Shipping across borders sounds exciting—until you realize it’s a logistical obstacle course filled with customs forms, unexpected fees, and packages that mysteriously disappear into the void. For e-commerce businesses, cross-border shipping is the key to global expansion, but without the right strategy, it can feel like playing a never-ending game of ‘Where in the world is my package?.’
From confusing regulations to last-minute customs surprises, international shipping is anything but simple. But don’t worry—we’re here to help you decode the complexities.
In this article, we’ll break down the most common cross-border shipping challenges and discuss how to tackle them with best practices that keep costs low, deliveries fast, and customers happy. Because at the end of the day, your buyers don’t care about customs delays; they just want their package yesterday. Let’s get started!
Key Considerations for Cross-Border Shipping
If you have been shipping domestically for a while, you might be tempted to think, ‘I’ve been doing this within the country for so long, I can do the same internationally, how hard could it be?’ Well, pretty hard. You see, cross-border shipping is a whole other ballgame. Don’t you think so? Check out these key considerations for cross-border shipping:
Custom Clearance Requirements and Regulations
Customs regulations, trade regulations, and border laws are some of the foremost considerations when it comes to cross-border shipping. In case your package or its documentation does not adhere to the specific countries’ customs laws, it can lead to penalties, delays, and even package seizures, resulting in compromised customer experience and high shipping costs.
Shipping Carriers
Partnering with the right logistics company is critical to smooth shipping processes. Shipping carriers that are experienced with international shipping don’t just have an extensive global transportation network (that can manage disruptions with ease), but they also bring experience and deep knowledge of customs regulations and processes to the table, facilitating smooth, hassle-free cross-border shipping.
Shipment Packaging
Just like in domestic shipping, international shipping also requires packages to be properly packed and labelled for easy identification. However, the weight and dimensions of the package play a slightly bigger role.
You see, these aspects of your package influence its shipping cost (which is already higher than domestic shipping costs). And so, the bulkier the package, the higher the shipping costs. As a result, e-commerce businesses have to pay special attention to ensuring the package is as light and small as possible (while ensuring its security) to optimize shipping costs.
Delivery Time
International shipping takes time—there is no two-way about it. After all, you’re shipping cross-border, which means subjecting your e-commerce packages to strict checks and inspections, which take time.
Therefore, the delivery time for your e-commerce orders may be slightly longer for international customers.
Returns and Refunds
Fluctuating currency rates, dynamic customs regulations, differing customer protection laws, evolving trade regulations, and other geopolitical factors can make facilitating returns and issuing refunds challenging for e-commerce businesses.
Common Challenges in Cross-Border Shipping
Cross-border shipping comes with its fair share of plot twists. From navigating the labyrinth of customs to ensuring your packages don’t take an unplanned world tour, and that promised returns make it back with refunds, reaching international customers easily.
Here’s a look at some of the common challenges you need to be aware of when shipping internationally:
1. Customs Clearance and Compliance
The first cross-border shipping challenge is the most obvious one—customs and regulations regarding imports and exports. Every country has its unique custom regulations, compliance standards, and documentation list that need to be adhered to for the safe passage of packages.
In other words, they can vary significantly, addressing all aspects of shipping, from product valuation and classification to country of origin rules and restricted trade items. If you don’t comply with these, you risk disrupting your delivery schedule.
2. Securing Reliable Transportation Partners
Finding the right logistics partner that meets your reliability standards, transportation capacity needs, and shipping budget can sometimes feel like looking for a needle in a haystack. Don’t get us wrong—there are plenty of names in the business, from FedEx and DHL to UPS and Purolator, but zeroing in on that one stellar partner that meets all your needs can be challenging.
3. Communication Issues
Language barriers can make communication at borders difficult. After all, cross-border shipping involves coordinating with all stakeholders, such as customs authorities, logistics partners, business partners, etc. Adding the complication of different languages to an already tedious task makes it even more difficult. Compromised communication can lead to documentation errors, misunderstandings, delivery delays, etc.
