Shipping is a crucial component of e-commerce, and with the rise of online shopping, it has become increasingly crucial for businesses to ensure that their products are delivered to their customers on time and in good condition. However, sometimes shipping can go wrong, and one of the most common issues that can occur is an invalid destination address.

In this article, we will explore what an invalid destination address is, why it matters, and what you can do to prevent it from happening. We will also discuss how working with a partner like eHub can help you avoid these types of issues and streamline your shipping processes.

What is an Invalid Destination Address?

An invalid destination address is simply an address the carrier cannot recognize. This can occur for various reasons, such as missing or incorrect information, typos, or outdated information. When a carrier cannot recognize an address, it will typically return the package to the sender or hold it at a distribution center until the correct address can be provided.

Why Does an Invalid Destination Address Matter?

An invalid destination address can have significant implications for both the sender and the receiver. For the sender, it can result in additional costs, as they may be required to pay shipping and handling fees for the return of the package. Additionally, it can lead to delays in delivery and potentially even lost or stolen packages. For the receiver, it can be frustrating and inconvenient not to receive their package on time, leading to negative reviews and a loss of future business.

How Can You Prevent an Invalid Destination Address?

There are several steps that you can take to prevent an invalid destination address from occurring in the first place. One of the most important things you can do is to double-check all of the information that you provide when filling out the shipping label. This includes verifying the recipient’s name and address, as well as any additional instructions that may be required for delivery, such as apartment or suite numbers. It’s also essential to ensure the address is up-to-date and accurate, as outdated information can lead to delivery issues.

Another way to prevent an invalid destination address is to work with a partner like eHub. eHub’s network of vetted carriers ensures that all shipping addresses are verified and validated before a package is sent out. This helps to reduce the likelihood of an invalid address and provides peace of mind to both the sender and the receiver.

How Can a 3PL Help with when this happens?

Working with a 3PL partner like eHub can offer several benefits regarding invalid destination addresses. First and foremost, eHub’s network of carriers can help to identify and correct any potential issues with shipping addresses before they become a problem. This can include verifying the address, checking for typos or missing information, and ensuring all necessary information is included on the label.

In addition to address verification, eHub’s network of carriers can also provide real-time tracking and monitoring of shipments. This means that if there are any delivery issues, eHub can quickly identify the problem and work with the carrier to resolve it. This can help to minimize delays and ensure that packages are delivered on time and to the correct address.

Conclusion

An invalid destination address can be a frustrating and costly problem for e-commerce businesses. However, by taking the necessary steps to prevent it from occurring and working with a partner like eHub, you can reduce the likelihood of these issues and streamline your shipping processes, not to mention the headache and frustration the customer has to deal with on their end.

With eHub’s network of vetted carriers and real-time tracking and monitoring, you can have confidence that your packages will be delivered on time and to the correct address every time.

If you’re involved in the shipping industry, you’ve likely heard the term “manifest” before. But what exactly is manifest, and why does it matter? In this article, we’ll dive into what a manifest is, why it’s essential, and how working with a third-party logistics (3PL) provider can help streamline your shipping process.

What is a Manifest?

At its core, a manifest is a detailed list of all the items transported on a particular shipment. It typically includes information such as the product name, quantity, weight, and dimensions. The purpose of a manifest is to provide a clear and comprehensive overview of everything being shipped, which can be especially important for larger shipments with multiple items.

Why is a Manifest Important?

There are several reasons why a manifest is essential in the shipping industry. First and foremost, it helps to ensure that everything that is supposed to be shipped actually gets shipped. By having a clear and detailed list of all the items that are supposed to be included in a shipment, it’s much less likely that something will be accidentally left behind or forgotten.

In addition to ensuring that everything is included in a shipment, a manifest can also help to speed up the shipping process. When a shipment arrives at its destination, the recipient can quickly reference the manifest to confirm that everything has been received as expected. This can help to reduce the amount of time spent manually checking each individual item, which can be especially valuable for larger shipments.

Finally, a manifest can be helpful if there is a problem with a shipment. If something is missing or damaged, the manifest can be used to identify precisely what was supposed to be included in the shipment, which can help streamline the process of resolving the issue.

How Can a 3PL Help with Manifests?

Managing manifests can be a time-consuming process, especially for businesses that are shipping large quantities of products. That’s where a third-party logistics (3PL) provider can come in handy. Here are a few ways that a 3PL can help with manifest management:

Creating Accurate Manifests: One of the primary benefits of working with a 3PL is that they can help to create accurate and detailed manifests for each shipment. By leveraging their expertise and experience, a 3PL can ensure that every item that should be included in a shipment is listed on the manifest and that all of the necessary information (such as weight and dimensions) is included.

