spotlight on global shipping v2_0

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Page 1: Spotlight on Global Shipping v2_0

Research shows that transparency in the shipping process is of paramount importance to cross-border shoppers. More than half (51 percent) of those who have shopped cross-border in the past 12 months say that delivery costs prevent them from making purchases from another country more often.1

Merchants who want to build a global client base need to guarantee international customers that they will receive

exemplary service by:

Nine Tips for Navigating Global Shipping

I want to start selling globally – but where do I start?Is the product you’re selling legally allowed to be exported from the US and imported to a particular country? Make sure you’re aware of licensing and certification regulations. Are you familiar with your shipping partner’s policies? Most prohibit the transportation of items that cannot be shipped safely, such as potentially explosive or flammable products.

How do I determine what international labels and documents are needed?Unless you are a shipping expert, it is difficult to know the requirements for each country. A shipping and logistics professional can help you take care of all of the documentary requirements. These include customs declarations, commercial invoices, international manifests and labels – all of which are subject to certain regulations.

How do I insure my shipment?Cargo insurance policies are available. Many shipping providers will also let you protect shipments at an individual level.

What happens if my shipment was lost or damaged during transit?Cargo air carriers have limited liability. If the cost of goods sold is high, then it is advisable to gain additional shipment value protection.

How do I calculate my shipping charges in advance?Borderlinx’s technology provides a solution that calculates shipping costs and duties and taxes prior to sending the shipment. This provides your customer with a preview of what they will pay for their purchase.

What duties and taxes should I expect to pay when I ship a package overseas?Duties and taxes vary, depending on the country to which the product is being sent. Some countries have more lenient regulations and allow shoppers to import products (up to a certain threshold) duty and tax-free.

You can calculate the tax and duties using the Borderlinx Shipping Calculator at: http://passport.borderlinx.com/shipping_tools.php?lang=en&country=us

Why does it take longer to process and ship international orders?Shipping time varies by the means of transportation. Some shippers use air express services, which can deliver globally in 1-3 days. Should a merchant use a more traditional postal solution, you can expect to wait approx. 14 business days for an international shipment to be delivered.

How should I handle duties and tax disputes with a buyer?Shipments are governed by International Commercial Terms, or “incoterms.” The terms of the purchase defines your level of responsibility. For example, the DDP Incoterm (Delivered Duty Paid) means that you, the seller, are responsible for all of the costs associated with the duties and taxes and shipping of the product.

What are the most complicated countries to ship to?There are certain countries that have stricter importation restrictions such as Egypt, India, Brazil, and Russia. However, you should not be dissuaded from exporting to those regions with the help of a shipping solutions provider that offers package forwarding, paying for taxes and duties upfront, and taking care of the paperwork for the customer.

PayPal spoke with Elizabeth Marshall, VP of Supply Chain Innovations at global logistics solutions provider Borderlinx, about some top tips that every business should consider before selling globally:

Protecting customers from unexpected taxes, duties, and costs

Providing secure and reliable transport options

Making international shipping a simple and hassle free process

1 Source: Ipsos: https://www.paypal-community.com/t5/PayPal-Forward/Together-PayPal-and-Ipsos-Unveil-Top-Growth-Areas-for-Global/ba-p/908613