Are you ready to take your ecommerce business globally?
Today’s shoppers expect international shipping, and many online stores are rushing to meet that expectation. Especially as the move to sell overseas provides an opportunity to reach a larger audience. According to the 2023 Inside Australian Online Shipping Report, 6% of International customers bought from Australian retailers in 2022. It’s estimated that around 2.7 billion customers shop online, so 6% works out to be around 162 million, which is more than 6 times the entire population of Australia!
However, you need to consider a few things before offering international delivery. There are commercial invoices, customs information, and tax rules that you should wrap your head around. If you're importing goods, there's even more to think about.
In this article, we highlight the top ten things you need to know before offering international delivery.
Let’s go!
1. Packaging Matters
Shipping items over long distances requires high-quality packaging, especially for fragile items. We recommend using a double-corrugated box for all your international deliveries. These provide extra protection against sudden impacts and rough handling during transit, reducing the risk of breakage and damage.
Here are some valuable packaging tips to consider:
- Avoid overfilling packages to maintain their shape and prevent warping that can affect measurements.
- Couriers measure the largest dimensions automatically, regardless of whether they are part of the box, so ensure there are no loose ends or excessive sealing.
- Round up dimensions by one to two centimeters to account for potential bumps and shape changes on automated conveyor systems.
- When measuring your parcel, place the box against a wall for the most accurate readings.
- Double-check your measurements to ensure accuracy before the courier arrives.
- Take photos of the dimensions you've recorded to have evidence in case of disputes regarding the box's measurements.
These tips will help you ensure your parcels are properly packaged and accurately measured for successful international shipping.
Properly labeling your parcel is equally essential. International shipments involve a complex network of carriers and customs processes, and accurate labeling is crucial for a seamless journey. Include all the necessary details, such as the recipient's address, your return address, and any required shipping labels or customs documentation.
2. Complete a Commercial Invoice
The most important document you must complete for international delivery is the commercial invoice. Filling it out incorrectly doesn't just result in delays. It costs you money. There are five items you need to specify:
- The country of origin where the merchandise is from.
- Your name and address, as well as the recipients.
- A detailed description of the item, including what it's made of and used for.
- Quantities and weights of the product.
- The purchase price of each item.
You can use a customs broker to help process the item. However, if you're shipping with Interparcel, the carrier you've chosen inherits this responsibility, and they will manage everything on your behalf. To help them out, be sure to include these extra details:
- A tariff code.
- A certification of origin.
- A copy of known Free Trade Agreements, if it's required.
3. Choose Your Courier Wisely
Many international courier providers would love to deliver your parcel. But you need to choose the one that meets your unique business requirements. That means reviewing their costs, speediness, and the countries they service. If you don’t know where to start, get in touch with our team of shipping solution experts, who can point you in the right direction.
You’ll want to find a balance between cost and estimated delivery time. Utilising multiple carriers can offer flexibility and efficiency, optimising shipping operations. You’ll also benefit from a diverse range of services that ensure parcels are delivered swiftly and at competitive rates.
4. Insurance is Crucial
Items travelling overseas face the risk of damage or loss. Transit insurance protects your business from financial losses arising from these occurrences. It covers the costs incurred, so you’re not left out of pocket.
With Interparcel, the first $100 of transit insurance coverage is free with the service. For items worth more, the cost is calculated at 2% of the item's value up to a maximum of $2,000. Just note that ATL services are not covered under this warranty.
5. Know the Rules
Familiarise yourself with the restrictions for the countries you plan on shipping to. Different regions enforce rules for items crossing their borders. It’s vital to comply with guidelines to avoid issues with customs or potential fines for transporting prohibited items.
Every package, irrespective of its size, must be cleared by customs. Providing accurate paperwork can speed up the process. You’ll need a customs form from the originating country and another for the destination country. It's crucial to complete both to ensure the safe delivery of your parcels to their intended location.
6. Understand International Taxes
If you want to ship your parcels worldwide, then you're going to need to ensure you have a thorough understanding of the various international duties and taxes before booking. You'll also need to stay up to date with any changes that may occur.
For example, in 2021, the European Union changed its VAT rules. It removed the import VAT exemption and introduced an import one-stop shop. The situation is different in the US and other countries too. However, when you choose the right international courier service, they can walk you through all the necessary steps to help avoid delays and surcharges.
7. Set Realistic Delivery Expectations
Naturally, international shipping involves longer delivery times compared to domestic services. As such, you’ll need to find ways to keep customers updated on the parcel's status. It could be through email or SMS notifications. Alternatively, you can refer them to an online portal for updates.
Another solution is to provide live shipping rates at checkout. This feature comes with estimated delivery timeframes so customers can plan ahead to accept it. Plus, if the item is received within the period promised, they will likely shop with you again.
8. Importing Your Products
If you want to sell products from overseas in Australia, take the time to also learn about importing goods into the country.
Importing has many benefits, including reducing production costs, increasing revenue, and offering a unique product range that may not be available here. Australia imports around $187 billion per year, which includes not only oil but also smartphones ($8.5 billion), computers ($7.2 billion), and delivery trucks ($7.5 billion).
Much like exporting, you'll need to understand the tariffs and taxes you may have to pay. It's also vital to correctly label and package products before they get sent here. Thankfully, Interparcel specialises in importing goods. You can gain the experience of using expert carriers like TNT and UPS to help clear your items when they arrive.
9. Strategic Shipping Promotions
Shipping internationally isn’t cheap. You’ll need to find a way to maintain these costs while remaining competitive. You can shop for the best courier that meets your budget requirements. Another option is to get strategic around shipping promotions. Here are some popular options:
- Free shipping: This solution can meet customer expectations and decrease cart abandonment rates. But free shipping does come at a cost to your business. Consider setting a threshold before a customer is eligible for it. If you need alternate strategies for this offering, check out this article.
- Flat rate shipping: Offering a fixed rate for delivery allows customers to budget while shopping on your store properly. However, you’ll need to be careful with the amount you set so you don’t run at a loss.
- Live shipping rates: Put the decision on how much to charge in the hands of your customers. Providing full transparency at checkout not only builds trust but also reduces cart abandonment rates. Watch this video to find out how to activate it.
- Mix up your shipping strategies: No rule says you can’t regularly change delivery promotions. Mix it up throughout the year and showcase your best offers during peak sales periods.
10. Speed Up Your Shipping Fulfilment
International shipping is more complicated than sending parcels domestically. But that doesn’t mean it should take up precious time in your busy day. There are solutions available that can speed up your fulfilment processes without sacrificing quality. Some Interparcel tools you should consider are:
- Shipping Manager: Compare rates from multiple international courier providers in one place to find services that meet your requirements and budget.
- Branded Tracking Portal: Give customers access to a personalised parcel tracking portal showcasing your brand and logo. They can monitor their delivery progress at every stage.
- Rule Manager: Automate repetitive tasks for more efficient fulfilment. For example, you can create shipping rules for products destined for particular countries or choose specific couriers for certain destinations.
- Smart Boxing: Let our algorithm recommend the most cost-effective method to prepare multi-item orders.
Automating shipping processes reduces errors and can support you as you expand your ecommerce empire.
How to Make International Delivery Easy
Interparcel makes it easy to navigate international delivery. We send thousands of packages daily to over 250 countries and territories using the cheapest and fastest parcel delivery services. Some of our carriers are internationally recognised solutions, such as UPS, TNT, and FedEx.
The best part is that it’s free to set up an account. Head to this page to sign up and start your global expansion today.
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