Learn How to Find the Cheapest Way to Ship Internationally

Learn How to Find the Cheapest Way to Ship Internationally

As an eCommerce business owner, shipping packages internationally can be a major hurdle, as it’s difficult to find affordable options. That being said, no matter the size of your business, being able to serve customers around the world is a key way to grow. Unless you want your business to stay on the small side, it’s essential to consider ways to reach customers across borders. Don’t let distance deter you from bringing your business to the next level.

It’s easy to get put off by the obstacles associated with shipping far distances, and in many cases, the mounting cost often eclipses the desire to expand your business. Still, there are ways to circumvent the challenges, and learn how to find the cheapest way to ship internationally. In this article, we’ll give you an overview of major couriers and their international shipping options, as well as some of the factors affecting shipping costs. We’ll also explain how Stalco competes with other shipping services, and offer you our best practices and tips for tracking down the cheapest international shipping options. 

An Overview of Major Couriers and their International Shipping Options 

Not all couriers are created equal; there are benefits and drawbacks of every major courier company. With that said, the following couriers offer a slew of services that cater to the diverse needs of business and individuals. Let’s take a closer look at some key players and the nuances of their international shipping options: 

United States Postal Service (USPS)

Pros: USPS is known for its cost-effective offerings, making it an attractive option for those considering budget-friendly international shipping. USPS provides various shipping options, including First-Class Package International Service and Priority Mail International.

Cons: Despite its economical offerings, USPS has longer delivery times compared to express services. So, in this case, you’re trading off cost for time. Tracking may also be limited, which leads to a bit of uncertainty about a given package’s journey.

United Parcel Service (UPS)

Pros: UPS is reliable and has an extensive global network. It offers a wide range of shipping services, including UPS Worldwide Express for expedited shipments, as well as UPS Standard for more budget-friendly options.

Cons: UPS can be a bit more expensive than its courier counterparts, particularly for speedier delivery options. Small and medium-sized businesses may find the rates too high.

DHL

Pros: DHL is a global giant in the shipping realm, and has been praised for its comparatively speedy and reliable international services. DHL Express offers time-definite deliveries, making it a top choice for priority shipments. Stalco partners with DHL for all of its international shipping, and we have found their services to be stellar.

Cons: Like UPS, the central con of DHL is the higher shipping costs associated with express services. Although businesses valuing speed may find it worthwhile, those hoping to avoid unaffordable international shipping might want to explore other options first. 

FedEx

Pros: FedEx is all about express shipping, and their international services reflect this reputation. FedEx International Priority, for example, promises swift delivery times, while FedEx International Economy offers a cheaper alternative.

Cons: Similarly with DHL and UPS, the speed and reliability of FedEx can come at a steep price. Cost-conscious businesses should weigh the benefits against the expense.

Local and regional couriers 

Pros: Depending on the origin and destination of a given parcel, local or regional services may offer competitive rates and specialized knowledge of specific regions that are definitely worth considering.

Cons: The main downside of local and regional couriers is limited international coverage. This could potentially create a need for multiple couriers for comprehensive global shipping. 

In any case, companies should take time to consider and weigh their options. The choice between the major couriers ultimately hinged on a few factors, including budgetary constraints, delivery timelines and the importance of reliable tracking. It’s important to strike the right balance between these factors in order to find the international shipping solution that aligns with the specific needs and aspirations of your eCommerce company.

Factors Affecting International Shipping Costs

There are a number of factors that play a crucial role in determining the final expense of international shipping costs. Let’s explore some of the key points: 

Package weight and dimensions

The size and weight of a package is a critical consideration that directly determines cost calculation. As you might expect, heavier and larger packages generally incur higher shipping fees due to the increased resources required for transportation.

Courier service and shipping speed 

Opting for an express courier service like FedEx or DHL will ensure swift delivery, but it will certainly come at a higher cost compared with standard or economy shipping. The urgency of the shipment is a key dictator in the overall cost of shipping internationally.

