Thanks to Amazon Prime and other large retailers, 75% of consumers expect free delivery on e-commerce orders, even for orders less than $50. When you contrast that statistic with the fact that non-Amazon US retailers sell over $82.5 billion internationally, it’s easy to see the challenges and the opportunities facing small businesses considering going international. So, let’s answer the question: Why is international shipping expensive?
Why is international shipping so expensive?
The expense of international shipping often scares small business owners, but that’s because they don’t know the intelligent shipper savings tips that can save them money and make the expansion they’ve dreamed of possible.
Formulating international shipping rates is complicated, but there are five areas where you can cut costs: package dimensions, fuel surcharges, minimum package charges, value-added services/accessorials, and customs.
Package dimensions
Shipping companies use the square footage and weight capacity (or similar metric) of their transport vehicles in their rate calculations, which means larger, heavier boxes cost more than smaller, lighter ones.
Smart shipper savings tip: Small businesses looking to expand into international markets can reduce their initial costs by selecting a few products with similar dimensions that can be packed in standard boxes. This will allow you to buy your packaging in bulk and accurately forecast your international shipping costs.
Fuel surcharges
You pay fuel surcharges for domestic and international (aka cross-border) shipping, but since international shipping involves longer distances with sometimes dramatic differences in fuel prices between countries, international fuel surcharges are substantially higher.
Fuel surcharges are the average, not the actual, fuel cost your carrier pays to deliver your products. Your carrier agreement likely has terms setting a base fuel rate and a base fuel mileage as part of its terms. When the fuel price exceeds your agreed-upon base fuel rate, the surcharge kicks in.
Small business savings tip: Fuel surcharges aren’t set in stone, and they don’t have to be a mystery. A reputable carrier will be upfront about how they calculate their fuel surcharge. It’s also often possible to negotiate a lower fuel surcharge with your carrier(s).
Formulating international shipping rates is complicated, but there are five areas where you can cut costs
Minimum package charges
One of the primary methods carriers use to protect their profits is minimum package charges, meaning the lowest price a carrier will accept to deliver a package. If you aren’t careful, this fee can cost you a lot of money.
Say your minimum package charge is $7, and your carrier service agreement has a 50% discount on packages shipped to London. You have a package that would typically cost $10 to send across the pond, which, with your discount, should cost $5. But that minimum package charge means you’ll pay $7, and the 50% discount you had budgeted for is now only a 30% discount.
The same thing goes if you are sending a tiny package of earrings to a shop in Notting Hill. Instead of paying the $4.25 it actually costs, that sneaky $7 minimum will cost you an additional $2.75.
Smart shipper savings tip: Like fuel surcharges, minimum package charges can be negotiated. Start tracking how many of your shipments are affected by the minimum package clause in your agreement. If you’re regularly paying more than you should or not getting the total discount in your contract, ask to renegotiate your minimum package charge.
Value-added services & accessorial fees
Many of the features consumers take for granted are actually value-added services (VAS) or accessorial fees that you, as the shipper, have to pay for. Examples of these fees include:
COD
Delivery confirmation
Return services
Declared value
Residential delivery/pickup (yes, you can be charged more for having customers in residential neighborhoods)
Special-handling (documentation, hazardous materials certifications, medical equipment, etc.)
Delivery issues (liftgate delivery, unsafe delivery locations, or improper equipment for shipment receipt)
Non-delivery due to business closure, no recipient present, or security delays
Small business savings tip: Small businesses, especially e-commerce businesses, ship internationally are much more likely to be adversely affected by these fees. As with minimum package charges, data is your friend when negotiating these fees (which you can do).
First things first, you need to keep track of which charges show up the most often, which accessorials are the most expensive, and what packages/locations are most likely to trigger those charges. Then, examine your operations. Can you pack your products in smaller boxes? Can you use more than one carrier? Can you verify addresses before releasing packages for shipment?
After you’ve lowered your expenses as much as possible on your end, you can negotiate which fees you are assessed and how much you are charged with your carrier.
Customs/duties/taxes
This is one area you have to budget for. Customs and duties are taxes charged at both ends (export/import) of international shipping, and you can’t avoid them.
Small business savings tip: An international e-commerce shipping software can help you build an accurate estimate of what your customs costs will be so you aren’t ever surprised.
Level up with international shipping solutions for your business
If you want to save money on your international shipping, optimize your packaging, understand your carrier agreement, and negotiate your fees. Click here to find out more about how eHub’s e-commerce shipping software can help you do all of that and more so you can capitalize on opportunities for international trade.
