E-commerce international shipping – what works best for small businesses?

The pandemic has sparked exponential growth in global e-commerce as consumers turn en masse to online shopping.

The US, for one, saw its online spending skyrocket 44 percent to US$861 billion in 2020 – the fastest growth in two decades – as American shoppers went digital, while stimulus-fueled consumption has surged this year.

For companies, selling to international markets expands their options. But how do they navigate international shipping, which can be complex and complicated. We take a look at a few of the most common challenges and weigh up the benefits.

1)    A one-stop shop

One relatively new program that many e-commerce businesses with high volumes of low-value shipments can benefit from is Section 321 Entry type 86, which exempts duties or taxes for shipments valued under US$800 for all modes of transport. However, many SMEs who are new to the process, from compliance to filing and validation, will still find it onerous and time-consuming if they have to do it manually using multiple formats.

Another way of approaching this challenge is to engage an all-in-one solution, where users have a one-stop, end-to-end compliance and logistics service. This eliminates the need for companies to get stuck in the details.

Businesses can maximise the benefits of the program by outsourcing these tasks to a service provider who offers an automated, unified filing platform that can harness a single source data format to help you clear customs more quickly and reliably – even during “peak periods” when shipment volumes spike.

2)    Scale up your business by making your logistics seamless

Many entrepreneurs start off with a Do-It-Yourself approach to logistics, stitching together different aspects of the e-commerce value chain using multiple providers.

However, as your e-commerce sales grows, you will inevitably find it challenging to juggle fulfilment and distribution for thousands – or even millions – of parcels, especially if you don’t have a local presence in the US and cannot tap on the economies of scale that big retailers enjoy.

Focus your energies on scaling up your business while leaving these nitty-gritty yet important delivery details to a trusted third-party SaaS (Software as a Service) solution provider like CrimsonLogic that provides end-to-end shipment, compliance and logistics services. By seamlessly fulfilling each link of the e-commerce value chain, CrimsonLogic can help you to avoid the hassle and pitfalls of juggling multiple independent partners that tend to provide limited tracking information about shipments.

3)    Scale is everything

For many small companies, going through e-commerce platforms makes sense. Many offer shipping services bundled with their platforms, seamlessly blending both.

But at the backend, the costs of going through this route may be costly. Much of international shipping goes through the big logistics and postal players such as DHL, and UPS. They charge premium rates that SMEs may not be able to afford if they are to be price competitive.

Another route to take is to use parcel consolidators. As the name suggests, parcel consolidators pool a group of parcels together before shipping. The established ones have a strong network which they can then distribute to target market.

Major providers like CrimsonLogic, which has over 175,000 connected parties and conducts over 40 million transactions annually, can offer economies of scale to help you minimize costs. For instance, we work with parcel consolidators, that inject small parcels directly into the freight system at the final delivery zone – a cost-effective option for SMEs.

Partnering with the right service provider can help you to ramp up your sales or handle sudden demand spikes without worrying about lags or gaps in logistics.

Timely, reliable deliveries are critical to customer satisfaction – we get that. Partner with us to maximise the benefits of cross-border trade for your business. Find out more here : CrimsonLogic US e-Commerce Import Program: Automated Import Solution for US e-Commerce Shipments