Cheap international shipping: 12 tips to reduce costs

Despite helping an e-commerce business grow, international shipping can be extremely costly and cause many complex issues. And you won’t get loyal customers by passing those fees or problems onto them. So, how do you get cheap international shipping while providing the outstanding service that your customers expect? 

At Sendcloud, we’ve been helping e-commerce stores expand into new markets for years now, creating simple, efficient and cost-effective methods for getting their products shipped around the world.

That’s why we’ve decided to share our top tips on how you can get cheap international parcel shipping. This blog will talk you through the following steps:

• The types of international shipping available and which type of e-commerce provider they will suit
• The main causes of expensive international shipping and why international shipping is more expensive
• Biggest mistakes to avoid in international shipping
• Top saving hacks for international shipping
• How to choose the right international shipping provider for you

Don’t have time to read the entire blog? Download our handy checklist to effectively budget and optimise your international shipping costs!

Types of international shipping and which e-commerce provider they will suit

If you’re new to the e-commerce sector you might not be sure which types of international shipping are available, and which methods will suit you.

To choose which method of international shipping is right for your business, consider the following: 

• Value of the goods you will be sending
• Your budget to spend
• Size and weight of goods
• Speed of service you need
• International destinations you will need to deliver to
• Quality of service
• Any additional insurance requirements

International couriers

International courier services ship door to door. Reputable international couriers include DPD, UPS, DHL, FedEx and GLS. This international shipping service is great for packages that need to be delivered quickly. Naturally, it’s more cost-effective for lighter loads. Most of these companies offer a number of services, including different windows for delivery times as well as different lengths of time for transit. 

International container shipping

Unlike freight shipping, container shipping limits the sender to the space in their container. This method also restricts the kinds of products you can ship, including aerosols and non-native plants. 

International air freight

International Air Freight gets your goods to their destination quickly. Transporting them by air is the fastest method of shipping, although you pay more for the convenience per kilo compared to container shipping. Prices are based on the actual gross weight or volumetric weight, whichever is greater. International air freight will usually take about 1 to 3 days between any two global destinations.

Top tip: If you want to find out where your customers are in the world – and where you might need to ship to – check out the Location report under ‘Geo’ in your Google Analytics. 

Why is international shipping so expensive?

Now you have an understanding of the different types of international shipping. So what do you need to consider if you’re looking for the cheapest international shipping? Here are some of the main reasons why shipping is so expensive:

• • International deliveries involve a lot more work for the shipper. The parcel’s first stop is the depot. Then it’s taken to the airport and loaded onto a cargo plane. On arrival at its destination, the parcel goes through customs inspections. It is then passed to another courier to make its final journey to its destination.
  • If the delivery is outside the European Union, the package may be subject to customs duties. Customs duties are charges imposed by a government on imported goods. These duties differ from country to country and can be specific or based on the value of the goods.
  • Your chosen international shipping provider is not offering competitive prices. 

This brings us neatly to our next point.

How to avoid mistakes with international shipping

Choose a reputable supplier

This may sound obvious, but many people get this wrong. Especially when they’re starting out. Use the following tips to find the right international shipping supplier for you:

• Make a list of all your shipping requirements. Think about your future needs, too — how your company might change and grow over time.
• Consider the kind of insurance coverage you and your customers will need. Your provider should be covered by a highly reputable company. Make sure their website offers transparent information relating to their insurance. Don’t be shy to ask the company questions. Make sure you consider:
  • Which packages need cover? Some packages are automatically covered, often because the items are of lower value. 
  • What types of items will need insuring? Insurance companies offer various levels of coverage for different items. The level of cover needed will depend on the nature of the product, its value, and its destination.  
  • Are there any caveats? As with all business decisions, make sure you read the small print. Are there items that can’t be insured? Are there any items that are limited to a certain declared value? Are there any packing rules or restrictions that apply? This could include using a certain type of box, padding, labelling, or tape.
• Check out reviews of the providers online. TrustPilot, Google My Business, Facebook and Yelp are all reputable sites for customer reviews.
• Take a look at comparison sites and guides. Sendcloud has a number of guides available. If you can’t find what you need on the Sendcloud blog pages, please get in touch. We’d love to help. 

