One of the primary challenges in today's highly globalized world is the important need of businesses to expand into new international markets. These cross-border operations often present significant challenges for ecommerce brands, thanks to the varied regulations, customs procedures, tax implications, tariffs, and associated risks.
Fulfillment services are becoming more and more challenging for brands that want to have a global reach. The whole logistics process that fulfillment services can represent, the compliance with international customs regulations, and the best way to create a correct import process has become a challenge for ecommerce businesses that want to reach their international customers.
Understanding the process of international shipping methods, customs compliance, legal documentation management and risk mitigation strategies is crucial to maintaining operational efficiency and avoiding potential financial and time-delay penalties.
This article seeks to serve as an accessible guide for navigating global logistics expertly, aiming to give businesses a clear view of every obstacle they might face in their fulfillment process to be able to be previously prepared.
Exploring global shipping strategies
For international shipping logistics, it is crucial to understand the variety of options available to offer your customers the best shopping experience. Among these options are air freight for speed or sea freight for cost-effectiveness.
The choice of shipping method depends on factors such as the size of the goods, urgency of delivery, and budget constraints.
You can also choose to partner with a company that allows you to do the whole fulfillment service for your ecommerce business through in-country shipping, rather than international shipping. This method of reaching your international customers can result in more profit for you and faster for your customers in other countries.
In addition to selecting a shipping method, it is important to consider the type of shipping options you want to offer your customers. Customers expect brands to do their products' fulfillment fast and enable them to see real-time tracking information.
A transparent shipping process helps with their sense of security and improves customer experience.
Fulfilling Customs Regulations and Compliance
Complying with customs and regulations of each country is perhaps the most challenging and time-consuming part of the process of importing, and doing their product’s fulfillment. For experienced and emerging ecommerce companies, the importing process is quite new, and a whole new world that they have to understand, as well as the fulfillment process. This can be overwhelming for a brand that is just starting to understand a new market.
Every country has its own regulations for imports and exports, including tariffs, tax classifications, duty rates, and restrictions.
Understanding these processes requires meticulous attention and often the assistance of customs brokers or experienced logistics professionals that have deep knowledge of international trade laws, as well as the complications that may arise in importing the different kinds of products.
Compliance with their local regulations and customs is key to achieving a more smooth fulfillment process. This is specially important for ecommerce brands just starting to explore new markets, the fulfillment process they offer their customers is going to be one of the first impressions of their brand.
There are countries that might represent a bigger challenge for international expansion and fulfillment for ecommerce brands. Some countries with particularly challenging import regulations include:
- Argentina- Importers must obtain permission from the Argentine Customs Authority prior to importing products.
- Brazil- Registered importers are required to use the services of a customs broker for the clearance and delivery of each shipment.
- Mexico- Importers need permission from the Mexico Customs Authority before shipping goods.
- Russia- Shipments must arrive exclusively through the ports of Moscow or St. Petersburg.
Non-compliance can lead to shipping delays and wasted time. Even though importing your products faster might result attractive, it is always safer in the long run to import once you´ve previously reviewed with the needed authorities every aspect of the international operation.
If you plan to expand into countries with complex customs procedures, relying on logistics experts such as customs brokers or third-party logistics (3PL) can ensure your international logistics are legally compliant, efficient, and smooth, saving you time and money while improving the shopping experience for your customers.
The use of technology is a crucial tool for risk mitigation. Implementing systems that provide real-time tracking of the location and status of your products offers a clearer view of your operations. This enables your ecommerce to look more transparent and trusted by your new international consumers.
By combining expertise with technology, you can effectively mitigate legal and logistical risks in international trade.
Official Paperwork Management
Global shipping involves extensive documentation. Each document in the process must be meticulously reviewed, completed accurately, and securely stored. Compliance with these documents ensures preparation for any potential risks and enables comprehensive tracking of the entire operation.
Maintaining accurate records of all essential documents such as commercial invoices, packing lists and certificates of origin minimizes the risk of delays and facilitates customs clearance.
You can find here a list of the key documents to be aware of while doing an import process:
- Commercial invoice: This document is crucial as it provides details about the goods being imported, including their value, quantity, and description. It is used for customs assessment and import duty calculations.
- Import-Export License: Depending on the nature of the goods and local regulations, an import-export license is essential to authorize the importation of goods into the country.
- Bill of entry: This document is filed by importers or customs brokers and contains details about the imported goods, duties payable, and other specifics required by customs authorities.
- Bill of Lading/ Airway Bill: These documents serve as receipts issued by the carrier to the shipper, acknowledging receipt of the goods for shipment. They are important for tracking and ownership verification.
- Insurance Certificate: This document provides evidence that the goods are insured during transit. It's typically required to protect against loss, damage, or other risks during transport.
Compliance with documentation requirements is crucial for efficient shipping and fulfillment services.
In-country shipping can be especially useful for ecommerce brands at this point because it allows them to go through the whole compliance process once per shipment instead of once per order, which can result in delays in delivery for your final consumer.
