Increasing Sales With International Shipping and Fulfillment

Ecommerce brands looking to increase sales and lower logistics costs can rely on numerous tactics, including ecommerce personalization or outsourcing fulfillment services. International shipping is another great way to increase sales, but the process can be very intimidating. OWD strives to alleviate the stigma around international shipping for our clients, especially during frantic ecommerce periods, such as peak season.

International shipping and fulfillment are essential for any ecommerce business looking to tap into the global market. For ecommerce sellers, navigating these complexities can be daunting but incredibly rewarding. Having the right fulfillment partner to handle international shipping ensures timely deliveries, enhances customer satisfaction, and builds brand loyalty.

However, several challenges are associated with online shopping, such as managing shipping costs, handling returns, or dealing with customs compliance. This guide will give you the full rundown on starting and thriving with global ecommerce, helping you streamline your operations and seize new market opportunities.

Understanding International Shipping and Fulfillment

International Shipping and Fulfillment is the process of transporting goods across borders and ensuring they reach the end customers in various countries. This involves handling logistics, customs documentation, and efficient delivery mechanisms to ensure timely and cost-effective operations.

Key Components of International Shipping and Fulfillment

1. Transportation

  • Air Freight: Ideal for high-value or time-sensitive products. Provides quick transit times but at a higher cost.
  • Ocean Freight: Suitable for bulk shipments with longer lead times. More economical than air freight but requires meticulous planning.
  • Land Freight: Often used for cross-border shipments within the same continent. Balances cost and speed effectively.

2. Customs Compliance

  • Documentation: Includes commercial invoices, packing lists, certificates of origin, and more.
  • Duties and Tariffs: Calculated based on product categories, value, and destination country regulations.

3. Fulfillment Centers and Last-Mile Delivery

Fulfillment centers are crucial hubs in the international logistics network, responsible for storing inventory, processing orders, packaging products, and managing returns. These centers enable businesses to position their products closer to end customers, significantly reducing shipping times and costs. For instance, a logistics partner with a fulfillment center in Amsterdam can strategically distribute products throughout Europe, enhancing delivery efficiency.

Beyond just storage and processing, fulfillment centers are integral to the last-mile delivery process. They ensure that packages reach the final destination—the customer’s address—by coordinating with local carriers or postal services. An international distribution center equipped with advanced technology further streamlines operations by integrating with various ecommerce platforms and automating workflows, ensuring a seamless fulfillment process from start to finish.

This combination highlights how fulfillment centers not only manage inventory and order processing but also play a vital role in ensuring efficient last-mile delivery, ultimately improving the overall customer experience.

Understanding these components allows businesses to streamline their global fulfillment services, ensuring they can meet customer expectations across different markets.

Benefits of Global Ecommerce Fulfillment Services

Global ecommerce fulfillment centers can be a comprehensive solution for managing every aspect of international shipping and logistics for ecommerce sellers. These services encompass everything from warehousing and inventory management to order processing, picking and packaging, and final delivery to the customer. By leveraging an international 3PL, businesses can streamline their fulfillment strategy and focus on core business activities.

Advantages for Ecommerce Businesses

  • Faster Delivery Times: Utilizing global fulfillment centers strategically located around the world enables quicker delivery, minimizes transit times, and enhances customer satisfaction.
  • Improved Global Customer Satisfaction: While domestic 3PLs can ensure timely and accurate deliveries, international 3PLs specialize in navigating the complexities of cross-border logistics. They offer enhanced packaging, real-time tracking, and region-specific customer service, which are crucial for maintaining high levels of satisfaction among international customers.
  • Cost Efficiency in Global Operations: International 3PLs offer cost advantages by consolidating shipments and leveraging their global network to reduce shipping costs. Unlike domestic 3PLs, which may struggle with international shipping complexities, international 3PLs have the expertise and infrastructure to optimize costs across multiple regions, reducing the overall cost burden on businesses.
  • Expertise in Compliance: Global ecommerce experts are well-versed in international shipping regulations, customs processes, and documentation requirements. Their expertise helps avoid delays and penalties associated with non-compliance.

