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.
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.
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.
You started out doing the shipping yourself. You loved putting products into packages and printing the labels because it represented all the hard work you’ve invested in starting your business.
Now, your online store is growing, and shipping has turned into a headache. It needs to be done every day, but your business has a lot of other needs, too.
If you’re currently evaluating whether you should expand your operations and hire someone to take over fulfillment, you may want to consider a third-party logistics provider (3PL) to do the job for you.
What is a Third-Party Logistics Provider (3PL)?
A 3PL is a logistics provider that allows you to outsource your fulfillment operations. The provider will handle various business activities for your company, such as:
Warehousing
Distribution
Fulfillment
Inventory management and forecasting
And more
Sooner or later, there will come a time when it will be necessary to enlist a 3PL (or expand operations to do it yourself). If you’re starting to run out of space or are shipping around 10-20 daily orders on your own, a 3PL can help you save time so you can focus on business.
It’s also an excellent investment if you’re looking to expand overseas or adapt to seasonal changes. Here’s what to consider to pick the 3PL that’s the right fit for your business.
Payment History and Financial Stability
When choosing a 3PL, consider what would happen if they were to shut down or go bankrupt suddenly. If you’re not ready, it could have brutal consequences for your business.
It’s always better to be safe than sorry, which is why you need to pick a 3PL with financial stability and a solid payment history. You’ll be saving yourself a lot of trouble in the long run.
Do your research and ask around to learn more about how they’ve handled payments in the past. If they have a history of not being reliable, then it’s best to move on and find a better partner to fit your needs.
Excellent Industry References
Not all 3PLs are created equal. You’ll also have to find out what others in the industry say about their services, along with strong financial stability.
One of your goals during your research should be to network with their existing customers and get their opinions on the 3PL. Here are some questions you can ask them to learn more about how the logistics provider does business:
Is the 3PL easy to work with?
Are their customers satisfied with the results they’re getting?
How much money could they save on shipping, labor, and other rates?
Does the 3PL offer reports and updates on key performance metrics?
How were they able to scale thanks to the logistics provider?
Technology Integrations
There’s plenty of technology that helps you manage your supply chain easier. A quality 3PL should be able to integrate tools that give access to automation, connect with major carriers, and help you get the best rates.
Look at the 3PL’s website and see which e-commerce integrations are possible when you work with them. They should be able to integrate with the best platforms, such as:
Amazon
WooCommerce
Shopify
Whatever your store needs
Their Industry and Area Specialization
Specialty is key to finding the perfect 3PL. The right 3PL for your business depends on your location, the type of products you sell, and your current logistical needs.
For example, let’s say that you’re selling high-tariff items such as consumer goods and luggage. An option to consider is cross-border fulfillment, which is perfectly legal if you sell items with a 15+ tax rate.
Another aspect to consider is the 3PL’s location. Thanks to Amazon, customers expect to receive their products as soon as possible. As a result, it may be better to choose a 3PL that’s close to your customers. That will save you on shipping costs and keep delivery times to a minimum.
You can save on shipping costs by using one in the middle of the country or close to the region where you make the most sales. Larger 3PLs will have multiple locations you can leverage to cover the entire country.
A Strong Business Relationship
Collaborating with a 3PL is different from other traditional businesses. They are crucial in growing your business and effectively getting your product into customers’ hands.
To build a strong relationship with the 3PL, you want to know exactly what you need. Outlining your goals to the logistics provider will help set clear expectations that will lead the way to a solid partnership.
This should include:
Expected level of service – how fast do things get out the door?
Accuracy levels – sometimes, they ship the wrong product.
Cost to ship each package (with a breakdown for different SKUs)
How do they handle returns?
3PLs are notorious for being bad at handling returns. Have a frank discussion with any potential vendors so that you understand what they’re willing to do (and not do). Some will do it (for a price), but there are many with piles of unsorted returns sitting in their warehouse.
Scalability
Each company’s goal should be to grow and eventually reach a global market.