Suppose it seems like UPS peak season surcharges are not only higher but lasting longer, too; you’re right. Since March 2020, UPS has had to adapt to the significant changes in e-commerce and the global supply chain. In a nutshell, people were buying more online… a lot more. Thanks to this increased demand, most shipping carriers had to adapt, UPS included.
One adaptation included changes to peak season surcharges. Typically, peak season is just around the 4th quarter, the busiest time of the year for retail. Since the logistics industry hasn’t quite recovered from 2020 (have any of us?), we’re seeing peak season stretch beyond 4th quarter.
It’s already here. Not only that, we’re seeing it split into what resembles a tier system. If you thought surcharges were expensive, well, I have some not-great news for you.
Peak Season Surcharges: Tier 1
July 4 — October 2, 2021 Fees: The following applies to all US domestic, import, and export shipments, qualifying customers who have shipped >1,000 total packages or more than ten that required Additional Handling during any week following February 2020.
Additional handling charges increased from $3.00 per package to $3.50
Large Package peak surcharge increased from $31.45 to $40.00
Peak Season Surcharges: Tier 2
October 2, 2021 — January 15, 2022 Fees: The following applies to all US domestic, import, and export shipments, qualifying customers who have shipped >1,000 total packages or more than ten packages that required Additional Handling during any week following February 2020.
Additional Handling peak surcharge increases from $3.50 to $6.00 per package
Large Package peak surcharge increased from $40.00 to $60.00 per package
The following will apply to all US domestic, import, and export shipments.
The Over Maximum Limits peak surcharge will be $250.00 per package
Handle your shipping costs and communication to customers accordingly, and have a plan for when things go sideways
Bonus Round of Surcharges for High-Volume Shippers
October 31, 2021 — January 15, 2022 Volume-Based Fee: The following applies to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost, who have shipped more than 25,000 packages during any week following February 2020.
October 31, 2021 – January 15, 2022
UPS SurePost
110% to 200% of February 2020 volume
$1.15 per package
> 200% to 300% of February 2020 volume
$2.15 per package
> 300% to 400% of February 2020 volume
$3.15 per package
> 400% to 500% of February 2020 volume
$4.15 per package
> 500% of February 2020 volume
$5.15 per package
UPS Ground Residential
110% to 200% of February 2020 volume
$1.15 per package
> 200% to 300% of February 2020 volume
$2.15 per package
> 300% to 400% of February 2020 volume
$3.15 per package
> 400% to 500% of February 2020 volume
$4.15 per package
> 500% of February 2020 volume
$5.15 per package
UPS Next Day Air Residential
110% to 200% of February 2020 volume
$2.15 per package
> 200% to 300% of February 2020 volume
$3.15 per package
> 300% to 400% of February 2020 volume
$4.15 per package
> 400% to 500% of February 2020 volume
$5.15 per package
> 500% of February 2020 volume
$6.15 per package
All Other UPS Air Residential
110% to 200% of February 2020 volume
$2.15 per package
> 200% to 300% of February 2020 volume
$3.15 per package
> 300% to 400% of February 2020 volume
$4.15 per package
> 400% to 500% of February 2020 volume
$5.15 per package
> 500% of February 2020 volume
$6.15 per package
Current Service Levels With UPS Service Guarantee:
The following applies to certain UPS Air Residential, UPS Ground Residential, and UPS SurePost, who have shipped more than 25,000 packages during any week following February 2020.
UPS Next Day Air
UPS Next Day Air Saver
UPS Next Day Air Early
Domestic Express Plus
Domestic Express
Domestic Midday
Domestic Express Saver
UPS Worldwide Express Plus
UPS Worldwide Express
UPS Worldwide Express NA1
UPS Worldwide Express Saver
UPS Worldwide Express Freight Midday
UPS Worldwide Express Freight
Transborder Express
Transborder Express Plus
Transborder Express Saver
How Does This Affect Your Peak Season?
I think the most important thing to remember is that the peak season results in a lot more shipments, which can mean increased waiting times for customers, delays, and maybe increased charges. Handle your shipping costs and communication to customers accordingly, and have a plan for when things go sideways.
It could also be worth taking a look to make sure you’re getting the best rates on your business shipping. Our shipping specialists can perform an analysis that tells you where you’re already shipping most efficiently and exactly where you could be saving more. Contact us to get started on a custom analysis for your business.
