The Ultimate Guide to Cross-Border Shipping for Dropship

When the product crosses the border, across thousands of mountains to reach the hands of customers, this time the customer is considered to be a real experience of your products. The cost of transportation, logistics, etc., is also a considerable expense in your operation. In the end, how to fine-tune your budget? It all depends on the distribution strategy you choose.
Today, let’s talk about those things in cross-border e-commerce shipping. Including shipping steps, including shipping steps, methods of product packaging, commonly used carriers, ways to reduce shipping costs, order tracking and insurance and customs declaration considerations, as well as the various delivery methods covered by the shipping strategy, to help you deliver your products smoothly and create a perfect customer experience.

How to Handle Cross-Border Shipping

Step 1: Design Packaging Materials 

Your product may experience a “roller coaster” of bumps during the journey, so the packaging materials must be selected to resist shock, pressure and moisture.

Of course, the packaging should not neglect the appearance. Printed on the packaging of your brand Logo, corporate colors and slogans, which not only allows customers to brighten up, but also enhance the brand’s style.
Selection of materials, the outer box should be based on the size and weight of the product, cardboard boxes, corrugated boxes or plastic boxes can be. As for the lining material, bubble wrap, foam pads, padding these are good choices, can be soft wrapped products.
For the design process, first measure the size and weight of the product and find out those parts that are easy to hurt. Then, draw a sketch of the package design, consider the appearance, printing and the proportion of environmentally friendly materials used. Next, make a sample, come to a few drop, squeeze test, see if it can withstand. Finally, after confirming that there are no errors, mass production to ensure that each package meets the standards.

Step 2: Pack the product 

When packing, first give the product to wear “protective clothing”, with bubble wrap or shockproof material wrapped to ensure that every part of the care. If a box containing a number of products, remember to use separators or independent bags to prevent them from “fighting” on the road.
When packing, choose a suitable box so that there are not too many gaps when the products are put in. Fill in the gaps with padding to prevent the product from slipping out during transportation. When sealing the box, use high-quality tape to seal it tightly. For fragile or special commodities, put “Fragile” or “This side up” signs to remind the master to take care of it.

Step 3: Print the shipping label

The shipping label is like the ID card of the product, the information must be accurate and clear. Recipient’s name, address, phone number, zip code, one can not be wrong. The sender’s information should also be written clearly, so that it is convenient to contact when problems arise.
Logistics barcode should be printed clearly, so that the logistics company can scan and track. Order number, product model, quantity and other information should not be forgotten, to facilitate warehousing and customs clearance check.
Before printing, double-check whether the data such as sending and receiving information, order number and barcode are accurate. Print a few to test it first, make sure the barcode and text are clear and error-free, and then print in bulk. Stick the label on the flat surface of the box, avoid sticking it on the seal or crease, and make sure the scanning equipment can read it easily.

Step 4: Handing the Package to Your Preferred Carrier 

After packaging the products, take the packaged items to the carrier’s pickup point. There are many carriers available for cross-border e-commerce sellers, including internationally recognized express services like USPS (United States Postal Service), FedEx, TNT, UPS, or DHL.

Load all the packaged products onto a vehicle and transport them to the local pickup point of your chosen carrier. Alternatively, if your carrier offers a pickup service, you can call them to arrange for pickup at your location. Remember to obtain the tracking number, which allows your customers to track when their product will arrive at the destination.

Beginner’s Strategy for Cross-border Shipping in E-commerce 

Freight and Distribution Methods

Shipping costs have a direct impact on profitability, and prices and timelines vary greatly between different logistics methods. There are usually the following delivery options:
● International express (DHL, UPS, FedEx): fast but high freight, suitable for high-value goods or orders that need to be delivered urgently.
● Dedicated logistics (e.g. U.S. dedicated, European dedicated): cost-effective, suitable for specific markets.
● Overseas warehouse: Prepare goods in advance to the target market countries, shorten the delivery time, but the initial investment is large.

Product Weight

Cross-border logistics is usually billed according to the actual weight or volume weight, whichever is greater. The calculation formula is as follows:
? Volumetric weight (kg) = Length (cm) × Width (cm) × Height (cm) ÷ 5000 (or 6000)
● Small lightweight goods (such as jewelry, accessories): Postal parcels or special economic services are more cost-effective.
●Large-value goods (such as furniture, home appliances): It is recommended to use sea freight consolidation, air freight special line or overseas warehouse to reduce the cost of a single piece.
● High-value goods (e.g. electronic products): choose express delivery + insurance to ensure safety.
? Beginner’s advice: when choosing products, consider the transportation cost and avoid commodities with large volume but low profit.

