Ecommerce has created opportunities in the market that would have bordered on science fiction a few decades ago. Smaller enterprises have an unprecedented amount of reach in terms of marketing, able to find customers in even the most remote locations. That said, reaching potential new customers in an international market with a marketing campaign and ensuring their orders reach them are two entirely different things. Unlike domestic shipping, cross-border shipping has an entirely different level of complexity with even greater potential pitfalls to snare the unwary shipper.
This article will offer some insights into the challenges that come part and parcel with cross-border shipping, as well as discuss ecommerce shipping solutions to help overcome those challenges within a tight, competitive market.
Understanding Cross-Border Shipping
Cross-border shipping, or international shipping, is the process of selling goods to customers in other countries. For ecommerce companies, international shipping is an integral function for growth, scaling, and, ultimately, a successful business endeavor. After all, a larger customer base would mean more opportunities for sales.
Unlike domestic shipping, however, cross-border shipping presents a unique set of challenges, many of which translate directly into added transportation costs and a higher risk of delays. Customs regulations, tariffs, longer and more complicated logistics are just a few of the added difficulties. Shipping insurance is crucial in mitigating risks associated with international shipping, and providing reimbursement for lost, stolen, or damaged parcels.
Moreover, new customers are slower to trust and less likely to be forgiving in the event of a mistake or shipping delay. Cross-border ecommerce shipping is a constantly evolving game of managing customer expectations, ever-changing regulatory mandates, advancements in technology, and staying abreast of the competition, all while trying to run a profitable enterprise.
Breaking Down the Challenges and Shipping Costs of Cross-Border Shipping
As mentioned above, there are plenty of challenges that come with cross-border shipping, especially for SMEs that lack the resources of larger companies. Understanding the challenges, therefore, is the first (and arguably the most important) step in successfully growing an international business.
Below are some of the most common hurdles associated with international shipping:
Customs Compliance
A significant aspect of international shipping involves navigating the complex maze of customs regulations and its allied red tape. Every country does things a bit differently with regard to regulations and shippers need to be totally adherent. This means understanding import/export laws, documentation requirements, tariffs, and more. Failure to comply with any of these requirements could result in costly delays, fines, and fees, or even the outright rejection of a shipment.
Complex Logistics
Understandably, the logistics required to move goods from one country to the next gets a good deal more complicated. Achieving timely deliveries means coordination with a number of different carriers and tracking shipment progress throughout the entire journey, on top of an already longer transit time. To complicate matters, new customers are, understandably, more apprehensive about ordering from what they perceive as a “foreign country,” meaning a delayed shipment could absolutely devastate customer satisfaction and any chance of repeat business. The importance of a shipping label in identifying packages for customs purposes cannot be overstated.
Increased Costs
Cross-border shipping is often significantly more expensive than domestic shipments. International shipping rates, in addition to duties and taxes, can quickly eat into profitability if not managed carefully. Shipping fees can vary based on the carrier, service level, and geographical destination, making it crucial to factor these fees into overall shipping costs. Without an effective cost management strategy, international shipping can easily become a resource drain, especially for smaller companies.
Customer Expectations
As mentioned above, new customers tend to be more apprehensive and suspicious of foreign companies, especially smaller ones that are new to the scene. This means that managing customer expectations is an absolute necessity. Meeting your delivery promise, transparent tracking, shipping charges, and easy returns are all but expected by the average consumer, adding to the growing challenges of cross-border ecommerce shipping.
Ecommerce SMEs need to be able to do more than simply understand these challenges. In order to make international shipping successful, they need to conquer these challenges and do it in such a way as to put themselves beyond the reach of their competitors.
Essential Cross-Border Shipping Strategies for SMEs
There are a number of ways to approach international shipping successfully, as most strategies are incredibly dependent on the size of the enterprise and the type of goods being sold. Unfortunately, this means there isn’t a “one-size-fits-all” type solution. However, even without the magic bullet for logistics, there are several good-sense international shipping solutions that can help SMEs be successful in their cross-border endeavors. Developing a comprehensive ecommerce shipping strategy by evaluating various shipping carriers, methods, and solutions is crucial for catering to diverse business needs and consumer demands.
Leveraging Shipping Technology
Technology is about as close as the world comes to the magical fix for logistics challenges. Today, it’s all but impossible for businesses to survive without technology to some degree. Fortunately, there is a considerable amount of software that specializes in cross-border logistics. The most notable in this case is software that can automate various shipping processes, such as label generation or producing customs documentation. Additionally, systems that provide insight into operations and offer route optimization and carrier selection can improve delivery times while reducing overall shipping costs. Technology can also help businesses offer free shipping by optimizing costs and improving efficiency.
Partnering with Global Carriers
An often underrated logistics strategy is simply being a good customer for carriers. Carriers are often subject to the peaks and troughs of demand, and usually to a degree of feast or famine. Sustainable cross-border ecommerce shipping gives them consistent business, which, in turn, generally means a healthy discount for partners in good standing. Selecting appropriate shipping methods based on cost, speed, and customer expectations is essential for enhancing overall customer satisfaction.
