Getting Started With International Shipping



At some point, every small and medium-sized business will face the same question: What more can you do to keep the company growing?

First Class Package International: If your package weighs LESS than 4 pounds, this is your best bet for the cheapest USPS international shipping. Depending on the destination, delivery takes anywhere from 1 to 3 weeks. How Shipping Software Can Help. USPS international shipping gets pretty costly. Here are five easy steps you can use to get started with international shipping. #1: Decide where you want to ship. The first thing you’ll need to determine is where you want to ship products. Many businesses ease into international shipping with Canada and Mexico, which tend to be relatively easy options thanks to their proximity.

For many companies, the answer lies in international shipping.

Shipping your products to overseas consumers can be a very profitable way to expand and diversify. And the economics of exporting are certainly enticing. But many e-commerce companies are yet to branch out into cross-border trade, even though 70% of the world’s purchasing power is located outside of the United States.

It’s normal to feel a level of apprehension when thinking about shipping internationally, particularly when it comes to concerns about issues related to costs and customs.

Getting Started With International Shipping Tracking

But the options for overseas shipping have come a long way in recent years, and selling to international consumers is a lot easier than many companies may think. With the explosion of tools and resources to help companies ship products overseas, it’s never been easier to venture into the realm of global shipping.

Here are five easy steps you can use to get started with international shipping.

#1: Decide where you want to ship

The first thing you’ll need to determine is where you want to ship products. Many businesses ease into international shipping with Canada and Mexico, which tend to be relatively easy options thanks to their proximity.

However, while our neighbors to the north and the south make for great trading partners, there are many more opportunities beyond North America. One method we recommend here at UPS is to start by identifying countries that have free trade agreements in place with the United States, since this often translates to lower duty rates and simpler customs clearance.

Even when a package does not qualify for lower tariff levels, those free trade agreements definitely make it much easier to move goods between countries.

#2: Explain what you’re shipping

All non-document shipments that cross borders require a customs form known as the commercial invoice. When completing this document, it’s important to be as specific as possible. That means you need to know exactly what it is that you’re shipping, so you can communicate those details to officials.

Describe very clearly not just the product itself, but other details as well: the number of units, the total value of your shipment and so on — right down to details on where the product is manufactured, which may differ from where shipping takes place.

All of this information is critical for the customs officials who need to apply the correct classification to each shipment for a smooth path of entry into your international market. For example, if your commercial invoice only lists “computer parts” with little description beyond that, it’s far more likely to cause a hold at customs. This can lead to delays and increased shipping costs.

Instead, be highly specific each time you ship a package internationally. Wherever possible, use the Harmonized System code to classify your products for customs purposes.

#3: Specify who is receiving the shipment

Another important rule for completing the commercial invoice: Include complete and updated contact information for the receiver of your shipment. That way, if customs has questions for your recipient, the process will still move along instead of coming to a halt.

Be sure to estimate your total cost of shipping, or landed cost, and determine who will be paying for insurance, duties and taxes in addition to shipping costs themselves. Will your business cover all of these expenses, or will your buyer share some of the load? These terms must be made and agreed upon in advance of international shipping, and should be included in your commercial invoice.

Shipping direct to a consumer can be a little different than shipping to a business, which may allow you to defer import tax or value-added tax. When in doubt, use an international shipping solution like i-parcel to guarantee your landed costs when sending packages overseas.

#4: Determine when your shipment should arrive

This step will directly impact your shipping costs and related expenses. As a general rule, the faster you need to have a package delivered, the higher the shipping costs will be.

At UPS, we offer a wide range of options for shipping a package internationally. For instance, if you’re looking to ship into Canada or Mexico and don’t require same-day or next-day delivery, UPS® Standard ground service can be very cost-effective. Other options for shipping inside North America range from ground shipment all the way up to next flight out. And when you’re ready to expand your reach across oceans, there’s an equally robust selection of international shipping options to choose from depending on your budget and your consumers’ expectations.

