6 Benefits of International Shipping for E-commerce Businesses

For most global companies, being able to offer international shipping will always be an important component of a well-planned logistics and supply chain expansion strategy.

International shipping has many advantages, and in most cases, these advantages far outweigh the disadvantages. In a rapidly developing world–where the supply chain is truly global — e-commerce companies can no longer afford to limit their market, and the best way to reach other markets is through international shipping.

However, offering international shipping is not a walk in the park. Some of the major challenges will include time and money. Companies need to invest in having international shipping partners. Companies also need to spend time conducting market research, particularly if a company plans to enter another country or a new market that the company is not very familiar with. 

Adjustments have to be made because every market or region could have its nuances and unique characteristics. It might seem trivial, but the culture and traditions of a certain country will also have to be considered.

In this article, we will break down some of the more important benefits that e-commerce companies can get from international shipping as part of their logistics plan.

What Is Global Shipping?

Global shipping in e-commerce refers to the process of delivering products from online sellers to customers located in different countries around the world. It involves the logistics, transportation, and delivery of goods across international borders. Global shipping is an essential aspect of e-commerce that enables businesses to expand their reach and cater to a global customer base.

In global shipping, e-commerce companies must navigate various logistical challenges, including customs regulations, import/export duties, documentation requirements, and transportation arrangements. They need to partner with reliable shipping carriers or logistics providers who specialize in international shipping to ensure smooth and efficient delivery.

Global shipping offers several advantages for e-commerce businesses. It allows them to tap into new markets and reach customers who were previously inaccessible due to geographic limitations. By embracing global shipping, companies can increase their revenue potential and reduce their dependence on a single market, thereby mitigating risks associated with local economic fluctuations.

It’s estimated that there will be 2.05 billion global digital buyers in 2020. With a global population of around 7.7 billion people, that’s nearly 25% of the world’s population shopping online! This number is only continuing to grow, and is expected to hit 2.14 billion global digital buyers by 2021. By 2021, it’s estimated that global B2C eCommerce sales will exceed $4.5 trillion—nearly double the $2 trillion done in 2018. 

Moreover, global shipping facilitates brand exposure and recognition on a global scale. When customers receive packages from overseas, it not only enhances brand visibility but also helps build trust and credibility. Providing a seamless shipping experience to international customers enhances the reputation of e-commerce companies and can lead to customer loyalty and positive word-of-mouth referrals.

What Is The Potential for International E-commerce Shipping?

The potential for international e-commerce shipping is immense and continues to grow at a rapid pace. As the world becomes more interconnected and technology advances, barriers to cross-border trade are being overcome, opening up new opportunities for businesses and consumers alike.

Research has revealed that the global e-commerce market is expected to hit $5.55 trillion by the end of 2022 and $7.4 trillion by 2025

One of the key drivers behind the potential for international e-commerce shipping is the increasing global connectivity. The internet has made it possible for businesses to reach customers in every corner of the world, breaking down geographical limitations. E-commerce platforms and marketplaces have emerged as powerful tools for businesses to showcase and sell their products internationally, enabling consumers to access a wide range of goods from different countries.

Another factor contributing to the potential for international e-commerce shipping is the growing middle class in many developing countries. As more people enter the middle class, their purchasing power increases, and they seek access to a wider variety of products. This creates a significant demand for international e-commerce shipping, as consumers look to purchase goods from around the world that may not be available or affordable locally.

Advancements in logistics and shipping technologies have also played a crucial role in expanding the potential for international e-commerce shipping. Improved tracking systems, faster shipping methods, and more efficient customs processes have made cross-border transactions easier and more reliable. Additionally, the rise of third-party logistics providers specializing in international shipping has further facilitated the movement of goods across borders.

However, it is important to acknowledge that challenges still exist in international e-commerce shipping, such as varying regulations, customs duties, and language barriers. Nonetheless, with ongoing advancements and the continued integration of global markets, the potential for international e-commerce shipping remains vast, presenting opportunities for businesses to expand their reach and for consumers to access a diverse array of products from around the world.

Benefits Of International Shipping For E-Commerce Companies

1. Expanded Customer Base

One of the significant benefits of international shipping for e-commerce companies is the ability to reach a broader customer base beyond domestic borders. By offering international shipping options, businesses can tap into new markets and target customers worldwide. 57% of consumers agree that they have made an international purchase at least once in the last 6 months. 