As your company starts to scale, its needs will change over time. You must consider what happens as you grow in SKUs and regions and hire more employees.
The right 3PL will fuel that growth and help you take your business to the next level. For example, the holidays are a period that significantly influences the supply and demand of your products.
A high-performing 3PL should also help you adapt to unexpected events. In the case of a natural disaster, you want to ensure they know how to handle the crisis and minimize the damage to your business.
When you meet up with a potential 3PL partner, ask them what their primary strategy is for scalability. It’ll show you if they’re worth the investment or not.
Pricing and Budget
Lastly, you’ll have to factor in your current budget. Investing in a 3PL can be costly, but it’s not a reason to go after the cheapest option.
As mentioned in this blog post, investing in the right 3PL helps you scale and grow your reach. A cheap 3PL is useless if it can’t adapt to unexpected situations and loses you money in the long term.
Many 3PLs will charge a flat fee, while others will charge variable pricing depending on your product type. Let’s take a look at an example:
You’re a clothing company with a high SKU that ships lightboxes. If your 3PL charges companies based on their SKUs, you will get charged more.
When checking out 3PLs, comparing pricing is just as important. Here are some questions that you should be asking the 3PL:
Does the 3PL come with an onboarding fee?
What type of products do they specialize in?
Does the 3PL charge based on the number of orders?
Do they take care of customer returns?
What kind of inventory transparency do they have?
At the end of the day, what matters is your return on investment. Partnering with a third-party fulfillment company can save you time and reduce labor costs at a significant price.
Wrapping Things Up
It takes a lot of time and research to find the 3PL that’s the right fit for your business. With these seven things to consider, you should have a clear idea of what to look for and find the best for you.
eHub manages a network of 3PLs with our technology. If you’re considering a 3PL for your fulfillment needs, we can help you find the right one for you.
A customer just bought a product from your store. You collect their mailing address, set up your branded packaging, and ship their ordered item.
But have you thought about what happens if your product gets broken or lost during the delivery process?
No one knows what can happen to your product during its transportation to the customer. Your business needs a game plan to prepare in case things go wrong.
What is Shipping Insurance?
When people hear “insurance,” they typically think of insurance for their health or home. But little do people know that it’s also possible to get insurance on products you ship to customers.
Shipping insurance covers the delivery fees and costs of your item in case something goes wrong during transportation. Let’s dive into the reasons why investing in shipping insurance is a smart move for your business.
Why You Should Consider Shipping Insurance
It’s impossible to predict the future, even if you think that you have everything under control. Your product could get lost or broken during delivery, leading to a disappointed customer. Some of the benefits of getting shipping insurance include:
Peace of Mind
Without insurance, you’ll be in charge of covering shipping costs and refunds if your item doesn’t arrive at the customer’s doorstep. It’s a process that adds extra stress to your workload, and you probably already have a busy schedule.
Getting shipping insurance takes stress off your back. No matter what happens to your package, you get peace of mind knowing that your item is always covered.
It Protects You From Any Financial Loss
Your item is in good hands when you get shipping insurance. The process might require a bit of paperwork, but the insurer will handle everything to ensure you get your money.
It’s also possible to get insurance for high-value items. Some carriers cover items up to $50,000, which we’ll explore later.
Getting Shipping Insurance Is Fast and Easy
Getting shipping insurance doesn’t have to be a complicated process. There are plenty of options at your disposal to get your items insured quickly. It’s even faster when you integrate a tool like eHub, which makes it simple to incorporate insurance.
The Different Types of Shipping Insurance Available
Here are the two main types of shipping insurance that you can choose:
Carrier Insurance
Different companies such as UPS, USPS, and FedEx all offer insurance for items you ship. Price varies from carrier to carrier, and each has limits on the maximum value of products that are covered.
Third-Party Software
You can also get insurance by integrating shipping software into your store. A shipping platform can ensure you get insurance on each item and offers the best shipping rates to customers.
How Much Does Shipping Insurance Cost?