Fill out your paperwork properly

Incorrect paperwork can be extremely costly and won’t help you on your way to cheaper international shipping. You need to ensure your commercial invoice or other customs documents are completed correctly, including details of the item’s value, country of origin, sender’s details, and the recipient’s details. 

If you don’t fill out the paperwork properly, you could incur a fine, or your parcel may be delayed. It might even be impounded. Different rules apply to different territories. Make sure you check each country’s requirements before sending.

Know your international shipping restrictions

As mentioned above, shipping packages internationally is often subject to restrictions. This information can change at any time, so make sure the information you use is current and authoritative. 

These changes can include restrictions on product types, weight, and other specific rules relating to each country. The rules and restrictions can also change depending on the international shipping provider. For the most up-to-date information on shipping restrictions, you can check your local government website, for example. 

Top saving hacks for cheap international shipping

1: Be smart with your scheduling

It’s not always easy to plan ahead, especially when you need to respond quickly to sudden increases in demand. However, if you can be smart with your scheduling, you could save money.

Consider your product range. Are there any items for which you could offer a longer delivery time, allowing for shipping via sea freight, which is typically less expensive than air freight? Of course, not all products will be suitable for sea freight due to restrictions or customer expectations when it comes to shipping times.

If you opt for longer deliveries, make sure that your service will still be competitive. Check what your main competitors offer. You don’t want to be the only company that can’t deliver to meet customer expectations, after all. 

2: Choose your international shipping partners carefully

The international shipping companies you partner with should be highly reputable. You and your consumers need to be 100% sure they offer the highest standards of service delivery. At all times. Remember, lower costs don’t always result in cheaper international shipping. Less reputable shipping companies may offer a low quote. But they might not be clear about any additional and unexpected costs. 

Check review sites and find out how each provider performs in all aspects of their service. You can also ask peers or friends to recommend suppliers. Your international shipping partner checks should include: 

1. Price comparison
2. All additional costs 
3. Speed of service 
4. Service quality
5. Insurance cover 
6. Customer service provision

We recommend checking out Evri, FedEx, DPD, and DHL.

3: Ship with multiple international shipping companies

Using multiple carriers for different shipment services may save you money. But it can also complicate processes if you don’t have the right multi-courier shipping tool to manage it. Therefore it’s important to consider this option carefully.

Some carriers are more competitive for larger packages. Some will offer better rates to different countries. Some will have better deals for packages that require quicker delivery. Offering a variety of services is great for your consumers, too. They have more control over their costs. Plus the service level and speed they require. 

Many shipping companies (including Sendcloud) have pre-negotiated shipping rates with some of the largest UK couriers.

4: Calculate your international shipping costs carefully

This sounds obvious, but making sure you’re accurate with your costs is vital for cheap international delivery. For your own records and to make sure your offer is clear to consumers. Your cost breakdown should include the following: 

• Cost of the product 
• Cost of packaging 
• Cost of international shipping 
• All handling charges 
• Duties and taxes 
• Credit card fees
• Your profit margin 
• Total price

Top tip: Need help calculating your international shipping costs? Try the free Sendcloud Price Calculator.

5: Package and address your products correctly

The last thing you or your consumer want is to receive damaged products. This harms your reputation and future sales. It can also negatively impact customer retention and result in extra costs.

International shipping guidelines state that your package should be able to withstand a drop of 1.5 metres. Here are some tips for packaging your products for international shipping. 

• Fill the box with packing material such as bubble wrap or polystyrene. Do not use newspaper or other print material as international censorship rules may apply.
• Put extra tape over the corners of the shipping box to strengthen it.
• Avoid boxes that are too small for filling materials. Do not use string or twine to seal the box.
• Address the package correctly to avoid a failed delivery. Remember, countries have their own conventions when it comes to addressing packages. Check any rules and formats before sending. 
• Print the name of the destination country in capital letters after the name of the town or city. Write all names in English. Do not include ISO codes with the postal codes or town/city names, such as FR, D, CH, etc. This may result in errors and delays in the sorting process.

6: Cut down on packaging where possible

Reducing the amount of packaging will save you money on materials. Using boxes that are too large also increases the risk of damage to the product. And it increases your filler costs too. Don’t forget that your packaging will still need to meet safety and compliance requirements for transit. 

The larger the package, the more space it takes up, increasing costs. Reduce packaging for cheap international delivery and to help the environment. This is great for business ethics and can increase conversions and customer loyalty. Consumers prefer companies that share their ethics, so communicate your green credentials clearly on your website and marketing materials.