Navigating Shipping Costs and Customs Duties in International Fulfillment

Cost reduction in international shipping is crucial for your ecommerce business. Factors influencing shipping costs include:

  • Packaging Considerations: International shipments often require more protective packaging due to the longer distances and increased handling. This additional material can increase both supply costs and the package’s overall weight, leading to higher shipping fees. Optimizing packaging without compromising protection is essential for managing these costs.
  • Shipping zones: Distance plays a vital role. Shipping to more distant areas costs more than delivering to domestic customers.
  • Shipping speed: Expedited services come at a premium. Balancing speed with cost can help manage expenses without compromising customer satisfaction. Although you likely won’t be able to achieve overnight shipping, having fast international shipping speeds is a distinct advantage.

Understanding Customs Duties and Tariffs

Customs duties and tariffs are taxes levied on imported goods. These charges vary by country and product type and directly impact your bottom line.

Key strategies to minimize these expenses:

  • Classify products correctly: Proper HS (Harmonized System) classification can lower duty rates. Misclassification may result in higher fees or penalties.
  • Leverage free trade agreements (FTAs): FTAs between countries can reduce or eliminate tariffs on specific goods, providing substantial cost savings.
  • Work with a reliable 3PL partner: Collaborating with an experienced 3PL ensures compliance with customs regulations. They offer expertise in documentation, duty management, and tariff classification, streamlining the process.

Role of a Reliable 3PL Partner

A dependable 3PL partner like One World Direct (OWD) offers tailored solutions to mitigate shipping costs and customs duties:

  • Expert consultation: Guidance on optimal shipping methods and cost-effective routes.
  • Duty Management Services: Efficient handling of duties, ensuring compliance while minimizing expenses.
  • Technology integration: Advanced software tools and AI logistics solutions for accurate customs declarations and real-time tracking.

By understanding the factors driving shipping costs and effectively managing customs duties, you position your business for global success while maintaining a competitive edge in pricing.

Ensuring Customs Compliance for Smooth International Deliveries

Proper customs compliance is essential to avoid delays or penalties during the international shipping process. A meticulous approach to documentation ensures your shipments move seamlessly through customs, safeguarding your customer satisfaction and brand reputation.

Key Documents for International Shipments

  • Commercial Invoice: This document provides detailed information about the shipped goods, including their value, description, and quantity. It serves as a primary reference for customs officials to assess duties and taxes.
  • Packing List: Outlines the contents of each package, their weight, and dimensions. It helps customs officials verify that the commercial invoice matches the physical shipment.
  • Bill of Lading (BOL): Acts as a receipt from the carrier and a contract between the shipper and carrier. It includes shipment details and serves as proof of ownership.
  • Certificates of Origin (COO): Some countries require this document to determine if goods qualify for preferential duty rates under trade agreements.

Importance of HS Codes and VAT/IOSS Numbers

  • HS Codes (Harmonized System Codes): These standardized numerical codes classify traded products. Accurate HS codes are critical for determining applicable duties, taxes, and import regulations. Misclassification can lead to fines or shipment delays.
  • VAT/IOSS Numbers: Value-Added Tax (VAT) numbers or Import One-Stop Shop (IOSS) numbers are crucial for shipments into the EU. They streamline tax collection on cross-border sales, reducing administrative burdens and improving delivery speeds.

Best Practices for Customs Compliance

  • Accurate Documentation: Ensure all forms are filled out precisely with consistent information across documents to prevent discrepancies that could flag shipments for inspection.
  • Regular Training: Keep your team updated on international shipping regulations and documentation requirements through regular training sessions.
  • Leverage Technology: Utilize automated customs declaration software to reduce human error and improve efficiency in documentation preparation.

Adhering to these practices enhances the likelihood of smooth international deliveries and minimizes disruptions that could impact your global operations.

Overcoming Shipping Restrictions in Global Fulfillment Operations

Understanding and overcoming international regulations and shipping limitations is crucial for successful global fulfillment. Different countries have their own rules and restrictions that can greatly affect your shipping plans.

Common Shipping Restrictions:

  • Prohibited Items: Many countries have specific lists of items that are banned from import. For instance, Australia prohibits the import of fresh fruits, vegetables, and seeds. Similarly, Brazil restricts the import of certain electronics without proper certification.
  • Packaging Requirements: Some nations enforce stringent packaging standards to ensure safety and compliance with local laws. Germany mandates packaging materials to be recyclable, adhering to its Green Dot program. (Learn more about sustainable fulfillment.)
  • Special Handling Instructions: Items such as hazardous materials or perishable goods often require special handling and documentation. The United States enforces strict guidelines for shipping lithium batteries due to their potential risk.

