In today’s online shopping world, country borders don’t stop shoppers. Increasingly, shoppers worldwide are turning to e-commerce sites in search of products and prices that might not be available in their country. As U.S. businesses try to take advantage of this trend, here are several countries they might want to consider, based on trends revealed by a PayPal/Ipsos report.
Shipping - Article | 6-min. read
Challenges and Benefits of Exporting Internationally
There’s a reason so many companies, small and large, have invested in international exporting and all that comes with it. The global marketplace offers countless opportunities. Of course, there are many companies still on the cusp of expanding their operations. Here are some of the most common challenges businesses face when entering foreign markets, and practical ways to overcome them.
International Product Restrictions and Regulatory Requirements
International shipments sent from the United States are subject to federal export laws and regulations.1 Before choosing a foreign market, companies must understand the shipping restrictions surrounding their products. Export licensing requirements vary by country and are based on U.S. foreign policy and national security concerns. Whether a license is required depends on the type of commodity, how it’s being used, where the commodity is being shipped, and who is involved in the export. Companies must do thorough research to find out if trade is feasible and worthwhile.
Helpful Tip: Though many goods do not require export licenses, it’s important to ensure compliance.2 Contact the federal agency that governs your industry to learn if you need a license. The three agencies that issue licenses are: the Department of Commerce, Bureau of Industry and Security (BIS), the Department of Treasury, Office of Foreign Assets Control (OFAC), and the Department of State.
Political Environment
Beyond laws and regulations, companies must also look at the political climate of a country. Is it stable enough to support successful business operations? Instability can hamper business dealings. Evaluate the environment and whether it can affect your partnerships and consumer purchasing behaviors. Political changes could create new import restrictions, tax controls and labor issues. Consider these details before investing in an international operation.
Helpful Tip: Map out the political and socioeconomic risks in each foreign country you’re looking to ship to. If a transition of power occurs, can the country seize your assets? Find out if and when that’s possible before committing to expansion.
Pricing
The cost of international expansion doesn’t stop at shipping and related surcharges. Taxes and currency values all play a part in exporting for businesses and, more importantly, their bottom line.
Surcharges
Some shipping providers charge additional fees such as fuel, dimensional weight, and extended area surcharges on top of international shipping rates. These added costs affect profit margins and, ultimately, the viability of an international business. Extended-area surcharges and dimensional weight surcharges, in many cases, can exceed the cost of the product. When choosing a provider, take note of the additional charges and how they factor into your strategy. Some providers, like the USPS, offer limited surcharges on international shipping.3
Customs, Duties & Taxes
Every country charges its own customs fees for importing and exporting goods. Seek out competent legal advice to determine whether your customer is responsible for paying local fees, duties and taxes. These costs add up. Companies looking to expand into foreign markets must know just how much financial burden they are putting on customers and explain the fees clearly on the checkout page.4
Currency Values
When doing business abroad, it’s important to know the local currency and its relation to the dollar. Fluctuations in currency value can affect a company’s bottom line. In some cases, companies can protect themselves from drastic changes in price.
Helpful Tip: For those in need of expertise, work with a bank or foreign-exchange specialist to help mitigate your risk.
Reputation Management
Managing consumer relationships abroad is a sensitive but all-important factor in global expansion. Delays, damage and language barriers present their own set of problems.
Delays & Mail Disruptions
Of course, disruptions and shipping delays are an inevitable part of exporting. When dealing with international customers, it’s important to bridge the distance with strong communication. Whether it’s the weather or labor issues slowing down your shipping times, customers always appreciate an update on their shipment.5
Package Loss & Damage
While there’s no way to prevent domestic or international shipments from being lost or destroyed, insurance can help cover the losses. Evaluate multiple quotes from shipping providers and insurance companies. Take into account the level of coverage, claims process, and compatibility with shipping systems before making a final decision.
Language Barriers
Being able to communicate with your international customers and understand their local customs and business practices is paramount. Companies should know all the languages spoken in their chosen market. Besides hiring translators to update print marketing materials and your international website, experts also suggest investing in surveys. Conducting online surveys in your chosen market can help you avoid communication pitfalls.6
Helpful Tip: Create a communication protocol for shipping delays. Be sure your messaging is clear and in the correct language. Avoid jargon to prevent confusion.
Intellectual Property Infringement & Copy Cats
Protecting your intellectual property from theft takes preparation. Every country has its own set of rules and guidelines. Consult with a competent attorney with the appropriate subject matter expertise.
Helpful Tip: If possible, work with a lawyer to draft a legal strategy protecting your intellectual property. Ask your legal counsel about the worth of registering patents, trademarks, and copyrights abroad to defend your company against any possible violations.7
Consumer Fraud
Preventing consumer fraud across international borders requires a bit more effort than it does in the United States. Instances of consumer fraud on cross-border transactions may be higher than domestic transactions. Take into account the different payment methods and regulations, prevalent in your foreign market when screening for dubious shopping behaviors.
