Complete Guide to International E-commerce Shipping: Regulations, Taxes, and More

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If you have an e-commerce store and are thinking of expanding your store internationally but don't know where to start, this article will provide everything you need to know. In this guide to international shipping, we will answer questions about international regulations and taxes, show you how to choose a company to ship internationally from an e-commerce site and give you some tips so you can start expanding your borders.


The importance of international shipping for the growth of e-commerce

Shipping internationally is a key factor when expanding a business. Shipping orders abroad and offering international parcel delivery in an online store will open new doors beyond national borders, expanding the customer base and offering a service that competitors may not have.

From a consumer's point of view, the biggest advantage of buying from an e-commerce site is that you don't have to travel to purchase a product or service and can return it if you are not satisfied.

If border constraints are removed from this, a business can gain much more ground, making its way into new markets and thus diversifying and increasing revenue streams.


Meeting global customer expectations

As we said before, the perception of a consumer who makes online purchases is that there are no borders, if you can send to one country, why not to another?

Customer expectations for cross-border e-commerce shipments are high, they expect fast, safe, economical, and reliable shipping that includes an international shipment tracking number. Quality international shipping will not only ensure that the order arrives in good condition and on time but will also contribute to a better overall customer experience and brand perception.

Overcoming challenges in international logistics

It's true that offering international shipping involves overcoming challenges such as understanding different export laws, customs regulations, or taxes. Once these aspects are controlled and handled correctly, overseas shipments and business expansion will be much smoother.

To control these aspects and others, it is very important to choose a logistics solution specialised in international shipments, which understands the operation of the different laws and regulations and offers the necessary resources and services to make shipments as efficient as possible.

Key regulations for international parcel shipping

Customs colorful blocks Customs declarations

When an online business decides to venture out and ship internationally, there are several extra steps to consider, such as additional documentation for products to clear customs, extra costs, and taxes such as customs duties, and the different export regulations of each country. These rules, regulations, and laws vary depending on the destination country, so it's important to be aware of them and comply with them to avoid delays, penalties, or other issues during shipping.

Some of the most prominent regulations to consider when offering shipments outside national borders are import and export laws, customs regulations, and international trade agreements.

Understand import and export laws and customs regulations

As for import and export laws, each country has a regulation on which products can be imported or exported. That is why the company must make sure that the products it offers are legal in the destination country or if they require some kind of extra certificate, permit or labelling. As for customs regulations, the merchandise and the payments of VAT and customs duties must be well declared to avoid any type of penalty during transit.

These regulations must be complied with and are calculated and closed from the outset. Being clear and transparent about all payments from the e-commerce cart will avoid unpleasant surprises for customers such as paperwork or extra charges when receiving their package. You will need to make it clear who covers the customs charges if you (DDP) or the customer (DAP).

International trade agreements

Trade agreements between countries, such as Free Trade Agreements (FTAs), are agreements agreed between two countries on shipments made between them. These agreements usually offer some kind of advantage or discount on tariffs on certain products. Knowing these agreements and applying the correct tariff codes will allow a business to benefit from these reductions.

For example, there is a trade agreement between countries of the European Union, as well as the United States-Mexico-Canada agreement (USMCA). and countries of the Eurasian Customs Union have their own trade agreements.

How to avoid common regulatory mistakes and customs delays

Mistakes when working with international parcel shipments are common, some tips to avoid them are:

  • Verify that the products comply with the standards of the country of destination, both sanitary and quality or safety. Some of the most regulated products are food, medicines, toys, textiles, glasses or electronics.

  • Familiarise yourself with the rules of each destination country, as not all of them have the same regulations. This will prevent any confusion or mishaps.

  • Use the tariff codes well, the HS Code system is international and many times using it incorrectly is the cause of problems or delays.

  • Work with expert and quality logistics providers, who offer support and services beyond shipping, advising and taking care of procedures related to international regulations.


