5 Easy Steps to Get the Cheapest International Shipping Rates for Your eCommerce Business

Introduction

As eCommerce continues to grow globally, many merchants find themselves navigating the complex world of international shipping. Unfortunately, the confusion surrounding global shipping often leads to overpayment, especially for those new to the game. But fear not! We're here to guide you through the process of finding the cheapest international shipping rates for your packages. In this comprehensive guide, we'll explore the five easy steps that veteran shippers use to save on shipping while expanding into global eCommerce.

Before we dive into the steps, it's important to understand a few basic guidelines about international shipping:

• International shipping is more complex and costly than domestic shipping due to factors like duty and tax, country restrictions, and customs clearance.
• The best international shipping rates can be harder to find because of this complexity.
• Local or regional courier services often have the best rates, but they may not be well-known internationally.
• Shipment-specific import fees make it challenging to identify a single cheapest courier for all shipments.

Now, let's explore the five steps to securing the best international shipping rates for your eCommerce business.

Step 1: Get Rate Estimates By Weight

The first step in finding the cheapest international shipping rates is to obtain weight-based rate quotes. This approach provides a solid foundation for estimating your shipping costs accurately.

Here's how to get started:

1. Measure your standard box sizes and determine the average weight of your shipments.
2. Use a shipping rate calculator to get accurate quotes from various global couriers.
3. Enter the item weight and destination to receive a list of rate quotes.

Weight-based rate quotes are highly accurate and sourced in real-time from courier websites. If you ship items of varying weights, establish a range of costs for your products. For example:

• Smallest international sale: $24.70
• Average international sale: $33.09
• Largest international sale: $38.87

By obtaining these weight-based rate quotes, you'll have a solid ballpark estimate of your shipping costs, setting the stage for further optimization.

Step 2: Target Your Markets

The delivery destination plays a crucial role in determining your shipping costs. It's important to note that one courier may not be the cheapest option for all your global markets. To find the most cost-effective solution, you'll need to research the cheapest courier for each delivery destination.

Here's what you should do:

1. Identify your target markets and the countries you'll be shipping to most frequently.
2. Compare rates from all available couriers for these destinations, including express, regional, and postal carriers.
3. Consider local postal carriers, as they often have cheaper rates than foreign express couriers like FedEx or DHL.
4. Utilize shipping by country resources and rate calculators to identify the most cost-effective couriers for each market.

By comparing couriers by destination, you'll be able to find the cheapest shipping options for each of your target markets, potentially saving significant amounts on your international shipping costs.

Step 3: Factor in Duty & Tax

When calculating the true cost of international shipments, it's crucial to include accurate duty and tax information. All cross-border shipments may be subject to these fees based on various factors, including:

• Item value
• Item category
• Country of origin

Either you or the customer must pay these fees before delivery, or your shipment will be held at customs. As the importer, you are responsible for paying these fees by default. However, you can choose to pass these costs on to the buyer.

To accurately factor in duty and tax:

1. Research the duty and tax rates for your products in each international market.
2. Use a duty and tax calculator to get accurate estimates for any item to any country.
3. Decide whether you or your customers will pay these fees.
4. If customers are responsible for duty and tax, clearly communicate this on your shipping policy page and during checkout to avoid surprises.

Keep in mind that unexpected shipping costs, including duty and tax, can lead to cart abandonment. According to the Baymard Institute, nearly 50% of cart abandonment on eCommerce sites in 2020 was due, in part, to additional unforeseen shipping costs. By being transparent about these fees, you can help reduce cart abandonment and improve customer satisfaction.

Step 4: Choose a Pricing Model

Once you've compared rates and factored in duty and tax, it's time to choose a pricing model for your international shipping. There are four main pricing models to consider:

1. Courier Rate Shipping

This is the most common approach, where you compare local, regional, and express courier services to find the best rates. Couriers like USPS, DHL, and FedEx offer a range of shipping services at various prices and delivery speeds.

2. Flat Rate Services

Flat rate services can be cost-effective for shipping heavy items over great distances. Top couriers like USPS, UPS, and FedEx offer flat rate services at a fixed price for all packages under 50-70 pounds, depending on the courier.

3. Free Shipping

While customers love free shipping, it can be costly for merchants. Many businesses limit or suspend free shipping for cross-border orders, but it may work in some countries depending on your item weight.

4. Hybrid Shipping

This approach combines a mix of shipping and logistics services to lower costs. Larger sellers often use third-party logistics providers (3PLs) to help with warehousing, fulfillment, and last-mile delivery in global markets.

For the best results, consider offering a set of delivery options to appeal to a wider range of customers. You may need to use several shipping services to achieve this. For example:

• Flat-rate service for heavy items
• FedEx for rush deliveries
• USPS International for standard shipping

By offering multiple options, you can cater to different customer preferences while optimizing your shipping costs.

Step 5: Pick a Shipping Platform

Shipping platforms are the secret weapon when it comes to getting the cheapest international shipping rates. These platforms provide direct access to discounted courier rates and offer shipping tools to streamline your global shipping operations.

Here are some benefits of using a shipping platform:

• Instant savings on popular shipping services (e.g., 5-7% on USPS international services)
• Access to pre-negotiated rates for hundreds of local, regional, and express courier solutions
• Easy comparison of the cheapest international shipping rates
• Ability to set default couriers for each global shipment through customized shipping automation
• Tools to create a trustworthy checkout experience, such as real-time shipping rates and transparent pricing

Some shipping platforms offer features specifically designed to help global sellers win new business, such as:

• Rates at Checkout: Display three real-time shipping options in checkout – the cheapest, the fastest, and the best value.
• Duty and Tax at Checkout: Show every global buyer location-accurate duty and tax for their unique shipment.

By leveraging these features, you can increase conversion rates and provide a better experience for your international customers.

Conclusion

Getting the best international shipping rates doesn't have to be complicated. By following these five steps, you can optimize your shipping strategy and save money while expanding your eCommerce business globally:

1. Get rate estimates by weight
2. Target your markets
3. Factor in duty and tax
4. Choose a pricing model
5. Pick a shipping platform

Remember, FreightAmigo is here to support you in your international shipping journey. As a full-service, one-stop Digital Logistics Platform, we combine artificial intelligence, big data, FreighTech, FinTech, InsurTech, and GreenTech to accelerate logistics, information, and cash flow. Our platform ensures a hassle-free and enjoyable logistics experience for businesses and individuals alike.

Whether you need to send documents, parcels, or bulk goods for international relocation, FreightAmigo offers powerful functions to streamline your shipping process:

• Compare door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions, and book online.
• Track shipment status anytime, anywhere (connecting with more than 1000+ reputable airlines and shipping lines).
• Arrange customs clearance, cargo insurance, and trade finance in one stop.
• Automate shipment documents.
• Enjoy 24/7 logistics expert support.

By leveraging FreightAmigo's Digital Logistics Solution, you can transform and redefine the way you experience logistics while benefiting from our unique TradeTech ecosystem. As we continue to expand our footprint globally, we're creating new paths for businesses and individuals to grow and ship with confidence.

Start optimizing your international shipping strategy today and watch your eCommerce business thrive in the global marketplace!