While the technologies used to manage and ship products have changed dramatically over the last century, the business model for shipping companies looks almost the same. For decades, shipping companies have offered small businesses a single pricing formula based on weight and distance.
Think of it this way: a 40” smart TV weighs 20 pounds. So does a 20-pound dumbbell.
But the box the TV comes in is 43”x23”x5”, and the dumbbell can fit in a giant shoebox. With traditional shipping models, you’d pay the same amount to ship both a 40” smart TV and a single dumbbell to your store in Duluth even though the TV box will take up more space in the truck.
The United States Postal Service (USPS) has developed an innovative program to meet the modern needs of many small businesses by changing shipping prices for small packages.
Under Cubic, businesses are charged based on the package’s dimensions instead of the package’s weight. This means it costs less to ship small, heavy packages with Cubic than with traditional methods.
And Cubic doesn’t just offer lower prices. It includes USPS priority mail delivery within 1 to 3 business days and free package tracking.
It’s a great deal if your business regularly ships things like clothing, candles, food, small home goods, books, subscription boxes, etc.
If it’s so great, why isn’t everyone using Cubic?
Cubic is a very specific program with strict rules that make it an excellent solution for some businesses but not others.
If you want an in-depth overview of Cubic, check this out, but here are the basics:
USPS Cubic mail is only available to businesses that ship at least 50,000 packages annually.
Packages shipped with priority Cubic shipping have to weigh less than 20 pounds.
USPS Cubic box, soft package, or priority mail poly bag dimensions must be .5 cubic feet or less with sides less than 18” (about the size of a shoebox).
What’s the Cubic formula?
USPS Cubic pricing is based solely on the size of your package. Here’s how to calculate your Cubic shipping price (sorry for the math):
1. Measure your package’s length, width, and height with each dimension rounded to the nearest quarter inch. For example, say that shoebox with your 20-pound dumbbell measures 14 x 8 x 5”
2. Multiply the dimensions (height x width x length) and then divide that number by 1728 (the number of cubic inches in one cubic foot). For your shoebox, it looks like this:
14 x 8 x 5 = 560
560/1728 = .3240
3. Round the decimal to the next tenth, meaning the .3240 of your shoebox rounds up to .4 cubic feet. (Note: you always round up, never down, with USPS Cubic).
4. Congratulations! Your package qualifies for USPS Priority Mail Cubic.
Is Cubic right for your business?
We know that what you really want to know is, “How much will this save me?” Check out this chart:
Zone 1–2
Zone 3–4
Zone 5–6
Zone 7–8
Zone 9
Priority Mail
$23.20
$29.20–$35.85
$49.80–$59.75
$69.35–$80.50
$140.35
USPS Priority Cubic
$7.32
$7.32
$7.32
$7.32
$7.32
A 20-pound Zone 1 package (something shipped 1–50 miles) costs $23.20 to ship with USPS Priority Mail, and the price increases as the distance to the destination increases.
But that same 20-pound package shipped with USPS Priority Cubic starts at only $7.32 to ship.
But here’s the deal—that $7.32 is the commercially listed starting price USPS offers.
EHub has negotiated low rates for our customers.
This means that you’ll still be saving money even after you pay for our API. But you’ll also get easy-to-print labels, order tracking history, address verification services, and insurance options.
At EHub, we know that shipping is essential, but overpaying isn’t. Drop us a line today to see how we can simplify your shipping and save you money.
In part one of this two-part blog series, we reviewed some basics of the major carriers available for international e-commerce shipping needs. From USPS to several others, you have a few options for international shipping – and which you choose will depend on a few different variables.
At eHub, we’re happy to offer international shipping e-commerce solutions as just one piece of our comprehensive shipping API services. From helping you navigate paperwork and customs documentation to negotiating non-US shipping deals, managing returns, and more, we’re here to help with every area of international commerce for our clients. While much of part one of our series evaluated your options for international shipping, today’s part two will dig into the factors you should consider while selecting your carrier.
Landed Cost
Within the shipping world, the term “landed cost” is commonly used to describe the final, all-in-one price. It includes not only shipping costs but also duties, taxes, and fees, plus potential add-ons like insurance.
Before any customer completes an international purchase of your products, you should lay out their landed cost. In many cases, this information will include details on who is responsible for any additional fees that might be present.
Full Details
In addition to the landed cost of standard shipping needs, you must know what’s included in a shipping carrier’s program. For instance, does the carrier include insurance for all orders, for only orders with a specific minimum price, or not? If it’s not offered at all, you may have to offer some of your own. Also, inquire about areas like whether there’s a charge for proof of delivery, how tracking will work, and more.