Our advice? Decide how long of a lead time you can bake into your listings and go from there.

Getting

#5: Lean on an experienced provider

There’s no need to struggle through your first international shipments. These days, there are simply too many online tools to help you with the heavy lifting. At UPS, our shipping wizard has been designed to walk sellers through the process of getting an international package ready to ship, quickly and easily. You can complete the commercial invoice and choose from a range of available delivery options, complete with pricing that updates as you input delivery details.

Is it time for your company to embrace international shipping? UPS offers a wide array of resources that make it easier than ever to deliver your goods to overseas customers. There’s truly never been a better time to go global.

This guest blog post was provided by UPS. An original version of the article appeared on the UPS site and was republished with permission.

Shipping internationally can be a daunting task. Everything you’ve learned about domestic shipping goes out the window, and you have to add new processes to make sure your packages are delivered in a timely and cost-effective manner.

Having helped thousands of businesses ship to countries all over the world, we’ve put together a guide to help you setup your first international shipping operation.

Carriers and service levels

Let’s start with the essential, you need to find shipping carriers deliver your shipments to your customers in a timely and cost-effective manner. Begin by evaluating who your customers are and what you are selling.

Some customers may be more cost-sensitive and patient, while others are willing to pay more for faster delivery. If you’re selling a premium product, customers are also going to want to get detailed tracking information to keep tabs on their purchase.

Since there’s a much greater difference across speed, service, and cost for international shipments, the most important take away is to provide your customers many options so that they can select the one that best fits their needs. Even if you opt for flat rate tiers, since shipping costs are much higher for international shipping, you should still consider diversifying your carrier portfolio to rate shop.

Through Shippo you automatically have access to 2 great discounted international carrier options out-of-the-box:

DHL Express

DHL Express is a private carrier with an established global presence. They will be responsible for the shipment from pickup to delivery, providing detailed and reliable tracking information at every step. Especially important during the holiday season, DHL Express will work directly with the importing country’s customs authorities to ensure that packages are not stuck in queue to be cleared at the border. Dive into the nuts and bolts of implementing DHL Express.

Getting Started With International Shipping Code

USPS

USPS has 3 different types of international service levels: First Class International, Priority Mail International, and Priority Mail Express International. The benefit of shipping with USPS is that you can just drop it in the mailbox or the same process you would use for domestic shipments.

The caveat to shipping with national postal service such as USPS is that they are not responsible for the shipment from pickup to delivery. At the border, your shipment will be transferred over to the local postal service for delivery. Depending on the country you may lose all tracking visibility.

With

Here’s a comparison of their cost differences:

Documents to prepare

For most international shipments*, you’ll need 2 sets of documents – a customs form and a commercial invoice. On Shippo, you can easily input all the necessary information you need as part of the label purchasing process and we’ll generate the appropriate paperwork for you.

The customs “form” is additional information that appear as part of an international shipping label, not an additional form.

The customs form is a declaration of the contents of the box for regulatory purposes. It’s typically built into the international label itself (highlighted in blue).

3 copies of the commercial invoice needs to be placed inside a clear pouch on the package. It needs to be removable and visible, so that the customs officer can review the information.

The commercial invoice is required for taxation and fee assessment. It’s typically a separate document from the label.*

*USPS is one of the few carriers that do not require 2 separate pages for international shipments. All necessary information is already included as part of the international shipping label.

