The global eCommerce sector is booming more than ever, with cross-border sales projected to cross $7.9 trillion by 2030. For online stores, international shipping can open up many opportunities, markets, and revenue streams; however, all of this comes with a plethora of challenges.
We will look at some of the most important things you must secure to overcome these challenges and streamline your international shipping, but first, let us learn about the importance and complexities associated with the process.
Decoding the Importance and Complexities of International Shipping
International shipping entails much more than packing and sending your shipment across borders. A typical international shipping process involves balancing various aspects such as a complex web of regulations, extensive paperwork, comprehensive logistics, and customer relationships/expectations.
Any delays in your international shipping process caused by complex customs processes, changing import/export policies, or damaged/lost shipments can negatively impact customer satisfaction levels. To ensure you steer clear of any negative reviews or expensive mistakes, you must proactively address these challenges and implement policies that improve and optimize your critical business areas.
5 Things to Secure Before International Shipping
Now that we have learned about the merits and complexities associated with international shipping, let us look at the primary aspects to secure before you go ahead with the process:
#1 Clear Shipping Policies on Website
Did you know that 67% of customers check the shipping policy of an online store before making a purchase?
Creating and showcasing a clear and comprehensive shipping policy on your website is your first line of defense against any dispute or confusion your international customers may have. You can also leverage plugins from the eCommerce platform used to create your website or utilize website optimization software to easily integrate shipping policies.
The shipping policies on your website act as a bridge between you and your customers, and help you set clear expectations regarding shipping costs, delivery times, and shipping processes associated with returns or damaged goods. Not only this, you can even lower your cart abandonment rate and boost customer trust by displaying your shipping policy.
Some of the most crucial components to include in your shipping policy, especially if you are dealing with international operations, are:
- Estimated delivery times for each region
- Types of available shipping options and applicable shipping costs
- Cutoff times for order processing
- Details about customs duties and taxes
- Return, exchange, and refund procedures
Remember that shipping policy is not a one-time thing and may require consistent updates to reflect any changes in your delivery rates, regulations, or operational updates. You can have your in-house developer or opt for front-end development services to integrate a shipping policy generator that can streamline the process.
#2 Accurate Documentation
Whether you are just introducing international shipping on your online store or have been catering to international orders for a while, you should know that accurate documentation is a crucial component in the process. Any missing or incomplete paperwork can cause significant delays, fines, or even lead to your goods getting seized at customs.
Some of the key documents you must prepare for the shipping process include:
- Commercial Invoice: This document proves the transaction that has taken place between the buyer and the seller
- Packing List: This document contains all the contents, their dimensions, and the weight of the shipment.
- Bill of Lading/Air Waybill: This document serves as a contract between the carrier and the shipper
- Import/Export Licenses: This document is required if you are shipping in or out any goods that are restricted or require special permits.
- Certificate of Origin: This document will prove the location where the goods were manufactured.
Incomplete or inaccurate documentation is the most common cause of customs delays and penalties. To avoid this, ensure that you double-check all documents, stay updated on the documentation requirements for each country, and use digital tools to automate and manage all the paperwork.
#3 High-Quality Packaging
If you think packaging is just for the protection of your product, think again. When done right, your packaging can reflect your brand identity and, yes, it can protect the product against any damage, theft, or environmental hazards during transit. After all, international shipments are more prone to some kind of tampering or damage.
Using high-quality packaging materials such as corrugated boxes, metal containers, and wooden crates can provide significant protection to your products. Plus, you can add air pillows, bubble wrap, and foam inserts for cushioning and shock absorption during transit. Choosing the right packaging materials can ensure that you can manage your returns and replacements effectively and reduce negative reviews.
Lastly, you must ensure that your packaging meets the regulations of the destination country and contains handling instructions. For instance, if you are facilitating international shipping from Australia on your online store, you can switch to double-walled boxes and proper cushioning to reduce damage claims.
#4 Clarity on Customs and Duties
If you have been offering international shipping on your online store for a long time, you already know how confusing and frustrating it can be to deal with customs duties and taxes. You will deal with these costs, regardless of whether you are the online retailer or customer, depending on the destination country’s regulations.
The overall costs levied by the destination country are typically based on the type, value, and origin of the goods and include additional insurance and shipping costs. Letting customers know about these costs can keep your customer satisfaction levels up and prevent “price shock”. After all, nearly 48% customers abandon their carts because of unexpected costs during checkout.
Simple steps such as displaying estimated customs and duties during checkout and communicating the responsible party for payment of duties and taxes can be quite helpful. Ensure that you research the regulations and duty rates for every destination country before shipping to avoid any issues later.
#5 Comprehensive Insurance Coverage
With over 73% retailers facing issues with international shipments, you can never be too careful. Shipping insurance can help protect your business and customers from the financial impact of any lost, damaged, or stolen packages during shipment. Aside from the risks posed during transit, “porch piracy” or theft of shipments delivered to the porch is on the rise.
Insurance coverage is especially important if you are shipping valuable items, as it can usually cover the full value of your goods and shipping costs, thus minimizing your financial losses. Assess the value and the risk profile of your shipment to determine the appropriate insurance coverage for it.
There are three types of insurance coverage that you should be primarily aware of:
- Third-Party Insurance: These are customizable policies that are tailored to your products and shipping routes, thus covering their value and beyond.
- Carrier Insurance: These are insurance policies offered by shipping companies, wherein the coverage is limited to the declared value of your goods.
- All-Risk Insurance: This type of insurance policy can cover most types of damage or losses, except for specific exclusions.
For instance, if an Australian electronic retailer is shipping a package valued at $150 to Canada, it is a good idea to purchase at least third-party insurance. Doing so will ensure that in case of any damages, your insurance payout will cover the replacement and shipping costs.
Concluding Remarks
International shipping is a great way to boost the growth of your online store, and poses several challenges. You can minimize risks and maximize customer satisfaction by designing clear policies, securing accurate documentation, and reliable packaging. All in all, your international shipping process should be streamlined so that you can elevate trust and loyalty among your global customers.
