International shipping can feel overwhelming when you’re just starting out. You might think you have to learn a whole new language when you start shipping internationally, but we’re here to tell you, it’s not as complicated as you might feel. This guide breaks it down so you can feel more confident taking your business global!
Getting the Basics Down
You don’t have to memorize a ‘shipping dictionary,’ but there are some terms that will be referenced regularly that you’ll want to know before you ship your first package overseas. We even threw in a few phonetics to help you feel more confident talking-the-talk.Terms You’ll Actually Use
- Consignee (con-sign-ee): The person receiving your shipment (basically, your customer).
- Bill of Lading: This is your shipment’s receipt and tracking document rolled into one.
- Custom Duties: Taxes on goods crossing borders (yes, they’re unavoidable).
- Incoterms (in-co-terms): Standardized trade terms that spell out who’s responsible for what (formally “International Commercial Terms”).
Who’s Who in Shipping
- Freight Forwarders: The “quarterback” of shipping, they handle the logistics so you don’t have to, coordinating everything from documentation to transportation. Also, learn more about the difference between a freight forwarder and a freight broker.
- Custom Brokers: Your paperwork specialists who get shipments through customs.
- Carriers: The companies actually moving your products.
How It Works
Using your new international shipping vocabulary, let’s show you how those terms are used in a typical journey of your product:- You prep your shipment and contact a freight forwarder who organizes the Incoterms.
- The freight forwarder arranges the transport and handles documentation through the bill of lading.
- Goods go through customs at the departure point, thanks to custom brokers.
- Items travel via a carrier: ship, plane or truck.
- Customs clearance happens again at the destination and custom duties are paid.
- Final delivery to the consignee (aka your customer).
The More Detailed Process
With your newfound basis of international shipping knowledge, here’s a rundown of what steps you’d take to ship your product.Figure Out What You’re Shipping:
A box of t-shirts ships differently than electronics or food products. Fragile items need extra packaging. Perishables might require temperature control. Get specific about your needs before choosing a shipping method. Start by asking yourself:- What am I sending? (size, weight, fragility)
- Where’s it going?
- How fast does it need to get there?
Pick Your Shipping Service
- Postal Services are the cheapest option for small parcels, but tracking can be limited.
- Courier Companies (DHL, FedEx, UPS) offer faster shipping options with better tracking but cost a bit more. For most small businesses just starting out, couriers offer the best balance of reliability and tracking capabilities. You pay a bit more, but the peace of mind is worth it.
- Freight Forwarders are best for bulk shipments or complicated logistics.
Learn the Customs Rule
Every country has different requirements. You’ll need to research: required documentation (commercial invoices, packing lists, etc.); prohibited or restricted items; and special labeling requirements. This is often where a customs broker earns their fee. They know these regulations inside and out and can save you from costly mistakes.Calculate Duties and Taxes
Nobody likes surprises, especially not surprise costs. Use online duty calculators or talk to a customs broker to estimate what your customer will owe. Some countries have trade agreements that reduce duties, which can make your products more competitive. Pro tip: Being upfront about these costs with customers prevents abandoned shipments and angry emails.Pack Like a Pro
Take the mode of transportation into account when deciding how to pack your product. For example, ocean freight gets tossed around more than air freight. Regardless, err on the side of over packing than under packing, as your packaging needs to survive rough handling. Be sure to use:- Sturdy boxes and cushioning materials
- Waterproof protection when necessary
- Secure sealing to prevent tampering
- Clear, accurate labels
Get It Moving
Schedule a pick up or drop off your shipment with your carrier. Keep copies of everything: bill of lading, commercial invoice, packing list, certificates, special documentation, etc. These documents are your insurance policy should something go awry.Track Everything
Use your carrier’s shipping tracking system to regularly check-in on your shipment. Modern tracking not only gives customers accurate delivery estimates, it also allows you to monitor for any issues and address them immediately instead of waiting for a customer complaint. Modern tracking also has the benefit of allowing you to maintain records for inventory management.Tips that Actually Help
- Talk to Your Customers: Keep your customers updated. Communicate shipping confirmations, tracking links and notifications of any delays. Customers are much more understanding when they know what’s happening.
- Stay Current on Trade Laws: International regulations change continuously. Subscribe to industry newsletters or join trade associations to stay informed and up-to-date. What worked last year may not fly this year.
- Get Insurance: For anything valuable, you’ll want to be sure to get shipping insurance. Your carrier’s base coverage usually isn’t enough. A comprehensive policy protects you from losses, damages and theft.