Streamlining the Shipping Process: In addition to creating accurate manifests, a 3PL can also help to streamline the shipping process as a whole. By handling tasks such as carrier selection and shipment scheduling, a 3PL can free up time and resources for businesses to focus on other aspects of their operations.

Resolving Issues with Shipments: Finally, if there is an issue with a shipment (such as something being lost or damaged), a 3PL can help quickly and efficiently resolve the problem. By using the manifest as a reference, they can identify exactly what was supposed to be included in the shipment and work to replace or repair anything that was lost or damaged quickly.

eHub and Manifest Management

If you’re looking for a reliable and experienced 3PL provider to help with your manifest management, look no further than eHub. Our platform connects business owners with a vetted network of 3PL partners who can provide end-to-end logistics solutions, including accurate manifest management.

In addition to manifest management, our 3PL partners can help with tasks such as carrier selection, transportation management, and more. With eHub, you can easily compare quotes from multiple providers to find the best option for your specific needs.

How Can a 3PL Help with the Manifest Process?

A 3PL can play a crucial role in the manifest process, especially for shippers who are new to the industry or who lack the resources to manage shipping on their own. 3PLs have the experience and expertise needed to create accurate manifests, ensuring that all necessary information is included and that all regulations are followed.

In addition to creating manifests, 3PLs can help with other aspects of the shipping process, such as coordinating with carriers, managing transportation costs, and ensuring compliance with regulations. By working with a 3PL, shippers can focus on other essential aspects of their business while leaving the shipping logistics to the experts.

eHub: Connecting Business Owners with Reliable 3PL Partners

At eHub, we understand that finding a reliable and trustworthy 3PL partner can be a daunting task for business owners. That’s why we’ve created a platform that connects business owners with our vetted network of 3PL partners, making it easy to find the right partner for your shipping needs.

Our network of 3PL partners includes companies that specialize in a wide range of shipping services, from freight forwarding to warehousing and distribution. We carefully screen all of our partners to ensure they meet our high standards for quality, reliability, and customer service.

In addition to providing access to our network of 3PL partners, eHub also offers a variety of tools and resources to help business owners manage their shipping needs. Our user-friendly platform allows you to track shipments, manage invoices, and get real-time shipment updates.

Conclusion

In summary, a shipping manifest is a crucial document that serves as a detailed record of all the items being shipped, as well as important information such as the sender and recipient’s contact details and the carrier’s details. Creating an accurate and complete manifest is essential for complying with regulations, ensuring timely delivery, and providing proof of delivery.

Working with a 3PL can help ensure that your manifests are created accurately and efficiently while providing various other valuable services, such as cost management, compliance management, and logistics expertise. eHub’s platform makes it easy to find and connect with reliable 3PL partners, providing business owners with the peace of mind that comes with knowing their shipping needs are in good hands.

If online retailers have sold products to anyone in the European Union (EU) as of July 1, 2021, they’re most likely aware that taxation changes have been made. Non-EU retailers have been given new options for VAT payment in the EU. Online retailers, as well as consumers, will need to know what these changes and new rules are, why these changes have been implemented, and the options for businesses to incorporate them.

What has changed with EU import VAT?

The EU eliminated its €22 tax de minimis, implemented new value-added tax (VAT) regulations, and encouraged online retailers to adjust their methods of importing goods into the EU.

Before July 1, anyone importing goods into the EU valued under €22 was not charged VAT. Now (post-July 1, 2021), all low-value imports (where the total value of goods is less than or equal to €150) are charged a VAT fee applied to the COGS value (cost of goods sold).

Why the change?

There are several reasons why the EU decided to remove the €22 de minimis and distance selling threshold that previously voided the VAT fees for orders under the threshold, including the following:

1. VAT fraud
A massive amount of VAT fraud has been occurring in the EU, averaging around €7B in VAT fraud each year. The new rules aim to make shipments more secure and eliminate processes that allow fraud to occur quickly.

2. Level the playing field
The EU incorporated the VAT scheme in an attempt to level the playing field between domestic and foreign retailers. Online EU retailers previously paid VAT on all orders, regardless of the value of the delivered goods, while retailers from countries outside of the EU could slide under the de minimis, allowing them to offer more competitive pricing. As of July 1, 2021, non-EU retailers must also pay VAT fees on all of their shipments into the EU, helping EU retailers stay competitive.

it’s extremely important to consider what kind of experience retailers want their customers to have

Non-EU online retailers also have the cost of international shipping and the task of finding and paying for an intermediary/fiscal representation. EU retailers do not need an intermediary, and their domestic shipping costs are significantly less expensive than international shipping costs. While the EU initially intended to level the playing field for domestic EU sellers, the changes have given them quite the advantage over non-EU retailers.

