Webinar Recap: How Simplifying International Shipping Can Accelerate Business Growth

Does your brand have what it takes to succeed internationally? Expanding your business internationally can be a significant growth opportunity, but many merchants hesitate to take this step due to perceived complexities and costs. 

To help simplify the process, ShipStation and GlobalPost recently hosted a webinar featuring industry experts Rigo Gonzalez and Shea Felix, who shared valuable insights on how international shipping can fuel business expansion. In this blog, we’re recapping the highlights of the conversation, including the state of global ecommerce, how to simplify international shipping, understand customs, and effectively grow your business in global markets. Follow along and watch the full webinar here.

Why Consider International Shipping?

International shipping presents numerous advantages for businesses ready to take the leap. Understanding these benefits can help you make an informed decision:

1. Diverse Customer Base: Expanding your market geographically allows access to a wider pool of potential customers, increasing sales opportunities.
2. Higher Average Order Value: Studies show that the average order value for international sales is 17% higher than domestic orders. This increase can significantly impact your bottom line.
3. Competitive Advantage: As many businesses hesitate to venture into international markets due to perceived complexities, those who take the plunge can find themselves ahead of the competition.

The State Of Global Ecommerce

Despite the prospect of new customers and growth, many merchants are hesitant to expand into international markets. So what’s keeping merchants from global domination?

1. Shipping Costs: Live poll data from the webinar showed that the top two main international shipping concerns for merchants are shipping costs and tariffs. International orders can result in high shipping fees that deter customers and increase cart abandonment rates, but that’s not always the case. When using a service that offers discounted rates like GlobalPost with Shipstation, domestic and international shipping costs can be nearly identical—sometimes it’s even cheaper to ship internationally! 
2. Customs and Duties: Aside from just shipping costs, the complexity surrounding customs documentation can be daunting, including concerns about tariffs, taxes, and regulations.
3. Speed and Reliability: Customers expect timely delivery. Delays in customs or transportation can hinder the overall customer experience.
4. Localization Challenges: Adapting your online presence and customer service to different markets can require significant resources.

In the webinar, Rigo expands on the customs process, “A customs declaration just lists all the items within a shipment when that shipment crosses international borders. Customs agencies require customs forms to help them regulate the flow of goods in and out of each country, so it’s country-dependent. One of the great things about ShipStation is that it will automatically create customs declarations for orders that import or are created with an international shipping address.”

Overcoming Common Challenges With International Shipping 

Navigating Customs Requirements

The panelist emphasized that properly completing customs documentation is crucial for preventing shipment delays. Key insights included:

• HS Codes: Understanding Harmonized System 16-digit codes that categorize products for customs is essential for smooth clearance.
• Automation: ShipStation automates the generation of customs forms, significantly reducing the complexity for merchants.

Shea notes that many merchants don’t realize how much detail is required when it comes to tariff codes, 

“Surprisingly, we find that a lot of merchants aren’t providing tariff codes with their orders, which is a concern because you need to give as much information as possible about your goods when they clear the border to expedite the clearance process and assure they’re being taxed properly. So, a tariff code requires a little bit of research up front, but there are plenty of free tools out there for merchants to use to streamline their processes.”

Use GlobalPost’s free HS classification tool to quickly identify the correct code for your international shipments.

Managing Duties and Taxes

Duties and taxes are fees imposed by customs authorities on imported merchandise. The fees are based on the value of the products, shipping costs, and any insurance on the items. 

Two primary models for handling duties and taxes were discussed:

• DDU (Delivered Duty Unpaid): The customer pays duties and taxes upon delivery.
• DDP (Delivered Duty Paid): The merchant covers any duty and tax costs upfront.

The experts recommended that merchants educate themselves on these options to enhance customer experience and manage expectations appropriately.

Understanding De Minimus

Merchants can’t successfully ship internationally without understanding “de minimus”. De minimis refers to a threshold value for imported goods below which duties and tariffs are waived. If your shipment’s value falls under the de minimis threshold, your customer won’t have to pay these additional costs. 

In the webinar, Shea sheds light on the complexity of de minimus, 

“De minimus is a line to think about when taxes start for certain countries…We’ve seen in the last few months how much taxes have changed with all the new tariffs. Countries are looking at different ways to collect tax money on lower value goods and pushing de minimus down quite a bit to capture taxes on lower value goods.”

Learn more about de minimis, tariffs, duties, and taxes here.

Realistic Delivery Expectations

Shipping can be unpredictable domestically, so when global markets are involved, it can get even more uncertain. International shipping naturally takes longer than domestic delivery due to complex factors like customs processing. 

However, average delivery dates don’t account for customs, so it’s important for merchants to set realistic expectations for their customers. On average, the ideal international shipping is about 7 business days. The panel stressed the importance of clearly communicating realistic timeframes to customers to avoid disappointment and reduce support inquiries.

A Strategic Approach to International Expansion

The webinar panelists made a compelling case that effective international shipping is not just a logistical consideration but a crucial strategic component for modern ecommerce growth. By understanding customs protocols, managing shipping costs wisely, and embracing automation through tools like ShipStation, businesses can confidently expand globally while meeting customer expectations efficiently. Get started today with a free trial—no credit card required.
Note: In the webinar, we planned to go through a live demo of how to set up international shipping in ShipStation, but technical difficulties got in the way. You can view the live demo separately here!