If you decide to get your shipping insurance from a carrier, here’s how much you can expect to pay:
Things To Take Into Consideration Before Getting Insurance
International Restrictions
Remember that international restrictions influence whether your item qualifies for coverage or not. There are certain countries that carriers will not insure. For example, if your item gets lost in Paraguay, you won’t be able to obtain shipping insurance since it goes against US trade rules.
Certain countries also block you from importing certain goods. You cannot get coverage on items prohibited from shipping in the country you are targeting.
It’s impossible to predict the future, even if you think that you have everything under control
Terms and Conditions of the Insurance Contract
You must also be careful of the terms and conditions that come with shipping insurance. Some items don’t qualify for coverage, even if you ship them domestically.
Maximum Item Value
Carriers also offer limits to shipping insurance based on the item’s value. Let’s take a look at them below:
How to File an Insurance Claim
Next, you may wonder how to file an insurance claim on a lost or damaged product. Some carriers require you to file a claim within 60 days, while others give you up to nine months.
Here’s what you’ll need to do to get insurance for your product.
Your Package Got Lost During Delivery
If a customer reports that they’ve never received your item and can’t track it online, you’ll need proof of loss. Here are the documents that you’ll have to prepare in advance:
Evidence of pickup from your warehouse
The sender and recipient address
Tracking information
Package information: size, type of product, and more
Your Package Got Damaged
How you respond when your package gets damaged depends on your carrier. You’ll likely have to take pictures of the damaged packaging to compare it with the package’s photos in its normal condition.
It will also be required to provide documentation such as the original invoice, recipient address, declared value, and more. The carrier might inspect the package as well.
Your Package Got Stolen
Getting one of your items stolen is a tricky situation to be in. If you’re tracking an order, but it never seems to arrive to the customer, here’s the documentation you need to prepare:
Order tracking number
Description of what’s in the package
Recipient and sender mailing address
Proof of damage and value
Resources to Help You Out
If you need more information on how to file your insurance claim, check out these main couriers’ resources:
Running a business can be stressful enough. If you’re seeking extra peace of mind, getting shipping insurance goes a long way. No matter what happens to your item during delivery, you can rest assured that you’ll be covered if things go unexpectedly.
Your shipping bill consists of vital information about your package, from details about the recipient to how much you can expect to pay for a shipment. To avoid any nasty surprises or accidentally overpaying for shipping, you want to make sure to read your invoices carefully.
In this post, we’ll look at three leading carriers (FedEx, UPS, and DHL) and the structure that each of their shipping bills follows.
Reading Your FedEx Bill
Here is the format that each shipping bill from FedEx follows:
1. Contact / Bank Information
The first thing you’ll see on your shipping invoice is your contact and bank information. Here are the different things that it will consist of:
Electronic Funds Transfer (EFT): Your EFT will include your account name, bank, IBAN, and BIC.
Credit cards: FedEx makes it possible to choose which major credit card you want to use to pay your shipping bill.
Direct debit.
2. Invoice Type
There are two invoice types when it comes to FedEx shipping bills. These include:
Freight invoice: This consists of the transportation charges incurred per Air Waybill.
Duty tax invoice: It details all the clearance charges imposed in the destination region or country.
3. Shipping Information
This part of the invoice covers all of your package’s shipping information, such as:
Shipping number information
Ship date
Reference
Taxable/non-taxable / Total charges
4. Shipper Details
Next, your invoice will include all of the information about the shipper. These details include:
Company name
Postal code
City
Etc.
5. Charges
Here, you’ll see a breakdown of charges incurred at the Air Waybill level.
6. Proof of Delivery
This part of the shipping invoice confirms that your recipient received the order. The bill will show you the signature, date, and time of your shipment to show proof.
7. Overall Summary of All Charges & Total Amount Due
As you reach the end of the shipping bill, you’ll see a summary of all charges, such as taxes, discounts, and more factors that could affect the price.
8. Payment Remittance Address
Finally, the invoice ends with the remittance address to the UPS office.
