If there is one aspect all e-commerce business owners dream of, it is expansion beyond their home borders. However, while this dream is as great as it sounds, it comes with a whole lot of operations and mechanics, one of which is international shipping.
To carry out shipping across borders perfectly, having a thorough understanding of international shipping and how it works is essential. If you are someone seeking answers on this only, then you have landed on the right page. Hop on below to read a detailed guide on what international shipping is and how it will work for you.
What is International Shipping?
The term “international shipping” refers to the import and export of goods between different countries via air, ocean, or land. This is a complex process of moving freight across borders, which involves a set of rules and regulations that differ from those of other countries.
Hence, to ensure that as an e-commerce business owner, you import and export goods across internationally recognized borders without any hurdles, understanding and knowing the policies, and following specific rules of how international shipping works is important so that your freight passes through customs clearance easily.
How Does International Shipping Work?
International shipping, although it may seem daunting, is actually a series of specific steps that help ensure this aspect of the order fulfillment process goes smoothly. Would you like to know what these steps are? We have them listed for you:
⦁ Measure, Weight, and Pack
The first step in ensuring that international shipping works out smoothly is to check the dimensions of the different order sizes. This is because during shipment, the dimensional weight of the package may be applied, which can result in changes to the shipping cost. Hence, entering weight and dimensions before shipping orders internationally is important. Moreover, ensure that fragile items are packed well to avoid any damage during the plane, truck, or boat commute.
⦁ Think with an International Mindset
Given that your international shipping operations will not be limited to just one country and your business will be delivering to multiple locations, it is essential to be familiar with the country-specific rules and regulations of each destination. This is because every country you ship to has different rules and regulations regarding tariffs, duties, and quotas. Also, ensure that essential paperwork for different international borders is prepared before the shipment leaves. Some essential paperwork includes:
⦁ Commercial invoice
⦁ Packing list
⦁ A receipt and contract between the shipper and the carrier (Bill of Lading)
⦁ Export declaration
⦁ Custom Clearance
The goods might be leaving their country of origin, but it doesn’t mean they can travel freely. Even before leaving the home country, the goods undergo a security check by customs officers before they are cleared for export customs. The customs clearance involved checking:
⦁ Whether the items are permitted for export.
⦁ If there are any duties or regulations applied to the items.
⦁ Whether or not all required documents are in order.
⦁ Estimate International Shipping Times
As an e-commerce business, it is essential to provide your customers with an estimated international shipping timeline while also offering them options for delivery. Given that your shipment will be traveling across countries and oceans, delivery can take time.
While some customers are fine waiting for their packages to arrive, some might need the parcel more urgently. Hence, providing customers with both standard and express international delivery options helps them receive timely parcel deliveries.
⦁ Get your Packages Insured
There may be times when the content or package you are shipping is of high value, and its loss can cause a significant impact on your business. Hence, in such cases, all business owners should consider purchasing shipping insurance if the shipping carrier does not offer it as an option. While many e-commerce businesses can afford to take the risk and go without insurance, it is something that always works well to have.
⦁ Opt for Tracking
International shipping is a lengthy process and involves changes of couriers’ hands and modes of transportation. Hence, sharing the tracking information with your recipient is essential. Certain courier companies and services offer reliable order tracking and support, helping you keep track of your courier’s location.
Types of International Shipping
The international shipping market is diverse and offers multiple methods for delivering shipments across internationally recognized borders. Understanding these methods is essential, as they provide valuable insights into the vast global logistics landscape. Here are three main types of international shipping:
⦁ Air Freight
Air freight is the delivery of packages through the air in planes, helicopters, or other forms of air transportation. This type of international shipping is renowned for its prompt and timely deliveries, making it ideal for time-sensitive, lightweight, and high-value items.
However, what you should know is that it can be expensive compared to other means and has a weight limit.
⦁ Ocean Freight
Next up on our list is shipment via ocean freight or by sea. This type of shipment is cost-effective for transporting large volumes of goods across continents, making it perfect for bulk shipments.
Another great aspect of ocean freight is that it produces a lower carbon footprint, resulting in a more favorable environmental impact. However, the transit time for this is long due to the slower speed of ocean freight, so it takes months for the packages to be delivered.
⦁ Land Freight (Road or Rail)
The last option on our list is shipment through land freight. This can involve sending packages through railways or roads. Railways are a great means of sending large volumes of cargo efficiently between trade routes and regions that do not have the sea separating them.
