Everything You Need to Know about the Shopify International Shipping Configuration

Cross-border eCommerce is booming, with revenue expected to show an annual growth rate (CAGR 2024-2029) of 9.49%, resulting in a projected market volume of US$6,478.00bn by 2029.

Expanding your Shopify store internationally is a powerful way to grow your business, increase revenue, and reach new customers through effective ecommerce international shipping. Shopify’s integrated tools make international shipping more accessible, helping you navigate complexities like customs, shipping zones, and compliance.

This guide breaks down everything you need to know to set up, optimize, and scale your Shopify international shipping operations.

Getting Started with Shopify International Shipping

Shopify makes it simple to ship globally by partnering with top carriers to provide pre-negotiated rates and automating customs documentation. Yet, many store owners hesitate to expand internationally due to perceived complexity, missing out on significant growth opportunities. 

This guide breaks down everything you need to know to set up international shipping, optimize, and scale your Shopify international shipping operations.

How can Shopify International Shipping help?

If you have a business in the United States, Canada, or Australia, you can deploy Shopify Shipping to help you ship to international locations by partnering with top international shipping companies. You can easily purchase international shipping labels at a discounted rate and customize them as per your customer’s order.

Moreover, if you are from the U.S or Canada, you can also use Shopify’s Fulfillment Network (SFN), executed by Flexport, to store your inventory and fulfill orders. This way you can effectively slash your shipping costs to new regions.

Please note: SFN usage is subject to eligibility

To know the power of expanding overseas, take the example of a California-based sports merchandise store  Wolfpak that grew its 433% global sales growth in the 18 months since launch with the help of Shopify’s Managed Markets service.

Setting Up Your International Shipping Infrastructure

Developing an effective ecommerce international shipping strategy is crucial to ensure smooth operations and customer satisfaction. To enable it, you’ll need to configure your Shopify admin effectively. Here’s how:

Enable International Markets

Activate the markets you want to target in your Shopify admin.

Set Up Shipping Zones

Shipping zones let you tailor rates and delivery options based on geography. Follow these steps to optimize zones:

1. Analyze Sales Data: Identify regions with high order volumes.
2. Create Tiered Zones: Offer competitive rates for urban areas and adjust thresholds for free shipping in rural regions.
3. Test and Adjust: Continuously refine shipping rates based on customer feedback and operational costs.

Providing multiple international shipping options can help you cater to different customer needs and preferences, enhancing their shopping experience.

Your multiple international markets can comprise a single zone, making it easier for you to ship to multiple countries. For instance, one shipping zone comprising Canada, the United States, and Mexico can be named “North America”, governed by a standard group of settings.

Configure Checkout 

Ensure your international checkout is seamless by enabling local payment methods and currency options. 

However, can Shopify calculate international shipping costs as well?

This step is super crucial because without proper configuration, customers may encounter roadblocks at checkout, even if international shipping fees are accurately calculated.

Preparing Your Shopify Business for International Shipping 

Shopify makes it pretty easy to prep your business for a global expansion with its international shipping, on point support, etc., but there are few prerequisites that you need to understand and implement as a business owner. 

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Key Considerations for Strategy Development

When developing an international shipping strategy, few key considerations can make or break your success. Understanding your target market is crucial. Research your international customers’ preferences, behaviors, and expectations to tailor your shipping strategy to their needs. This includes knowing which shipping methods they prefer and what delivery times they expect.

Accurately calculating international shipping costs is another critical factor. This involves not just the base shipping cost but also fuel surcharges, customs fees, and other charges. Ensuring you have a clear understanding of these costs will help you maintain profitability and competitiveness.

Do not undermine the importance of choosing the right shipping carriers. Select carriers that offer reliable, efficient, and cost-effective international shipping services. Partnering with multiple carriers can also help you optimize rates and services, giving you more flexibility and better coverage.

Compliance with international shipping regulations is non-negotiable. Familiarize yourself with customs forms, duties, and taxes to avoid errors and penalties. Streamlining your operations by implementing efficient shipping processes, including automated tracking and updates, can ensure a smooth customer experience.

Aligning Shipping Strategy with Business Goals

A well-aligned international shipping strategy should support your overarching business goals. To increase revenue, offer competitive international shipping rates and options to attract and retain customers. Consider offering free shipping or discounts to incentivize purchases, making your store more appealing to international customers.

Improving customer satisfaction is another key goal. Provide clear shipping information, tracking updates, and timely delivery to ensure a positive customer experience. This not only helps in retaining customers but also in building a loyal customer base.

