Shopify Beyond Borders: How to Set Up International Shipping

Why International Shipping Matters for Shopify Stores

Setting up international shipping on Shopify is a game-changer for businesses looking to expand their reach globally. Here's a quick way to get started:

1. Steer to Shopify Settings: Go to Settings > Shipping and delivery.
2. Create Shipping Zones: Define regions or countries where you want to ship.
3. Set Shipping Rates: Choose between flat, calculated, or free shipping options.
4. Add Necessary Product Details: Ensure products have weights, HS codes, and countries of origin.
5. Enable Calculated Rates: If using third-party apps like FlavorCloud, make sure it's integrated.

These steps will help you configure international shipping efficiently, ensuring you meet your customers' expectations across the globe.

The Importance of International Shipping

Expanding your Shopify store to international markets opens up a world of opportunities. It allows you to tap into a broader customer base, increase sales, and improve brand awareness. However, the process involves more than just adding some countries to your shipping list. Accurate shipping rates, smooth customs clearance, and transparent tax policies are crucial for a successful international strategy.

I'm Steve Pogson, and for over two decades, I've specialized in helping businesses like yours optimize and scale their e-commerce operations. Setting up international shipping the right way on Shopify has been my focal point, ensuring seamless and efficient global transactions. Now, let’s dive deeper into understanding Shopify’s international shipping framework.

Understanding Shopify's International Shipping Framework

To set up international shipping on Shopify, you need to understand three key components: shipping profiles, shipping zones, and market activation. These elements work together to ensure your products reach customers worldwide smoothly and cost-effectively.

Shipping Profiles

Shipping profiles allow you to set different shipping rules for different products or locations. This flexibility is essential for businesses that sell a variety of products with different shipping needs.

For example, if you sell both lightweight jewelry and heavy furniture, you can create separate shipping profiles. This way, the shipping rates reflect the actual cost of shipping each type of product. Here’s how you can create a shipping profile:

1. Go to Settings > Shipping and delivery.
2. Under Custom shipping rates for products, click Create new profile.
3. Name the profile and add the relevant products.
4. Define your shipping origins and zones.

Shipping Zones

Shipping zones are regions where you want to ship your products. You can create zones based on countries or specific regions within countries. This helps you manage where your products can be shipped and set different rates for different areas.

For example, if your warehouse is in Germany and you want to offer a flat shipping rate across Europe, you can create a shipping zone that includes all European countries. Here’s how to set up a shipping zone:

1. In your shipping profile, go to Shipping to and click Create shipping zone.
2. Name the zone and select the countries or regions you want to include.
3. Click Done.

Market Activation

Before customers from a specific country can order from your store, you need to activate that country as a market in Shopify. This step is crucial because it ensures that the shipping zones and profiles you’ve set up are applied correctly.

To activate a market:

1. Go to Settings > Markets.
2. Click Add market.
3. Name the market and select the countries or regions you want to include.
4. Click Save.

By understanding and implementing shipping profiles, shipping zones, and market activation, you can efficiently manage your international shipping strategy on Shopify. This ensures that your customers receive accurate shipping rates and timely deliveries, enhancing their overall shopping experience.

Next, we’ll explore how to select your international markets and determine the best shipping rates and methods.

How to Set Up International Shipping on Shopify

Selecting Your International Markets

Choosing the right international markets is crucial for your business. Here's how to do it:

1. Market Research: Start by identifying which countries have the highest demand for your products. Use tools like Google Analytics to see where your traffic comes from and Shopify's built-in analytics to track international sales.
2. Country Selection: Choose countries with favorable shipping costs and fewer import restrictions. For example, shipping to Canada from the U.S. might be cheaper and less complicated than shipping to Australia.
3. Activate Markets: Once you’ve identified your target countries, activate these markets in Shopify.

To activate a market: 1. Go to Settings > Markets. 2. Click Add market. 3. Name the market and select the countries or regions you want to include. 4. Click Save.

Determining Shipping Rates and Methods

Setting up shipping rates and methods is essential for a smooth international shipping experience. Here's how to steer the settings, create shipping zones, and add rates:

1. Settings Navigation:
2. Go to Settings > Shipping and delivery.
3. Click on the shipping profile you want to add shipping zones to.
4. Create Shipping Zone:
5. Next to the group of locations where you want to add a shipping zone, click Create zone.
6. Enter a name for the shipping zone.
7. Select the countries and regions that you want to include.
8. Click Done.
9. Add Rates:
10. Next to the shipping zone, click Add rate.
11. Choose between a flat rate, carrier-calculated rate, or free shipping.