Top tip: Keep a variety of box shapes and sizes in stock to meet changing demand and reduce packaging waste.

Some international shipping companies offer free packaging. So, keep this in mind when you’re choosing your suppliers. 

7: Consider Final-mile or Last-mile delivery services

Final-mile or Last-mile delivery services refer to the last leg in the parcel’s journey. The carrier drops the parcel at the recipient’s local post office, and a local carrier completes the last part of the delivery. Final-mile delivery reduces residential surcharges and offers one of the cheapest ways to ship packages internationally from the UK. While this reduces costs for you, it will add a day or two to delivery.

8: Consider using electronic trade documentation

Electronic trade documentation is an automated international shipping solution. It allows you to submit your customs documentation electronically. Using electronic trade documentation reduces paper consumption and printing costs. Before choosing this option, check that all relevant country’s customers will accept electronic trade documentation. Find out more about the topic in our Help Center article.

9: Consider using Ex Works (EXW) international shipping

Don’t worry if you’ve never heard of Ex Works before. Many e-commerce merchants aren’t familiar with it. 

What is Ex Works (EXW)?

EXW, which stands for Ex Works, is an Incoterm (International Commercial Term) that places complete responsibility on the buyer. This responsibility includes arranging and paying for shipping, as well as managing customs clearance. EXW is often used to provide a clear cost of the product without any additional costs included, offering transparency to the buyer. 

As long as the buyer is willing to take on the responsibility for shipping and customs, EXW can be a great option for cheaper international shipping for e-commerce retailers. The seller only needs to provide all the necessary documents for the export processes.

As you can imagine, there are some pros and cons for the consumer and the merchant. Here are some of the main advantages and disadvantages of using EXW.

Advantages of EXW

• The consumer can see the product costs upfront. If the merchant offers EXW, the buyer will be able to see the exact price of the product. This can make it easier to compare merchants, and the buyer can be confident that the merchant is not inflating prices. 
• The buyer has full control over the shipping. Some consumers will be happy to take responsibility for the costs and shipping arrangements. They can choose the level of service and how much they want to spend on delivery and insurance. This should mean they don’t have any nasty surprises along the process, either with costs or with the speed of delivery. 
• The consumer can take responsibility for customs clearance. The consumer may be based in a location where local knowledge of import customs is beneficial. This may give them more confidence to take control of this part of the international shipping process. 

Disadvantages of EXW

• Not all consumers want the responsibility for shipping and customs. Under EXW terms, the consumer takes on all the risk for transit and customs. If they aren’t experienced with the process – or something goes wrong – they may incur additional costs or the delivery may be delayed. 
• Using EXW can cause problems at customs. One of the main issues that arise with EXW is problems with customs in the country of origin. If the retailer does not supply the correct paperwork or an export license, the buyer may incur additional costs. The consumer may also have to pay if the goods are subject to random customs checks. Good retailers will offer clear and accurate information to the consumer to help smooth the process and to give them confidence. This information should include the retailer’s export license. Additionally, the retailer should also provide any other necessary export documentation from the country of sale, such as customs forms, and advice on restrictions.

10: Consider using Free On Board (FOB) international shipping

Free On Board, or FOB, is a similar option to EXW. FOB is usually only available for sea freight. In a nutshell, FOB means the seller takes full responsibility for the package to the point that it is onboard and ready for transportation. The responsibility for successful delivery is ultimately split more equally between the merchant and the consumer. 

FOB is good for buyers who are less experienced with customs, import, and export. By using FOB over EXW, they may have more confidence that the delivery will be successful.

Advantages of FOB 

• The consumer gets full transparency on costs throughout the entire process.
• Costs can be lower for the customer, compared to EXW. Usually the merchant can get the products to the port and cleared through customs at a lower price than a freight forwarder. 
• The retailer takes responsibility for the export documents. This means both parties can be assured of a smooth service and delivery. 

 Disadvantages of FOB 

• Consumers may get the impression that the goods cost more, which can make the retailer appear less competitive. Merchants should be clear about the costs on the website, including a breakdown of delivery charges and any other costs. 
• Consumers assume the risks associated with the shipment after it is onboard, which may not suit every consumer. 
• Unit prices may be higher with FOB. However, this does not mean the overall costs will be more.

