How to Ship Internationally Without Losing Money
Expanding your business to international customers is exciting—but it also introduces a new layer of complexity when it comes to shipping. Between customs declarations, variable shipping rates, and potential delays, it’s easy to underestimate the true cost of delivering products abroad. If you want to avoid costly mistakes and maintain healthy margins, it’s critical to understand the best practices for international shipping.
Here’s how to ship internationally without losing money—while keeping customers satisfied around the globe.
Understand customs forms and duties
Every international shipment requires a customs declaration form, which communicates to the destination country what’s inside the package, its value, and whether any duties or taxes are owed. Most shipping software, including ShipStation, Pirate Ship, and Easyship, automatically generate the correct forms based on destination, product category, and shipping method.
Be honest and precise—incorrect forms can lead to delays, fines, or returned packages. Also, determine who is responsible for duties and taxes: you (the seller) or your customer. This is typically communicated through shipping terms like DDU (Delivered Duty Unpaid) or DDP (Delivered Duty Paid).
Use platforms with international rate discounts
Many shipping platforms offer pre-negotiated international rates that are far lower than what you’d get walking into a post office. For example, Pirate Ship offers Simple Export Rate, which is ideal for lightweight packages under 4 pounds shipping from the U.S. to over 50 countries. Carriers like USPS, UPS, DHL Express, and FedEx also offer specialized international services with different transit times and reliability levels.
Choose the right carrier for your needs
- USPS: Affordable and good for small packages, but slower and harder to track.
- UPS: Reliable delivery and better tracking, but can be costly.
- DHL Express: Excellent for speed and global coverage.
- FedEx International: Fast and trustworthy, but rates can vary significantly.
Each carrier has strengths and tradeoffs. Compare not just price, but also transit time, customs clearance support, and delivery guarantees.
Pack smart to save on dimensional weight
International shipping often charges based on dimensional weight, especially with air carriers. This means both the size and weight of your package affect the final rate. Use compact, appropriately sized packaging to avoid paying for empty space. A small investment in a digital postal scale and measuring tape can help you accurately estimate shipping costs in advance.
Offer flat-rate international shipping when feasible
To simplify pricing and avoid surprising your customers, consider offering flat-rate international shipping on your site. Build the average cost into your pricing model and offer free or reduced shipping thresholds to encourage larger orders. Tools like Zonos or Shopify’s built-in international settings can help you automate currency conversion, duties, and localized checkout.
Use shipping insurance for high-value orders
While it adds a small cost upfront, insurance can be invaluable if a package is lost or damaged in transit. Most carriers offer built-in coverage up to a certain amount, but you can purchase additional coverage through third-party insurers like Shipsurance or U-PIC.
Communicate clearly with customers
International customers expect longer delivery times, but they still want transparency. Provide estimated delivery windows and tracking numbers, and set clear expectations about customs fees and delays. Email notifications and clear product pages help manage expectations and reduce post-purchase anxiety.
Final thoughts
International shipping doesn’t have to be risky or expensive. By using discounted shipping platforms, packing efficiently, selecting the right carriers, and offering transparent policies, you can grow your global customer base while protecting your bottom line.