Reducing costs is essential for maintaining healthy profit margins. Optimize shipping routes, consolidate shipments, and negotiate with carriers to minimize costs and maximize efficiency. This will help you offer competitive prices without compromising on service quality.

Lastly, enhancing your brand reputation through reliable, efficient, and customer-centric international shipping can build trust and loyalty with customers. A strong reputation can set you apart from competitors and make your brand more attractive to international customers.

1. Know Your Products and How to Ship them

If it were up to us, we would want your products to reach far and wide. However, you need to be practical about the products’ eligibility for international shipping, both logistically and fiscally. Additionally, you also need to be mindful of the destinations you will be focusing on and the appropriate shipping method for each product.

Here’s how you can get started:

Start small: Shorter distances and smaller packages should be the starting point. This allows you to make calculations easier, and set realistic expectations when it comes to shipping costs, and delivery timelines.

Be aware of restrictions: Not every product is available for shipment, some might be straight up illegal or be categorized into dangerous goods (Even items like perfumes come under Hazard Goods Class 3) that might reduce your courier options substantially and increase shipment costs.

2. Understanding International Shipping Costs and Discounts

Shipping costs can make or break your international expansion, but Shopify international shipping rates can save merchants up to 88.5%. 

Shopify’s pre-negotiated carrier rates offer significant savings, but here are a few considerations that can help you lower your shipping rates even further.

Key Considerations:

• Dimensional Weight Pricing: Understand how carriers calculate shipping costs based on package size and weight.
• Zone-Based Pricing: Factor in the distance between your warehouse and the customer’s location.
• Packaging Material: Sometimes your packaging material may unnecessarily add to your overall shipping weight and eventually, the cost. Consider soft materials like bubble wraps for fragile materials and combining two packages in one (if possible) to reduce the overall expense.

3. Managing Cross-Border Compliance, Taxation, and Documentation

Shipping internationally makes it imperative to consider cross border compliance and taxes to avoid redirects, returns, and unnecessary expenses. You also need to keep in mind that these import duties vary with each HS code and product categories.  

Some of the most common taxes to keep an eye out for are:

Sales Tax: This is the direct consumption tax collected post purchase.

VAT Tax: The Value-added tax is an indirect consumption tax which is levied at different steps of the product life cycle, right from production to the final sale. In some countries GST and VAT are the same and follow the same line of business.

GST Tax: Goods and service tax is yet another indirect consumption tax which is levied right from manufacturing to the final sale, and is levied on a national level, thereby cutting down the chances of state tax imposition and thereby, an elevated final selling price.

Tips for Success:

• Avoid delays by understanding country-specific shipping restrictions.
• Double-check product classifications to ensure accurate customs declarations.

With Easyship you can now calculate taxes while choosing your courier options, ensuring transparency for your customers.

4. Optimizing Multi-Warehouse Operations

When stepping into international shipping, your fulfillment journey requires the convenience of a multi-warehouse option. Using multiple fulfillment locations can significantly reduce shipping costs and delivery times.

How to optimize the multi-warehouse operations:

1. Identify Key Markets: Use data to determine where the majority of your international customers are located. If this is your first time shipping internationally, look for consumption trends in these countries and connect them with your products to be relevant. As mentioned above, start slow and keep low, expand your category and geography as your business grows!
2. Set Up Regional Fulfillment Centers: Partner with fulfillment centers in target regions to offer faster shipping. These fulfillment centers can be warehouses, retail stores, and pop-up stores to name a few. 
3. Streamline Inventory Management: Keep track of stock levels across multiple warehouses to prevent overselling.   

5. Creating an International Customer Experience

To succeed in international markets, prioritize a localized customer experience. From managing the local delivery to ensuring the local language, making your Shopify store relatable is a huge step to ensure that your global customers enjoy a positive experience.

Some of the key aspects of localizing your Shopify store are as follows

• Translate your store’s content into the target market’s language.
• Display prices in local currencies and include estimated delivery dates.
• Offer local payment options to build trust.

For example, a fashion boutique doubled its sales in Germany by translating product descriptions, pricing in euros, and including local delivery times at checkout.

6. Protecting International Shipments

Shipping internationally comes with inherent risks like lost or damaged packages, customs delays, and potential theft. Implementing robust protection strategies can help ensure your shipments arrive safely at their destination. Here are comprehensive approaches to safeguard your international deliveries:

Insurance Coverage Consider comprehensive shipping insurance that covers not just loss but also damage, theft, and customs delays. Premium insurance options often include coverage for indirect losses like business interruption. For high-value shipments, consider working with specialized cargo insurance providers who understand your industry's specific needs.