An intermediary is a European tax representative, usually an international accounting firm, who acts as an in-country agent for online retailers selling into the EU. After retailers acquire an IOSS number, the monthly remittance of VAT for all EU sales will need to be paid to their intermediary, who will then go on to pay it on the seller’s behalf to the country that they’ve selected for representation.

3. Tax revenue
A more obvious benefit, but a benefit nonetheless, is that the EU’s removal of the de minimis causes an increased tax revenue.

4. Simplify
The new VAT scheme is intended to simplify the VAT collection process. IOSS offers a new optional method of VAT collection by pre-collecting the EU import VAT.

Were online retailers and consumers ready?

Despite months of news coverage, many retailers were not prepared for the VAT scheme when it launched and have had difficulty incorporating the new scheme. Some local governments were unprepared to enforce the new rules, and communication has been less than ideal. The EU, retailers, and customers are still experiencing somewhat of a transitional period; however, implementation is getting better. Despite the difficulties of these changes, businesses should never try to cheat the system, engage in illegal shipping conduct, or fail to comply with the new VAT scheme because it will result in penalties.

What does the new EU VAT scheme mean for online retailers and consumers?

With the new VAT scheme, online retailers must decide how they want their EU consumers to receive their packages. While there are several different options to handle VAT collection, this article focuses on IOSS.

IOSS service

The Import-One-Stop-Shop (IOSS) service allows retailers to register in one European country (their choice) and report all European sales in a single VAT return to that country. For example, if a seller registers for an IOSS number in Ireland, they will report and remit taxes for all EU sales there. Ireland would distribute the VAT collected to the countries where the sales occurred.

This simplifies the registration and remittance process because retailers don’t have to register in multiple countries as they did previously with the distance selling thresholds. However, it does require non-EU businesses to appoint and pay for an in-country representative who will go on to disperse their collected VAT and take on liability if the non-EU businesses don’t pay.

When using an IOSS registration number on import documents, retailers must select DTU/DAP to ensure they will not be charged carrier disbursement or advancement fees on their shipments into the EU. Bypassing these fees can save sellers up to $16 (USD) per shipment, which adds up.

It’s also important to note that once sellers register for IOSS, they must stick with it. Sellers cannot pick and choose which orders to collect VAT on and ship with their IOSS number…it’s all or none. All low-value orders imported into the EU must include the online retailer’s IOSS number. However, if sellers decide they need to withdraw from using IOSS, it is possible to deregister, but they will have to cancel their VAT registration. They must also be on good terms with the country of VAT registration (current on VAT payments).

IOSS is only applicable for B2C (business to consumer) shipments where the value of the products is equal to or under €150. Retailers considering IOSS should evaluate how many shipments fall under the threshold. Many carriers have gone on record stating that they support the IOSS program since the VAT will be prepaid, and the online retailer will avoid paying the carrier’s advancements or third-party collection fees. Other carriers have said they will only work with IOSS-registered merchants.

IOSS can potentially have a quicker transit time than DDU (delivered duty unpaid) packages. IOSS also has the capacity to provide the best customer experience. The presence of an IOSS number on a package helps increase the potentiality for a more efficient customs clearance process because it lets customs know that VAT will be remitted later to HMRC (Her Majesty’s Revenue and Customs), which allows the package to move directly out for delivery once it has been cleared.

The IOSS number is required on every shipment. Displaying and collecting VAT at checkout [along with the other fees that make up a landed cost] also provides price transparency, letting customers know the entire landed cost at the time of purchase with no surprise fees upon delivery. This allows for a good customer experience, resulting in great reviews, fewer returns or abandoned packages, and possible repeat customers.

Other options

The additional options to manage VAT collection are as follows:

Note that it’s extremely important to consider what kind of experience retailers want their customers to have—displaying and collecting VAT, along with all other fees that comprise the landed cost, at checkout results in a clear, simple, and positive customer experience.

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:

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.

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:

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.

We’ve also perfected the art of international shipping. Let us teach you our ways.

 

What is international shipping, anyway?

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:

  1. International shipping will take longer and cost more. Don’t waste time fighting it. Embrace it and find the best solution for your company.
  2. Customs and duties, both in the originating country and the receiving country, are all forms of import/export taxes you can’t avoid.
  3. 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:

LOCATIONINTERNATIONAL SHIPPING?
Any one of the 50 US statesNope (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 countryYep (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:

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:

Depending on where and what you’re shipping, you may also need a/an:

 

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:


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.