Customs Forms
While customs forms will be pretty similar or even identical between carriers, they’re essential to think about. This is actually an area where working with our team of shipping professionals is just as important as finding a great carrier – we’ll help you with things like value per unit, international currency, harmonized tariff codes, and others, though we require a partnership with a robust carrier in several of these areas.
Trade Regulations
Another area where it’s essential to have both a suitable carrier and the expertise of pros like ours is within trade regulations, which vary between countries you may be shipping to or from. For instance, Austria does not allow the shipment of any alcoholic beverages or medicine, among other things; China doesn’t allow the import of toy guns. Knowledge of these regulations is vital for limiting overhead and maintaining your company’s reputation.
If you’re like most business owners, this photo of someone being literally boxed in by shipping containers probably feels familiar.
Ask yourself:
Am I ready to expand my business but overwhelmed by international shipping procedures?
Do I have to turn away customers because I don’t want to deal with international shipping rules and regulations?
Um…is the process of shipping goods internationally really that different?
If you nodded your head emphatically to any (or all) of these questions, we can help.
EHub is an integrated platform that simplifies shipping by connecting your eCommerce systems. We have agreements with major carriers that allow us to get you more competitive rates without sacrificing customer service.
Domestic shipping involves shipping goods or documents from and to locations within a single country’s borders.
By contrast, international shipping (also known as cross-border or global shipping) is precisely what it sounds like: importing and exporting goods across national borders by land, air, or sea.
While the definition is simple, the application tends to trip people up.
If you are ready to start shipping outside the United States, there are a few things you need to know right off the bat:
International shipping will take longer and cost more. Don’t waste time fighting it. Embrace it and find the best solution for your company.
Customs and duties, both in the originating country and the receiving country, are all forms of import/export taxes you can’t avoid.
Because every country has unique import/export requirements, it’s easiest if you start shipping to a country that is part of a strong US trade agreement. Mexico and Canada are the easiest since the US-Mexico-Canada Agreement (USMCA) simplified taxes and other requirements, but 20 other countries also have free trade agreements with the US.
Domestic vs. international shipping
As long as you aren’t shipping something liquid, fragile, perishable, or potentially hazardous, all you need to ship a package domestically is a shipping label.
International shipping is more complicated, with restrictions on the types of goods that can be shipped and more documentation requirements.
Navigating all these regulatory requirements can be confusing and overwhelming, but if you’re ready to take your business to the next level by expanding to a global customer base, keep reading.
What qualifies as international shipping?
Shipping from the US to Canada is considered international shipping, even though they share a border because two sovereign nations are involved. On the other hand, if you want to send a package to Hawaii, 2,285 miles from the US mainland, you have multiple domestic shipping options.
But is shipping to Puerto Rico or Guam considered international shipping? They aren’t sovereign nations, but they aren’t states either. Do you need to fill out forms and pay duty taxes?
Here’s a basic rule of thumb:
LOCATION
INTERNATIONAL SHIPPING?
Any one of the 50 US states
Nope (all carriers)
Puerto Rico & US Virgin Islands(US territories in the Caribbean)
USPS: Nope (no customs forms or duty tax)Fedex/UPS/DHL: Yep (regular customs forms)
American Samoa, Guam, Northern Mariana Islands (all other US territories)
Yep (all carriers)
Every other country
Yep (all carriers)
What can I ship internationally?
Requirements vary between shipping providers (between the USPS and FedEx, for example), but there are limits on what you can ship within the United States. Generally speaking, things like airbags, ammunition, explosives, gasoline, illicit drugs, and marijuana (including medical doses) cannot be shipped domestically.
In addition to the list of prohibited items, some products have restrictions on domestic shipping, including:
Aerosols
Paint
Perfumes
Lithium batteries
Firearms
Alcohol
Cigarettes and tobacco products
Perishables
Poisonous chemicals
All items prohibited and restricted for domestic shipping cannot be shipped internationally. Additionally, you can’t use priority mail express to send packages containing currency (coins, banknotes), securities of any kind that are payable to the bearer (like traveler’s checks), precious stones and metals, and other valuables to other countries.
international shipping (also known as cross-border or global shipping) is precisely what it sounds like: importing and exporting goods across national borders by land, air, or sea
What documents do I need to ship outside the US?
