Technology keeps shrinking the map, and even a small business can now trade internationally. Expanding abroad is exciting, and first-time international shipping is where most of the surprises sit.
The first overseas shipment tends to come with a learning curve. Plenty of people get a bad experience early on, and it tends to shape how they approach international shipping afterward. Other sellers have already made costly mistakes in this area. Learning from what happened to them lets you plan the new sales channel in a logical order and avoid repeating those errors.
Customs rules come first
One of the biggest barriers in shipping abroad is customs. Many large international businesses employ a full-time customs compliance officer to handle communication with authorities and the regulations that apply to their products. For a small business, a dedicated professional like that is not an option, and the research falls to the owner.
Read up on the border restrictions set by the recipient’s country before you send anything. Depending on what you sell, your own country can ask for some paperwork as well.
Many shipping companies that operate internationally publish guides to the customs requirements of a particular destination, and some offer digital tools matched to where the shipment is going. Customs compliance services are often available too. They can advise you or fill out the paperwork for you.
Declarations, origin and the candle example
Shipping a product to another country requires a customs declaration form that classifies the item, usually by its Harmonized System code. Each separate package needs its own forms, and missing information can leave a parcel on hold for weeks. Claim everything inside the package, including any free samples you added as a marketing ploy.
Beyond knowing which goods each country allows, you need to understand how the declaration process itself works.
Sellers who use foreign suppliers also have to record the right country of origin (COO), and this part gets tricky. Say you sell candles crafted in the USA, ship them to Canada, apply custom labels there and sell them overseas. The origin could be the USA or Canada. Some customs regulations determine the COO by the share of the product created in a single country. Others are vaguer and let the COO be whichever country gave the item its “essential character.” The World Customs Organization keeps an overview of rules of origin.
A shipping service with customs support is a good partner while you are starting out.
Costs
Shipping costs abroad can become a point of friction as the business grows. Success depends on finding pricing that gets the product to the buyer safely and efficiently. Work out which costs apply, look at several providers and compare their prices as needed.
Compare more than one shipping rate calculator. Your domestic sales data tells you how heavy and how large your packages are, and you can enter those figures as if the order were international. Try a range of package sizes, larger and smaller, to see whether any change cuts costs.
Using multiple carriers can be an inventive way to reduce shipping spend, although the supply chain becomes more complicated. Product tracking and insurance deserve a place in the comparison too. For larger loads, compare freight rates by lane before you commit, and remember the quote is only part of the landed cost.
What the customer sees at delivery
Success abroad also depends on the customer’s experience. Express service may cost you more, and a longer wait can affect customer satisfaction. You also have to decide how the business will handle import duties and taxes.
Many companies leave import duties for the customer to pay at the receiving end. This is the default practice, called Delivered At Place (DAP). If you choose DAP, tell customers plainly that customs fees may be presented when the package is delivered. Fees that appear at the door can cause immediate dissatisfaction and damage the relationship before trust has had time to form.
Delivered Duty Paid (DDP) is the alternative. You collect the duties yourself and remit them upfront. Customers see the fees at the time of purchase and can back out if they wish. Although it may seem counterintuitive for a business, DDP promotes transparency and trust.
Packing
Packaging matters more once a parcel crosses a border. The goods must stay secure and avoid damage, and the package should also be easy to unpack and repack.
Customs officers may open a package and inspect the contents. They do try to repack it correctly. A simple approach to packing is better.
Fitting it into the business
Shipping abroad is one more system inside the company, and you should place it within your overall process flow before you start. Starting out means dealing with customs and settling how money will move across borders. It also means spelling out the costs and steps of your supply chain.
Document everything during your first international shipment. Those notes will form the base for your standard operating procedures (SOPs) on later shipments. As the company grows, you can use the process and the lessons from this first run to adjust the procedures and hand parts of them off to others.
First-time international shipping checklist
- Check the destination country’s import restrictions and any export paperwork your own country asks for.
- Classify each item and fill in a customs declaration for every separate package, free samples included.
- Record the correct country of origin, especially when foreign suppliers are involved.
- Compare several carriers with your real package weights and sizes, and include tracking and insurance.
- Decide between DAP and DDP, and tell customers up front who pays the duties.
- Pack simply, so a customs officer can open and repack the parcel.
- Write down every step of the first shipment as the start of your SOPs.
Looking back at the first parcel
Review how the first shipment went. Make a note of the barriers that came up and the opportunities for success next time. Then decide whether promoting your products in foreign countries and growing in that direction suits your logistics company.
Frequently asked questions
What do I need for my first international shipment?
Start with the import rules of the destination country and any export paperwork at home. Each package needs a customs declaration that classifies the goods and states their value and country of origin. Then compare carriers, choose who pays duties, and pack so customs can inspect and repack the parcel.
What is the difference between DAP and DDP?
Under Delivered At Place the buyer pays import duties and taxes when the parcel arrives. Under Delivered Duty Paid the seller collects and pays them upfront, so the customer sees the full price at checkout. DAP is the common default; DDP costs the seller more work but avoids surprise fees at the door.
How is country of origin decided for customs?
It depends on the rules of the importing country. Some decide by the share of the product made in one country, others by where the item got its essential character. A candle made in the USA and relabelled in Canada could count as either, so check the rule before you declare it.
Do I have to declare free samples in the package?
Yes. Declare everything inside the package, including free samples added for marketing. Missing or incomplete information on the customs declaration can hold a parcel for weeks.