Do you have your own e-commerce store? Are you curious about how international shipping, dropshipping, warehousing, and supply chain management operate? Whether shipping domestically or sending parcels abroad, it’s essential to understand 3PL logistics and supply chain management.
E-commerce has expanded rapidly, with more business owners transitioning online than ever before. 3PL logistics and warehousing are some of the most critical aspects of the future of online shopping. If you need to store items, offer faster delivery, and ship worldwide, then you want a trusted partner. You want to work with a reputable 3PL company that can handle your inventory, streamline the shipping process, handle paperwork, and work efficiently for you.
Utilising tech-forward solutions, Paakpod is an end-to-end e-commerce platform that has revolutionised the order fulfilment process. They provide effective global fulfilment operations to help e-commerce businesses thrive. Let’s discuss the most critical international and UK dropshipping elements for your e-commerce business.
WHAT IS INTERNATIONAL SHIPPING?
International shipping is the process of sending a parcel or global freight to a recipient in another country. Essentially, the country the package was shipped from will be different from the country in which it will be received. This means of transportation for international shipping can be via maritime shipping, air travel, or truck delivery across borders.
International deliveries vary from domestic shipping.
DOMESTIC SHIPPING
Domestic shipping is the process of sending a parcel or freight to a recipient within the same country. Essentially, the country where the package is being shipped is also the country where it will be received. Domestic shipping is usually more straightforward due to fewer paperwork requirements and more accurate delivery schedules.
When shipping internationally, you’ll need to navigate customs procedures, plane manifests, and ship cargo, which can be more complex. PaakPod provides both domestic and international shipping services. They collaborate with the most dependable courier network to ensure both speed and efficiency.
THE BENEFITS OF SHIPPING GLOBALLY
Being able to offer both international and domestic shipping is crucial because international delivery service expands your customer market. Global delivery has the potential to increase profits for your e-commerce business, enabling expansion.
Sounds appealing, doesn’t it? Why not extend the same services to another country if you have a quality product and excellent service?
Initially, the global shipping process can seem daunting. You’ll need to determine factors like international shipping costs, necessary insurance, whether to ship directly to consumers or to a 3PL warehouse in the target country, and the specific details required for customs declarations. It may seem overwhelming, but with diligent research and hard work, or by seeking advice from experts like PaakPod, it’s entirely manageable.
Once you’ve mastered the process, you can streamline and automate it, potentially significantly impacting your profits. PaakPod simplifies this process for you through innovative technology, automated paperwork, and efficient picking, packing, and shipping of parcels.
Another advantage of global shipping is brand exposure. Increased visibility nationally and internationally fosters customer loyalty and generates more online traffic, subsequently boosting search engine rankings. There are numerous benefits to shipping globally.
WHAT IS DROPSHIPPING?
Dropshipping is kind of a funny-sounding term. No, dropshipping does not refer to dropping a package en route… Suffice to say; not everyone quite fully understands what it is exactly. The actual dropshipping meaning refers specifically to the process of selling and sending a parcel online without the seller personally having to handle the merchandise.
Typically, someone with a dropshipping business will source products from a third-party provider. This provider could be anywhere in the world. China is very popular as a third-party provider with services like aliexpress dropshipping and Alibaba dropshipping. They allow sellers to purchase products at wholesale prices; then,they send the products directly to the customer or a 3pl warehouse where they can be packed and shipped (like PaakPod). In essence, the seller will work as an intermediary between the supplier and the customer. The third-party product provider is happy because they made money. The seller is happy because they made a sale, and the customer is satisfied because they received the product they ordered.
There are many dropshipping website resources, such as Shopify dropshipping and Woo Commerce, to assist with the entire dropshipping process. They help to facilitate this process by providing easy-to-use website templates, as well as plugins that integrate with third-party product providers. Sellers can easily advertise the products they want from abroad (or domestically) and then send them to their online customers.
SENDING PARCELS ABROAD: WHAT YOU NEED TO KNOW
When you start looking into sending parcels abroad, you will want to ensure you are prepared for everything involved, such as commodity codes, customs, and tariffs. Let’s discuss this in more detail.
CUSTOMS
Every different country you ship to will have customs clearance that needs specific forms. Customs forms are a way of declaring the contents of your shipment(s). Having all the details filled out correctly is crucial, or it could cause delays or even returns. You want to have all relevant information on your customs forms, such as: Name and address of the sender, the complete address and name of the customer, item descriptions, the number of items, and the weight and dimensions of items. You also need to investigate commodity codes for your products ahead of time. Product listing pages and alignment between displayed and provided information is also being considered by Customs Agents in recent times.
COMMODITY CODES
For international shipping, commodity codes are administered by different government organizations. They will be a sequence of numbers made up of six, eight, or ten digits – depending on the country. You need these codes whether importing or exporting goods to a country. They detail the type of products being moved and determine what tariffs will be assigned to it if any.
For example, if you’re shipping goods in and out of the UK, you will use the Trade Tariff Tool.
If you’re shipping goods in or out of the United States, you will use the World Customs Organization (WCO). They will assign an HS Code. This stands for harmonized commodity description coding system.
If you’re shipping goods in or out of the EU, you want to use the Access2Markets Database.
TARIFFS
So, you’ve got your product. You know your profit margins. You’ve calculated your shipping costs. You found your commodity codes and customs declarations. What’s the next critical cost to factor in? Tariffs.
Governments impose tariffs on goods and services imported from outside countries. The tax you pay will depend on the commodity code/the goods you send. A tariff is also known as an import duty.