Remember your pre-Covid trip to Cancún? Before you landed, the flight attendants had you fill out a tourist immigration form listing where you were coming from, what airline you flew in on, where you were staying, and when you’d be leaving.
After landing, you likely gave this form to an immigration officer before going through customs, where you had to fill out another form “declaring” whether or not you were bringing restricted items and/or large amounts of cash into the country with you.
Most governments treat packages like tourists and require similar documents to accompany them across borders. The most common forms needed for international shipping are:
A commercial invoice that includes specific descriptions and quantities of products, price, and harmonized code of each item
A packing list, which should include the commercial invoice number, the types of packaging, the net and gross weights of each package, package dimensions, visible markings, and buyer/seller references
Depending on where and what you’re shipping, you may also need a/an:
Electronic export information (EEI) filings (used for most countries if shipment value exceeds $2500)
Certificate of origin explaining where the commodity originated
Export license (if you are shipping a restricted product)
Insurance certificate
Inspection certificate
International shipping with training wheels
EHub is basically international shipping with training wheels. We have carrier and cart integrations that can save you the time and stress of figuring out documentation and tax requirements while capitalizing on your expansion opportunities.
Shipping, savings, simple. Get in touch with us today to get started.
For eCommerce businesses that ship internationally and domestically, shipping factors and variables are a bit different. However, modern technology and improvements have created a situation where numerous companies have the resources to ship internationally with ease, not only significant corporations – this used to be the case in past generations.
Introduction
At eHub, we’re happy to help with a wide range of international shipping needs and challenges, from helping you choose the ideal carrier to filling out the correct paperwork, managing international returns, and many other areas. That first area, choosing a carrier, is often a bit more complex for international shipping than for domestic – this two-part blog series will go over several factors you should be considering, which our team will be happy to help you with during any international shipping process.
Major Carriers
Generally speaking, there are four significant companies or carriers that ship internationally:
USPS: You may not have thought of the US Postal Service as an international shipper because it’s an agency of the US government, but it is an independent government organization that offers four international shipping options. These range from Global Express Guarantee, which allows packages to arrive in one to three business days, down to First-Class International, where the number of days will vary by destination. USPS offers robust tracking and flat-rate shipping.
UPS: UPS also offers international shipping, and with higher packaging limits than USPS – packages can be up to 150 pounds compared to just 70 for USPS. Of course, more oversized items will come with higher charges. UPS also offers several shipping options and prices.
FedEx: FedEx ships to over 200 countries, with packages arriving between one and seven days, depending on service. Their max weight is similar to UPS.
DHL: Finally, DHL is more unique here. Its max parcel is just 44 pounds, much lower than the other options, and the service covers fewer countries. However, there are situations where going this route is the right move.
International First
One crucial tip for companies who perform both domestic and international shipping: When finding a new carrier, ask about international shipping variables first. As noted above, the significant carriers vary widely in their international shipping guidelines, pricing, and more – there isn’t as much difference between them when you get to domestic shipping areas, so your primary focus should be on the area with more variability.
When finding a new carrier, ask about international shipping variables first
Certain carriers might limit regions or countries they will ship to, which could be a big issue for your business. If you’re unsure about a given carrier, you may consider only shipping internationally to a few countries first to see if the program works for you.
Wrapping Things Up
For more on choosing an international shipping carrier or to learn about our eCommerce shipping services, speak to the staff at eHub today.
Why Ship Internationally?
You’ve seen the stats, like this one from CIEDEC—that 95% of the world’s consumer market awaits you outside US borders. And, after reading our tips for international sales growth, you’ve laid the groundwork to expand your international business shipping horizons. Now, it’s time to get up to speed with international shipping.
Though it may seem daunting, follow these steps, and your products will soar—literally.
1. What Can I Ship, and Where Can I Ship It?
First, review the Commerce Control List (CCL) to verify whether your product is allowed for export or if it is a controlled commodity that requires an export license. Also, depending on where and to whom you are shipping, you’ll want to check whether the government has sanctions or embargoes and prohibitions on end users or the product’s end-use. Then, check the Country Commercial Guides to determine whether your product is allowed for import in a particular country.
The good news is most commercial products do not require an export license and are designated EAR99 in the Export Administration Regulations, but before exporting, you will still need to ascertain your product’s Harmonized System classification and Schedule B number to complete the export and import forms.
An easy way to start offering international shipping to Canada and Mexico first and branch out from there. Trading with our neighbors has been simplified with the US-Mexico-Canada Agreement (USMCA) which allows qualifying small package shipments valued at less than $150CAD (in Canada) and $117USD (in Mexico) to ship duty-free, and the taxes have also been simplified.