Delivery destination 

The destination’s geographical location and accessibility can impact the shipping cost. Remote or less-accessible areas may incur additional charges due to the logistical challenges involved in reaching these destinations.

Customs, duties and taxes 

Customs duties and taxes imposed by the destination country can significantly contribute to the overall cost. Import regulations and taxes vary widely depending on the country, and businesses need to factor these additional expenses into their shipping calculations.

Shipping distance and transportation mode 

Whether a package is shipped by air land or sea is a big consideration, and can significantly impact costs. Naturally, air freight is faster but generally more expensive, while sea freight is cost-effective but takes longer. The nature of the goods and the urgency of delivery will influence the choice and cost of transportation.

Volume of shipments

Bulk shipping discounts may be applied when sending a higher volume of packages – for this reason, shipping internationally in bulk can be more cost-effective for your company. Businesses that can consolidate shipments or negotiate volume discounts with courier services can effectively reduce per-unit shipping costs.

Carefully considering all of the factors above will help eCommerce businesses make more informed decisions when planning international shipments. By strategically managing these variables, businesses can optimize costs without compromising on the reliability and efficiency of the international shipping process.

Comparative Analysis of International Shipping Rates 

Shipping Rates to Various Destinations

It’s important to bear in mind that specific shipping rates vary based on several factors, including current market conditions, fuel prices and changes in courier companies’ pricing structures. That being said, we’ve done a comparative analysis of shipping rates for a 5-pound package that is 5x5x5 dimensions from the U.S. to different countries.

To ship a package of that size through UPS from Florida to Toronto, for instance, the minimum it would cost is $43.44 – and it would be delivered within one week. Alternatively, two-day shipping is available for $184.35, or three-day for $165.97.

Meanwhile, to ship the same package with FedEx, one-week shipping would cost $38.54, while next-day shipping would cost $187.55. Likewise, delivering the same package within 6 to 10 business days with USPS would cost about $60, with no faster options available. 

Of course, these fees could change considerably day-to-day, and depending on the destination. Factors influencing the variation in shipping rates include:

Service level

As you might expect, express services are typically more expensive than standard or economy options. 

Delivery destination 

Destination is a big factor. Rates can vary considerably based on the destination country and the specific courier’s network coverage in that particular region.

Shipping zones 

Couriers often categorize destinations into zones, and rates may vary accordingly.

Negotiated rates

Businesses with higher shipping volumes may negotiate better rates with courier services. 

Additional services

Features like tracking, insurance and signature confirmation can add to the overall cost. 

As we mentioned above, international shipping rates are constantly in flux. For the most accurate information, we recommend using online calculators provided by each courier service, or you can contact their customer service directly for a quote. Additionally, businesses with significant shipping volumes should explore negotiating rates directly with the courier companies to potentially secure more favorable terms for bulk shipments.

Flat Rate Shipping – A Cost-effective Solution

For businesses hoping to find a budget-friendly international shipping solution, USPS Priority Mail International – Flat Rate is a highly economical choice. This service offers a flat rate for packages, regardless of their weight or destination.

There are a number of benefits of using USPS Priority Mail International – Flat Rate, not the least of which is its pricing structure. With a flat rate for various box sizes, shippers can send packages weighing up to 20 pounds to more than 190 countries without incurring any additional shipping cost based on weight. This can lead to big savings, particularly for heavier shipments. 

Additionally, USPS provides flat-rate boxes in a number of different sizes, allowing shippers to select the boxes that are best-suited to the items they’re sending. Although this service will not deliver parcels as quickly as express services, packages will usually still be delivered within six to ten business days, making it especially suitable for shipments that aren’t super time-sensitive. 

That being said, the delivery time frame for Priority Mail International can vary based on a number of external factors, such as customs clearance and specific destination. The tracking of parcels is also not particularly precise, and lacks real-time visibility. 

 The ideal use-case for USPS Priority Mail International – Flat Rate are businesses who ship medium-to-heavy items, as well as businesses making non-urgent shipments. The service is best for businesses looking for an affordable option where delivery speed is not a critical factor. By buying into the flat-rate pricing model, businesses are able to ship fairly heavy parcels to international destinations without breaking the bank, making it a practical choice.