Here are your options:

• Flat Rates: Charge a specific amount for shipping regardless of weight or dimensions. This is simple and predictable for customers.
• Carrier-Calculated Rates: These rates are based on the product's weight, dimensions, and destination. They provide accurate shipping costs but require more setup.
• Free Shipping: Offering free shipping can boost sales. You can set conditions like a minimum order value to qualify for free shipping.
• Save your settings to apply the changes.

By carefully selecting your international markets and setting up appropriate shipping rates and methods, you can streamline your international shipping process and improve your customers' buying experience.

Next, we’ll dive into managing taxes and duties for international orders.

Managing Taxes and Duties for International Orders

Setting Up Tax Registrations

When setting up international shipping on Shopify, you need to properly configure your tax settings to ensure compliance with different tax laws. Here's how to do it:

1. Steer to Tax Settings:
2. Go to your Shopify admin.
3. Click on Settings > Taxes and duties.
4. Add Tax Regions:
5. In the Tax regions section, add the countries or regions where you will be shipping.
6. Each region may have different tax requirements, so make sure to research and understand these.
7. Collect VAT:
8. If you're shipping to countries in the European Union, you must collect Value-Added Tax (VAT).
9. You can use the Import One-Stop Shop (IOSS) scheme to simplify VAT collection for orders equal to or less than 150 EUR. This allows you to collect VAT at checkout, so customers don’t pay it upon delivery.
10. Manage Settings:
11. After adding your tax regions and setting up VAT collection, review your settings to ensure accuracy.
12. Add your IOSS number to your tax registration in your Shopify admin to streamline VAT collection.

Handling Import Duties and Customs

Import duties and customs can be tricky, but they are crucial for international shipping. Here’s a step-by-step guide to managing them:

1. Understand De Minimis Value:
2. The de minimis value is the minimum value of a shipment before it incurs import duties and taxes. This threshold varies by country.
3. For example, a shipment to the U.S. with a value below 800 USD is generally duty-free.
4. Delivered Duties Unpaid (DDU):
5. With DDU, the customer pays the import duties and taxes upon delivery.
6. The shipping carrier collects these fees and remits them to the local authorities. This can be done at delivery or in advance, depending on the carrier.
7. Prepare Customs Forms:
8. For shipments valued at 2500 USD or more, additional documentation is required, such as a Power of Attorney (POA) and an International Transaction number.
9. Ensure all customs forms are filled out accurately to avoid delays.
10. Using the IOSS Scheme:
11. Register for the IOSS scheme if you ship to the EU and want to simplify VAT collection.
12. Add your IOSS number to your Shopify tax settings to collect VAT at checkout.
13. Communicate Clearly with Customers:
14. Inform your customers about potential import duties and taxes during checkout.
15. Clearly state if you are using DDU or another method, so customers are not surprised by extra costs.

By properly setting up tax registrations and handling import duties and customs, you can create a smoother international shipping experience for your customers.

Next, we’ll explore how to improve customer experience in international shipping.

Enhancing Customer Experience in International Shipping

Displaying Shipping Costs and Taxes

Transparency is key when it comes to international shipping. According to the Baymard Institute, nearly 50% of cart abandonment in 2024 was due to unexpected shipping fees and costs. To avoid this, make sure you display shipping costs and taxes clearly throughout the customer's journey.

Where to Display Costs and Taxes:

1. Product Pages: Include estimated shipping costs and taxes directly on the product pages. This helps set expectations early. Use automated calculators to provide accurate estimates based on the customer's location.
2. Checkout Display: At checkout, show a detailed breakdown of all costs, including shipping, taxes, and any potential import duties. This reduces the chances of surprise charges and builds trust.
3. Policy Pages: Clearly explain your shipping policy on dedicated policy pages. Outline which countries you ship to, estimated delivery times, and any associated costs.

Providing Clear Information on Additional Fees

When shipping internationally, customers may face additional fees like import duties and taxes. Shopify’s research emphasizes the importance of a clear shipping policy to build trust.