Or, select from the 20 countries with a free trade agreement with the US. If the customs regulations of the country you are shipping to are rather complicated, and you plan to ship there frequently, you may want to hire a customs broker to help you cut through their red tape.
33Countries with Free Trade Agreements with the United States
Australia
Bahrain
Canada
Chile
Colombia
Costa Rica
Dominican Republic
El Salvador
Guatemala
Honduras
Israel
Jordan
Korea
Mexico
Morocco
Nicaragua
Oman
Panama
Peru
Singapore
2. Decide Who Should Pay For What
Incoterms define the rules of the ownership transfer… for instance, During the delivery process, when does ownership transfer; who is responsible for covering the licensing, customs fees, and taxes; and who, if applicable, is insuring the product for loss and damages? What’s the de minimus value for the country you’re shipping to?
As you consider handling these expenses, you should also estimate what your landed cost (or total expenses from the point of sale to the final receipt of the product) will be—there are many online calculators available to help you. Does it make sense for you to offer free shipping? Split the costs? Will you accept returns, and if so, who covers that cost? Should you adjust your product pricing to reflect the additional cost and work?
An easy way to start offering international shipping to Canada and Mexico first and branch out from there
Selecting which carrier to use is a big part of this step. Price is often the primary concern, but speed and convenience of delivery are factors as well. While USPS can often be the least expensive, its tracking capabilities and delivery responsibilities end once the product leaves its jurisdiction. Many private carriers handle delivery from door to door and offer more services, but those costs will fit into your overall price.
3. Sell Your Product(s) and Get Them On Their Way
Yay! You’ve cut through the red tape, done your research, and it’s paying off—the cash register is ringing.
Now, it’s time to generate a detailed Commercial Invoice (or Pro Forma Invoice for samples) outlining the terms of both the sale and the delivery, then finalize the required export and import forms (which you will have already determined through your research). Some of these can be completed online.
Then, package your product in a sturdy container that meets the standards of your selected carrier; create and affix your international shipping label, carefully proofing your recipient’s address and contact information; and attach your Commercial Invoice along with any other necessary customs paperwork.
Finally…
Transfer the package to your carrier of choice
Cover your contractual portion of the delivery costs
Receive a tracking number to provide to your buyer
After you pat yourself on the back, get back to selling!
Easy as 1-2-3.
Research 2. Analyze 3. Ship
Right? Okay, maybe we’re oversimplifying it. But, once you perform the cost-benefit analysis and create the foundation, the process will become systematic and, ultimately, well worth it.
Final Thoughts
However, if you find you do not have the capacity for it. eHub can help. We’ve done our due diligence in the export arena, developed relationships and pricing contracts with multiple carriers, and built the databases to support a seamless e-commerce API that will facilitate every international sale you make. To explore whether our international shipping solution could work for you, click here.
At eHub, it’s our pride to help clients work with all the major shipping carriers available to them. We work with UPS, FedEx, DHL, and, of course, USPS, or the US Postal Service, providing a vast range of shipping options and services from and to any area of the country.
Our carrier-related services span several areas, including helping our clients understand and react to rate increases from any of these carriers. USPS recently filed its planned rate increases for the 2021 year with the Postal Regulatory Commission (PRC) – what are these changes, and how might they impact your standard USPS shipping formats? We’ll go over this plus dig into some of the general benefits of using USPS to begin with.
Benefits of Using USPS
Firstly, why USPS? There are several reasons why many businesses rely primarily on the US Postal Service for their primary shipping needs, including:
Delivery to any address in the USA
No fuel or residential delivery surcharges to companies
Free Saturday delivery
Free shipping supplies and scheduled pickups for no additional cost
That said, many of USPS’s competitors also have these same themes at play. For this reason, shipping rates will often be one of the key elements a business considers when choosing a shipping partner. Let’s go over how USPS rates will change in 2021.
Basics and Approval
As noted above, USPS has submitted its planned rate increases to the PRC for 2021. We’ll review the precise rate increases briefly, but some general basics first.
Firstly, if approved, the new USPS rate changes will kick in on January 24, 2021. In addition, a $100 charge will be imposed on packages found in the USPS mail stream that are larger than the maximum size of 130 inches (combined length and girth) – this applies to all service levels, from standard ground and air mail up to First Class package service and any areas in between.