Key Considerations:

  • Always consult the specific customs regulations of the destination country before shipping.
  • Utilize the expertise of a reliable 3PL partner like OWD to navigate these complexities.
  • Leverage technology tools that provide real-time updates on international shipping restrictions, ensuring compliance and minimizing delays.

Developing an Effective International Shipping Strategy

1. Leveraging Technology Tools for Seamless International Shipping Management

Leveraging technology is critical to maintaining an efficient and reliable international shipping strategy. Advanced tools streamline processes and enhance accuracy and customer satisfaction.

Key Technology Tools:

  • Tracking Systems: Real-time tracking systems provide transparency throughout the shipping process. They allow you and your customers to monitor the shipment’s journey from dispatch to delivery. This visibility reduces uncertainty and builds customer trust.
  • Automated Customs Declaration Software: Compliance with international customs regulations is non-negotiable. Automated customs declaration software simplifies the documentation process, ensuring that all necessary forms are accurately filled out and submitted on time. This minimizes the risk of delays or penalties due to incomplete or incorrect documentation.
  • Real-Time Inventory Management Software: Managing inventory across multiple international locations can be daunting. Real-time inventory management software and warehouse management systems keep track of stock levels, orders, and shipments in a centralized system. This ensures you have up-to-date information on product availability and can make informed decisions about restocking and order fulfillment.

Benefits of Technology Integration:

  • Enhanced Efficiency: Automation reduces manual tasks, leading to faster processing times and fewer errors.
  • Improved Accuracy: Automated systems ensure that data entry and documentation are consistent and precise.
  • Cost Savings: By optimizing shipping routes and consolidating shipments, technology tools help reduce transportation costs.
  • Better Customer Experience: Providing real-time updates on order status enhances customer satisfaction and loyalty.

In addition to these technological advancements, ecommerce personalization is becoming increasingly important in enhancing customer experience. Offering product customization options can significantly boost sales by catering to individual customer preferences. OWD offers personalized-to-consumer (P2C) fulfillment services for easy product personalization. Shoppers can customize products online with personalized engravings, embroidery, or direct-to-object printing. You can also customize packaging and include personalized greeting cards in orders.

2. Adapting Your Packaging Approach to Optimize Cost-Effective Shipping Solutions

Effective packaging design plays a crucial role in international shipping strategy. It needs to strike a balance between protecting products during transit and minimizing costs. Here’s how you can achieve that:

  • Material Selection: Choose durable yet lightweight materials. Corrugated cardboard, bubble wrap, and air pillows offer excellent protection without adding significant weight.
  • Size Optimization: Use packaging that fits closely around your product. Oversized boxes increase shipping costs due to dimensional weight pricing.
  • Custom Packaging: Incorporate custom inserts or molded pulp to secure items within the box. This reduces movement and potential damage during transport.
  • Eco-Friendly Options: Consider sustainable materials such as recycled paper or biodegradable plastics. They not only appeal to environmentally conscious customers but may also reduce tariffs in certain regions.

Implementing these practices ensures your packaging is cost-effective while maintaining product integrity. Leveraging real-time inventory management software helps monitor stock levels and streamline packaging processes. This software provides insights into which packaging sizes are most frequently used, allowing for bulk purchasing and further cost savings. Also, using kitting services, batch picking, and other picking techniques can help lower expenses.

3. Navigating Post-COVID-19 Challenges in Global Fulfillment Operations

The COVID-19 pandemic has fundamentally changed how consumers behave and how logistics networks operate, forcing businesses to rethink their international shipping strategy. Ecommerce saw an unprecedented increase as consumers shifted to online shopping, leading to a higher demand for efficient and reliable global fulfillment operations.

Impact on Consumer Behavior:

  • Increased Online Shopping: With lockdowns and social distancing measures, more consumers turned to ecommerce platforms.
  • Higher Delivery Expectations: Customers now expect faster delivery times and real-time tracking capabilities.

Impact on Logistics Networks:

  • Disrupted Supply Chains: Lockdowns led to factory closures and shipping delays, affecting inventory levels.
  • Fluctuating Shipping Costs: Air freight costs surged due to limited capacity, while ocean freight faced delays.

