International Shipping Services and Rates for Ecommerce (2024)

Expanding your business beyond your borders can be a great way to grow your ecommerce business—but international shipping can become a headache.

To make international ecommerce deliveries work for your store, you’ll need a shipping strategy. No, you don’t have to know everything about shipping and fulfillment, but you must consider the options and find an approach that will fulfill your global shipping needs in the long run.

There are many reasons you might not be shipping internationally right now. Maybe you’re considering it for the first time. Perhaps you looked into shipping overseas and decided it’s too much of a hassle. You may have even tried international shipping services and given up after one or two bad experiences.

Here’s what you need to know to make ecommerce shipping decisions and expand your business on your terms.

What is international shipping?

International shipping is the transport of goods across foreign borders. It connects global economies and allows companies to sell to new customers outside of the country where their businesses operate. 

International shipping is more expensive than domestic shipping, as the package has a longer distance to travel and includes multiple modes of transport spanning air, land, and sea. 

Additionally, international shipping requires import taxes and duties owed to the destination country. Regarding documentation, international shipments require customs forms, while domestic shipments do not. 

Why offer international shipping?

Selling beyond your borders can be a significant growth area for your business, even if you ship only some products internationally, so it’s worth tackling the logistics head-on. Consider these figures:

• According to Oberlo, 2.71 billion people shop online.
• Statista reports that retail ecommerce sales will grow from $5.7 trillion in 2023 to $8.03 trillion by 2027.
• Statista has the average order value of an international sale at $121—$9 more than the average domestic sale.

Online shoppers around the globe have come to expect international shipping, and ecommerce businesses are increasingly meeting that expectation. Shipping internationally allows stores like yours to sell to a larger audience.

The Shopify guide to shipping and fulfillment

Boost customer satisfaction while driving sales growth for your ecommerce business with an effective shipping and fulfillment strategy. Use this guide to create a plan that covers all aspects of shipping and fulfillment, from how much to charge your customers to choosing the best fulfillment method.

How to build an international shipping strategy

While it’s challenging to create a definitive list of best practices for every business, there are a few decisions you’ll need to consider for your ecommerce international shipping strategy.

Determine where and what you’ll ship

You’ll first need to identify which countries and regions you’ll ship to and which products you’ll ship.

Need help determining which markets you should expand to first? Here are a few considerations:

• Start small and close. By keeping the final destination of your shipments close to home—say, Mexico for a San Diego–based merchant—you can set realistic recipient expectations regarding delivery times and international shipping rates at a lower risk and cost.
• Track current demand. Check out your store’s traffic analytics and see which markets or countries visit your online store—those are your ideal countries to start. You can also gauge interest by direct consumer requests to sell to their market. Repeat visits or high traffic could show interest in your products or offerings.
• Consider the languages of any market for expansion. Communication is essential when dealing with customers. If you’re fluent in a few languages, consider expanding into the countries that speak those languages first. If you speak only one language, find other countries or markets where that language is prominent.
• Ensure there is product-market fit for your target country. Are there markets around the world that suit your business better than others? Some research may be required here. Checking into ecommerce penetration could be a good first step (explore that data here). Dig into the consumer trends and tastes of those markets. For example, an item that’s a celebratory gift in the US may mean something different in South Korea.

You can offer your entire product line. However, before you start delivering worldwide, consider these aspects of your products and business:

• Building on the points above, are there items that would appeal to the international market(s) you’re looking to ship to?
• Lightweight and smaller items will be easier to package and more cost-effective to ship.
• The more durable the packaging, the better. Shipping fragile products that can be damaged in transit if not packaged properly may increase the chances of a less-than-satisfactory delivery. If you decide to ship them, invest in sturdy product packaging.

Get familiar with country rules and regulations

Once you know which regions offer the most immediate opportunities and which products you’ll be sending, it’s time to check into country-based rules and regulations. Some countries prohibit items outright; others may limit them. Understanding the laws and regulations that exist and which may impact your shipments can help ensure a smooth delivery.