Average Increases for Common Labels
Here are the average percentage increases that will be seen for the varying service levels within USPS once the rate increases take effect – if they are approved, which has not happened yet:
First Class Package Service: Average increase of 6.5%
Priority Mail: Average increase of 4.5%
Priority Mail Express: Average increase of 2.5%
Parcel Select Ground: Average increase of 1.3%
Are these changes enough to impact your business and make you consider switching to another shipping carrier? This is where our pros come in – we’ll use all our latest techniques to help you find the best shipping company and save money on shipping in several ways.
For more on USPS rate increases or to learn about our shipping API or software programs, speak to the staff at eHub today.
For new businesses, winning in your local market is just the start. As your e-commerce store starts to scale, you should look at options for growing international sales.
Growing your business overseas requires a lot of preparation, research, and planning. Here are our best seven tips for a successful transition to an international market:
Study the Market and Product Demand
Before you aim for a new market, see if your products are getting attention in other countries.
Are you getting a lot of traffic worldwide? Do you already have repeat customers from places outside the US? Answering these questions should provide you with insights on how to adapt to a new market.
You can look at this using Google Analytics. If you don’t have the tracking pixel installed on your website, you can learn more about doing it here.
Also, research to find out if there’s a high demand for the type of product you sell. If there’s a need that’s not met in one country, you can be there to fill that gap by growing international sales.
You can also use Google Trends to see what people are searching.
Translate Your Website to the Local Language
Make sure that international customers can understand your website in their own language. No one will buy your item if they can’t read your product description.
However, don’t settle for simple translation tools such as Google Translate. You want to make sure to hire a professional translator who can write good e-commerce content.
Otherwise, there may be inaccuracies in your copy that might throw off your audience.
Aside from translating your website, also make sure that your store converts prices into their local currencies. Many tools on Shopify help you do this, such as Transcy, for example.
Do Research on the Country’s Culture and Customs
While translating your website is a must, it won’t be enough to adapt to a new market overseas. You’ll also have to research the country’s culture and customs.
For example, selling products made out of ivory is illegal in many European nations, such as Italy. Countries also have different definitions of what they consider “ethical marketing” as well.
Find brands that align with yours that are currently selling in those markets. You can research to see what they are doing, even contact the brand and ask them what it is like.
Get International Payment Options Ready
As you get ready to scale overseas, start thinking about how you’ll be accepting international payments.
The preferred payment method of the customer will depend from country to country. For example, cheques are still commonly used in France, while German buyers prefer to purchase directly.
Consider adding PayPal as a payment option on your website. The platform makes it possible to take payments from over 200 countries in 25 currencies. It also has a good reputation regarding security and purchase protection.
While translating your website is a must, it won’t be enough to adapt to a new market overseas. You’ll also have to research the country’s culture and customs
Get All the Legal Documents Required
A not-so-fun part of expanding your business overseas is getting yourself legally ready. Some countries will require specific documentation before you can operate in their territory.
You’ll also have to research how you plan to pay taxes in the country. You’ll have to adhere to the laws determined by the IRS and the tax authority of the country you’re selling in.
Figuring all of this out by yourself can be a headache. That’s why we help our customers take the stress off their backs by handling all the documentation needed to ship internationally.
Provide Excellent Customer Support
A vital factor to consider as you shift your business overseas is how you will handle customer service. Remember that your customers will be in different time zones and may not speak English.
To overcome these roadblocks, you can invest in chatbot technology to answer customer questions anytime. Another strategy is to hire an international remote team that can provide customer support even during late times.
Make sure you include tracking information for any shipments, as well as posting expected transit times for overseas shipments.
Make International Shipping Affordable to Customers
Lastly, your shipping strategy could make or break your success overseas.
Unexpected shipping costs can drive your potential customers overseas away. In fact, high shipping costs are one of the most common reasons why customers abandon their carts.
If you’re a small or medium-sized business, however, it can be difficult to find competitive rates on international shipping. Many roadblocks can get in the way, such as paperwork, negotiating deals with carriers outside the US, and managing international returns.
At eHub, we help take care of international shipping so you can get started selling internationally right away. We have hundreds of connections with carriers worldwide to ensure you get the best rates every time – especially internationally!
Wrapping Things Up
If you’re serious about growth, international markets offer a unique opportunity to scale quickly. It will require careful planning on your end, but the results can be very lucrative in the long run.
eHub can help you transition seamlessly as you enter a new market. Our platform allows you to scale your shipping to multiple countries without having to negotiate rates or hurt your profit margins. Contact us today for a free demo to learn more.
