International E-Commerce Guide: How e-commerce merchants start using international shipping

 How e-commerce merchants start using international shipping

 


When you are ready to push the boundaries of online stores and serve international customers, you may have questions about international shipping. Are high shipping costs and longer order waiting times more important than addressing the advantages of a new target group? Although the answer to this question depends on your own goals and the nature of your business, you can rely on hundreds of companies like yours to find viable and profitable international transportation. How to get started:

 1. Know your options

 There are many different carriers that can ship your products overseas. The most suitable solution for you depends on your shipping location, shipping cost, and shipping speed. You want your products to arrive. If you are shipping small or light items, USPS Priority Mail International may be your best choice. Your flat rate box is almost always the cheapest way to send items under £20 to the entire pond. If you plan to ship large quantities of goods to specific countries/regions overseas, using a regional fulfillment center at the destination location may be cheaper than shipping and storing your products for international orders yourself.

 2. Calculate your average cost

 An accurate understanding of shipping costs is a good way to ensure that you do not underestimate or overestimate the shipping options you provide to your customers. International customers usually expect higher shipping costs, but this does not mean they are willing to accept any price. To calculate your average shipping cost, add your domestic AOV (Average Order Value) to the shipping calculator. Run the numbers for each country you want to sell in, and test different regions of that country if necessary.

 After calculating your average cost, find the smallest and largest domestic orders you have, and use this range to calculate again. Your average can determine the base price of transportation costs, while extreme values ​​highlight possible instances of cost anomalies that affect profitability.

 For example, if your minimum order is $2.35 and your maximum order is $128.30, but your average order is only $13.29, you may want to use a pricing structure that supports a large number of different shipping rates (we will introduce this in #4 a little). However, if the spread between your lowest order and highest order is very small, a flat rate may be your best choice.

 3. Decide who will pay for the import costs.

 In addition to the freight, your shipment also has to pay import taxes. As a seller, you can choose to pay by yourself or let the buyer pay. International buyers are accustomed to paying these fees, but paying by themselves can increase conversion rates. Consider testing these two options to see which one provides a higher return on investment for your business.

 4. Determine your pricing structure

 Depending on the way you price domestic orders, your international shipping price structure is likely to mimic the structure you use for domestic shipping. There are three basic methods for calculating freight:

Free shipping

 In most cases, free shipping is a bad idea for international shipping because the service cost is much higher than domestic shipping. If you sell small and lightweight items (such as jewelry) at high prices, you can provide free shipping to help stimulate sales.

Flatrate

 If the price of your international shipment is relatively fixed-most of your packages have the same weight/size, and the price varies little between countries-the flat rate is simple and cheap for you and you Route customers. If you choose international uniform freight, you will always know exactly what your requirements are, and your customers will always know exactly what will happen. This reduces the number of abandoned shopping carts caused by last-minute cost surprises during the checkout process.

 Calculate the price

If your products are different in size and weight, it is best to let your customers calculate the shipping cost at checkout. In order to get customer service revenue, please set up real-time shipping so that your customers can calculate shipping when shopping.

 5. Never stop testing

 As with anything in e-commerce, the key to the success of international shipping is testing. If the rate you set does not work, or if a macro event like COVID is affecting the viability of your current strategy, you should recognize and understand this as early as possible so that you can develop a strategy. Testing promotions and price changes can also help increase your conversion rate.

Final thoughts

 If you want to sell internationally, don't forget the fulfillment page and its benefits and costs. Pricing your shipping costs appropriately to maximize sales while minimizing returns, abandoned shopping carts, and your own costs are an important part of the process. In the end, the result is worthwhile: more sales and opportunities to satisfy customers all over the world.

0 Comments

Post a Comment