Cross-Border Shipping Simplified: Methods, Best Practices, & Mistakes to Avoid

Expanding into international markets is an exciting way to grow your ecommerce brand. $1.93 trillion in merchandise was traded between the U.S., Canada, and Mexico in 2023 alone. But, it’s no secret that cross-border shipping comes with its complexities.

The good news? With the right strategies and partners, you can simplify the international shipping process and learn how to ship a package to customers around the world without the headaches. 

This guide covers everything you need to know, from the perks of cross-border shipping to common mistakes to watch out for, plus tips to help you streamline your fulfillment and keep things running smoothly.

What is cross-border shipping?

Cross-border shipping is the process of transporting goods from one country to another (e.g. shipping a product from a U.S. warehouse to a customer in Canada or the U.K.). Unlike domestic shipping, it comes with extra layers of complexity, including customs clearance, international regulations, and managing duties, tariffs, and taxes. 

For ecommerce businesses, figuring out cross-border shipping is key to selling in new markets, reaching more customers, and staying competitive as online shopping grows globally.

Benefits of successful cross-border shipping for ecommerce brands

Implementing effective cross-border shipping solutions offers numerous advantages for growing ecommerce businesses:

1. Expanded market reach: Selling internationally enables businesses to access a much larger customer base beyond their home country.
2. Increased revenue potential: Entering new markets opens additional revenue streams, reducing reliance on a single region.
3. Competitive differentiation: Offering international shipping can set brands apart from competitors who only operate domestically.
4. Higher customer retention: Customers who receive reliable international shipping are more likely to reorder from a brand they trust.
5. Seasonal demand balancing: Different regions have different peak seasons, allowing you to maintain steady sales throughout the year.
6. Scalability with the right partner: Third-party logistics (3PL) providers like ShipBob simplify ecommerce fulfillment, by leveraging a network of fulfillment centers and streamlining international logistics to allow brands to scale efficiently.

Challenges and complexities of cross-border shipping

While the benefits of cross-border shipping are significant, ecommerce brands often encounter various logistical challenges. From customs regulations to unexpected fees, navigating international logistics requires careful planning.

Navigating customs regulations and documentation 

Customs clearance is one of the biggest hurdles in cross-border shipping. Each country has unique import laws, and missing or inaccurate paperwork can lead to delays or rejected shipments.

A few essential shipping documents include:

• Commercial invoices
• Certificates of origin
• Proforma invoice
• Export packing list

To streamline customs compliance, businesses should work with fulfillment providers experienced in international logistics. ShipBob helps manage required documentation and prevents unnecessary border crossing delays.

Managing duties, taxes, and fees 

Another challenge is handling duties, import taxes, and fees, which vary based on product type, declared value, and country regulations. These can include:

• Import duties based on product categories
• Value-added tax (VAT) or goods and services tax (GST)
• Customs processing fees
• Brokerage charges

Using a Delivered Duty Paid (DDP) shipping model ensures all duties and taxes are paid upfront, preventing customers from being hit with surprise fees upon delivery. 

Alternatively, businesses can opt for Delivered Duty Unpaid (DDU), where the recipient pays duties upon arrival. This, however, can lead to unexpected costs for customers, potentially causing frustration, delayed deliveries, or order refusals.

Addressing long transit times and high shipping costs

Shipping internationally means dealing with longer distances, which naturally leads to longer delivery times and higher costs. Customers who are used to fast domestic shipping might find the wait frustrating, which can impact their overall shipping experience.

On top of that, the cost of cross-border freight shipping can add up fast—especially for heavier packages or expedited delivery. Choosing between LTL (less-than-truckload) and truckload options can impact costs, with LTL shipping being a more cost-effective solution for smaller shipments.

For shipments between the U.S., Canada, and Mexico, businesses can also explore intermodal transportation, which combines different shipping methods (such as rail and truck) to reduce costs and increase efficiency across North America.

Best practices for cross-border shipping success

While international shipping comes with its fair share of challenges, the right strategies can turn those hurdles into opportunities to grow your business. Here are some best practices to help simplify cross-border shipping and keep your global customers happy.

Optimize inventory placement across fulfillment centers 

Strategic inventory placement is perhaps the most effective method for reducing both shipping costs and delivery times. By positioning inventory closer to international customers through distributed fulfillment networks, you can:

• Reduce shipping zones and associated costs
• Decrease transit times significantly
• Lower the carbon footprint of your shipments
• Improve customer satisfaction with faster deliveries

A distributed fulfillment approach allows you to ship from within the destination country or region, often eliminating or simplifying many cross-border complexities altogether.

“We currently use ShipBob fulfillment centers in the US, Canada, Europe, and Australia. Global fulfillment is a huge need in the corporate gifting market and a necessity for our clients.”

Ben Jablow, VP, Alliances at Postal 

Choose the right shipping options for your customers 

Brands should carefully select between DDP and DDU shipping models based on their target market and customer preferences. DDP shipping ensures duties are prepaid, while DDU shifts the responsibility to the recipient.

Understanding your target market’s preferences and price sensitivity will help determine the optimal approach for each region you serve.

Prepare accurate customs documentation

Precise, comprehensive customs documentation is essential for smooth international deliveries. Establish standardized procedures for completing:

• Commercial invoices with accurate product descriptions and harmonized system (HS) codes
• Accurate product valuation that complies with customs requirements
• Proper country of origin declarations
• Complete shipper and recipient information

Leverage technology for better visibility 

Modern warehouse management systems and logistics provider platforms provide crucial visibility into cross-border shipments. Implementing technology solutions that offer real-time tracking, status updates, and performance analytics helps you:

• Proactively identify and address potential disruptions
• Provide customers with accurate delivery estimates
• Manage inventory levels across multiple international locations

How ShipBob simplifies cross-border shipping

Shipping across borders isn’t always easy—it takes the right expertise and setup to do it smoothly. That’s where ShipBob comes in. With solutions built to handle the challenges of global shipping, ShipBob helps ecommerce brands expand worldwide without the stress.

Leveraging ShipBob’s global fulfillment network 

By positioning stock strategically, brands can also minimize customs delays and scale quickly in new markets, making global expansion easier and more efficient.

Delivery duty paid (DDP) and delivery duty unpaid (DDU) options 

ShipBob offers flexible approaches to handling international duties and taxes, allowing brands to choose the strategy that best fits their shipping needs:

• DDP shipping provides transparency and eliminates surprise costs for customers
• DDU options may offer lower upfront pricing for price-sensitive markets

ShipBob’s international shipping expertise fully supports both options.

Advanced technology for international logistics 

ShipBob’s technology makes managing international logistics easier by giving brands full visibility and control over their global fulfillment operations. The platform integrates smoothly with major ecommerce platforms, keeping everything connected in one place.

“We found that sending inventory to Europe involved less paperwork and was faster than expected. The process of getting inventory sent to ShipBob’s fulfillment center location in Europe was very streamlined.”

Nikolai Paloni, Co-Founder of Ombraz Sunglasses

With real-time inventory management, businesses can monitor stock levels across different fulfillment centers worldwide. Automated customs documentation helps prevent shipping delays, while performance analytics provide insights to improve operations. Plus, ShipBob’s system optimizes carrier selection and shipping services to ensure faster, more cost-effective deliveries.

Get started with ShipBob

If you want to leverage ShipBob’s cross-border shipping capabilities, fill out the form to connect with our team.

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