There are a few ways you can access this shipment information:

• UPS has a tool that shows country-specific rules and regulations by origin and destination countries.
• Check and see if your customers can import your products into a given destination country. For example, a shipment of artwork from the US to Saudi Arabia is prohibited.
• Check if any of your products or components are listed as “dangerous goods” while being shipped. In general, a dangerous good is defined as a product that may cause harm during transit. The best place for this information would be a country’s government website. Canada and the UK provide great examples.
• When in doubt, contact the local import, customs office, or a customs broker at your prospective destination for specific information about shipping your products.

Be transparent about fees

Be as transparent and communicative as possible with your customers about delivery costs. Avoid surprising your customers with an unexpected total price at checkout.

According to the Baymard Institute, nearly 50% of the cart abandonment they surveyed on ecommerce sites in 2024 was due, in part, to extra shipping fees and costs.

Customer trust develops during the purchasing journey of shoppers who buy from a new online store. When shipping internationally, a shipping policy that clearly states who pays duties and taxes is a must-have to build trust and win a sale with a new shopper.

One place you can communicate these costs is on your policy pages. Clearly outline how and where you ship products internationally, and what shipping may cost.

You can also add flags to your top navigation to show your shipping availability. Informing customers where you deliver doesn’t have to be only about costs. A tool like the Free Shipping & Hello Bar can help you promote your shipping and rates to a global audience.

It’s best to use all available options to communicate shipping costs—or potential costs—to a customer, whether it’s on your home page, product page, or policy page. This will set expectations for you both, which can help give the customer added confidence in completing their purchase.

What to charge for international shipping

There are four critical components for determining the costs of international delivery:

1. Packaging
2. Cost of shipping
3. Handling charges
4. Duties and taxes

All four contribute to how effectively you’ll ship around the world.

1. Packaging

Before you ship anything, you’ll need to get packaging supplies. You may need a few box sizes to accommodate different-sized shipments, as well as cushioning, like bubble wrap or stuffing. You can get your packaging both online and at post offices or office supply stores.

In general, it’s best to keep your packaging sturdy but straightforward. No recipient wants to deal with three boxes of varying sizes when getting a single product from your business.

Finding a balance between sturdy packaging and low cost may require research. Look for deals where you can. For example, if you use USPS as a business, you can order boxes for free.

Working the cost of packaging into your total product cost should be simple. Depending on the size and quality, most packaging costs around $1 to $5 each.

2. Cost of shipping

Build the cost of shipping into your pricing approach so you can correctly set your prices. You don’t want to lose money on shipping or overcharge your customers. To make sure your strategy works, think through these steps:

Consider and compare

Do you ship a lot of similarly sized products? Or a few sizes or weights of packages? This difference, naturally, affects how you price a shipment.

Here’s how to find the costs of shipping internationally:

1. Using a rate calculator for the carriers you’ll use, take your average domestic order and price it out as if you were shipping internationally.
2. Use the rate calculator for your smallest domestic sale.
3. Run the costs for your largest domestic sale.

With these three figures in place, you’ll have a sense of pricing for ecommerce international shipping. It’ll also help you determine which shipments may cost more than others.

If you’re in the US, you can use this shipping calculator to see how much it will cost to ship internationally with Shopify. For reference, here’s a list of shipping calculators for some major carriers.

Here are two examples of this approach:

Merchant A

• Smallest domestic sale costs $5.33 to ship internationally
• Average domestic sale costs $15.47 to ship internationally
• Largest domestic sale costs $124.55 to ship internationally

Merchant B

• Smallest domestic sale costs $1.33 to ship internationally
• Average domestic sale costs $2.75 to ship internationally
• Largest domestic sale costs $3.25 to ship internationally

Merchant A has a broader range of shipping costs to cover, and Merchant B’s range is relatively narrow. Merchant A may be selling heavier and more varied products, while Merchant B’s offerings seem more consistent in size and cost.

Once you’ve determined your range, you’ll need a pricing structure that’s a good fit for you and your customers.

Structure your pricing

When delivering around the world, there are three main pricing structures:

1. Free shipping:Free shipping is an excellent option for customers. If your profit margins allow you to ship international orders for free, consider offering it. If you’re unsure, check out this post on calculating order thresholds for free shipping.
2. Carrier-rate shipping: Shopify integrates with a few carriers (like USPS, DHL Express, and UPS in the US, Canada Post in Canada, and Sendle in Australia) and gives customers shipping options and real-time pricing. Carrier-calculated shipping can be user-friendly, since customers can choose while the software does the math for them. Plus, your customer will be charged the same rate it will cost you to ship their order with Shopify Shipping.
3. Flat rate shipping: If your international shipping is consistent in both the size and weight of your packaging and the shipping cost, like Merchant B above, consider flat- or manual-rate shipping.

