How to Ship Products Internationally for Your Small Business

As a growing small business, you want more customers. Obviously. The more you expand into new markets and build loyal customers, the more your business will grow. 

Which is why international shipping can be a huge boost – the world is your customer base and any market is yours for the taking.

International shipping can also be daunting. Where do you start? What are the costs? What are the factors you need to consider when your customers live in different countries?

These are valid questions, especially at a time when ecommerce is gaining momentum.

The largest eCommerce markets in the world are, in order of size, China, the United States and the UK.

Online retail sales are anticipated to reach one-quarter of global retail sales by 2027.

57% of online shoppers shop internationally.

With these tasty statistics in mind, it’s easy to see why your small business can really benefit from moving into international sales (and why you need the right shipping solution to maximize those sales).

So, let’s make international shipping as easy as possible for your small business.

The Benefits of International Shipping

There are several benefits to expanding your online business into international markets.

More Customers

You open your doors to more customers in new markets which means growth and increased sales if managed correctly.

This expansion also means you get to extend your brand identity. With the right service, shipping and pricing, you can build a positive reputation and identity in other countries.

More Seasonal Product Opportunities

You can sell items at any time of the year. Different cultures have different seasonal requirements which means you can benefit from all-round sales instead of seeing a dip in sales during traditionally quieter times of the year.

A great example of this would be winter clothing – you can sell your winter items to the southern hemisphere while the northern hemisphere is enjoying summer and build a whole new loyal customer base.

International Partnerships

You can potentially find partnerships with other small companies in other countries which will allow you to increase the variety of your stock offering to your existing customers while building a stronger foundation internationally.

Your customers will enjoy the fact that they can rely on a trusted retailer to send them the items they want on time and at the right price, no matter where they are in the world. International customers need to trust in you to deliver the products they paid for without hassle or risk.

There are plenty of scams and scammers, so if you use a trusted shipping service, provide insurance and have a solid reputation, people will rely on you for their goods and services.

Of course, all these benefits add up to one wonderful conclusion – you can potentially increase your revenue, which is always a great thing for a small business.

The Compliance Question

When it comes to international shipping you want to work with a trusted partner because there are compliance and regulatory hoops you’ll need to jump through.

Different countries have different expectations so you need a reliable shipping partner - USPS, DHL and other well-known shipping brands have experience with international markets and their requirements so they can help you navigate these legal complexities.

Some of the most important things you need to consider are:

Customs charges

These vary from country to country and do require a lot of homework to ensure you’ve got the right documents and have paid the right fees.

It’s a good idea to manage your international expansion slowly so you can get to know a country’s customs requirements and paperwork properly. This is less daunting for you and there is less chance of making an expensive mistake.

Taxes

If you’re registered for Sales Tax, then this will also require you have paperwork and costs in hand before you ship to an international customer. Some companies do make the customer pay the Sales Tax and import duties but that can be very off-putting for customers.

Before you ship to a new country, get to know the Sales Tax and other requirements so you can make informed decisions.

Customer visibility

Once you know how taxes, shipping, customs and duties affect the costs of your items, make sure your customers understand the breakdown and how this affects their purchases.

If a customer knows exactly how much these extras will cost upfront (or if you bake these costs into your shipping fees for international customers) then they will be more comfortable shopping with a trusted retailer.

Start small, grow bigger

This is not just in terms of how many markets you decide to expand your business into, but the size of the items you ship.

It’s a good idea to focus on selling and shipping smaller items before you move onto larger ones as these are easier to manage, more cost-effective to navigate through customs, and cheaper to package.

Small items or packages that aren’t very heavy are appealing to your customers because they are cost-effective and even more appealing to you because they are easier to package and cheaper to ship.

Sticking with the start small theme, it’s also worth spending time thinking about the type of product you want to sell internationally. 

You need to think about market demand, cultural differences, and reach. For example, selling camo-colored coats would be perfect in any country except Barbados, or yellow clothes would be hugely successful anywhere except Malaysia. Both those countries have very specific bans in place that would affect your business.

The upshot? Get to know the culture, unpack market demand, check out the competition, and ensure your items are a good fit.

International shipping affects your pricing too

Regardless of whether your items are large or small, when you ship abroad you do have to factor in extra costs. 

There is the packaging, the customs duties, the local import duties and more. You must sit down with a clear breakdown of all these costs so you can establish how they will affect your profit margins and whether or not you need to increase product pricing to cover your costs.

Remember: If you increase the cost of the product too much, it could become too expensive for your customers. It is a fine balance.

Your international shipping top 5 checklist

Shipping internationally invariably means that your packages are going to be bumped around a lot more than if you ship locally. It’s important to focus on the right packaging and including as much packing material as possible to reduce the risk of breakage or damage.

You also need to consider:

1. Insurance

It’s a good idea to invest in ecommerce business insurance as it protects your business and your assets. As you know, if something can go wrong, then it very well may go wrong so if you have the right insurance, you’re protected and prepared for the worst.

Business insurance is a smart way of staying ahead of the game and protecting you, your products and your customers.

2. The right shipping software

You want to reduce the cost of shipping as much as possible as this affects your pricing and your customer engagement. Instead of customers abandoning their carts because international fees are too high, you can offer them superb value with a trusted partner.

Veeqo is free shipping software that offers you low rates because of pre-negotiated pricing from leading international couriers that includeUSPS and DHL. You can also look at automating your shipping using shipping software to reduce your admin burden.

3. Tracking

Most international shipping companies offer you tracking for your international shipments which offers both you and your customer immense peace of mind.

DHL has real-time shipment status, which is great, plus they offer business-day and same-day options for international shipping as well. This means you get to add speedy service on top of reliability for your customers.

4. Flat rate shipping

This is great if you want to keep things as simple as possible. Flat rate shipping is a standard rate you pay to USPS so you don’t pay extra.

You can then pass this cost onto the customer – a set rate that means no surprises at checkout. It’s a great way of managing costs and expectations for everyone.

5. Manage your inventory

When you’re shipping some products overseas, some locally and others to both, you’re going to hit some complications.

Instead of feeling as if you’re navigating some crazy maze made up of products and stock levels, consider using an inventory management control software that’s designed to actively manage your inventory levels and give you complete visibility and control.

6. Shipping labels

These are essential for small businesses as they help you manage shipping effectively. If your packages have the wrong shipping information, they can get lost or arrive late.

In our in-depth guide to shipping labels, you can find out more about the importance of shipping labels for small businesses and how they can help you deftly manage international shipping.

Veeqo can help you manage multiple parts of your international shipping business and with making sure your shipping costs and inventory management are as seamless and easy as possible.

Create your free Veeqo account today and discover international shipping made simple.