Choose Packaging

Packaging not only affects logistics costs, but also relates to customer experience and breakage rate.
● Common packaging materials: cardboard boxes (different thickness), bubble bags, fillers (pearl cotton, foam particles)
●Fragile goods: use thickened carton + bubble filler + shockproof label to avoid breakage.
●High-value goods: use anti-theft packaging + double-layer protection to reduce the risk of theft or damage.

Procurement Packaging

Bulk purchasing is the key to reduce the cost of packaging, you can get cheaper packaging materials through 1688, factory customization, wholesale market.
● Customized packaging: increase brand sense, improve customer experience, suitable for products with stable sales.
● Standardized packaging: suitable for merchants with many SKUs and large shipments, avoiding shipment confusion due to different packaging sizes.
? Beginner’s advice: predominantly universal packaging + appropriate amount of cushioning materials, and then consider customized packaging after the order is stable.

Shipping Costs and Methods for Cross-Border Shipping

Offer Free Shipping Service

Free shipping is a great way to reduce cart abandonment. However, you may also have doubts because shipping is never free and someone has to pay for it. Well, in order to effectively implement the free shipping strategy, you can refer to the following 4 methods
1. Raise the price of the product so that the customer pays for the shipping. The shipping cost is “integrated” into the price, so customers won’t realize it, but you can still maintain profitability.
2. You pay for the shipping yourself, fully covering the cost of shipping. Although this means you need to sacrifice a little bit of profit, it is an option to attract more customers to order.
3. Offer free shipping discount codes that are only valid for certain customers or under certain conditions. For example, you can offer discount codes to loyal customers or those with large orders, which encourages customers to shop while avoiding too much free shipping.
4. You can also set a minimum spending amount so that customers will automatically enjoy free shipping when their order reaches a certain amount. This not only encourages customers to buy more, but also increases your customer unit price.

Charge Shipping Fees Based on Real-Time Carrier Rates 

Another approach is to charge shipping fees based on the carriers’ real-time rates. This is quite straightforward—for instance, Shopify integrates in real-time with several carriers (such as USPS and Canada Post). Different carriers offer various shipping options, so customers can select the service that best meets their needs and pay the corresponding shipping fee directly.

Offering Fixed Shipping Rates

If your products are about the same, with similar weights and sizes, then consider using a fixed shipping rate strategy. The advantage of this method is that you can tell your customers what the shipping cost is in a clear and unambiguous way, without the hassle of having to worry about shipping costs that are too high or too low, which saves you time and money. However, if you sell products that vary greatly in size and weight, fixed shipping rates may bother you because the shipping cost may be different for each item and the math can get complicated.

Freight calculator 

Since each carrier offers slightly different services and each business has its own unique variables, comparisons can be difficult.
To make it easier for you to compare shipping rates and the various different shipping options, the following summarizes the shipping rate overviews or shipping rate calculators for some of the popular large carriers.
Shipping from China:

● EMS (China Postal Express) – Shipping Cost Calculator
EMS Shipping Cost Calculator

● Yanwen Logistics – Shipping Cost Overview (e.g., “Yanwen Dedicated Line Tracking – General Cargo”)
Yanwen Shipping Cost Overview

● Yuntu Logistics – Shipping Cost Calculator
Yuntu Shipping Cost Calculator

● DiSiFang (4PX) – Shipping Cost Overview (e.g., “4PX Global Dedicated Line”)
4PX Shipping Cost Overview

Shipping from the USA or Canada:
If your shipping warehouse is located in the USA or Canada, you can use Shopify to pay shipping fees for USPS, UPS, DHL Express, Canada Post, and Sendle.

USPS – Shipping Cost Calculator (English link):
https://postcalc.usps.com/

● Canada Post – Shipping Cost Calculator (English link):
https://www.canadapost-postescanada.ca/cpc/en/tools/pg/shipping-calculator.page

● UK Royal Mail – Shipping Cost Calculator (English link):
https://www.royalmail.com/sending/price-finder

● Australia Post – Shipping Cost Calculator (English link):
https://auspost.com.au/parcels-mail/price-calculator

● UPS – Shipping Cost Calculator (English link):
https://wwwapps.ups.com/ctc/request?loc=en_US

● FedEx – Shipping Cost Calculator (English link):
https://www.fedex.com/en-us/online/rating.html 

Considering Profit

To succeed in the e-commerce industry, you must always pay attention to your business’s profit margins. This is especially true for cross-border e-commerce sellers, as shipping costs can be a significant expense. Without thorough research, you are likely to end up losing money on shipping.