3. Handling charges

International shipments pass through many more additional facilities than the typical domestic order. You should be packaging these shipments with more care, and that’s included in your handling. To determine your handling charges, ask yourself:

• What’s your minimum hourly wage when preparing and packing shipments?
• How long does it take you, on average, to prepare an order for shipment (from reviewing the order to sending packages out)?

Now, you can determine your handling costs. Here’s an example:

It usually takes 10 minutes to prepare an order for shipment. At $11 per hour to prepare these packages, you would add a $1.83 handling charge to cover that cost.

(10 minutes / 60 minutes) x $11 = $1.83 handling cost

Again, adding in a handling cost is entirely up to you, and you need to do what’s best for your business. International orders are typically more expensive, and international customers expect to pay more for shipping.

4. Duties and taxes

International shipments can be subject to duties and taxes. It’s essential to research and factor any duties and taxes into your pricing strategy, especially for any target international market you want to ship to. You can use a duty calculator to understand what duties and taxes may apply to your products per destination country.

Taxes are based on a fixed percentage per destination country (sometimes state or province). Duties, on the other hand, depend on several factors, such as: 

• The commercial value of the items you’re shipping
• The country of origin or where items were manufactured
• The type of the items you’re shipping and materials used to make them

The customs paperwork required for an international shipment can vary by country. However, two documents are typically required: a commercial invoice and an export packing list.

1. Commercial invoice

The commercial invoice is the bill for the shipped product from the seller to the buyer that helps prove ownership and payment. Used to determine the actual value of the product(s) you’re shipping, this document helps the country assess customs duties and taxes. Here’s some essential information you’ll need to include:

• The merchant and customer’s names and addresses
• The price, descriptions, and quantity of the products included
• How you made the sale and the terms of the payment 
• Shipping method

Depending on your shipping company, you might need to embed customs information in the shipping label. DHL Express provides Paperless Trade to most countries, reducing the need for extra printed documents.

1. Export packing list

The typical detail on a packing list is on this form (buyer, seller/shipper, invoice number, date of shipment, etc.), but it also includes more extensive information like:

• The mode of transport
• Carrier info
• Weight and dimensions of the package (usually in metric measurements)
• The type and quantity of packages
• Package marks

Ship internationally with Shopify

Shopify Shipping and Shopify Fulfillment Network provide all the resources you need to ship internationally. Depending on your eligibility, you can use Shopify Shipping to ship internationally. If your business is in the US or Canada, you might be able to use Shopify Fulfillment Network.

Shopify offers discounted rates to merchants in the United States, Canada, and Australia—up to 88% in savings with international shipping companies like USPS, UPS, DHL Express, Canada Post, and Sendle—so you’re already set up to compare their rates.

When you purchase international shipping labels through Shopify Shipping, the platform automatically generates the correct documentation and customs forms that you can print on any standard printer. When you use DHL Express to ship from the US, DHL electronically transmits this documentation to customs—no additional paperwork is necessary.

When you’re ready to get your shipments out the door, you also have the option to schedule a free or discounted pickup for any UPS, DHL Express, or Sendle shipment or link out to schedule one directly with USPS.

See your Shopify Shipping rates

Costs

Using more than one shipping company can help you reduce your shipping costs. Postal carriers are more affordable, but may not offer many options for package types and speeds. Express carriers tend to be faster, can accommodate heavier or larger packages, and provide more service options, but they can be more expensive. Regional courier services can solve any last-mile problems for your international package, but they can be tricky to source and communicate with.

Do your research and price out postal, express, and courier options. Having a sense of service availability for your international shipping strategy is sound.

Delivery options

Some customers will want their purchases right away, while others will be more willing to wait. Providing a range of choices gives them the option to balance the tradeoff between timeline and price, which might be the difference between a sale and an abandoned cart.

Tracking and insurance

Most international shipping companies provide tracking so you and your customers can easily see up-to-date shipment statuses. You can also add ePacket tracking to give customers end-to-end tracking options and a searchable tracking number.