4. Currency Fluctuations
Fluctuations in exchange rates can also affect your shipping costs. You see, such volatility can make pricing your offerings difficult for international customers. In case the valuation changes unfavorably, you could end up shipping an order with no profit margin.
5. Facilitating Returns and Refunds
Returns and refunds are already complicated enough when shipping domestically. So, cross-border shipping returns and processing refunds?—No walk in the park, to say the least. Not just due to fluctuating currency rates and complicated shipping procedures, but also due to differing customer protection laws and shipping costs. These added complications affect your customer experience and can lead to tall shipping bills.
Best Practices to Overcome Cross-Border Shipping Challenges
Now that we’ve covered the common pitfalls of cross-border shipping, let’s talk about solutions. The good news? Navigating international logistics doesn’t have to feel like assembling furniture without instructions.
With the right approach—think smart customs management, rock-solid logistics partners, and a sprinkle of proactive planning—you can turn shipping chaos into smooth sailing. Here’s how to stay ahead of the curve and keep your global customers happy:
1. Streamline Customs Clearance and Compliance with International Shipping Restrictions
Custom regulations are in place to ensure goods enter and exit countries legally. Understanding these regulations and ensuring adherence in every country you ship to is the linchpin to smooth cross-border logistics. How? You see, non-compliance doesn’t just mean a compromised customer experience for your international customer, thanks to delays or hold-ups. It can also mean fines, seizure of goods, and future shipping issues due to a rap sheet.
So, how do you avoid this and ensure a smooth customs clearance? Here are some ways:
- Facilitate Complete and Accurate Documentation: All documentation, including package lists, commercial invoices, and certificates of origin, must be prepared and furnished in accordance with the regulations established by the relevant customs authorities.
- Ensure Compliance with Trade Regulations: When shipping cross-border, e-commerce businesses must ensure they adhere to trade regulations, especially those regarding prohibited goods, to prevent goods seizure and delays.
- Ensure Correct Valuation and Classification of Goods Getting Shipped: Misrepresenting the valuation of your packages or classifying them into the wrong category can attract penalties and delays.
E-commerce businesses must keep the above-mentioned best practices in mind to overcome cross-border shipping challenges regarding customs clearance.
2. Leverage Reliable Logistics Partners
The next best practice for overcoming cross-border shipping challenges and facilitating a smooth delivery journey for your e-commerce packages is to partner with a reliable logistics company that brings experience in international shipping to the table.
You see, today, cross-border shipping is a dynamic space that is sensitive to the ever-changing government policies, trade regulations, and tariffs. E-commerce businesses cannot stay updated with these alone. This means they need to partner with logistics firms that have the expertise and resources to have an updated and deep understanding of the nuances of cross-border shipping, in addition to an extensive transportation network that covers multiple regions on the global map.
If your logistics partner has a robust transportation network, they’re well-positioned to offer you a wide variety of transportation routes and modes, in the process empowering you to optimize your supply chains depending on your unique shipping needs (budget restrictions, time sensitivity, goods that might need special handling).
3. Prioritize Certified Logistics Partners
Building on the previous point, your logistics partner must also hold the required certifications. While these aren’t pivotal to cross-border shipping, they can be the difference between hassle-free international shipping and packages that are delayed due to inspections, processing, etc. Let’s take the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Free and Secure Trade (FAST) certifications as examples.
If you’re shipping e-commerce orders across the US-Mexico border, these certifications offer you considerable benefits:
C-TPAT
A voluntary security program by the US Customs and Border Protection (CBP), this certification is meant to support international supply chains and enhance the US border’s security. The benefits it brings include:
- Priority processing during CBP inspections
- Reduced instances of CBP inspections
- Accessibility to C-TPAT training seminars to improve insight into cross-border shipping regulations
- Accessibility to the C-TPAT Status Verification Interface, through which members can communicate their status to other members.