Perfecting Reverse Logistics
In the world of ecommerce, what goes out will often come back. Customer returns are simply a part of doing business. However, ensuring the returns process is quick and painless goes a long way toward fostering trust with new customers. Coincidentally, a well-managed reverse logistics process also tends to be more cost-effective and efficient for the enterprise as a whole, so it’s a win-win. Understanding shipping prices can help in setting competitive rates, balancing customer satisfaction, and cost-efficiency.
Prioritizing Communications
Communication with customers is probably in line with choosing which carrier a company uses to ship orders in terms of importance. Customers want to know where their order is at every stage of the shipping process, with the most minimal level of inconvenience possible. Doing so makes customers more understanding if and when a delay occurs. Failure to do so likely means they will never order from that company again.
Implementing these good-sense strategies not only helps SMEs simplify their cross-border shipping operations but also creates a more efficient and profitable operation overall.
Ecommerce Shipping Carriers for Cross-Border Shipping
When it comes to cross-border shipping, selecting the right carrier is crucial to ensure timely and cost-effective delivery. The right ecommerce shipping carrier can make a significant difference in your shipping strategy, impacting both customer satisfaction and your bottom line. Here are some popular ecommerce shipping carriers for cross-border shipping:
- UPS: Known for its extensive global network, UPS offers a range of international shipping services, including UPS Worldwide Express and UPS Worldwide Expedited. These services are designed to meet various delivery speed and budget requirements, making them a versatile choice for many businesses.
- FedEx: FedEx is renowned for its fast and reliable international shipping services. Options like FedEx International Priority and FedEx International Economy cater to different needs, whether you require expedited delivery or a more cost-effective solution.
- DHL: DHL is a leader in international logistics, offering services such as DHL Express Worldwide and DHL Economy Select. Their expertise in cross-border shipping ensures that your packages are handled with care and delivered promptly.
- USPS: For more affordable international shipping options, USPS provides services like USPS Priority Mail International and USPS First Class Package International. These options are particularly beneficial for smaller businesses looking to manage shipping costs effectively.
- Starlinks: As a global player in ecommerce logistics, Starlinks specializes in providing end-to-end international shipping solutions, making it a strong partner for businesses looking to optimize their cross-border delivery network.
- APG eCommerce: With a focus on simplifying international shipping, APG eCommerce offers comprehensive services that cater to diverse ecommerce needs, including reliable tracking and delivery solutions across multiple countries.
- Quantium: A regional specialist with deep expertise in Asia-Pacific markets, Quantium delivers efficient shipping solutions tailored to specific local requirements, making it an ideal choice for businesses targeting this area.
- Nova Poshta: Serving Eastern Europe and beyond, Nova Poshta is known for its extensive regional network and flexible delivery options, ensuring that ecommerce shipments reach customers quickly and reliably.
By carefully selecting the right shipping carriers, ecommerce businesses can enhance their shipping strategy, ensuring that international shipments are delivered efficiently and cost-effectively.
Calculating and Optimizing International Shipping Costs
Calculating and optimizing cross-border shipping costs can be complex, but there are several strategies to help reduce costs. Effective cost management is essential for maintaining profitability in international shipping. Here are some tips to help you navigate this challenge:
- Use the right packaging: Choose packaging that is the right size for your products to avoid unnecessary dimensional weight charges. Oversized packaging can lead to higher shipping costs, so it’s important to select boxes that fit your items snugly.
- Use lightweight packaging materials: Using lightweight packaging materials can help reduce dimensional weight and lower shipping costs. Materials such as bubble wrap, foam inserts, and packing peanuts can provide protection without adding significant weight.
- Consider using flat rate shipping: Flat rate shipping can help simplify shipping costs and avoid dimensional weight charges. With flat rate shipping, you pay a fixed price regardless of the package’s weight or size, making it easier to predict and manage shipping expenses.
- Clear labeling: Use clear and concise labeling to ensure that your packages are delivered to the right address. Include all necessary information, such as the recipient’s name, address, and contact details, as well as any required customs documentation. Proper labeling helps prevent delays and ensures that your packages reach their destination without issues.
By implementing these strategies, ecommerce businesses can optimize their shipping costs, making cross-border shipping more affordable and efficient.
Grow Your Cross-Border Shipping with Metapack Shipping Carriers
For emerging and established enterprises seeking to optimize their cross-border shipping procedures, collaborating with a provider like Metapack equips ecommerce with a suite of technology-based solutions that puts customers at the forefront of operations.
Seamless Carrier Integration: Metapack provides access to a network of carrier integrations, empowering companies to effortlessly link up with various shipping partners to select carriers for destinations based on considerations such as cost, speed, and dependability.
Streamlined Customs Procedures: Navigating the complexities of customs can be a challenge, but Metapack simplifies matters with customs management functionality. This functionality helps adhere to international regulations and prepare the necessary documentation efficiently to minimize delays and enhance shipping operations.
Innovative Strategies for Returns: With functionalities for simplifying return labeling and monitoring, businesses can deliver a seamless returns experience to customers, fostering loyalty and increasing repeat sales. Additionally, offering free shipping can enhance customer loyalty and conversion rates by addressing shopping cart abandonment and providing a competitive edge.
Tracking and Transparency: Metapack offers branded tracking features that empower businesses to keep customers updated at each stage of the shipping process. This transparency not only boosts customer trust but also assists small and medium enterprises in setting expectations for a smoother journey for all parties.
Click here to learn more about how Metapack can help your company tackle cross-border shipments.