If you’re worried about a shipment becoming lost or damaged, insuring your parcel against failed delivery is the way to go. Just about every global express shipper offers insurance, which is often affordable and easy to add. If you’re a US-based merchant, you can add Shipsurance insurance to any shipment, regardless of shipping method or order destination.

When using postal carriers like USPS or Canada Post, some international shipping services include insurance in the shipping price. To get automatic coverage, you can use mail classes like Priority Mail International and Priority Mail Express International with USPS or Priority Worldwide, Xpresspost-USA, or Xpresspost-International with Canada Post. You can always pay for coverage using a different shipping service—usually a few dollars per $100 in declared value.

Whatever you choose, consider adding insurance to any parcel over $200 shipped to another country. Doing so will give you and your customer peace of mind.

Handling international return shipping

Outgoing shipments are just one part of the international shipping puzzle. Studies estimate that customers will eventually return 20% to 30% of all online purchases. 

You’ll need a return shipping strategy for overseas customers to return their goods. You may need to:

• Set up local return centers. The simplest way to manage international returns is to partner with global services that cover your most popular regions, such as those in the Shopify Fulfillment Network. If a British customer can send their parcel back to a UK-based return center, it will not only be cheaper to ship, but shipping becomes more sustainable since the item travels less distance.
• Offer flexible return options. If you have physical stores overseas, allow international shoppers to return online-bought items in their closest store. Again, the product won’t have to fly on a plane or be transported back to your international headquarters via cargo.
• Provide clear instructions. It’s costly to get the returns experience wrong; 86% of people will abandon their favorite retailer after just two negative experiences. Clarify your international return policy, like what qualifies for a return, the condition of the item, and how they’ll receive the refund (exchange-only or store credit). This will make it easier for international customers to return their goods and prevent packages from going back and forth.

Understanding the customs clearance process for global shipping

All overseas packages must pass through customs when they arrive in a new country. Government and customs authorities do this to prevent banned items from entering the country and to earn money through duties or taxes. 

By default, the importer (i.e., your customer) is responsible for any taxes or duties on the shipment and will need to pay them before they can receive their order. This is called Delivered Duty Unpaid (DDU) or Delivered At Place (DAP). It’s essential to be transparent with the buyer about additional fees to manage their expectation and avoid returns and chargebacks. Make sure to set up a clear return policy on your website.

You can also choose to be responsible for payment to provide a smoother and surprise-free buying experience to your customers. This is called Delivered Duty Paid (DDP). In this case, you need to collect these fees upfront. 

Logistics-wise, you’ll buy the appropriate shipping label, DDU/DAP or DDP, and include customs documentation with your international shipment. Use your domestic postal service as a local resource to ensure you know which documents you need to ship internationally. They’ll typically have these documents for you.

To clear customs quickly, you’ll need the following documentation:

• Declaration of contents. A list of items included in your shipment. List the items in the customer’s order, the quantities, and the commercial value of each product.
• Harmonized System (HS) codes. HS codes help government agencies classify goods and determine duties and taxes. They’re also known as tariff codes.
• Labeling and marketing compliance. Different countries have different rules and restrictions for product labeling. For example, the US Customs and Border Protection (CBP) requires that all imported goods have the product’s country of origin printed, labeled, or tagged on the product. 

When you buy your shipping labels through Shopify Shipping, you’ll receive the necessary customs documentation to fulfill international shipments.

Sometimes, it makes sense to partner with customs brokers, particularly if you’re exporting a high volume of goods overseas. These people are on the ground in your export areas and can help you navigate customs requirements to remain compliant.

Send your first international shipment with Shopify

The first step to ensuring ecommerce international shipping success is to have a strategy in place. From what and how you’ll ship to where and at what cost, giving these factors some thought and research will better prepare you to grow your business worldwide.

Remember to try out new approaches and techniques. Shipping is a fluid and seasonal industry. Be sure to reapply and refine your strategy as new offers or changes occur.

If you’d prefer to outsource the international shipping process entirely, Shopify Fulfillment Network is here to help. The app connects your Shopify store to our trusted logistics partner, Flexport. They handle packing and delivery, sending orders faster and more reliably.