Summer is almost over, and it’s time to think about your strategy for the holidays.
The holiday season is typically the most chaotic time regarding online orders and shipping. To make it worse, the world is currently battling against COVID-19, which makes 2020 a year like no other for e-commerce.
As stressful as everything may seem, we’ve got your back.
Here’s our 2020 shipping checklist to make sure you stay on top during this year’s holiday season:
1. Forecast Demand
As the pandemic continues, you must forecast customer demand for the upcoming holidays.
COVID-19 has changed everything from the customer’s channel selection frequency to shopping and the products they want. For example, there’s a more robust demand for items that align with social distancing, such as entertainment products or home goods.
Look at your sales during the lockdown — which types of products were in high demand? It should give you a clue on what to expect from customer behavior during these next months.
There is a science to forecasting demand, but let me give you a simple metric: compare sales from March to May this year versus last year. Take that percentage difference and multiply last year’s holiday sales to see how much bigger it could get.
Also, think about talking with your 3PL to find out how they can help you prepare for the upcoming holiday demand.
2. Implement a Strong Communications Plan
Another critical factor to consider during the holidays is communication with your customers.
Make sure to keep them up-to-date with each of their orders. One thing that will make customers worry, for example, is how COVID-19 will impact shipping delays. You’ll need to provide tracking and let them know when they can expect the item to arrive at their doorstep.
During your communication with your customer, it’s also a good idea to promote upsell offers. You can run post-purchase email campaigns with other products they can buy to complement their order. It will help deliver more value to the customer and boost your average order value.
3. Get Ready for More Customer Returns Than Usual
Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.
The reason is that customers will feel reluctant to step into retail stores due to virus fears. To gain peace of mind and avoid getting infected, they’ll be doing most of their shopping online.
Customers love the ability to buy and try on or see how something looks in real life. They often buy two or three sizes or styles, keep one, and return the rest.
As a result, your business must come prepared with reliable customer service staff or shipping software to manage returns effectively.
Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.
4. Get Shipping Insurance
No one can predict what will happen to your product once it is out for delivery. Nothing is worse for a customer during the holiday season than to make a purchase only to have the item damaged or never even arrive.
With an expected surge in shipments this holiday season, these problems will be multiplied. You can protect yourself and your customers, however, with shipping insurance.
It’s why you want to plan in advance and get shipping insurance, which is easier than you think. No matter what happens to your product, you’ll be protected against significant financial loss and gain peace of mind.
The holidays are the time when orders reach their peak throughout the year. As a result, you can expect new rules, restrictions, and deadlines for all major carriers. Look into the specific provisions of your carrier for different times of the year and figure out what measures and fees are required.
5. Do Research on Seasonal Fees and Restrictions
Keep in mind as well that major carriers will be surcharging their rates on shipping due to coronavirus and customer demand. For example, UPS plans to make businesses that ship more than 25,000 orders per week pay an extra $1 to $4 for each package.
6. Offer Multiple Shipping Options
If you offer free shipping, you’re probably sending things via Ground or Priority Mail. Those options have been impacted the most by slow delivery times, and you’ll have customers who will want something faster.
Offering an expedited shipping option – like 2-day, overnight, or even same-day delivery, is a must this holiday season. Here’s why:
It sets clear expectations for delivery times
Customers have the option to pay for faster delivery
Free shipping has a higher perceived value
Anyone who is expecting free shipping will see that delivery times affect cost. They will appreciate that the slower option is still accessible compared to the expensive, expedited option.
7. Make Your Packaging Stand Out
The holidays represent a unique opportunity to strengthen brand loyalty and delight new customers. One of the best ways to do this is to create a fantastic unboxing experience that wows them.
Branded packaging is the first approach because it makes each purchase feel unique and delivers a great impression. Since shoppers also buy gifts for their friends and family, you’ll surprise multiple customers simultaneously.
Customers also love to share brand packages on social media, which promotes your store and boosts your reach.
The next step is making what’s inside stand out with different packing paper, a hand-written thank you note, or even surprise gifts you’ve included.
There are so many things to handle regarding shipping during the holidays. You have inventory to manage, orders to pack and ship, tracking, and many more tasks on your list.
Software is the best way to improve processes like this. With automation, you can improve the pick-n-pack process, automatically select the correct shipping method, batch print labels, and update tracking information.
Essential Hub’s software provides all the tools you need for success this holiday season. Not only do we help you get the best rates on shipping, but our software also comes with order tracking, inventory management, and more.