Roads, on the other hand, are a means of achieving better door-to-door delivery, making them an essential choice for connecting distribution centers to end consumers.
Why International Shipping Matters?
International shipping has a significant impact on any business and can play a crucial role in its growth. Why is that? To start, your current e-commerce target market will consist solely of online shoppers willing to purchase from you. However, once you start shipping internationally, your consumer growth is expected to increase significantly. Hence, it is worth taking on the international shipment and the logistics that accompany it.
Though an increase in your consumer base might seem daunting, and ecommerce businesses might question whether they will be able to meet the increasing demands with the same intensity, this is something you do not have to worry about. This is because retail sales for e-commerce businesses in 2023 have hit $5.8 trillion, which shows that not only are e-commerce businesses meeting the increasing expectations of customers, but they are meeting them well.
Factors That Affect International Shipping
All international shipments are not the same. In fact, each differs from the other because of various external factors. Some of these are:
⦁ Shipping Method
The shipping method you choose has a significant impact on your international shipping and delivery. Why is that? The type of international shipping method you choose will ensure that your shipment reaches its destination. For example, shipments arriving by air freight will always be delivered more quickly than those arriving by ocean freight.
⦁ Packages Size and Weight
The size and weight of the shipment are also factors that greatly influence it. This is because the actual and dimensional weight of the package heavily influences shipping costs.
⦁ Destination Country
The longer the distance between the shipping zone and the destination country, the longer it will take for the packages to be delivered. Moreover, packages being delivered in remote or politically unstable areas might have limited service or higher international shipping rates.
⦁ Carrier and Service Level
The choice of shipping company and the service type you select are additional factors that influence international shipping.
How to Calculate International Shipping Cost
The international shipping costs are calculated based on several factors, including shipping methods (air, sea, and land), the package’s actual and dimensional weight, and the distance to the country where the package has to be delivered, along with its customs duties and taxes. In addition to this, extra surcharges such as fuel, remote area delivery, and insurance are also factored into most shipping cost calculations.
To estimate your international shipping cost to any country, businesses can use online calculators offered by companies like DHL, FedEx, and UPS.
Common Challenges for International Shipping
Shipping internationally comes bearing its unique set of challenges and complications. Some of the most common challenges are:
⦁ Terms, Customs, and Regulations
Each country has its terms, rules, customs, and regulations, all of which require detailed paperwork. Understanding these demands initially might be hard.
⦁ Longer Transit Time
Given that you are shipping across borders and oceans, it can take some time for the freight to cover the distance, leading to extended delivery time.
⦁ Higher Shipping Cost
Shipping across oceans and borders can be expensive due to the added tariffs, international shipping rates, and duties.
⦁ Risks of Delays
International shipping bears risks like customs inspections, weather, and geopolitical issues, all of which can cause unexpected delays in delivery.
⦁ Language Barriers
There can be times when you are shipping to countries that do not speak a common language or the one you speak. In such cases, communication with international customers can be challenging due to language barriers.
⦁ Return Logistics
The return of international logistics is more cumbersome and costly compared to domestic returns.
Top International Shipping Carriers in China
Some of the major international shipping carriers in China are:
⦁ COSCO Shipping
⦁ Maersk
⦁ MSC
⦁ Evergreen Marine Corporation
⦁ Hapag-Llyod
⦁ DHL
⦁ UPS
⦁ NextSmartShip
⦁ FedEx
Get the Best International Shipping Rates with NextSmartShip
While there are multiple international shipping companies in China, choosing one narrows down the options based on a single aspect. What is it? Well, the best international shipping rates, of course. If you are someone searching for a shipping company that can not only provide great service but also offer competitive international shipping rates, then we might have one for you.
NextSmartShip is one of the leading shipping carriers in China. The company enables users to have a stable, stress-free logistics experience backed by real-world expertise and implement strategies that not only ensure safe deliveries but also keep costs predictable and operations running smoothly.
With its 400-plus shipping lines, 10 fulfillment centers worldwide, and a 40% cost reduction, NextSmartShip is a great decision to make.
Conclusion
If you want to learn about international shipping and how it works, we hope this comprehensive guide has been helpful in enlightening you on everything you should know. If you are looking for an international shipping carrier that offers the best international shipping rates, we highly recommend checking out NextSmartShip for this purpose.