To avoid any nasty surprises or accidentally overpaying for shipping, you want to make sure to read your invoices carefully
Reading Your UPS Bill
UPS is another popular option to get your shipping and packaging handled. Here’s how shipping bills from UPS are formatted:
1. Account Status Summary
On each UPS invoice, you get a summary of your account, which includes your previous invoices with the provider.
2. Payment Terms
The bill will have a section that outlines UPS’s payment terms and what they entail.
3. Outbound Shipping Charges
In this section of the bill, you’ll get an overview of any outbound shipments during the invoicing period and a tracking number for your package. It will also include information on your shipping zone and product weight.
4. Adjustments and Other Charges
There may be other additional costs that impact the total cost of your bill. These can include late payment charges, same-day pickup, and other factors.
Your package’s dimensions can also add extra charges. UPS determines how much you can expect to pay by taking into account the length, width, and height of your package.
5. Taxes
The invoice will cover which taxes you’ll have to pay for each item you ship.
6. Return Portion
If you’re paying by cheque, this section includes the amount due and the return form to fill out.
Reading your DHL Bill
DHL is one of the global leaders in the logistics industry. Here’s how to read the format of each of their shipping bills:
1. Type of Invoice
DHL has different forms for shipping bills, such as:
Inbound invoice
Outbound invoice
Credit adjustment
Debit adjustment
Your shipping bill starts by identifying which one corresponds to your package.
2. Customer’s Billing Information
Next, your DHL bill will cover all of your customer’s billing information, which includes:
Invoice number
Account number
Invoice date
Payment due date
3. Shipment and Package Information
This part of the bill covers the shipment origin details of the package and the destination receiver. It includes the total number of pieces associated with each waybill and the total weight of the shipment.
4. Service Description and Extra Charges
It’s possible that you chose a particular form of service and have some extra charges that impact the price of your shipping bill. They will all be covered in this section.
5. Total Due
By taking everything above into account, the invoice shows you how much you can expect to pay in total.
6. Billing and Payment Information
The invoice ends with all the bill and payment information (including the customer’s billing address), so you can proceed to pay the invoice in full.
Conclusion
Make sure you take the time to read your shipping bill carefully. While shipping invoices may defer from carrier to carrier, they all provide you with information on the recipient and consider extra charges that could impact the cost.
Everybody wants to save the most money on shipping. With so many shipping methods and carriers, however, it isn’t easy to know the best option, which can change based on the situation.
The type of shipping option that’s best for you also depends on various factors, such as delivery time, distance, and product weight. Here are some basic recommendations to help you find the best shipping method and make sure you save money on shipping:
The Cheapest Ways to Ship Based on Your Product Weight
To find the most cost-effective shipping method, your product’s weight is the first thing to consider. Here are our recommendations to get the best rates on your items based on how heavy they are:
Items That Are Under 1 Pound
If you’re shipping light items below 1 pound, the best carrier to go with is USPS. USPS First Class Mail is a fast, low-cost way to send any lightweight package.
Items That Are Under 10 Pounds
For products weighing only 1-10 pounds, we recommend going with USPS Priority Mail.
Heavier Items That Go Beyond 10 Pounds
There are various options available if you plan to ship heavy items. The best ones include:
UPS Ground: An excellent solution for merchants that want to ship items up to 150 pounds. Each package gets sent within three to five business days.
FedEx Ground: This option is available for stores that ship items up to 70 pounds. Like with UPS Ground, you can expect packages to ship within three to five business days.
USPS Parcel Select: If you’re shipping items up to 70 pounds, another solution is to go with USPS Parcel Select. It also comes with order tracking at no extra cost.
Unicorn Shipping: Priority Mail Cubic
If you’re shipping any items up to 20 pounds, one of the best-kept secrets in shipping is Priority Mail Cubic. Cost is determined by size, not weight, so this service is excellent for more minor but still relatively heavy items. Not using Priority Mail Cubic is #3 on the list of Deadly Sins when it comes to shipping.
