One of the vital factors behind a successful export business is the shipping procedure. Differences in shipping methods not only reduce your profit but may also damage your customer experience. On the other hand, even small export businesses have been able grow within their export industry by focusing on efficient shipping procedures.

 

 

 Primary Shipping Method Consideration

 

There are multiple considerations that must be taken in order to arrive at the proper and correct shipping process for your exports.  Your primary considerations should be:

 

• The size of the shipment

The size of your shipment is one of the most basic factors in determining the shipping method.  If you are sending a small item, it is more cost effective and efficient to use an integrated courier .  They will provide a fast (usually within 3 to 7 business days) international door-to-door delivery and an excellent customer experience.  This option works well for smaller and more expensive items.

• Total costing of the shipment

Your landed cost is what will determine your profit levels. Some shipping methods may drive the total landing cost so high that it makes it unrealistic to ship that way.  For example, if you are shipping furniture from ikea, let’s say a $300 sofa, then it would not be cost effective to use an integrated carrier a your shipping method.  The cost of transportation will be 400% higher than the cost of the sofa. The cost of your product plays an important roll in determining the transportation options.

• Safety of the products

Safety of your product is always a concern regardless of the method of transportation.  Some products are more suitable for one method over another.  Some pharmaceutical shipments require a specific transit time due to the lifespan of the product (products that need to be tested have a specific shelf-life/product life) and must be transported quickly.  Some products require refrigeration and may travel via ocean (speed is less of an impact on the product than temperature).  Some products require a sensor for movement and must be handled as little as possible to ensure the safety of the product(military items,cars,etc). Considering the products safety will help you narrow down your shipping options to ensure that your customer receives their products safely.

• Delivery Time

Most foreign buyers need to balance the cost of speed, and so should you.  When you export, you must take into consideration that the faster a product is delivered to a customer, the more costly is tends to be.  Air courier shipments are more costly than common carrier shipments and common carrier shipments tend to be more costly than using a freight consolidator.  Each of these has a different time delivery and service level commitments, which will not only impact the transit time of your shipment but also the cost.