Strategies to Adapt International Fulfillment Processes:

  • Leverage Real-Time Inventory Management Software: Implement systems that offer real-time visibility into inventory levels across multiple fulfillment centers. Example: Use software that integrates seamlessly with your ecommerce platform to track stock levels and predict demand.
  • Diversify Supply Chain Sources: Avoid reliance on a single supplier or geographic region. Establish relationships with multiple suppliers across different locations.
  • Flexible Shipping Options: Offer various shipping methods, including expedited options for urgent orders. Consider partnering with multiple carriers to ensure flexibility and reliability.
  • Automated Systems for Customs Declarations: Utilize automated customs declaration tools to streamline the process and avoid delays. Example: Employ software that automatically generates necessary documentation based on shipment details.
  • Adaptable Packaging Solutions: Design packaging that can withstand longer transit times without compromising product integrity. Use durable and lightweight materials to optimize shipping costs.

Seizing Market Opportunities through Strategic Global Expansion

Exploring new markets for business growth requires a comprehensive approach. Identifying untapped markets where your products have high demand potential is critical. Start by analyzing market data and trends to uncover regions with increasing consumer interest in your product category. Utilize tools like Google Trends, industry reports, and local market research to pinpoint these opportunities.

Key Considerations:

  • Demand Analysis: Assess the local consumer behavior, purchasing power, and preferences. This will help you tailor your offerings to meet specific regional needs.
  • Competitive Landscape: Study existing competition in the target market. Identify gaps that your business can fill to gain a competitive edge.

Compliance with local regulations is non-negotiable when entering new markets. Each country has its own set of rules governing imports, product standards, and marketing practices.

Regulatory Compliance:

  • Import Regulations: Ensure that your products meet the import requirements of the target country. This includes adhering to safety standards, labeling laws, and obtaining necessary certifications.
  • Taxation and Duties: Understand the tax implications and duties associated with shipping goods internationally. Familiarize yourself with VAT/GST obligations and customs duties to avoid unexpected costs.
  • Legal Requirements: Stay informed about any legal requirements for doing business in the new market, such as registering your business entity or obtaining local licenses.

Overcoming Challenges in International Fulfillment Operations

Navigating the complexities of international order fulfillment presents several common challenges for businesses. These can significantly impact efficiency, cost, and customer satisfaction if not addressed properly.

Regulatory Issues

  • Compliance with varying regulations: Different countries have unique customs, import/export regulations, and documentation requirements. Failure to comply can lead to delays, fines, or even confiscation of goods.
  • Evolving trade agreements: Trade policies between countries can change rapidly, affecting tariffs and duties. Staying updated with these changes is crucial to avoid unexpected costs.

Unexpected Delivery Delays

  • Shipping disruptions: Natural disasters, political unrest, or global pandemics can disrupt shipping routes and schedules. Mitigating these risks often requires real-time tracking systems and contingency planning.
  • Carrier reliability: Not all carriers offer the same level of service across all regions. Choosing reliable partners and diversifying carriers can help ensure more consistent delivery times.

Managing Multiple Shipping Partners

  • Coordination complexity: Working with multiple carriers across different regions adds layers of complexity in coordination, communication, and tracking.
  • Technology integration: Integrating various carrier systems into your own logistics platform is essential for seamless operations but poses significant technical challenges.

Increased Returns Due to Unpaid Duties and Taxes

  • One significant challenge in international fulfillment is the increase in returns when customers are surprised by duties and taxes upon delivery. This often occurs because customers are unaware of these additional charges at the time of purchase, leading to dissatisfaction and refusal to accept the package.
  • How to Prevent Increased Returns: Companies can implement a Total Landed Cost Calculator at checkout to mitigate this issue. This tool provides customers with the full cost of their purchase, including duties and taxes, before they complete their order. By offering the option to pay these fees upfront, businesses can reduce the likelihood of returns due to unexpected charges.
  • Example: Passport Shipping offers a robust solution that integrates seamlessly into the checkout process, providing accurate calculations and the option for customers to pay duties and taxes in advance. This proactive approach not only improves customer satisfaction but also minimizes the risk of return-related costs, enhancing the overall efficiency of international fulfillment operations.

By proactively addressing these challenges with strategic planning and leveraging technology solutions, you can streamline your international fulfillment operations and enhance your global reach.