The Cheapest Ways to Ship Based on Delivery Time
Delivery is vital in what kind of shipping option and carrier is best for your business. Here’s how you can get the best shipping rates depending on how fast the customer needs their order to arrive:
Next-Day Delivery Service
Here are our recommendations for shipping carriers to get your items delivered the next day:
USPS Express: The cheapest option you can get for next-day delivery, though not always the most reliable.
UPS Next Day Air Saver: Not only does this option offer competitive rates, but UPS will also refund you if the item doesn’t get shipped the next day. You will need to file a claim, however, if that is the case.
FedEx Standard Overnight: FedEx offers same-day delivery for all addresses in the US. However, if you’re shipping items over 150 pounds, you should get FedEx next-day freight services instead.
A note on guaranteed delivery: when a carrier says the delivery time is guaranteed, you can get a refund if they don’t make it. Guaranteed delivery does not mean the package arrives as expected every time.
If You’re Looking to Ship Within 2 Days
For two-day delivery, our best recommendations are FedEx 2 Day and UPS 2nd Day.
If You’re Looking to Ship Within 2-3 Days
To send orders within 2-3 days, the best option to go with is USPS Priority Mail. It offers the lowest rates compared to UPS and FedEx, which can cost almost twice as much.
You can see on their website that USPS Priority Mail coverage is two days for most of the country. If you don’t need guaranteed 2-day delivery, then this option is the most economical option for that service.
The Cheapest Way to Ship Internationally
International customers are a great way to expand your reach, but delivering products can seem more complicated. The cheapest way to ship your items internationally is through USPS, which will be less expensive than UPS and FedEx (which can cost three times as much).
Other Tactics You Can Use to Save Money on Shipping
Outside of these shipping methods, there are also things you can do from your side to save money on shipping. Here are a couple of tactics to employ:
Provide the Right Protection for Your Items
You want to ensure that each of your items gets to the customer safely from A to Z. If your product gets broken or stolen during the delivery process, that’s money; you’ll lose shipping.
There are two main ways to do this. First of all, you want to make sure that you’re using a suitable packaging material to protect your items during transportation.
Secondly, you should consider having insurance if anything unexpected happens to your item during delivery.
Integrate a Shipping App
A great way to save on shipping is to integrate shipping software into your store. A quality app should have access to discounts on shipping with major carriers to ensure you get the best rates on shipping every time.
The best part about using shipping software is that you can set up automation so the software finds the best rates for each and every shipment, so you don’t have to worry about figuring it out every time.
Keep Your Packaging as Light as Possible
The heavier your package is, the more expensive shipping will be. To save money, avoid using heavy packaging material to ship items. For example, instead of cardboard, consider using light materials such as air pillows or packaging peanuts.
Reuse Packaging Material
Lastly, a great way to save on shipping costs is to recycle your old material for future orders. It’s a great way to save money and respect the environment at the same time.
Grow Your Business With The Best Shipping Rates
Shipping can quickly feel like a liability, but there are ways not only to minimize its effects but also to deliver a great customer experience simultaneously. That’s why you need to weigh all your options and select the shipping option that will save you the most money.
By following our recommendations, you should have a good idea of how to get rates for shipping. To learn more about how Essential Hub can help you save money with the best shipping discounts, contact us today.
As frustrating as returns can be, managing them is an inevitable part of an e-commerce business. 30% of online products are returned, compared to only 8% for brick-and-mortar stores.
While dealing with customer returns might not be fun. However, it’s still possible to manage and minimize them effectively. Sometimes, you can flip them around and turn them into a sale.
While you may hate them, customers expect the returns process to be painless.
In this blog post, we’ll cover six ways that stores can manage returns effectively and improve their business:
Make Your Returns Policy Easy to Access and Lenient
More than 60% of customers will read your return policy before purchasing. That’s why you want to ensure your return policy is clear and easy to find on your web store.
The best places we recommend to make your returns policy visible include:
Your website’s footer
Your header
Each of your product pages
Checkout & cart page
Another good tactic is to be generous and extend the deadline for returns. This works because it gives customers peace of mind and ample time to see if the item fits.
