International Shipping Essentials
Why should I ship to other countries?
Committing to shipping your products internationally may seem intimidating. But think about it this way: the idea of starting an ecommerce business in the first place was intimidating, right? And if you’re considering shipping overseas, then you clearly passed that test with flying colors.
Many online retailers in Canada. hesitate to sell products to other countries because they think the costs outweigh the potential revenue. Spoiler alert: they’re wrong.
When you conduct thorough research and make well-informed decisions, you can successfully reach customers all over the globe.
Ready to learn the basics of ecommerce international shipping? Let’s go!
Part 1: Products and Packaging
Confirm Product Shippability
Of
There are also several product categories couriers will just straight up not transport internationally under any circumstances. For instance, you can’t send postage stamps to another country via UPS. And FedEx won’t ship fine jewelry overseas.
On top of that, every country has its own unique restrictions. Did you know you can’t ship playing cards to Denmark, Greece, or Spain? Or that you can’t send bells to Italy or eyeglasses to Uruguay?
Prepare Packages for Passage
Each box, envelope, and mailer tube you ship is going to have plenty of pit stops on its way to its final destination. Most of your domestic orders will only call sorting centers and trucks temporary homes. But your international orders will have the joy of traveling by plane and boat, too. This means you’ve got to be extra obsessive about how you pack cross-border shipments.
Evaluate the weight, value, and fragility of the contents of each package. Remember that liquids and powders need special packaging when being transported overseas. Consider whether the items are subject to any international regulations and thus have additional packaging requirements.
Your package is about to embark on a long journey — make sure it gets there in one piece.
Part 2: Taxes, Duties, and Documentation
Value Added Tax (VAT) and Duties
- Value Added Tax (VAT) [val-yoo
ad -ded taks] — also known as goods and services tax (GST) — isa fee merchants are charged on every cross-border sale. It’s calculated using a fixed percentage that applies to every shipment, regardless of contents. You can think about itlike a sales tax. Total VAT varies between countries. - A duty [doo-tee] — also known as a tariff — is
a tax must pay when selling products internationally. Like VAT, each country uses a unique percentage to calculate duties. However, instead of using a single, set percentage, duties are calculated based on the value and quantity of the items being imported plus the cost of shipping and any insurance.retailers
There are two types of duties: delivery duty paid (DDP) and delivery duty unpaid (DDU). With DDP, the company is responsible for all applicable duties and fees. The total is paid upfront by the carrier, and the retailer receives a bill.
In the case of DDU, the recipient (i.e. your customer) must pay the duty. If you go
*Pro Tip: Some countries charge only VAT, others collect only duties, and a handful of countries impose neither.
Determine how much a country’s duties and VAT would affect your overall costs. Once you understand the financial impact, you’ll know how to adjust your prices for shoppers in those countries. Or you’ll realize it simply isn’t worth it to sell to that country.
Required Customs Documents
- Commercial Invoice. Used to appraise the value of products and calculate customs duties and taxes.
Document must list the following: retailer’s name and address; recipient’s name and address; item quantities, descriptions, and prices; terms of sale and payment; and mode of transport. - Export Packing List. A more comprehensive version of a domestic shipment packing list. In addition to the details included on a standard packing list, an export packing list specifies the mode of transport, carrier information, and the weight, dimensions, quantity, and type of each package in the shipment.
- Certificate of Origin. Confirms country where products in
shipment were produced, manufactured, and/or obtained. Must be signed byretailer and, in some instances, certified bylocal chamber of commerce.
ShipStation can automatically submit all required customs documentation electronically for UPS, FedEx, and DHL. Learn more here.
Part 3: Shipping Carrier Comparison
For sellers in Canada, there are five main carriers: Canada Post, Purolator, UPS, FedEx, and DHL. Each carrier has its own advantages:
- Canada Post — Offers discounts for both small businesses and high-volume shippers
- Purolator — Operates 112 shipping centres across Canada
- UPS — Has offices in nearly every country, which means UPS will manage shipping from your warehouse straight through to delivery
- FedEx — Specializes in urgent delivery options, such as next-day and 2-3 day delivery
- DHL — Experts in international customs
- Canpar — Cost-effective alternative for your regular day-to-day shipping needs
As you evaluate your options, determine two things: 1) which aspects you’re willing to compromise on, and 2) what is non-negotiable. When you know how flexible you are on things like costs and delivery speed, you can more easily choose the right carrier.
Want to try our rate calculator to view rates for all these carriers in one place? Try it here. Or if you haven't created an account with us and want to use the calculator, start your free trial today.
Resource Center
Below are links to important information about each carrier's international shipping services.
Available Shipping Destinations
Canada Post | Purolator | FedEx | UPS | DHL | Canpar |
Customs Documents Requirements
Canada Post | Purolator | FedEx | UPS | DHL | Canpar |
Prohibited and Restricted Items
Canada Post | Purolator | FedEx | UPS | DHL | Canpar |