{"id":11181,"date":"2020-09-30T13:50:24","date_gmt":"2020-09-30T20:50:24","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=11181"},"modified":"2021-05-25T07:59:43","modified_gmt":"2021-05-25T14:59:43","slug":"international-shipping-strategy","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/shipping\/international-shipping-strategy\/","title":{"rendered":"Why a Pricing Strategy for International Shipping Is Important"},"content":{"rendered":"

Shipping is the final hurdle of a customer\u2019s cart experience. The cost and timing of your shipping options are often what stand between a customer making a purchase or walking away.\u00a0<\/span><\/p>\n

While international shipping is generally a little less straightforward than domestic shipping, figuring out the complexities shouldn\u2019t prevent you from pursuing an effective international shipping strategy that supports your primary business objectives.\u00a0<\/span><\/p>\n

Customer Experience Matters<\/span><\/p>\n

One of the first considerations when developing a pricing strategy for international shipping is to decide whether to ship Delivered Duty Unpaid (DDU), Delivered Duty Paid (DDP) or both. Each has its pros and cons and can make a big impact on your customer\u2019s experience.<\/span><\/p>\n

Delivered Duty Unpaid (DDU): <\/b>When shipping DDU, a customer pays only for shipping at checkout. If the shipment is subsequently assessed for duties and\/or taxes, the customer will have to pay for these customs fees before their shipment can be collected. If there is any delay in paying the customs fees, shipments may be held up at customs until the customer completes the payment.\u00a0<\/span><\/p>\n

Delivered Duty Paid (DDP):<\/b> DDP shipping requires that a customer pay for shipping as well as applicable duties and\/or taxes at checkout. While costs incurred upfront may at times be higher, DDP shipping ensures a seamless delivery direct to your customers\u2019 doorstep (i.e. packages are not held at customs).\u00a0<\/span><\/p>\n

There is no hard and fast rule when it comes to choosing between DDU and DDP shipping (e.g., DDU shipping isn\u2019t always cheaper than DDP shipping). It really depends on factors such as the product you sell, the value of those products and the customer experience you wish to provide. Working with a knowledgeable shipping partner will help you evaluate each service and select a shipping mix that best supports your business objectives. For instance, you might choose DDU shipping if you happen to sell relatively low value products.\u00a0<\/span><\/p>\n

Pricing Strategy Options<\/span><\/p>\n

Once you\u2019ve decided on your service levels, you\u2019ll need to consider what type of pricing strategy to implement.<\/span><\/p>\n

Live Rates<\/b><\/p>\n

These are real-time shipping rates that are based on the destination country and the weight of the shipment. Charging live rates allows you to easily pass through shipping costs by charging the customer what you are being charged by your carrier to ship the order.\u00a0<\/span><\/p>\n

Flat Rates<\/b><\/p>\n

Flat rates offer brands greater flexibility around how they wish to present shipping costs to customers. When offering a flat shipping rate, brands have the option of including the cost of duties and taxes.\u00a0<\/span><\/p>\n