You’ll need to provide the following information for all shipments:

  • Contents Type – select amongst: “merchandise,” “sample,” or “gift”.
    • It is illegal to mark an item as “gift” when it’s not. Some customers may ask you to do that to avoid import taxes, but you’ll be the one liable if it’s discovered.
  • Signing Person – the person responsible for the shipment
    • This is you, the shipper.
  • Incoterm – who to bill for customs duties and fees.
    • DDU (Delivery Duties Unpaid by Sender) meaning recipient is responsible for any duty incurred.
    • DDP (Delivery Duties Paid by Sender) meaning you as the shipper will be covering the costs.
  • Customs Items – brief description of the item being shipped, along with weight, quantity, value and country of origin.
    • Be specific, but concise. Customs issues may arise if the description is too vague, but there’s not a lot of space
  • Tariff Code (HS code) – a product-specific code as documented in the Harmonized System (HS) maintained by the World Customs Organization (WCO). Tariff codes exist for almost every product involved in global commerce. Required on official shipping documents for tax assessment purposes, a tariff code ensures uniformity of product classification worldwide.

Customs, restrictions, and duty

If you’re working with a private shipping carrier like DHL Express, your packages will be routed to one of their distribution centers. One of the benefits of working with a private carrier like DHL Express is that are a registered customs broker who will manage all questions from the import country authority on your behalf.

Getting Started With International ShippingStarted

Especially if you ship high value products over $2500, DHL Express will be able to help you file export documentation (at an additional service charge) like getting an Internal Transaction Number (ITN) generated by the Automated Export System (AES).

However, this does not mean that you’re exempt from restrictions and duty.

Customs regulations vary somewhat by country. It’s important to educate yourself about the restrictions of the particular countries you’re shipping to, to avoid surprises down the road.

The USPS website has a great Shipping Restrictions page with some general no-goes, as well as a more detailed Index of Countries and Localities. Just remember that while USPS is a great resource for information on shipping regulations and restrictions, other carriers may differ slightly in terms of limitations on package weight, size, etc.

Providing a tariff number can be useful to smooth out the customs process (though you don’t need to have one). Tariff numbers exist for almost every product involved in global commerce and ensure uniformity of product classifications worldwide. It was created for easier identification during customs processing and better standardization of international shipping. You can find more details and the full list of tariff numbers/harmonized codes or search the full World Customs Organization HS code database (but this does require a paid subscription.)

The most unpredictable part of international shipping costs are the customs duties and fees. These can change month to month, vary by time of year, or differ based on the customs officer handling your package. However, you can use an online calculator like Duty Calculator for an estimate. It’s also important to think about whether you want your customers to pay these fees – which is standard – or if you want to absorb them yourself.

Insurance

You should consider purchasing insurance for your international shipments, especially if you are selling a fragile or premium product. There are a lot more handling and transitional points where your package can be damaged, lost or stolen.

Getting Started With International Shipping Companies

Through Shippo you can purchase insurance easily in the first step of the label process. We offer insurance for all carriers through our partner Shipsurance. Learn more about when, where, and how shipping insurance works.

International returns

Dealing with international returns is a potential nightmare for the customer and the business. The key is to make sure that you have a clear policy in place for international shoppers.

Consider only allowing returns on items that make sense to ship back or be clear that international customers have to return items at their own cost. Unfortunately, you probably can’t afford to have the same customer-friendly policy for international customers as you do for domestic customers.

Currency

For the convenience of your customers, you should display product and shipping costs in the local currency of the country you’re selling in. This way, you won’t risk customers leaving your site to calculate the conversion. Most shopping carts support displaying prices in various currencies.

If you’re selling on international marketplaces, such as Amazon Spain or eBay UK, consider setting up a local receiving account with a foreign exchange and international finance service like World First to avoid getting hit with a conversion fee and poor exchange rates.

There’s a lot to consider with going international, but hopefully now you have a better sense of what you need for shipping.

To see what it’s like to create an international shipping label and the cost of shipping, plug in a few trial orders on the app. We offer discounted DHL Express and USPS shipping rates immediately upon signup and generate your international paperwork for you. Let us help you expand your customer base around the world.

Shippo is a multi-carrier API and web app that helps retailers, marketplaces and platforms connect to a global network of carriers. Businesses use Shippo to get real-time rates, print labels, automate international paperwork, track packages and facilitate returns. Shippo provides the tools to help businesses succeed through shipping.

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