Before determining the final pricing and strategy for your e-commerce store, it’s recommended that you create a chart like the one shown below, listing all the costs involved in getting the product to the customer. While each individual cost may seem small, the cumulative amount can be staggering and may even surprise many successful e-commerce entrepreneurs. Therefore, e-commerce entrepreneurs must be mindful of this issue to avoid falling into the same trap.

Here is a simple example, listing various costs involved in e-commerce shipping (exact figures will vary based on specific situations):

Insurance and Tracking 

The transportation of cross-border packages carries significant high risks. Shipping insurance and order tracking effectively provide robust security and protection for both products and their value. Comparatively, most carriers offer these services at relatively affordable costs. In the event of lost or damaged shipments, compensation can still be claimed through these safeguards.

Customs Declaration and Forms

Different countries have varying requirements and formats for declaring imported goods. Typically, you need to fill out a customs declaration form that details the information about the goods being shipped. Some countries may also require a certificate of origin, commercial invoice, or other specific documents. Make sure you are using the latest version of the form and follow the instructions carefully to avoid any unnecessary issues.

A customs declaration form is used to declare goods when they pass through customs during import or export. Although the format may vary by country or region, it generally includes the following key sections:

1. Declarant Information
● Company Name: The name of the company declaring the goods.
● Company Address: The detailed address of the company.
● Contact Information: Includes telephone, fax, or email.

2. Consignee Information
● Consignee Name or Company Name: The recipient of the goods.
● Consignee Address: The specific address of the recipient.
● Contact Information: Includes telephone, fax, or email.

3. Goods Information
● Goods Name: The name and description of each item.
● Quantity and Unit: For example, quantity, weight, volume, etc., and specify the unit (e.g., pieces, kilograms, cubic meters).
● Declared Value: The value of the goods, usually expressed in a currency (e.g., USD, RMB).
● Country of Origin: The country where the goods were produced or originated.
● Purpose: The purpose of the goods, such as export, sale, gift, exhibition, etc.

4. Tariff Number or Customs Code
● Each type of good has a corresponding tariff number or customs code used to identify the product category and ensure proper taxation.

5. Mode of Transportation
● The mode of transportation (e.g., sea, air, land).
● Transportation Details: Such as the vessel name, flight number, license plate number, etc.

6. Invoice Information
● Invoice Number: The number of the related commercial invoice.
● Invoice Date: The date the invoice was issued.
● Invoice Amount: The amount stated on the invoice for the goods.

7. Payment Information
● Payment Method: Such as letter of credit, telegraphic transfer, cash on delivery, etc.
● Payer Information: Includes the name and address of the paying party.

8. Customs Review
● Customs will review the goods based on the information provided in the declaration form, which may include the signature or seal of a customs officer.

9. Declaration Statement
● The declarant’s signature confirms that all the information provided is true and accurate, and the declarant agrees to bear legal responsibility.

10. Attachments
● Additional documents may be required, such as commercial invoices, transportation documents, licenses, etc.

Waiting for Customs Review

After you have completed all customs declarations and fee payments, the next step is to patiently wait for the customs review. Customs will carefully examine the declaration information, commercial invoice, product descriptions, tariff numbers, and other details to ensure everything complies with regulations.

Preparing for Subsequent Logistics Arrangements

If customs does not raise any issues, the goods will be released. At this point, you need to confirm the specific shipment time with the logistics company and check for any irregularities, such as whether the goods are loaded correctly or if the transportation vehicles arrive on time.
Meanwhile, you should update the transportation status in your system to ensure that customers can track the movement of their goods in real time. Any issues or details should be promptly confirmed and resolved. This not only enhances the customer experience but also ensures that the entire shipping process is smooth and seamless.

Conclusion: Shipping is the Foundation of Cross-Border E-commerce

For cross-border e-commerce, shipping goods to international customers is both crucial and challenging. You need to continuously experiment and adjust your strategies, much like building a new website. With the help of the DropSure platform, you can efficiently manage warehousing, transportation, and customs clearance processes, enabling real-time order tracking throughout the entire journey and providing high-quality service to your customers.

Once a mature shipping strategy has been established, implement it immediately, and evaluate and optimize it every six months to ensure you continually offer the best prices and experiences, thereby supporting the healthy growth of your business.