Steps To Run An Effective International Shipping (Part 3)
If you sell products to foreign customers on Shopify, you must set up shipping campaigns effectively.
Elements of international shipping
You can learn the chart on Shopify to find out what to charge for foreign shipping. There are elements including the cost of shipping, packaging, handling charges, and duties and taxes. You add these expenses to the total price that customers have to pay. Inform the customers the list of expenses.
Packaging is very important. If you wrap up items carefully and nicely, customers will satisfy with your service when they receive their orders. To fragile products, you have to package them carefully to avoid damage. Because product lines have different size and material, you also need to have boxes with different size and suitable material. For example, if you sell and ship a glass vase, you must use bubble wrap, cushioning, or stuffing to package it.
It’s good to make your packaging sturdy and simple. You also consider and calculate the cost of the packaging material. It shouldn’t be too high. It’s should be around $1-$5 for each product.
You consider installing Shipping Bar for Shopify. This app will show shipping notifications and help you lift up order value.
Cost of shipping
The cost of shipping is involved in the pricing approach. If you want to avoid spending money on shipping or overcharging your customers, you make sure that your pricing approach works. You find the costs of international shipping in some ways. You use a rate calculator for the carriers. Use your average domestic order and price it out as if you were shipping internationally. Next, you adopt the rate calculator for your smallest domestic order and run the costs for the biggest domestic order. You can use one of the calculators: USPS – Shipping Calculator, UK Royal Mail – Shipping Calculators, Canada Post – Shipping Calculator, Australia Post – Shipping Calculator, UPS – Shipping Calculator, FedEx – Shipping Calculator.
You can combine free shipping offer and discount offers to boost sales. Product discount master app is a useful app to set up sale-off campaigns.
Structure your pricing
There are three main pricing structures when shipping around the world: Free shipping, carrier rate shipping, and flat rate shipping.
Along with the cost of your packaging and materials, consider adding a handling charge.
International shipments pass through many more additional facilities than the typical domestic order. You should be packaging these shipments with more care, and that’s included in your handling. To determine your handling charges, ask yourself:
- What’s your minimum hourly wage when preparing and packing shipments?
- How long does it take you, on average, to prepare an order for shipment (from reviewing the order to sending it out)?
Now you can determine your handling costs. Here’s an example:
It usually takes 10 minutes to prepare an order for shipment. And at $11/hour to prepare these packages, you would add a $1.83 handling charge to cover the cost.
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