E-commerce businesses have witnessed massive growth in recent years, with a huge rise in the popularity of online shopping (largely due to the long COVID-19 lockdowns). International e-commerce is a game-changer, opening new opportunities for local retailers and business owners. It enables them to sell globally and expand their businesses without a hefty investment.
Statistics show that the global B2C cross-border e-commerce market was valued at $785 billion in 2021. It is expected to touch a whopping $7.9 trillion by 2030. If you are a seller, not jumping on the international bandwagon means you may lose a huge opportunity. You will surely want to capture a market share, regardless of your product and industry.
However, gaining a winning edge as a global e-commerce seller requires a stronghold over the international shipping process. In this article, we’ve compiled a comprehensive guide to help you master it.
Challenges of International E-commerce Shipping
International shipping is more than packing your products and handing them over to a shipping partner. Several obstacles may prevent smooth delivery to customers in another part of the world. According to a 2023 survey, 43% of sellers identified shipment delays as their main challenge, and 41% struggled with customs regulations and Harmonized System (HS) codes.
Understanding these challenges is the first step towards overcoming them.
Here are some that e-commerce business owners should be aware of:
Shipping Costs and Pricing Strategies
International shipping costs may burn a hole in your budget. At the same time, customers expect you to deliver products for free or at a low cost. Most sellers struggle to craft pricing strategies that balance competitiveness and profitability.
Customs and Duties Regulations
Customs regulations and duties vary for different countries: if you ship to multiple destinations, you’ll be dealing with several sets of regulations. Complying with them is crucial to prevent delays, avoid penalties, and ensure customer satisfaction.
Packaging and Product Safety Concerns
Your customers want products to reach them in good condition. Protecting products during transit is not easy when transporting them to an international destination. Proper packaging and product safety concerns can be stressful for sellers.
Delivery Timeframes and Customer Expectations
Delayed shipments are another challenge for international e-commerce sellers because they can affect customer satisfaction. Failing to send products on time repeatedly can even affect your reputation in the global market.
Returns and Customer Service Challenges
Product returns add a layer of complexity to international e-commerce. The sheer cost of returning goods can be painful for a business. Additionally, you should have a robust customer service strategy to address inquiries and concerns.
Despite these challenges, international e-commerce is thriving as a business domain. Statista notes that in 2022, cross-border e-commerce accounted for nearly 22% of the total e-commerce shipments.
This number shows that many businesses have already cracked the code to successfully ship across global borders. You only need to check the best practices they follow and emulate them to make the most of the opportunity.
Best Practices for Improving International Shipping
A streamlined shipping process is the backbone of e-commerce businesses, regardless of the source and destination of products. With a growing market for international e-commerce, business owners must adopt best practices to improve their international shipping process.
Here is a proven checklist to win at the shipping game:
Understand Your Target Audience and Local Preferences
Selling your products in different parts of the world requires a thorough understanding of each local audience. Researching their purchasing behavior, preferences, and cultural nuances is the best place to start. Knowing your audience can help you tailor your products and personalize your marketing strategies.
You can also use the information to define your shipping approach. For example, cultural differences can influence your packaging choice. European customers prefer eco-friendly packaging, while Asian buyers prioritize aesthetics.
Analyze Competitors’ Shipping Strategies
International shipping models vary for businesses. You may opt for direct shipping or drop shipping, collaborate with third-party logistics providers, or work with freight forwarders. The choices may overwhelm you as a beginner, but you can seek inspiration from the market.
Study how successful competitors handle global shipping and what works for them. Learn from their strategies and rework them to match your business model.
Collaborate with Reliable International Shipping Carriers
Collaborating with reliable carriers is perhaps the most critical aspect of streamlining your international shipping process. Choose reputable providers, ask for recommendations, and check reviews before sealing the deal.
You can find multiple providers in the industry, but make sure that you partner with one that guarantees timely and secure deliveries.
Opt for Digital Freight Forwarding
Digital freight forwarding platforms can reduce the complexities of international shipping and simplify logistics processes. Switching to online freight forwarding is a wise move, even for small businesses, as it can help you find, compare, and book the ideal shipping partner.
A digital platform like that of Ship4wd will help you save tons of time, as all the information you need will be in one place. You’ll thus have more time to focus on the growth of your business, instead of worrying about chasing providers and quotes.
Adopt Technology and Automation
Implementing technology solutions is another best practice you should not miss out on when it comes to simplifying international shipping. Consider automating order processing systems with a software tool, and adopting AI-powered chatbots for customer inquiries.
Besides modernizing your business, technology and automation enhance the efficiency of your workforce and reduce errors.
Implement Efficient Inventory Management Systems
E-commerce businesses often struggle with inventory management because of erratic demand and customer behavior in global markets. A streamlined inventory management system is essential to address problems such as overstocking or stockouts.
It ensures products are available on demand, reducing shipping delays and keeping your business on top of customer expectations.
Optimize Packaging and Labeling
Packaging can be a game-changer when shipping your products across international borders. You should choose one that protects your products and looks good without adding unnecessary weight and shipping costs.
Also, ensure clear and accurate labeling for each package to prevent delivery to wrong addresses and resulting returns.
Streamline Customs and Duties Processes
Complicated customs and duties should not keep you from expanding your e-commerce business across multiple international destinations. You can address the challenge by collaborating closely with seasoned local customs brokers.
They can do all the heavy lifting and help you navigate regulations smoothly. You can depend on them for proper documentation and compliance.
Enhance Customer Experience
Excellent customer experience goes beyond delivering top-notch products on time and at the lowest shipping costs. You should go the extra mile by providing excellent customer service, regardless of location.
Keep customers informed about their orders and shipping statuses. Also, be available to answer queries and set up hassle-free return processes.
Conclusion
International e-commerce can be a growth catalyst for e-commerce businesses. However, before stepping into the global markets, sellers must consider shipping processes because they can be challenging and costly.
You may also struggle with factors like custom regulations, packaging choices, delays, and returns. Following these best practices can help you streamline your international shipping process and build a competitive cross-border brand.
