is often enough to keep costs low, you can still sometimes take it one step further. ShipBob recommends switching from boxes to polybag mailers if you ship items such as clothing.
Be careful with this, though. You have to be absolutely sure not to ship fragile items in a polybag!
9. Use prepaid shipping.
FedEx and UPS both offer prepaid shipping options with steep discounts. If you know you need to send out a lot of shipments all at once, it often makes sense to buy all of the postage up front.
10. Use third-party insurance.
Another major expense associated with shipping is replacing items that were lost or damaged in the mail. If your items are high-value, consider buying third-party postal insurance with companies like Parcel Insurance Plan. It’s usually cheaper than buying the insurance directly from your carrier.
11. Outsource fulfillment.
Fulfillment, in general, is expensive. Outsourcing it can often save you money. You save on labor, training, supplies, and storage at a minimum. You often also benefit from having peace of mind and retaining more customers. Once you’re shipping more than 100 orders per month, outsourcing fulfillment should definitely be on your radar.
“We partner with logistics providers that offer discounted rates for bulk shipments,” says Asije, “and we optimize packaging to reduce weight and size, keeping costs efficient.”
12. Research local customs regulations.
The customs clearance process can balloon costs for two different reasons. The first is that imports and exports often come with taxes, and you want to try to lower your tax burden if you can. The other is that if goods end up getting impounded frequently due to bad processes, that can become expensive as well since it means either sending another item or issuing a refund to the customer.
It’s for this reason that Asije advocates for “[researching] customs regulations thoroughly for each country, [choosing] reliable shipping partners, and always [including] tracking to ensure transparency for your customers.
13. Validate addresses before you ship.
“If this is your first time shipping internationally,” says Bradford, “always double-check with your customer to ensure all shipping details are correct and accurate. It is also helpful to include an email address and phone number on the package, as this can assist the carrier service in case there are any discrepancies with the package address or if you need to file a claim.”
To that end, it’s worth investing in address validation software it is not included with your eCommerce platform by default. This will let you double-check the validity of addresses before sending out packages. This won’t help you if someone moves and forgets to use their new address, but it will at least make sure that every address you ship to is a real one. That can save a lot of money in the long run, especially where international shipping is concerned.
14. Keep clear records and communicate with your customers.
There are few challenges in business so gnarly that improvements to record-keeping and communication can’t make a meaningful difference. International shipping is no exception.
Bradford states that it’s a good idea to “maintain clear communication with your customers about shipping times, especially since international shipments can take longer due to customs processing.” She also suggests “[keeping] thorough records of all shipments, including tracking numbers and customs documentation, for future reference and potential disputes.”
Final Thoughts
International shipping doesn’t have to break your budget. Mastering the basics is enough to help you reduce costly errors. That is, ship to the right addresses, understand how customs works, and keep packages as small as you can.
Once you get the basics right, then you can follow the tips in this article to further cut down on costs. It’s not easy to learn at first. But if you’re proactive, you can make international shipping work for you, not against you.