Advanced Tracking Systems Implement end-to-end tracking solutions that provide real-time location updates and condition monitoring. Modern tracking systems can monitor temperature, humidity, and shock exposure during transit. Consider using GPS-enabled tracking devices for valuable shipments, allowing you to monitor exact locations and receive instant alerts about potential issues.

Reliable Carrier Selection Partner with reputable international carriers who have proven track records in your shipping routes. Consider carriers who offer specialized services for your specific type of cargo, whether it's hazardous materials, perishables, or high-value goods. Evaluate their claims handling process and customer service quality before committing to a partnership.

If you have a preferred carrier for your shipments, Easyship’s Link Your Own Courier feature allows you to set up your courier partner, access your own accounts and negotiated rates. 

Secure Packaging Methods Invest in high-quality packaging materials designed for international shipping. Use double-walled boxes for fragile items, moisture-barrier bags for sensitive electronics, and tamper-evident seals for security. Consider climate-controlled packaging for temperature-sensitive goods, and use appropriate cushioning materials to prevent damage during long-distance transport.

7. Reducing International Shipping Costs

Cost control is crucial for maintaining profitable margins when shipping internationally. Strategic planning and optimization of shipping processes can significantly reduce expenses while maintaining service quality. Here are comprehensive approaches to manage international shipping costs:

Optimizing Shipping Speed and Service Levels Strategically balance delivery speed with cost considerations. Reserve premium shipping services for time-sensitive items while utilizing more economical options for standard deliveries. Consider implementing hybrid solutions where the first leg uses express shipping while final delivery uses local postal services.

Smart Packaging Strategies Minimize dimensional weight charges by optimizing package sizes and using appropriate materials. Consider investing in custom packaging that maximizes space efficiency while maintaining protection. Implement packaging guidelines to ensure consistent and cost-effective packing practices across your operation.

Bulk Shipping and Consolidation Combine multiple orders going to the same region to qualify for bulk shipping rates. Consider establishing local fulfillment centers in key markets to reduce long-distance shipping costs. Implement order batching systems to maximize consolidation opportunities.

Tips for Success with International Shipping

Practical Tips for Streamlining Operations

Streamlining your international shipping operations can significantly improve efficiency and customer satisfaction. One of the most effective ways to do this is by using shipping software. Implementing shipping software or plugins can automate tasks such as calculating taxes and import duties, optimizing shipping routes, and rates, and providing real-time tracking updates.

Consolidating shipments is another practical tip. By combining multiple orders going to the same region, you can reduce costs and increase efficiency. Consider using a freight forwarder to manage complex international shipments, ensuring that your packages are handled professionally and reach their destinations on time.

Offering flexible shipping options can cater to the diverse needs and preferences of your international customers. Provide options for expedited and economy shipping, allowing customers to choose based on their urgency and budget.

Monitoring and adjusting your international shipping operations is crucial for ongoing success. Continuously track performance metrics and customer feedback to identify areas for improvement. Adjust your strategy as needed to ensure optimal performance and customer satisfaction.

By implementing these practical tips, you can streamline your international shipping operations, reduce costs, and enhance the overall customer experience, making your Shopify store a preferred choice for international customers.

Make international shipping easier with Easyship!

Your international shipping is heavily reliant on your global courier partners, and we know, it's not easy to keep a track of that! The tax duties and compliance requirements are cherry on top when you are trying to scale your business internationally.

Do not let these tasks daunt you!

With Easyship, you have the complete view of multiple carriers who can help you ship your products safely to your customers, along with tax compliance for the countries of your choice, and even insurance, should you need one. 

Make Easyship your international shipping partner today!

FAQs

1. Can I ship internationally on Shopify?
Yes, Shopify supports international shipping. You can enable global markets, set up shipping zones, and access discounted international rates through Shopify Shipping or third-party apps like Easyship.

2. Why is international shipping so expensive on Shopify?
International shipping costs include carrier fees, customs duties, fuel surcharges, and packaging. Without rate optimization or multi-carrier tools, these expenses can add up quickly. Using Shopify’s discounted rates or Easyship can help reduce these costs significantly.

3. How do I make my Shopify store international?
To go international, activate global markets in Shopify Admin, set up shipping zones, offer local currencies and payment methods, and ensure compliance with taxes and duties. Localizing language and fulfillment can also boost international conversion rates.

4. What countries does Shopify not ship to?
Shopify itself doesn’t limit where you can ship, but your ability to ship depends on the carriers you use. Most carriers restrict shipments to embargoed or sanctioned countries like North Korea, Iran, Syria, and Cuba due to regulatory laws.