How to Lower International Shipping Costs

The problem is, if you're shipping products to all those international customers, you're going to be saddled with hefty shipping fees. And yes, you can pass those fees along to your international customers, but they're going to be less inclined to buy your products as a result.

Either way, if you want to remain appealing to your global customers, you'll need to lower those international shipping costs.

Strategies for Lowering Shipping Costs

Try using these tactics to reduce the burden of shipping costs:

Work with international partners. First, you can work with international partners to ensure you provide your customers with the products they need. For example, if you're launching a print company, you could partner with an American printing company to provide quality goods to your American customers. Depending on the nature of your partnership, you could return the favor by shipping your own goods to the American company's EU customers. You can also use this strategy to establish warehouses in other countries; you can bulk ship thousands of products to be stored indefinitely in the warehouse, getting discounted international shipping rates, then ship them out locally when your international customers buy them.

Choose the right service. You'll also need to consider which service to use. Companies like UPS and FedEx have standard international rates that apply to basic packages, but those rates might change depending on what country you're from, what country you're shipping to, and how quickly you need it to get there. If you're going to ship regularly, you should have a good idea for what your "standard" service is; this choice could save you thousands of dollars over the course of your first year.

Negotiate better rates. Even if you've settled on a service, there's no reason you can't negotiate for better rates. If you can talk with an account manager and let them know how much volume you plan on shipping, you may be able to get a dedicated service at a special rate. If you're a new company, and you aren't sure how much you'll be shipping, you won't have as much wiggle room to start—but keep this option in mind as you start to grow your business.

Offer reduced rates for meeting certain thresholds. You can reduce the burden of shipping for both you and your customers by offering reduced (or free) shipping rates to your customers only once they meet certain thresholds. For example, you could offer a lower international shipping rate when a customer purchases more than $100 of products, or when a customer purchases 10 or more items. That way, you can keep your profit margins where they need to be while still giving your customers a less expensive option.

Keep everything condensed. Finally, try to keep all your packages as condensed as possible. Most international shipping rates are calculated based on both the volume of the package and its weight, so if you can reduce one or both of those figures, you can save lots of money in the long run. Try using vacuum sealing or clever packaging to keep your products safe while still occupying as little space as possible.

A Note About Customs

If you're shipping to another country, your customer may also be responsible for paying customs fees associated with whatever they're purchasing, since technically, it qualifies as an import. If you're shipping something small, and of low value, you probably won't have to worry about this, but it's still a good idea to proactively warn your customers that they might face a fee when they receive their item.

Lowering shipping costs can help you run your business more efficiently, lower costs for your customers, and ultimately widen your audience while improving your profitability. It's well worth the extra effort to reduce these costs from the outset.