In short, C-TPAT can facilitate quicker clearances, minimizing delays and facilitating a smooth cross-border shipping experience.
FAST
This is a bilateral initiative between Canada, Mexico, and the US that facilitates legitimate cross-border trade securely and quickly. Its benefits include:
- Reduced instances of checks
- Simplified procedures for customers
- Allocated lanes for quicker border crossing.
It’s important to note that for FAST, importers and carriers must be C-TPAT certified, and drivers are subjected to background checks to gain FAST approval.
4. Stay a Step Ahead and Plan for Contingencies
Unfortunately, as much as you try, there will always be something you don’t see coming when it comes to cross-border shipping. These can range from delays due to weather and customs clearance to capacity restrictions and sudden regulatory updates.
So, do you just deal with it when it happens? Well, then, you need to be prepared to compromise your customer experience. No, instead, what you do is build a contingency plan. This helps you ensure the impact of disruptions doesn’t make your shipping schedule spiral out of control. Here are some strategies to guide you:
- Explore Different Carriers and Transportation Modes: Don’t limit yourself to transportation modes and carriers. Diversify your operations and leverage road, air, and water to transport your goods. Further, ensure you have the flexibility to shift a portion of your shipping packages to another shipping carrier in case of disruptions with your primary one.
- Create a Plan B: Having a Plan B is not pessimistic; it’s smart. Create one that harnesses alternate ports/borders, routes, and shipping capacity so that in case of delays, you have a plan ready to hit the floor.
- Maintain a Buffer Stock: Create an additional stock of inventory for offerings in high demand at distribution points close to customers. This will help you reduce the impact of disruptions until the process is streamlined once again.
- Keep Documents Prepared: Stay updated with regulations and ensure your documentation is always aligned with the current cross-border legal landscape.
- Keep Your Logistics Partners in the Know: Collaborate with logistics partners and stay on the same page about forecasts, contingency needs, possible risks, etc., with them.
5. Stay Updated with Cross-Border Market Dynamics
As we’ve mentioned earlier, cross-border shipping is not a stagnant space. On the contrary, it’s one that is constantly subject to change due to evolving trade agreements, tariffs, border regulations, geopolitical tensions, and the like. Further, GDP growth, consumer confidence, inflation rates, and other economic indicators also influence cross-border e-commerce demand and supply.
The only way to stay ahead is to stay in the know. Ensuring you’re informed about market dynamics is critical to creating adaptable shipping strategies that can withstand even the most severe market disruptions.
6. Promise Delivery with a Buffer Time
International couriers take time. They need to be flown in and then be subject to stringent checks before being sent to the destination. So, when you promise a delivery deadline to the customer, you need to factor in all such roadblocks. Do not make the mistake of promising delivery very soon. The customer will not be happy if you promise delivery within 10 days and they get it after 20 days.
7. If You Can’t Facilitate Returns, Don’t Offer Them
International shipping is tough. Returns are tougher. Unless you have a liaison center in the destination country, it can become a problem. So, mention to the customer in bold before he places the order that returns are not possible if you can’t handle them.
Conclusion
Cross-border shipping may have its fair share of hurdles—unexpected fees, customs mazes, and the occasional lost package—but with the right strategies, it doesn’t have to be a logistical nightmare. By staying informed about regulations, optimizing carrier choices, and keeping customers in the loop, e-commerce businesses can turn international shipping from a headache into a competitive advantage.
But let’s be real—no matter how well you plan, shipping hiccups are inevitable. That’s where LateShipment.com’s Delivery Experience Management solution comes in. It helps you monitor shipments in real time, proactively resolve delays, and keep customers informed every step of the way. Because nothing builds customer trust like a brand that knows where their package is—before they even have to ask.
Ready to deliver exceptional delivery experiences? Let LateShipment.com help you turn shipping challenges into customer satisfaction wins!
