You've built something that sells. Domestic orders are ticking along and you're starting to see interest from customers outside the UK. This guide covers everything you need to think through before you start shipping internationally without the jargon.
The Terms You'll Keep Hearing
Term | What It Means |
|---|---|
Incoterms | Internationally agreed rules defining who is responsible for costs, risk and customs at each stage of a shipment |
DDU (Delivered Duty Unpaid) | Seller ships the goods; customer pays import duties and taxes on arrival. Often leads to surprise charges and failed deliveries |
DDP (Delivered Duty Paid) | Seller covers all duties and taxes. Customer pays one all-inclusive price at checkout and receives their parcel with nothing further to pay |
HS Codes | Standardised numerical codes used by customs authorities worldwide to classify products. Every item you ship internationally needs one |
Duties | Taxes imposed by the destination country on imported goods. Rate depends on product type and country of origin |
VAT / Sales Tax | Consumption taxes applied on top of duties in most markets. In the EU, import VAT applies regardless of parcel value |
Carriers | The companies that physically move your parcels: DHL, FedEx, UPS, DPD and so on |
Six Things to Work Through Before You Ship
Getting these right upfront saves a lot of headaches later.
1. Which Markets Do You Actually Want to Target?
Not all international markets are equal. Some have high delivery expectations, some have complex customs environments and some have restrictions on certain product types. Start with one or two markets where you have clear evidence of demand rather than opening up globally all at once.
2. Are Your Products Restricted in the Destination Country?
Cosmetics, supplements, food products, electronics and anything containing batteries all have varying levels of restriction depending on the destination. Some products require specific certifications or labelling to enter certain markets. Check before you ship, not after a parcel gets held at customs.
3. What's Your Duties and Taxes Strategy?
DDU is simpler to set up but creates a poor customer experience. DDP requires more configuration but means customers receive a clean friction-free delivery. For most consumer brands selling direct to customers, DDP is the right answer. Make sure your checkout is set up to collect duties at the point of sale and that your HS codes and country of origin are accurate across all your systems.
4. How Fast Do Your Customers Expect Delivery?
Delivery expectations vary significantly by market. In some countries, customers are comfortable waiting ten days. In others, anything over five days feels slow. Economy shipping is cheaper but slower; express services are faster but add meaningful cost per parcel. Think about whether your product is an impulse buy where speed matters or a considered purchase where the customer will wait.
5. What Does a Typical Order Actually Cost You End to End?
The full picture includes shipping, duties and taxes if you're absorbing them, packaging for longer transit times, potential customs brokerage fees, currency conversion and the cost of returns. Model this out before you launch into a new market. An order that looks profitable at face value can quickly become marginal when you add it all up.
6. What's Your Returns Policy?
Returns are the part of international shipping brands most often leave until it's too late. Will you accept international returns? If so, how? Asking a customer in Germany to post something back to a UK address at their own expense is a significant ask and it will put people off buying in the first place. Have a clear answer before you go live.
How a 3PL Makes International Shipping Simpler
For brands shipping internationally at any real volume, working with a 3PL is usually the most efficient model. A good 3PL handles the parts that are most complex: holding stock in-market so customers get domestic delivery speeds, managing DDP shipments so duties are handled on your behalf, working with local carriers who know the destination market and processing returns without your customers having to ship parcels across borders.
At Hutch, we work with Ecommerce brands on exactly this. If you'd like to understand what an international setup would look like for your specific product mix and target markets, get in touch and we'll map it out with you.
Are You Ready? A Quick Checklist
Work through this before you open up international orders. If you can tick everything off, you're in good shape.
I know which countries I'm targeting and have evidence of demand there
I've checked my products aren't restricted or don't require special certification in those markets
My HS codes are accurate and consistent across my storefront and fulfilment systems
I've decided on a DDU or DDP approach and my checkout reflects it
I've modelled the full cost of an international order and I'm comfortable with my margins
I have a clear delivery promise for international customers and it's on my website
I have a returns policy for international orders and a process to support it
I've spoken to a carrier or 3PL about the best shipping options for my target markets
The Bottom Line
The brands that approach international shipping methodically, working through markets, product compliance, pricing and fulfilment before they launch, tend to find it far less complicated than they expected. The ones that struggle are usually the ones who open up new markets without doing that groundwork and then find themselves firefighting customer complaints, unexpected costs and customs holds all at once.
Get it right and international shipping becomes one of the most powerful growth levers available to you.
The Bottom Line
Shipping internationally for the first time can feel like a big step, but the brands that approach it methodically, thinking through their markets, their product compliance, their pricing and their fulfilment model before they launch, tend to find it far less complicated than they expected.
The ones that struggle are usually the ones who open up new markets without doing that groundwork and then find themselves firefighting customer complaints, unexpected costs and customs holds all at once.
Take the time to get it right and international shipping becomes one of the most powerful growth levers available to you.
Ready to start shipping internationally but not sure where to begin? Book a call with the Hutch team and we'll put together a tailored shipping plan for your business. We work with Ecommerce brands at every stage of their international journey, from first shipment to full in-market fulfilment.
Published by Hutch Logistics
Helping growing Ecommerce brands deliver world-class fulfilment experiences.
