Explore the intricacies of international shipping and key tips for building a successful cross-border shipping strategy

By Alex Alexander, an industry expert in the supply chain and logistics space. It is written from his point of view.

Expanding your online business beyond borders is a thrilling opportunity. While the U.S. has a robust domestic e-commerce market, which is second only to China, the U.S. only represents 15% of the total global commerce market.

While the opportunity is undeniable, it does have its challenges. In this article, I’ll provide an overview of cross-border e-commerce and the considerations for shipping internationally. A good international shipping solution should be no different from your current domestic operations. Let’s get into it and see what you should focus on to ensure smooth and efficient transactions.

Understanding the Carrier Landscape

Since we will focus on international shipping, let’s begin our discussion with carriers. The first step is to identify the right carriers for your business. Consider the following:

• Major Carriers: UPS, FedEx, and DHL offer global reach and reliable services, but can be more expensive.
• Postal Service: USPS is often cost-effective for smaller shipments but may have slower delivery times.
• International Postal Operators: Asendia, DHLeCom, DirectLink, and APG specialize in international shipping and can offer competitive rates.
• Regional Carriers: These carriers excel in specific regions and can provide local expertise and faster delivery times.
• Consolidators and Freight Forwarders: These companies consolidate shipments from multiple shippers to reduce costs and improve efficiency.

One of the primary concerns most have with international carriers is the first mile carrier may not be the last mile carrier. In a previous article, I explained the intricacies of the first and last mile, Delivering the Future: Addressing the Challenges of Last-Mile Logistics and Exploring New Opportunities. As far as the first mile is concerned, it really is no different from your domestic shipments (at least it shouldn’t be). The driver who is picking up your domestic packages will also pick up your cross-border packages. The only difference, at this stage, is the shipping documentation you will need to prepare.

However, the real difference is in the last mile delivery. Depending on where your package is going, it could resemble a U.S. home delivery, or it can be totally different for other regions of the world. For example, if you ship to Canada, it will look a lot like a U.S. home delivery but if you ship to certain parts of Asia, the delivery will be considerably different. Home delivery is not available everywhere or may not be the preferred option. Whether it is for security reasons, convenience or carrier limitations.

At this point, you may want to select a carrier which manages the delivery from pick up to drop off. Let’s look at carrier capability. A perfect example of a carrier not managing pick up and drop up is USPS. The United States Postal Service only operates in the U.S. and USPS will hand the parcels to the receiving country’s postal operator to make the final delivery. This may be obvious to you, but this is also the case with FedEx and UPS. These carriers do not have full operations in every country and whenever you mix carriers, the delivery standards will change. In the case of Postal Operators, you have no choice but to work with the local postal operator. Private carriers, such as UPS, FedEx, DHL, etc., have much more flexibility. They can evaluate all carriers and only partner with those which meet their service standards.

Choosing the Right Carrier Mix

If you are new to cross-border shipping or have limited experience, you may want to utilize USPS and FedEx/UPS and possibly DHL Express. While that would not be a bad start, you need to explore all your available options. If you are a mid-to-high volume shipper, then you need to really expand your mix. For example, if you are generating 50 or more packages per day to Canada or the UK, bringing on a country specific carrier will greatly improve the service and reduce your cost, which leads to more sales and more volume.

The flexibility of private carriers really becomes critical when shipping to smaller countries. In these circumstances, they will partner with experts in the country or regional carriers to make the last mile delivery. When developing your cross-border carrier mix, I highly recommend adding consolidators and country expert carriers. In certain parts of the world, postal operators are not the ideal partner. For example, in Latin America, regional carriers offer exceptional service at amazing rates. Also, in regions with low volumes, regional experts will usually outperform larger players, for example if you are shipping to Africa or the Middle East. The local expert will provide you with rates most other carriers cannot match.

Time in Transit and Delivery Standards

The next large consideration is the delivery standards you are offering your consumers. If you offer an Express Service, then the major three would be ideal: UPS, FedEx and DHL Express. Most of these providers can deliver international parcels in 1 or 2 days. While USPS does have an express service, it is expensive. If your volume is lower, USPS has a good cost-effective service.

As previously mentioned, USPS does not manage the final mile, so it’s crucial to consider when and where you use their services. USPS offers a great product to Canada, Europe and Australia. In other parts of the world, you will get a better rate and service by working with regional experts. One thing to consider, working with regional experts will require minimum volumes. These carriers are ideal if you have a good customer base in certain countries.

Preparing Your Carriers

Once you narrow down your carrier mix, you need to make sure your technology can support your carriers. Without the right multi-carrier shipping platform, your carrier mix can quickly become an undelivered wish list. Look for a solution with an extensive domestic and international carrier library to ensure you have all the options you need.

Overall, some key considerations for choosing an international carrier are:

• Delivery Speed: How quickly do you need your packages to arrive?
• Cost-Effectiveness: What is your budget for shipping?
• Service Reliability: How reliable is the carrier’s delivery service?
• Customs Clearance Expertise: Can the carrier handle customs clearance efficiently?
• Tracking and Visibility: How well can you track your shipments?

Before putting your plan into action, communicate with your carriers to ensure they can meet the service levels your customers want and expect. Here, I need to emphasize the value of working with specialists, especially in those tough markets.

By following these tips and leveraging the right tools, you can streamline your cross-border shipping processes and deliver exceptional customer experiences.

Ready to expand your business to new heights? Contact ProShip today to learn how advanced shipping software can help you overcome the challenges of cross-border shipping.