Duty Disclosures and Tax Information:

1. Duty Disclosures: Inform customers about potential import duties and taxes during checkout. Specify if you are using Delivery Duty Unpaid (DDU) or Delivery Duty Paid (DDP). This helps customers understand who is responsible for paying these fees.
2. Expected Costs: Provide a range of expected costs for duties and taxes based on the customer's location. This can be done using automated calculators that estimate these fees.

Customer Communication:

1. Transparent Pricing: Ensure that all prices displayed include any potential additional fees. This transparency helps build trust and reduces the likelihood of cart abandonment.
2. Clear Messaging: Use clear and simple language to explain any additional fees. For instance, you can include a message during checkout that says, "Import duties and taxes may apply upon delivery."

By making shipping costs and additional fees clear and transparent, you improve the customer experience and increase the likelihood of completing international sales.

Next, we’ll explore how to leverage Shopify apps and tools to streamline your international shipping process.

Leveraging Shopify Apps and Tools for International Shipping

To streamline your international shipping process, Shopify offers a variety of apps and tools. These can help you manage shipping rates, handle customs, and provide a seamless experience for your customers. Let's look at some of the top tools you can use.

Xonos

Xonos is a powerful app that estimates shipping costs, including fees (called a landed price), for your customers. This feature is particularly useful for international shipping, where unexpected fees can deter purchases.

Case Study: A U.S.-based store using Xonos saw a 20% increase in international sales after implementing the app. Customers appreciated knowing the total cost upfront, including shipping and import fees.

Shipping Rules Apps

Shipping rules apps allow you to create complex shipping rules based on various factors like order weight, value, or destination. These apps can help you manage shipping rates more effectively.

For example, if you source products from multiple suppliers, you can set different shipping rules for each supplier. This ensures accurate shipping costs and prevents losing money on shipping.

Example: A store sourcing from both Printify and AliExpress can create separate profiles and use apps like Oberlo for AliExpress and Printify's own app for streamlined shipping management.

Postal Code Zoning

Creating shipping zones based on postal codes can significantly improve your shipping strategy. This method allows you to offer more precise shipping rates and delivery times.

There are apps available that help you organize your shipping zones according to postal codes or zip codes. This can be particularly useful for businesses shipping to large countries with varying shipping costs.

Fact: Using postal code zoning can reduce shipping costs by up to 15%, as it allows for more accurate rate calculations based on specific regions.

By leveraging these Shopify apps and tools, you can create a sophisticated and efficient shipping strategy that meets your business needs and improves customer satisfaction.

Next, we will dive into managing taxes and duties for international orders to ensure smooth and compliant deliveries.

Conclusion

Best Practices for Ongoing Optimization

Setting up international shipping on Shopify is just the beginning. To truly excel, continuous improvement and adaptation are key. Here are some best practices to keep in mind:

1. Monitor Performance: Regularly review your shipping performance. Use Shopify’s analytics to track delivery times, shipping costs, and customer feedback. This will help you identify areas for improvement.
2. Adjust Strategies: Based on your performance data, adjust your shipping strategies. If certain countries consistently show delays, consider using faster shipping methods or different carriers for those regions.
3. Customer Feedback: Listen to your customers. Their feedback can provide valuable insights into what’s working and what’s not. Use surveys, reviews, and direct communication to gather this information.

Staying Informed on International Shipping Trends

The world of international shipping is constantly evolving. Staying informed on the latest trends and regulatory changes is crucial for maintaining a competitive edge.

1. Regulatory Changes: Keep an eye on changes in international shipping regulations. These can affect customs procedures, import duties, and shipping restrictions. Being proactive can help you avoid delays and compliance issues.
2. Shipping Technology: Accept new shipping technologies. Innovations like real-time tracking, automated customs forms, and advanced shipping calculators can streamline your process and improve customer satisfaction.
3. Global E-commerce Trends: Stay updated on global e-commerce trends. Understanding where the market is heading can help you adapt your strategies to meet new demands and opportunities.

At First Pier, we specialize in helping businesses optimize their Shopify settings for international shipping. Our expertise ensures that your shipping strategy is not only effective but also adaptable to the ever-changing landscape of global e-commerce.

By continuously monitoring your performance, adjusting strategies based on data and feedback, and staying informed on trends and regulations, you can build a robust international shipping operation that delights your customers and grows your business.

For more detailed guidance on optimizing your Shopify store's shipping settings, visit our eCommerce SEO service page.

By following these practices and staying informed, you'll be well-equipped to steer the complexities of international shipping and take your Shopify store beyond borders.