Managing taxes and duties in the global e-commerce market

As we mentioned earlier, managing taxes and duties is one of the great challenges when exporting and shipping products abroad. Each country has its own tax laws and import policies that affect the taxes paid on each commodity. Keeping this in mind and handling them correctly will not only help with regulatory compliance, but also when setting the final price of the product.

Calculate and handle import taxes and duties

Tariffs are a tax that is applied on a product imported from another country, this tax varies depending on the country, the type of product or its value. In addition, some countries add extra taxes such as VAT in Spain or sales taxes. Learn more about VAT and other customs taxes.

To calculate these taxes well, factors such as the type of product and its HS code, the value declared in customs documents and knowing if the country of origin has any type of trade agreement with the destination country must be considered.

Preparing customs documentation can be a headache, some documents and aspects that you will have to consider are:

  • The payment receipt.

  • The description of the product and its country of manufacture.

  • Any extra certificates or permits required by the product in the destination country.

  • The HS code.

  • Consider if there is any trade agreement and what are the exact duties and taxes to be paid.

To streamline this process, many companies choose to use some type of software or online service to streamline the entire process.


Leverage software and other services for a smoother operation

Some international shipping companies for e-commerce specialising in international logistics management and shipping packages abroad offer additional customs services, known as third-party logistics providers.

These shipping companies offer a complete advisory and support service, and some of them, such as Spring GDS, have specialised software, a logistics API that can be integrated into e-commerce platforms to automate the entire process, from the calculation of taxes to the generation of shipping labels, thus facilitating all the procedures.

How to choose an international shipping company

Choosing the right international logistics company is essential to offer a quality and efficient service. An international shipping agency that meets all the requirements and needs that the company needs to cover and fits its expectations and business vision.


International courier services evaluation

When choosing an international courier service company, some factors must be taken into account before making a decision and assessing which is the most convenient for the business.

Factors to consider are:

  • The cost: you must consider the cost of making these shipments, consult volume discounts and compare the services included in each price. The supplier's cost may affect the final price of the product for the buyer.

  • Speed: the expectation of buyers when buying online is to receive their order as soon as possible. It is important to consider shipping times and delivery speed. Too long a times can negatively affect the business.

  • Geographical coverage: especially if in the future it is planned to expand commercial activity to new territories. This should be considered so that you do not have to look for alternatives when expanding the business to new international markets.

  • Additional services: the most convenient and reliable way is to hire an international logistics company to take care of the entire process. From tax calculation to customs duty management to simplify cross-border procedures.

  • Sustainability: commitment to the environment is becoming increasingly important for both buyers who purchase a product and the companies that ship it. Choosing a logistics company that is committed to sustainability and that takes measures to reduce its emissions and carbon footprint is not only a way of collaborating in this climate fight but also shows principles as a company that are increasingly valued by customers when choosing a product.


Tips for optimising international shipping operations

Optimising international shipping operations will help reduce operational costs, waiting times, and ensure overall efficiency of the entire process.

Some steps that can be taken to improve these operations include:

  • Partner with third-party logistics providers: these companies can manage almost all of the entire process, from warehousing and order picking to shipping and returns management so the seller doesn't have to worry about anything.

  • Choosing the right packaging for international shipments: the ideal packaging for international shipments should be a balance between good product protection that withstands several days of transit and packaging that optimises the size and weight of the package to reduce costs.

  • Use shipping software to improve tracking and management: use software, usually offered by the international shipping company, to manage all shipments and tracking. In addition to being able to integrate into various e-commerce platforms and automate other tasks such as printing labels or invoices.

  • Offer an efficient returns service: a good returns system will simplify the reverse logistics process by offering buyers a simple solution and the company several options to manage them, from creating a dedicated portal or printing return labels.

Expanding e-commerce internationally is easier than it seems and one of the keys to success is having the right international shipping and logistics company.

At Spring GDS, we understand the importance of optimising shipping processes and customs procedures, making the entire process more efficient for both the seller and the buyer, improving the customer experience and the growth of the business internationally.