Helpful Tip: Make time to regularly monitor purchase activity, credit card information, IP, and email addresses to help detect fraud and manage it.
Returns
For some companies, the price of shipping products back to the U.S. doesn’t make financial sense. The profit margins on their products don’t allow for it. They may choose not to offer returns. Those looking to invest in a great consumer experience can work with return consolidators in their foreign markets. These companies have warehouses ready to service a company’s international returns.8
Helpful Tip: Do your research on return consolidators in your chosen region. Find the company with the best rates for consolidating and shipping parcels back to the U.S.9
Ready to Make Moves?
While there are risks to global expansion, business owners—from small retailers to millionaire entrepreneurs—understand the benefits. Fear of language barriers, regulations and fraud shouldn’t stop your business from evolving. Success stems from preparation. Knowing the challenges ahead of time allows growing companies to meet them head on.
Please note: The content presented in this article is for informational purposes only and not for the purpose of providing legal advice. Please contact your attorney for in-depth advice on any pressing issue or problem.
1“Special Requirements for Shipping Internationally,” USPS, Publication 699, May 2016.
2“Know the Facts Before You Ship: A Guide to Exporting License Requirements,” U.S. Department of Commerce, Bureau of Industry and Security, February 2013.
3“Complete Guide to USPS International Shipping,” Stamps.com, 2015.
4Ibid.
5Ibid.
6John Rampton,“10 Tips for Overcoming the Language Barrier When Expanding Overseas,” FastCompany.com, Mar 10, 2015.
7“Protecting Intellectual Property Rights (IPR) Overseas,” USPTO.gov.
8Richard Shrubb, “Options for Handling International Returns,” Webretailer.com, Dec 20, 2015.
9Ibid.
Selling Beyond Borders: A Guide to Exporting for Growing Businesses
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Directory of Websites that Provide Government Assistance for Exporters
If you have questions about exporting or need help getting started, chances are there is a U.S. government agency that can help you.
Here’s a list of websites related to many of the government agencies and programs that play a role in exporting.
Department of Commerce International Trade Administration
Promotes U.S. trade and investment and helps ensure fair trade by enforcing trade laws and agreements. Learn more
Department of Commerce U.S. Commercial Service
Part of the International Trade Administration, the U.S. Commercial Service can provide detailed information about government export programs, help you research markets, and generally guide you through the process. Learn more
Department of Commerce Bureau of Industry and Security (BIS)
Can help you determine if you need a license to export your products. BIS administers and enforces the Export Administration Regulations, which govern the export of commercial/dual-use items, less sensitive military items, and most commercial satellite and spacecraft items. Learn more
Export-Import Bank of the United States (EXIM)
Provides financial support to small and medium-sized businesses (SMBs) so they can export with confidence—whether entering new markets or increasing sales in existing ones. With EXIM support, SMBs may grant “open account” credit terms to their buyers, protect against nonpayment, provide vital working capital to fulfill orders, and offer competitive buyer financing. Learn more
Small Business Administration
Provides free counseling, training, and other assistance for small businesses, including special loan programs for businesses involved in international trade. Learn more
Department of State Business Information Database System (BIDS)
Has information on hundreds of opportunities for commerce around the globe. Learn more
Department of State Directorate of Defense Trade Controls
Controls the export and temporary import of defense articles and services covered by the United States Munitions List (USML). Learn more
Department of State Intellectual Property Enforcement
Advocates for protection and enforcement of intellectual property rights around the world. Learn more
U.S. Trade and Development Agency
Helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries. Learn more
Export.gov
This website brings together information from various government agencies that deal with foreign trade, including the U.S. Commercial Service and the U.S. Small Business Administration. Learn more
Department of Agriculture Foreign Agricultural Service
Helps U.S. exporters develop and maintain markets for food and agriculture products while also working to improve global food security. Learn more
U.S. Customs and Border Protection
Helps enable legitimate trade by enforcing laws against counterfeit, unsafe, and fraudulently imported goods. Learn more
Department of the Treasury Office of Foreign Assets Control
Enforces trade sanctions against terrorists, international narcotics traffickers, targeted foreign countries, and others who threaten the national security, foreign policy, or economy of the United States. Learn more
Food and Drug Administration
Enforces regulations dealing with imports and exports of FDA-regulated products, such as food, medical products, cosmetics, and tobacco products. Learn more
U.S. Agency for International Development (USAID)
Works to improve lives in the developing world, in part by investing in agriculture, health systems, and democratic institutions. At the same time, it helps creates markets and trade partners for the United States. Learn more
Overseas Private Investment Corporation (OPIC)
As the U.S. government’s development finance institution, OPIC offers a variety of financial tools, including direct loans and political risk insurance, to help U.S. businesses invest in new and emerging markets. Its products can help businesses expand internationally while supporting growth at home. Learn more
Selling Beyond Borders: A Guide to Exporting for Growing Businesses
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Directory of Websites that Provide Government Assistance for Exporters
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Cross Border E-Commerce Trends
In today’s online shopping world, country borders don’t stop shoppers. Increasingly, shoppers worldwide are turning to e-commerce sites in search of products and prices that might not be available in their country. As U.S. businesses try to take advantage of this trend, here are several countries they might want to consider, based on trends revealed by a PayPal/Ipsos report.