Taxes, Tariffs and other costs
In every global shipping –whether international or in-country shipping– operation of an ecommerce, being aware of all the taxes and tariffs that the operation includes is necessary. Each import and export transaction carries specific taxes and tariffs that are determined by the type of product being shipped.
Certain products may qualify for reduced or zero duty taxes. For instance, Section 321, allows American brands to ship products valued under $800 from Mexico to the US without paying taxes.
To navigate these complexities, it's advisable to collaborate with a customs broker or logistics company familiar with these costs.
Doing in-country shipping can also save money and time, working with partners that are already experts in the market you are trying to reach. This partnership can save time and money, ensuring compliance and smooth operations.
Managing operations risks
Importing processes are exposed to several risks like theft, time delays, natural disasters, or damage. These interruptions in the process can lead to an increase in costs, and a decrease in revenues. However, there are effective strategies to prevent this from happening.
Implementing a well-planned and customized insurance coverage that addresses the specific needs of your products provides financial protection against unforeseen events. Partnering with third-party logistics providers (3PLs) can also mitigate risks associated with inadequate documentation tracking.
Integrating technology software into the process enhances tracking capabilities, allowing real-time monitoring of products and immediate awareness of any potential issues.
By combining tailored insurance, strategic partnerships with 3PLs, and advanced tracking technologies, businesses can significantly reduce the impact of risks during the importing process.
Incoterms
The International Commercial Terms, better known as Incoterms, are going to become another key point when looking for fulfillment services to reach your customers.
These terms are agreements between the seller and buyer of the imports and exports of goods, and are going to become the backbone of your ecommerce logistics stating who is responsible for which parts of the process like insurance or shipping.
They are useful for you to negotiate the importing operation you want to do for your product, as well as understanding and mitigating risks on your end to ensure a smooth operation.
Improving your ecommerce page
It's not just about offering impeccable logistics services; providing customers with the best possible online shopping experience is equally crucial. Enhancements in fulfillment services will only yield success if your ecommerce landing page delivers an exceptional customer experience.
Here are some essential aspects to consider, shared with you thanks to Semrush:
- Image resolution: Taking care of the picture's quality is very important to inspire your consumers to trust you.
- Invest in visibility: On page SEO will drive more organic traffic helping potential clients reach you easier.
- Inclusive accessibility: Enabling your landing page to be helpful and easily navigated by every customer can place you on top of your competitors, consider tools like screen reader compatibility.
- Speed wins: The waiting time your consumers have to spend at your ecommerce site directly affects the bounce rate, which is the percentage of people that leave your website without even interacting with it.
- Everything at the palm of your hand: Make sure to optimize your page for screen phone view, more and more consumers buy through their mobile devices.
Platforms like Shopify and Shift4Shop are options of places where you can start building and improving your online store. Investing in the improvement of your ecommerce website is pivotal to providing an outstanding online shopping experience.
Improve your shoppers' experience with a 3PL
International logistics can present numerous challenges throughout the shipping process, but offering customers the best delivery experience can give your ecommerce a win over your competitors.
Maintaining a local warehouse and logistics team can make more efficient product delivery and reduce costs.
Working with a Third-Party Logistics (3PL) provider can be highly advantageous for expanding into new overseas markets. By partnering with a 3PL, you can minimize shipping distances and times, lower shipping expenses, and ensure compliance with local regulations.
A 3PL manages every aspect of the fulfillment process, from rigorous documentation to tax payments, optimizing shipping methods for cost-effectiveness.
Collaborating with a 3PL grants access to logistics experts in international shipping, simplifies cross-border complexities, improves delivery speeds, and reduces operational costs.
When selecting a 3PL partner, prioritize experience, advanced tracking and technology capabilities, and customer support. Seeking recommendations and partnering with 3PLs already trusted by well known brands can guide you to a provider with expertise in international logistics.
Conclusion
In conclusion, mastering global shipping demands a comprehensive strategy that implements regulatory compliance, strategic planning, and technological integration.
Businesses must navigate customs regulations, tax considerations, and operational risks with meticulous attention, supported by effective documentation management and real-time tracking systems.
By leveraging various shipping methods and partnering with experienced logistics providers such as 3PLs, companies can streamline operations, improve customer satisfaction through transparent and efficient delivery processes, and ultimately, enhance their competitive position in the global market.
Embracing these principles not only facilitates cross-border transactions but also builds resilience against potential disruptions, laying the groundwork for sustainable international expansion and business success.
A footnote from Cubbo
Cubbo is an ecommerce fulfillment company that helps you get rid of all the logistics management headaches that rise when entering a new country. Our Importer of Record and Merchant of Record services allow you to import into Mexico and/or Brazil faster and smoother.
We have expertise managing the different challenges that international shipping has including customs clearance, pick and pack, distribution, tracking and delivery of your products. We also do in-country shipping which is 80% cheaper than international shipping.
Some of our most known customers like Dossier, Levis and Hawkers endorse our capability to increase their sales and decrease their shipping time. Ultimately, offering their end customers a better shopping experience.
Want to contact us? Click here.
