The freight ecosystem can sometimes be very complex to navigate. However, this guide to cross border shipping solves your international logistics dilemma. If you are new to this aspect of freight, there are some things to master.
Cross border shipping works in more than one way. You can either pursue it as a business or for your business logistics needs. Whichever the case is, you need information to do it successfully. With the consistent increase in the need for online shopping, we can’t overemphasize the role of cross border shipping.
In most cases, orders and goods on cross-border shipments have a tight deadline. But factors like trade agreements between countries, amongst others, can be a stumbling block.
How do you navigate this? Why should you bother about cross border shipping? What are the things to know before starting out? This guide to cross border shipping expounds on these and more.
What is Cross Border Shipping?
Cross border shipping services in Canada and other countries involve the transport of goods between the two countries. However, in this type of shipping, there is no storage of inventory. It requires paying import duties at customs. Typically, this depends on existential agreements between the two countries.
Without experience, the processes and systems for cross border shipping can be so much of a hassle. It requires knowledge, security and flexibility. But it also has its benefits. One of the reasons to use cross border shipping services is that it allows you to expand your business and reach more customers.
However, it is not the only way. A school of thought believes in setting up a warehouse at your destination. This way, you won’t experience incessant cross-country shipping, as well as being prompt with delivery.
As easy as the above sounds, this is not always the best move. This brings us to the next question. When and why should you use cross border shipping?
When to use Cross Border Shipping
Cross border shipping becomes essential when your business starts making international sales. It is proof that your business’ reach is expanding. With this broader reach, you can make more sales and increase your market share.
This is the dream of every business owner. Hence, following through with this guide to cross border shipping is a great start.
You can always engage in cross border shipping at whatever growth stage your business is. Though, it is best to solidify your primary audience at launch. But right from when the business starts growing, till maturity, you will always need a wider audience.
As stated earlier, warehousing at the destination is another approach to meeting international customer needs. But it is not the best option. External storage seems like it puts the inventory right close to your customer. However, on a closer look, it has several downsides, which cross-border shipping has solutions to.
Here are some of the advantages of cross border shipping:
Elimination of inventory exposure
With warehouses, there is a risk of inventory exposure. With this level of exposure comes storage costs, obsolescence and cost of spoils. Also, to have a warehouse in another country, you’ll need to set up decentralized logistic solutions.
This is what cross-border shipping saves you from. It eliminates the need for these initial investments. Also, it removes the need to set up and maintain satellite offices. Furthermore, you don’t need to worry about import licenses and sorting through inventory. All these lead to the elimination of substantial operating costs without sales.
With cross-border shipping, warehousing and logistics are centralized. You only need to incur operating costs at your business’s primary hub.
Beyond this, you only incur cross-border costs when you make a sale. This is unlike satellite warehousing that costs you even without making sales. Overall, cross border shipping costs less than having a warehouse at your destination.
Speed of deployment
Cross-border shipping helps you function on the go. This is in stark contrast to satellite warehousing that takes time to set up. For instance, getting import licenses for a warehouse in another country may take up to six months.
This is in addition to the time necessary to hire personnel and establish new teams. On the flip side, with cross border shipping services in Canada, you have speed. Even from the first day of doing business, you can move your goods across international borders.
Cross border shipping helps you test demand
As a growing business, there is a lot of market testing you need to do. Cross-border shipping helps you achieve that. It does not require much investment, and you can efficiently execute it.
It’s normal to test whether or not to extend your services and products into another country. With cross border shipping services, you can easily find out whether or not there is a demand for your products. Remember, you won’t have to incur the cost of an expensive warehouse.
Cross Border Shipping: How Does it Work?
The most important part of the guide to cross border shipping is how it works. To successfully start your international shipping journey, here is how it works:
You need to choose your product and market
This requires some initial study and research. Where you ship to, and what you ship there, are essential. In most cases, figuring this out is a no-brainer. Several analytics tools that quickly point at where your products are in-demand.
Once you know where your products are in high demand, you need further research. Once you know everything you can find out, it’s time to maximize the market.
Regulations and restrictions
This should be a significant focus in your research. Know the various requirements and policies of taking your product into a particular country. Different regulations exist for different reasons.
Some countries may require licensing, while others won’t put you through much hassle. If you can get first-hand information from your destination country, that’ll be great.
Perform an initial test
When trying to reach a new market, you shouldn’t take on too much risk. This is important because the research information you got yesterday may already be obsolete.
Start by trying out a variety of shipping options with your customers. This way, you can figure out the best cross-border shipping option for your business. You can run tests for both air freight and trucking services. Doing this split test enables you to know what they prefer.
Reiterate and Improve
Once you know what works, maximize that and ensure a focus on improving customer experience. Successful trading with foreign customers can land you more sales. This results in more revenue, especially for products with high-profit margins.
This guide to cross border shipping helps you start. However, there are peculiarities with various destinations you should know. Your market research needs to be extensive, ensuring that you know all there is to know. Without adequate information, you may find yourself in the hassle.
All Freight Shipping can be of service. Here, we help you avoid all of the stress that comes with crossborder shipping. We offer the best cross border shipping services for residents in the USA and Canada.
Whether you’re a beginner or have the experience, we offer flexible shipping and freight delivery options. Contact us today for an effective solution to your cross border shipping problems.