In the past year, 67% of adult internet users in Brazil made purchases online; 45% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Cosmetics/beauty products
- Consumer electronics
DRIVERS FOR CROSS-BORDER SHOPPING1
- Free shipping
- Safe way to pay
- Customer support in their language
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Shipping charges too high
- Delivery time was too long
- Concerns about website security
TIP
Give buyers shipping options that let
them pay more for faster delivery
times or choose a more economical
rate if they’re not pressed for time.
In the past year, 62% of adult internet users in Canada made purchases online; 63% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Entertainment/education (digital)
- Travel and transportation
DRIVERS FOR CROSS-BORDER SHOPPING1
- Free shipping
- Lower overall cost to buy items from another country
- Costs shown/payment possible in their local currency
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Delivery shipping costs
- Having to pay customs duty, fees, or taxes
- Currency conversion rate not favorable
TIP
Make sure you’re getting the best
deal you can on shipping so you can
pass those savings on to customers.
Watch out for surcharges from some
shippers that can raise your costs.
In the past year, 84% of adult internet users in China made purchases online; 26% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Cosmetics/beauty products
- Groceries, food, drink, and alcohol
DRIVERS FOR CROSS-BORDER SHOPPING1
- Secure way to pay
- Proof of product authenticity
- Costs shown/payment possible in their local currency
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Delivery time not fast enough
- Diffcult process for returning products
- Concern about security of financial or personal details
- Delivery shipping costs
TIP
Stress product authenticity and
website security. Provide a clear,
hassle-free returns process.
In the past year, 70% of adult internet users in France made purchases online; 34% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Travel and transportation
- Entertainment/education (physical items)
DRIVERS FOR CROSS-BORDER SHOPPING1
- Secure way to pay
- Free shipping
- Customer support in my language
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Shipping charges too high
- Concerns about website security
- Checkout process was confusing
TIP
Be sure your website is easy to
navigate. Prominently display a
Secure Sockets Layer (SSL) certificate,
verifying that you use standard
security protocols to encrypt data.
In the past year, 78% of adult internet users in Germany made purchases online; 27% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Consumer electronics
- Entertainment/education (physical items)
DRIVERS FOR CROSS-BORDER SHOPPING1
- Customs fees or duties for shipping are shown before checkout
- Finding items that are hard to find locally
- Secure way to pay
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Shipping charges too high
- Unclear how much customs duty, tax, or fees they would pay
- Delivery time was too long
- Concerns about website security
TIP
Give buyers options that let them pay
more for faster delivery times or
choose a more economical rate if
they’re not pressed for time.
In the past year, 78% of adult internet users in Japan made purchases online; 5% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Entertainment/education (physical items)
- Cosmetics/beauty products
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Shipping charges too high
- Wanted to look for a better price
- Concerns about website security
TIP
Spell out steps you’ve taken to protect
customers’ security. Make sure you’re
getting the best deal you can on
shipping so you can pass those savings
on to customers.
In the past year, 73% of adult internet users in Russia made purchases online; 62% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Consumer electronics
- Cosmetics/beauty products
DRIVERS FOR CROSS-BORDER SHOPPING1
- Finding items that are hard to find locally
- Wider product selection
- Lower overall cost to buy items from another country
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Shipping charges too high
- Wanted to look for a better price
TIP
Prominently display discounted items
to entice bargain hunters.
In the past year, 78% of adult internet users in the U.K. made purchases online; 33% of those shopped from international sites.1
TOP CROSS-BORDER PURCHASE CATEGORIES1
- Clothing, footwear, and accessories
- Entertainment/education (physical items)
- Travel and transportation
DRIVERS FOR CROSS-BORDER SHOPPING1
- Free shipping
- Secure way to pay
- Free return shipping
REASONS SHOPPERS ABANDON A CROSS-BORDER PURCHASE1
- Delivery shipping costs
- Concern that they may not receive the item
- Return shipping costs
TIP
Make sure you’re getting the best deal
you can on shipping so you can pass
those savings on to customers.
1
PayPal and Ipsos, 2016 Global Cross-Border Commerce Report.


Selling Beyond Borders: A Guide to Exporting for Growing Businesses
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