For example, Zappos is a top-leading brand that offers returns within 365 days of purchase. With so much time to test out the product and return it, customers may even forget to return the item in the first place!
Collect Data on Customer Returns Through Surveys
One of the best ways to prevent returns is to understand why customers are returning your items in the first place. One way to collect this information is through customer surveys.
With surveys, customers will have to go through a series of questions so you can understand the reason behind their return. Some of the best questions you can ask in the survey include:
How did you find our product?
What features are you looking for that our product lacks?
What questions came to mind during your buying process?
Did you compare our items to the competition?
What can we do to improve our item to fit your needs?
As Bill Gates said himself, “An unhappy customer is the best customer.” Once you understand why customers are returning their orders, you can improve your products and web store.
For example, if a specific item always comes back faulty, you can find ways to fix it. Maybe it’s a flaw in the design, or the item’s packaging isn’t strong enough to sustain the transportation to the customer.
Maybe there’s a line in the product detail that is misleading customers. Understanding their expectations allows you to communicate more effectively in the first place or improve what you’re delivering.
If customers complain that your product looks bigger on your website than in real life, you can focus on improving your images to reflect the actual size of the item.
One of the best ways to prevent returns is to understand why customers are returning your items in the first place
Offer Product Recommendations to Customers
Even if a customer decides to return your item, it doesn’t mean that they won’t ever buy from you again. It could just be that they’re looking for a different product to meet their needs instead.
Especially for clothing or fashion-related items, customers want to see how they look and fit in person. If the returns process is easy, then they will continue to try out different products until they find what they like. Then you’ve got a lifetime customer!
What you can do in this situation is to offer them suggestions for other products that might interest them. If they’ve bought from you before, you can look at their history and see which type of item they typically like.
To take it a step further, you can also offer them redeemable coupons they can use on future purchases. It’s a great tactic to get them to return to your store and eventually buy products from you.
Measure How Much Your Returns Are Costing Your Store
As you manage returns, you must take the time to measure how they’re affecting your revenue. Doing so will help you set up a strategy to minimize them and do better.
Here are some crucial questions you need to be asking yourself:
How much money are you losing because of returns?
How much is your return rate compared to industry averages?
If you also have a retail store, do you have more returns online or in-store?
How are returns affecting your warehouse, inventory, and transportation costs?
Make the Return Process Simple and Convenient
How your brand manages returns could make or break your customer relationship. 92% of buyers will shop at your store again if the returns process is fast and straightforward.
For example, you can add a prepaid return label on packages to make the process less frustrating for the customer. You can also give customers a tracking number that lets them know when you receive the item.
Another way to make the returns process worry-free for the customer is to make your order policy straight to the point. Avoid complicated terms, disclose return fees, and set clear expectations between you and the customer.
There are tools you can use that simplify managing returns, which we’ll get into below.
Manage Your Returns With a Shipping Tool
Managing returns isn’t an easy task. Plus, you likely have other priorities in mind for your business, such as marketing your product or optimizing your website. It doesn’t hurt to get a bit of help along the way.
To save you time, various return management tools make the job easier for you. Some of the best tools we recommend on Shopify include:
AfterShip Returns Center: The platform uses automation to manage and process your refunds from one dashboard. Customers will be able to return their items online within minutes.
ReturnMagic: Acquired by Shopify in 2018, ReturnLogic makes it simple to create an RMA and print shipping labels. It includes over 50 carriers worldwide.
Returnly: With Returnly, customers can send back your products by generating their own return shipping labels. Some of its users include Everlane and Outdoor Voices.
Conclusion
Returns are part of shopping online. Making it easy will create a more positive customer experience and boost your retention of new customers. Managing them can be a headache, but setting clear policies and effective back-end processes will make them painless. With the right strategy, you can make returns just another selling point for your business!
It can be a headache figuring out your exact shipping rates. There are many factors involved, and if you’re relying on third-party software or a marketplace, then you can be reliant on the rates they give you.
One mistake to avoid is overcharging your customers for shipping. If shipping rates are too high, customers will abandon their carts.
