5 Strategies for Navigating International Shipping as a Small Brand
Navigating international shipping can be challenging for small and emerging brands who are just getting started in the wholesale or retail business. To expand globally without losing profits to shipping issues, it’s essential to streamline shipping processes and stay informed about regulations, costs, and customer expectations.
Expanding internationally can be a powerful growth strategy, but it requires careful planning and a strategic approach to shipping. By mastering customs regulations, choosing the right carriers, optimizing packaging, implementing clear return policies, and leveraging technology, small brands can compete on a global scale without sacrificing profitability or customer satisfaction.
Here are five effective strategies to help your brand confidently enter new markets and build lasting relationships with customers worldwide.
1. Understand Customs Regulations
Understanding customs regulations for each country is essential to avoid delays, fines, and returned shipments. Each destination country has unique import rules, so familiarize yourself with their requirements, especially regarding prohibited items, taxes, and duties.
Documentation: Correctly filling out customs documentation, like commercial invoices, certificates of origin, and customs declarations, is crucial. Mistakes in these forms can lead to shipment delays or penalties.
Duties and taxes: Some countries require customers to pay duties and taxes on delivery, which can lead to an unpleasant surprise for buyers. To enhance the customer experience, consider using a Delivery Duties Paid (DDP) model, where your brand pays these costs upfront.
2. Choose the Right Shipping Partners
Selecting the right international carrier or freight forwarder is critical for balancing budget, speed, and service quality. Major carriers like DHL, UPS, and FedEx offer comprehensive international shipping solutions with built-in tracking and customer support, though they can be costly. Alternatively, third-party logistics providers (3PLs) and freight forwarders might offer better pricing, especially for brands shipping high volumes.
Carrier comparison: Analyze carriers for their strengths. For instance, DHL is known for fast European shipping, while USPS offers affordable options for smaller packages globally.
Freight forwarders: Freight forwarders, such as Flexport or ShipBob, can help manage complex logistics, especially if your brand deals in larger shipments or requires additional services, like customs brokerage or warehousing.
3. Optimize Packaging for International Transit
International shipments require packaging that is both durable and cost-effective. Using lightweight, eco-friendly materials can help reduce shipping costs and appeal to environmentally conscious customers.
Packaging materials: Opt for protective yet lightweight materials, such as biodegradable packing peanuts, air pillows, or recyclable paper, to ensure products arrive safely without adding excess weight.
Package sizing: Many carriers calculate shipping fees based on dimensional weight, so right-sizing packaging can prevent overcharges. Use boxes that fit your product snugly or consider custom packaging to reduce wasted space.
4. Implement Clear Return Policies
Creating an international return policy that’s both transparent and customer-friendly is crucial to building trust. Returns for international orders can be costly and complicated, so set clear guidelines to manage expectations.
Return shipping costs: Decide if your brand will cover return shipping costs or if the customer will be responsible. Many small brands opt to offer refunds but not free return shipping for international orders, as covering these costs can quickly add up.
Time frames and fees: Clearly outline the time frames for returns, acceptable product conditions, and any restocking fees for international orders. Providing pre-paid return labels can streamline this process for both you and the customer.
5. Leverage Technology for Seamless Operations
Using technology to automate shipping tasks, manage inventory, and track orders enhances operational efficiency and provides customers with real-time updates.
Shipping platforms: Platforms like ShipStation and Easyship allow brands to manage international orders, print shipping labels, track packages, and calculate duties in one place. These platforms can also integrate with e-commerce sites to streamline order management.
Tracking and notifications: Real-time tracking and automated notifications help build customer trust by keeping buyers informed about their orders’ status. Many platforms allow you to brand tracking notifications, adding a professional touch to the customer experience.