Small Flat Rate Box – An Affordable Choice

USPS Priority Mail International also has a flat rate option for smaller boxes. Similarly to its other flat rate shipping services, the Small Flat Rate Box is offered at a fixed price, regardless of the package’s weight or destination. That being said, given that it’s a small box, the maximum weight limit is around four pounds. 

If you wanted to ship a small flat rate box through USPS from Florida to Hong Kong, for instance, it can cost as little as $30. The Small Flat Rate Box option is a convenient and cost-effective solution for sending smaller, lighter items internationally, as flat-rate pricing offers predictability.

How Stalco Competes with Other Shipping Services

Stalco is highly committed to helping our clients expand globally, while ensuring transit times stay short and costs stay low. We ship daily with DHL, using fully tracked services to 224 countries and territories around the world. We pride ourselves on negotiating bulk discounts with carriers that our clients would not be able to otherwise obtain. 

There are countless benefits associated with partnering with a fulfillment center rather than directly using a shipping courier. As an eCommerce business owner, the advantages of partnering with a strong fulfillment service provider like Stalco are multifold. Above all, though, optimizing your company’s logistics will undeniably lead to increased efficiency and growth – especially if you’re hoping to expand internationally. 

While you’ll need to make an initial investment to hire a fulfillment service, partnering with a logistics company will ultimately save you valuable time and money in the long run. By outsourcing tasks like order processing, packaging and shipping, eCommerce owners can focus on core operations – including marketing and product development. Moreover, using a fulfillment service means you can forgo the costs associated with independently managing logistics – which requires a warehouse or storage space, packaging materials, plus personnel to manage the complex logistics systems and operations. 

Not to mention, given that fulfillment centers typically have several clients, they receive better rates with carriers than individual companies. As such, shipping is cheaper – and faster, too. We are constantly negotiating with DHL to get the best rates possible for our clients.

At Stalco, we come with a wealth of knowledge and logistics expertise. Staff are adept at managing inventory, optimizing shipping routes and handling unforeseen challenges – which can naturally be overwhelming for eCommerce entrepreneurs who aren’t necessarily familiar with the shipping space. Outsourcing fulfillment ensures that the supply chain runs smoothly, gaurenteeing reduced errors and increased customer satisfaction.

Tips for Finding the Cheapest International Shipping Options 

Here are our tops tips for finding the cheapest international shipping options: 

Compare rates

Using online shipping calculators wherever available on major courier websites to compare international shipping rates for your specific package size, weight and destination.

Check out flat rate options

Flat rate shipping is a great way to send packages internationally for cheaper. Consider flat rate shipping options offered by couriers like USPS and DHS. These can be cost-effective for specific shipments that meet the criteria for flat-rate pricing.

Negotiate volume discounts 

If your business involves significant international shipping, inquire about negotiating volume discounts directly with your courier service. High shipping volumes typically get lower rates. 

Optimize packaging 

Smart packaging helps reduce shipping costs. Use appropriately sized boxes to dodge additional weight charges and minimize supply materials. Also, take advantage of free packaging options provided by some courier services. This can help you save on the costs associated with purchasing shipping materials.

Consolidate shipments 

Whenever possible, consolidate multiple shipments into a single parcel. Consolidation can lead to lower overall shipping costs. 

Partner with a fulfillment center 

Fulfillment centers handle all logistics, which will make international shipping a breeze. Call Stalco today for a quote! 

Conclusion 

International shipping is one of the biggest hurdles eCommerce business owners face when they’re trying to grow. Our best advice is to compare the different options out there, and consider outsourcing to a fulfillment center, so you can stay focused on developing your business. 

We feel very hopeful about the future of international shipping. As technology advances and global markets become increasingly interconnected, we anticipate further innovations that may make international shipping more affordable and accessible. For the time being, though, there are solutions in place to cheaply ship internationally, and we’re pleased to offer them to our clients.