This opens up tremendous sales potential and presents an opportunity for exponential growth. With a larger customer base, e-commerce companies can diversify their revenue streams and reduce reliance on a single market, thus minimizing the risks associated with local economic fluctuations. Moreover, expanding the customer base geographically enhances the company’s brand recognition and presence on a global scale.

2. Increased Revenue Opportunity

International shipping creates additional revenue opportunities for e-commerce companies. By extending their reach to international customers, businesses can unlock the potential for higher sales volumes. Selling products or services globally allows companies to capitalize on different market demands, preferences, and purchasing power. 

This translates into increased revenue and profit potential. By broadening their customer base internationally, e-commerce companies can achieve a more sustainable and balanced revenue stream, reducing their dependence on any specific market segment.

3. Competitive Advantage

Offering international shipping provides e-commerce companies with a distinct competitive advantage in the global marketplace. In an era where customers expect convenience and accessibility, businesses that can meet these expectations gain an edge over their competitors. By seamlessly integrating international shipping services into their operations, e-commerce companies can attract customers who value global accessibility and reliability. 

This advantage not only helps in acquiring new customers but also in retaining existing ones, as customers are more likely to choose a company that offers hassle-free international shipping over its competitors.

4. Brand Exposure and Global Presence

International shipping plays a crucial role in building brand exposure and establishing a global presence for e-commerce companies. When customers receive products from a company located in another country, it creates brand visibility and recognition. Positive experiences with smooth international shipping contribute to the company’s reputation and can lead to customer loyalty and word-of-mouth marketing, further enhancing brand presence. A strong global presence positions e-commerce companies as reputable and trustworthy entities, which in turn attracts a wider customer base and opens doors to potential partnerships and collaborations.

5. Access to Unique Products and Suppliers

International shipping enables e-commerce companies to access unique products and suppliers from different parts of the world. This expands their product offerings and allows them to differentiate themselves from competitors. By sourcing products globally, e-commerce companies can provide customers with a diverse and unique inventory that may not be available domestically. This variety appeals to customers seeking something different or exclusive, setting the company apart and attracting a niche market. Access to a broader range of suppliers also allows businesses to secure better pricing and establish beneficial partnerships.

6. Learning and Growth Opportunities

International shipping presents e-commerce companies with valuable learning and growth opportunities. Dealing with international logistics, customs regulations, and varying shipping requirements helps businesses expand their knowledge and expertise. It provides insights into different markets, cultural preferences, and customer behaviors, which can be leveraged to improve marketing strategies and tailor offerings to specific regions. 

Moreover, navigating the complexities of international shipping enhances a company’s operational capabilities, enabling them to handle logistical challenges efficiently. This experience and growth contribute to the company’s overall competitiveness and sustainability in the global e-commerce landscape.

Factors To Consider When Shipping Internationally

To leverage these benefits effectively, e-commerce companies should prioritize a few key considerations:

1. Research and Partner with Reliable Shipping Carriers

Select reputable shipping carriers with experience in international logistics to ensure timely and secure deliveries. Consider carriers that offer tracking services, insurance options, and competitive rates.

2. Understand Customs and Regulations 

Familiarize yourself with customs regulations and requirements of the countries you’re shipping to. This includes knowing restricted items, required documentation, and potential duties or taxes. Compliance with customs regulations helps avoid delays and ensures a smooth shipping process.

3. Streamline Packaging and Labeling

Optimize packaging to protect products during international transit. Use appropriate packaging materials and ensure packages are labeled accurately and legibly, with clear shipping addresses and customs declarations.

4. Offer Transparent Shipping Options and Pricing

Provide customers with clear information about international shipping options, estimated delivery times, and associated costs upfront. This transparency builds trust and helps customers make informed purchasing decisions.

How Locad Can Help With International Shipping

Locad can greatly assist businesses with their international shipping needs. With its expertise and technology-driven solutions, Locad can streamline the complex process of international shipping, making it efficient and cost-effective.

We offer end-to-end logistics solutions tailored to the specific requirements of international shipping and handle tasks such as inventory management, order fulfillment, customs compliance, and last-mile delivery. 

Our network of global fulfillment centers and partnerships with reliable carriers enable efficient delivery to international destinations.

Moreover, Locad’s deep understanding of international regulations and customs procedures ensures compliance and minimizes the risk of delays or complications. By taking care of the intricacies of international shipping, we enable businesses to focus on core operations and expand their global reach with confidence.

Frequently Asked Questions