How to Start International Shipping

Starting to sell internationally can seem daunting, but with OWD’s expertise, the process becomes straightforward. Here’s a quick guide:

  • Choose Your Markets: Start by identifying which countries you want to ship to. Research is crucial—ensure your products are permitted and understand any country-specific regulations. Heatmaps can help you identify where your website traffic is coming from, guiding your target markets.
  • Find HS Codes: HS Codes are vital for international shipping and classify your products for customs. Use resources like the International Trade Commission’s site to find the correct codes for your items, which can prevent delays at customs.
  • Document Product Details: Accurately document each product’s customs description and value in your WMS. OWD’s system makes this simple, automatically transferring this information to the commercial invoice, reducing the risk of customs delays and unexpected fees.
  • Optimize Your Website: Ensure your site is equipped for international customers. Consider plugins for language translation, currency conversion, and international shipping options like DDP (Delivery Duties Paid) to provide clarity on fees and prevent returns.
  • Streamline Customs Data Transmission: With OWD, customs data is automatically included in the commercial invoice, both printed and electronically sent. This seamless integration reduces errors and accelerates customs clearance.
  • Prepare for Customs Inquiries: Be ready to address any customs queries swiftly. OWD’s team can handle these inquiries on your behalf, ensuring a smooth shipping process.

Since 1994, OWD has made international shipping less intimidating and more accessible, so you can focus on growing your business globally.

Client Testimonial: One World Direct's Success Stories in International Shipping Capabilities

When it comes to mastering the complexities of international shipping, One World Direct (OWD) stands out. A major carrier representative recently shared insights on OWD’s expertise:

"In my years working with various third-party logistics providers, One World Direct consistently demonstrates a superior proficiency in handling complex international shipments. Their ability to navigate intricate customs regulations and deliver timely, cost-effective solutions is unmatched."

Additionally, OWD can help with other crucial aspects of running an ecommerce business, including reverse logistics, lot management, and ecommerce customer service. Book a logistics consultation to learn more about a partnership and extending into international markets.

Frequently Asked Questions about International Shipping with One World Direct

Fulfillment Costs

Fulfillment costs are based on three criteria: size, weight and delivery time.

OWD offers five service levels: economy (7-10 days); Standard (5-7 days), 2-Day, Overnight and International.

Starting At

$3.99

Per Unit

FAQs

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International Shipping

The old way to ship internationally

DDU means Delivery Duty Unpaid – where the buyer pays for all of the import fees at delivery.

Unexpected import fees give buyers sticker shock – not good. When they refuse to pay, you’ve lost a sale and must pay to return your product, or abandon it.

DDU is an old idea whose time has passed. For these reasons and more, OWD doesn’t recommend DDU for e-com sellers.

The best way to ship internationally

DDP is an acronym for Delivery Duty Paid. DDP means that the seller pays for all the duties and import fees.

With DDP, your customers won’t be surprised with unexpected customs charges – good!

With OWD’s landed cost calculator, your foreign customers will know exactly what their various VAT, customers and duties will cost. No unhappy surprises.

Ship flat-rate anywhere in the world starting at:

$16.39

One World Direct, B.V.

For large-scale operations needing a full solution in Europe, there’s OWD Europe, based in Amsterdam.

We Make Contact Center EASY

Sell More with Live Agents

The Services

OWD handles phone calls, e-mails and web chat eighteen hours a day from our own state-of-the-art facility.

We’ll handle your inbound sales and customer service contacts.

You get career agents who speak American English and know how to sell.

The Costs

$99 gets you 200 calls, e-mails or chats handled every week.

You get your own phone number and custom e-mail.

We do a lot more. Call for details.

More than a Call Center

Get Virtual Assistants as needed

One World’s contact center in Mobridge, South Dakota.

The Voice of Your Brand

We Make Returns EASY

Returns? Yuck.
One World has a simple solution.

All-Inclusive Returns

OWD’s all-inclusive Returns service provides simplicity and high-end customer service. OWD includes a pre-printed return label as part of your packing slip. Your customer need only drop it in the mail.

What’s included: packaging slip with return label, QC inspection, re-bag, re-tag and return to stock. What’s excluded: postage cost, poly bags and any special packaging.

Base Price

$4.95

Add-On Services

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