Depending on what country you’re shipping to and what you’re sending will determine the amount of import duty. Each country is different. Countries have their own rules and rates. Sometimes there are free trade deals between countries, meaning no extra tax, so it would be beneficial to know these details.
Instead of worrying about extra tax, should your company be doing business only with another country with a free trade deal agreement? The United Kingdom, for example, has free trade deals with 36 countries currently. Countries such as: Canada, Turkey, Ukraine, Vietnam, Japan, Norway, Kenya, and Mexico. These free trade agreements are not affected by Brexit.
To see a list of global tariffs, see a list at the World Trade Organization (WTO) here.
EORI NUMBERS
For UK drop shippers who have a business in the United Kingdom and have items travelling from there to Europe, you need an EORI number. This number is a European Union registration and identification number for businesses that import or export goods in or out of the EU.
To get an EORI number, you need to submit a form to HMRC to get one. That can be done here.
INSURANCE
The next consideration is the potential risks associated with shipments. What if your goods are damaged or lost during transit? Or if they’re stolen? What if, for some reason, the product isn’t delivered and the customer requests a refund? In such cases, having insurance is invaluable.
Having insurance for goods traveling across continents is a wise move. While many large transportation providers (like cargo ships) typically offer insurance to cover the costs of goods in transit, it may still be prudent to have your own insurance, especially if the cargo ship policy isn’t comprehensive. Insurance also provides protection for refunds.
If you’re already running a successful e-commerce store, chances are you’ve encountered refunds due to lost or damaged goods. If not, it’s best to be prepared. Instead of bearing the losses directly from your profits every time, insuring all your packages is a prudent step.
You’ll need to explore various insurance providers in your country. Most plans won’t be labelled as “dropshipping insurance,” but rather as general liability and property insurance. Many businesses opt for these types of insurance for their domestic operations. However, your dropshipping business requires insurance plans such as Inland Marine Insurance and online retail insurance.
These types of insurance cover loss, theft, and damage of property during transit. This coverage is specifically tailored to the goods being shipped to your customers. Many of these plans also include transit liabilities, warehouse coverage, loss of income, and operational liability. Not all companies offer coverage for global operations, so thorough research is necessary.
BREXIT
International shipping has changed recently after the UK left the EU. For the full impact of how this has affected international selling around the UK, read here.
OFFSHORING, RESHORING, AND NEARSHORING
Outsourcing is a process that has been popular for a long time. It is the business strategy of contracting work to a third party. Outsourcing can be for labour as well as product development. It has many aims.
Most of the time, it is to cut business costs with cheaper labour and operations. Dropshippers like it because they can source products at low wholesale prices or just run a business without developing any products themselves. Many companies simply do it to focus on more crucial aspects of the business.
There are a few types of outsourcing, and you want to understand these different business processes for the best eCommerce dropshipping solution. One may benefit you more than the others. There are three types of outsourcing, such as Offshoring, reshoring, and nearshoring.
OFFSHORING
Offshoring refers to operations overseas. Countries like India and China are popular destinations for offshoring. Pros of this include cost benefits, access to low-cost labour, and a 24/7 warehouse model. The cons include longer supply lines, different time zones, and communication issues.
NEARSHORING
Nearshoring refers to operations being moved from far-afield locations closer to home. This is a popular option in Europe, such as the country of Turkey. Many EU companies benefit from the lower cost of labour there. Mexico also offers cheap labour for many United States companies. Pros include lower freight costs, shorter supply lines, time-zone advantages, and improved cultural alignment. Con would be that labour may be a bit higher.
RESHORING
Reshoring involves returning outsourced operations back within the same country. The rising cost of offshoring and many political/economic dynamics and timing concerns have gained lots of momentum. Pros include no culture gap and closer availability of products. Shorter supply lines make for more robust networks, less vulnerable to global crises like Covid-19. Cons include higher labour costs.
There are pros and cons to all these types of outsourcing. It’s important to understand your business and which one would benefit you and your customers most.
HOW TO GET STARTED WITH DROPSHIPPING AND INTERNATIONAL SHIPPING FOR ORDER FULFILMENT TO CUSTOMERS
As previously mentioned, both Shopify and WooCommerce are partners of PaakPod. They are among the largest and most reputable dropshipping suppliers for e-commerce websites. Our customers can seamlessly integrate their shops with the PaakPod platform, our warehouses, and our courier network through technological collaborations with these companies. Guidance on how to integrate with Shopify can be found here, and for WooCommerce integration, you can find it here.
Once integrated, business owners can input all product information online, including details required for customs declarations and product descriptions. When they ship their products to a PaakPod warehouse, everything is automatically scanned and stored.
Setting up a standard e-commerce store to integrate with PaakPod and sending products to the warehouse for storage and shipping can be accomplished within just a few days to a week. It provides a complete end-to-end solution that is innovative and easily manageable.
Additionally, a dedicated customer support team is available to address all inquiries regarding storage, fulfilment, custom packaging, and support for managing orders through the online portal.
7. UNDERSTANDING OUR COURIER NETWORK
UPS is one of the most popular and trusted brands globally and takes care of domestic and international freight. UPS international shipping offers global tracking. Sending parcels abroad is easy with UPS.
HERMES
Hermes international delivery also offers domestic and global tracking with next-day delivery.
WHISTL
Whistl is our United Kingdom partner who deals solely with fast domestic delivery.
YODEL
Yodel delivery offers UK tracking as well as global tracking and next-day delivery.
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