Whether you’re a large-scale business manufacturing car parts or an eCommerce store selling clothing and accessories, cross-border shipping allows you to move your goods from one country to another. Cross-border shipping enables you to reach new prospects, grow your brand in recent locations and expand your bottom line.
However, shipping goods to different countries can be complicated. Challenges can occur during the transportation, storage or distribution stage, leading to untimely delays and affecting your business relationships. Acknowledging these complexities puts you in a better position to overcome them and easily move your products across borders.
The products transported between countries may be diverse, but they all face similar shipping challenges. These include:
According to Statista, 43% of eCommerce companies rate clearance delays as their primary concern. These delays occur when products sit at customs for an extended period, mainly due to missing or inaccurate documentation.
This result can mean an irrecoverable loss for items such as frozen food, flowers and other perishable goods. However, even if your product quality remains, slow distribution can severely impact customer satisfaction.
In the same Statista survey, 41% of supply chain leaders listed complex compliance paperwork and harmonized system (HS) codes as a top challenge.
HS codes provide a global standardized number system to identify goods for export. Although HS codes are helpful, the sheer volume of these codes can complicate the process. Using an inaccurate code can result in costly clearance delays. As such, businesses must be thorough when completing international shipping documents.
Another cross-border shipping challenge for business owners relates to the expense. Costs involved in the process include:
Global issues such as rising fuel prices and fluctuating currency exchange rates further impact these shipping expenses. As a result, business owners must consider these factors when calculating costs.
People can only buy your product if they have access to it, so by crossing international borders, you place your goods in the hands of new customers. Expanding your reach can be particularly advantageous if you operate your business in a saturated market. Being in this position allows you to venture into new geographical areas with less competition.
Every business owner, regardless of industry, wants to minimize expenses and grow their profit margin. Cross-border shipping allows businesses to combine shipments and procure inventory at a cheaper rate, serving their bottom line.
A business incurs fees every day a product is in storage. Cross-border shipping relies on advanced technology to streamline the distribution phase and deliver products to customers in less time. Shorter lead times reduce the need for storage and are sure to delight the customer.
Quicker turnaround times are particularly relevant for eCommerce businesses. About 22% of online shoppers will abandon their cart if shipping estimates are too long. Improving your logistics goes hand in hand with customer satisfaction.
Various factors affect these challenges and opportunities. Here are some of the main reasons behind these changes.
eCommerce sites offer consumers many benefits, including convenience, better price comparisons and greater variety. Cross-border shipping allows customers worldwide to shop for specialized products and receive them at their doors.
Market analysts predict the eCommerce industry will continue to grow, strengthening the need for reliable cross-border shipping strategies.
Gone are the days when a sender only received correspondence when a shipment reached its final destination. Automation and artificial intelligence (AI) allow for updates through the last mile of delivery. These tools can notify businesses of any possible delays so they can manage client expectations.
The data gained through this process provides invaluable insights. They can show how companies can optimize their logistics, resulting in quicker time to market.
Businesses implementing sustainable practices throughout their supply chain minimize their carbon footprint. They’ll also likely win more business as sustainability is becoming vital in consumer decisions. Key insights show that about 84% of buyers will stop supporting a brand that doesn’t value sustainability.
In cross-border shipping, sustainable practices allow businesses to use electric vehicles (EVs) and alternative energy methods to carry out their logistics.
Businesses that devise effective strategies for cross-border shipping can mitigate potential challenges and maximize opportunities for success. Here are some practices for efficient international shipping:
An incomplete or missing document can cause costly delays at customs or cost businesses returns fees. While the forms you need differ for each shipment, here is a helpful checklist of the most essential paperwork:
Confirming you have all your documents before logging a shipment helps get your goods to the final destination quickly.
Shipping costs significantly impact your profits, so account for potential export duties when pricing your products.
If your business ships goods to Canada, you must select Delivery Duty Unpaid (DDU) or Delivery Duty Paid (DDP) shipments on your Incoterms form. This code specifies whether the receiver is liable for clearance fees and taxes.
Purolator International provides all clients with a dedicated representative to help you assign the correct HS code and make sense of ever-changing custom requirements. When in doubt, contact our professional team for reliable customs brokerage services and simplify your cross-border shipping experience.
With over 20 years of experience in the U.S. and 60-plus years in Canada, we have extensive expertise in cross-border shipments. Our team also excels with shipments into Canada, enabling you to enjoy full transparent tracking, 100% Canadian postal code coverage, over 2900 access points and multiple last-minute shipping solutions.
Purolator International has the skills to help clients optimize import-export opportunities for better business growth. By leveraging our established network of transportation providers and individual customer support, we’ve optimized the international shipping process, enabling businesses like yours to save time and money.
Our team is eager to help you with your shipment needs — contact Purolator International today to streamline the process. We look forward to successful results.
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