11: Choose the right insurance

Overseas shipments are often more susceptible to damage during transit. Losses are more common too. Choose robust insurance to protect against damage and losses, especially for high-value items. Check if your shipping options are already covered by insurance to avoid unnecessary expenses. If you’re not satisfied with the cover, consider independent product insurance for cheaper international shipping.

Some international shipping options are insured as standard by the carrier up to a certain amount. If you’d like to find out more about Sendcloud Shipment Protection, please get in touch. Our insurance service covers you for any amount. It is easy to set up and totally transparent, and we handle all claims quickly and efficiently. Plus, it’s great value for money. 

12: Invest in good international shipping technology

Using the right software and online tools can save you time and money and therefore lead to cheaper international shipping. It can also improve customer service provision and streamline processes. You can use it to automate processes, calculate shipping and packaging, print labels, save customer preferences, and much more. 

Using good technology also helps you manage data from multiple international shipping providers. This helps you provide more accurate quotes and keep an eye on which suppliers are best for your business. It also helps you manage customer and supplier data more effectively. As with all business purchases, make sure you find the right tools to suit the individual needs of your e-commerce site. 

Which international shipping company is best?

With so many options on the market, it can be hard to decide on the right international shipping company for you. It’s important to carefully research the options available — considering long-standing players and newer providers.

These are some questions you can ask to help you narrow down your options:

1. How much do they charge for all types of shipping?  
2. Are there any additional costs?
3. Do they cover all the services I need? 
4. Do they have any weight or size restrictions?
5. Do they offer shipping with multiple carriers, considering the countries you want to send to, the speed of delivery, etc.? 
6. Can you do most of your shipping with a single freight shipping company? If so, you may be able to get discounts based on volume.
7. Do you need to send hazardous goods? Or goods that have other restrictions?
8. Do they offer great customer service?
9. What are their tracking capabilities?
10. Do they offer international shipping tools that could help my business processes?
11.  Is this international shipping company trusted? Are the reviews good? If not, what are the main issues, and are they relevant to my business?

The best international shipping companies should not only be affordable but should also offer flexible services for small parcels and large freight, including both ocean and air options.

Make a list of your requirements then do your research. And don’t be afraid to ask questions. You’re making an important decision, and you want to be sure it’s right for you, and your customers.

Which international shipping courier is the cheapest?

Finding out which international shipping company is cheapest depends on your requirements. As above, here are the questions you should ask when reviewing shipping providers:

1. Which countries will I be shipping to?
2. What are the sizes and weights of my goods?
3. Will I need priority mail?
4. How quickly do I need the goods to arrive? 
5. Are there any customs restrictions or processes I need to consider?
6. Will I need packaging materials?

Some extra tips for you:

– Generally, international shipping by sea is cheaper. Though it tends to take longer, so keep your requirements in mind.
– Don’t forget that using multiple carriers can save you money (there is a section on this earlier in the article, if you missed it). 
– Take a look at case studies and online reviews to get a full picture of how cheap a shipping company is, and whether they might have hidden costs. Take a look at the international shipping companies your competitors use, especially when it comes to shipping similar products to similar locations.

What are the main international shipping terms (Incoterms)?

The international shipping industry uses specific terms and acronyms you should become familiar with when you ship internationally. Dubbed Incoterms or International Commercial Terms, these three-letter terms are developed by the International Chamber of Commerce. To help you understand these terms, we created a complete guide to incoterms.

Summary

1. Finding the best international shipping services can be complicated due to the crowded marketplace and constant new entrants.
2. When choosing an international shipping service, take your time to find the best option. This decision shouldn’t be taken lightly. A reliable shipping provider helps with cost calculations, builds strong supplier relationships, and instills confidence in your international shipping services among your customers.
3. Take time to understand your business requirements and plans, both short-term and long-term. Consider the needs of your business and customers and how they will be affected by your strategy for cheap international shipping from the UK. Read reviews from reputable websites and talk to industry peers. With patience and good research skills, you will find the right international shipping company for your business.

For insights on forecasting and optimizing your international shipping costs, check out our free checklist!

Want to learn more about cheap international shipping?

At Sendcloud, we specialise in helping e-commerce businesses optimise their shipping processes and save on costs. Learn more about cheaper international shipping with Sendcloud!