At the same time, you don’t want your shipping rates to be too low. Scaling a business while eating high shipping costs is a recipe for disaster.
So what’s the solution? As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
What is Real-Time Carrier Shipping?
Real-time carrier shipping consists of software that automatically calculates the shipping rates for buyers during checkout. It considers factors such as product weight and shipping destination to charge the proper rates.
Here are some of the benefits that come with adding real-time carrier shipping to your store:
Avoid Calculating Shipping Rates Yourself
Real-time carrier shipping helps take the guesswork out of calculating shipping costs. Just as buyers are about to checkout, they instantly get access to rates without you manually calculating it yourself.
As a result, you’ll gain extra time to focus on what truly matters the most — running your business. You gain peace of mind knowing you’re charging the correct shipping rates each time.
Charge Customers the Right Amount for Shipping
There are many things to take into account when charging your shipping rates. If you’re not setting up your rates correctly, you risk losing potential sales and revenue over shipping costs.
Real-time carrier shipping ensures you charge the correct amount each time, even if you’re shipping your items overseas.
Provide Transparency to Customers
Any friction during the buying process will cause customers to drop their shopping carts, so you want to ensure they don’t get nasty surprises.
Real-time shipping gives customers an idea of how much exactly they’ll be paying for shipping. As a result, they’ll be more likely to follow through with their purchase.
It’s important to note on the product page that shipping charges will be calculated at checkout—that way, they know exactly what to expect.
Your Carrier Options on Shopify
Shopify has three leading shipping carriers: USPS, UPS, and FedEx. At checkout, customers will get to see the negotiated rates based on the carrier that you selected.
The carrier-calculated shipping feature typically comes with the Shopify Advanced and Shopify Plus Plans. However, you can add it for $20/month, no matter which plan you’re currently on.
Let’s dive into the requirements for each carrier and how you can connect them on Shopify:
USPS
To start with USPS, you must register for a USPS User ID by signing up on their web tools registration form. The ID will give you access to package tracking and shipping rates.
From there, here’s how you can connect your shipping rates to USPS from the Shopify admin:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add USPS as the shipping carrier you want to connect
Enter your USPS User ID in the Connect USPS dialog
At this point, you can add USPS rates to your current shipping zones, even those that don’t currently use USPS rates.
UPS
To calculate your shipping rates with UPS, you must create an account on their official website. Setting up your account is going to be free of charge.
The next step is to find your custom shipping number to connect with UPS. If your UPS account doesn’t have a shipping number yet, you will have to register for one as well.
Here are the different steps to follow when connecting your UPS account on Shopify:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add UPS as a shipping carrier
Enter your UPS credentials in the Connect UPS dialog
Click Submit and continue
Add your account and invoice details on the Verify your UPS® account dialog.
Click submit
FedEx
FedEx is a popular carrier option for many stores. To set it up on Shopify, you must first create a FedEx account on their official website. The different types of shipping rates you can offer customers with FedEx include:
FedEx 2 Day
FedEx Express Saver
FedEx First Overnight
FedEx Ground
FedEx Priority Overnight
Here’s how to connect to FedEx as a shipping carrier from the Shopify admin:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add FedEx as a carrier.
Enter your FedEx credentials in the Connect FedEx dialog
Select whether you want to add FedEx rates to your existing shipping zones
Click Save
As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
Learn How to Get the Best Shipping Rates Today
Connecting a carrier to your Shopify store is one of the best ways to estimate shipping rates. By charging customers the exact price, you won’t have to worry about overcharging them or losing money.
When selecting a carrier, you should understand some of the benefits and negatives associated with each carrier. Not everyone can offer free shipping, at least not immediately, but you should review these tips to see how to do it.
Getting reasonable rates involves negotiating with each carrier to get the best rates. Another method is using third-party software that has previously negotiated rates plugged into their software.
Essential Hub works with all our customers to ensure they’re getting the best rates and are taking advantage of a multi-carrier shipping approach. Find out how we can get you up and shipping with better rates immediately!