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Posts Tagged ‘International shipping’

Avoid Being Taken When Selling Internationally

Tuesday, February 19th, 2008

When you make your living off retail sales, you don’t want to turn away anyone who is poised to give you their money for your products. But there is one selling arena that can be little tricky - international sales.

Unfortunately, any number of seemingly perfect international sales opportunities could very well be scams in disguise. As you consider selling internationally, there are some precautions you need to take to make sure you don’t end up the next victim.

Where Do You Want To Sell?

While you may want to think the whole world is your oyster, there are some parts of the world that may not be the pearl you hope they will be.  Some countries are more common locations for fraudulent buyers than others. For example, many areas of Eastern Europe are seemingly havens of fraud.

As you expand your business activities around the world, start with areas you are comfortable selling to - such as the UK, Australia, or Canada.

Eventually, as you learn the ropes of international selling and how to spot a scam, consider adding other countries to your list of places to do business.

What Payments Will You Accept?

It’s best if you take payments that are international, such as PayPal. The PayPal website will allow you to accept payments from people with accounts in any country. It will also take care of all the monetary conversions. If you use a credit card service, you can run any credit cards through your system.

Be leery of someone who wants to pay you through a wire service or by some sort of odd check. Many alleged “wire payments” are really scams that can make you believe you have money waiting so you will ship a package, but in reality, there is no money when you go to claim it at the wire transfer office.

Also, international checks can take much longer to clear than domestic ones. They may well be bad checks that you won’t know about until you have already shipped the item to the fraudulent buyer.

If you plan on accepting international checks, at least wait until the check clears before shipping the item. But the best advice we can give you is to not accept international checks at all, especially from buyers in high-risk countries.

Shipping

International shipping is not like US shipping. Prices can vary substantially for the same package depending on the destination. Make sure to weigh your complete package and use an online shipping calculator to find the proper weight and shipping price before you send the buyer the cost.

International shipping requires extra forms to be filled out as well. Some customers from other countries will ask you to lie on the customs forms you fill out to say the items are a gift, not a purchase. They’re trying to avoid duties charged by their country. If you’re caught in the lie, you can get in trouble - so don’t do it.

One big problem with international shipping is being able to prove the package made it to the destination. You should purchase insurance and tracking (and charge the buyer for these services); although when shipping out of the country, being able to keep track of a package is spotty at best.

If you don’t take these precautions, you may well find that fraudulent buyers will claim they never got the package and ask for their money back, even if they did receive your items.

Legalities

While some things are legal to sell in the US, they are not always okay to sell in other countries. Before you ship your items, make sure the things you are selling are legal to ship into the destination country - or you could be considered someone trying to ship in illegal contraband.

While it sounds like more of a nightmare than it’s worth, doing business internationally can be a very profitable venture and a rewarding experience. You open your business to multitudes of new sellers who may not be able to get the items you offer in their countries.

The important thing to remember is to balance the possible profits with caution and research to know what you are getting into.

Tags: Doing Business Internationally, global business, international payment, International shipping, Leeia Ladipoh, scams
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The Risks and Rewards of Exporting

Wednesday, January 2nd, 2008

Exporting can improve your small business in a number of ways. It can lead to additional sales revenue which may not have been possible in your domestic market. Going international can open up markets you did not have access to. It also can lead to increased profits, depending on the margins you are able to generate on your exported products.

Exporting does, however, have its risks and can leave you feeling out of control. There are a large number of variables that can impact your ability to export, many of which are beyond your control. So before committing your business to exporting your product or service, you must make certain you are aware of the positives as well as the negatives associated with exporting.

The Advantages

With increasing revenue you will need to buy larger amounts of products or raw materials from your suppliers. This will improve your negotiating power with your vendors/suppliers, enabling you to get better pricing. It is possible that you might qualify for discounts or better pricing per unit or you may be able to negotiate longer credit terms, meaning that you can keep potential borrowing to a minimum.

A new market means new customers who have not been exposed to all of your products. This is a great time to incorporate your vertical products and ancillary offering that compliment your main products or services. With a new market, the timing is ripe for you to move quickly and sell to your new customers.

Exporting can lead to increased sales which, if the costs are managed properly, can lead to a dramatic increase in profits. If your business has any seasonality to its sales patterns, an export market in your traditional “off season” can improve productivity, sales, and profits and can help even out the seasonal cycle you are stuck on.
When your business only has a few large clients, the loss of one of those clients can be particularly devastating to your business and the recovery from such a blow takes time. If you are diversified and have clients worldwide, you have improved your position against this type of a lost business or lost business volume scenario.

The Disadvantages

One of the biggest disadvantages of exporting for the small business is the increased exposure to risk. There are a variety of risks associated with exporting, just as there are risks in dealing with the domestic business climate. The risks include:

* Fluctuations in currencies can occur on a daily basis and effect both revenues and profits
* Shipping loss or damage to your products headed overseas
* Collection problems and slow paying accounts
* Delivery delays and customer service inquiries
* Language barrier when working through contracts, agreements, and other legal documents and solutions
* Ever changing market conditions

Language and cultural differences can also cause issues for your exporting business. Interpreters and cultural consultants cost money if you don’t hire a local contact in the country you are exporting to. Hiring a foreign national can cause a different set of complications you need to be ready to deal with.

While it is possible to outsource nearly every stage of delivery, this will cost money and further reduce profit margins. You may need more space to store and prepare products while you put an export order together. Additionally, if you are managing the new export offering, who will manage your current operations?

Exporting is an exciting expansion to a business that can bring tremendous financial rewards, but there is a risk associated with this potential reward. Consult and update your business plan and ensure you conduct an in depth risk-reward analysis before you move forward with your export plan.

Tags: Doing Business Internationally, exporting, International Market, International shipping, larry Slusser, lowering risk
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A Quick Guide to Freight Shipping

Thursday, November 22nd, 2007

If you need to ship freight using a LTL , or Less-than-Truckload service, there are some facts you should know before getting started. Pricing, packaging, and shipping methods are a bit different with freight shipping. This helpful freight guide will explain these differences.

Freight Shipping Prices

Freight shipping prices are often determined using a method called "Freight Class" or classification of shipments. There are four freight classifications: density, stow ability, ease of handling, and liability. Density is determined by the object’s weight as compared to the space it occupies. This is calculated in pounds per cubic feet. Stow ability is how the object will fit into the trailer along with other packages. Its size, weight, and shape are considered to help determine stow ability.

Ease of handling means how much special care (if any) the package will require. Liability is measured by value per pound, the item�s liability to damage, the package’s tendency to damage other freight items (through spills, explosions, etc.), or if the item is perishable. Freight companies will look at all four factors before determining a price.

Packaging for Freight Shipments

Freight is usually shipped on pallets with reinforcing shrink wrap. The shrink wrap must overlap and be layered to tightly secure the package. The box or item to be shipped must be well-secured to the pallet before wrapping. Avoid stacking multiple items on top of one another and never allow the freight to overlap the pallet. Also, place cardboard between the object and the pallet to reduce risk of damage. Freight shipping puts lots of strain on items, so adequate packaging should always be a top priority. Packing efficiently can also save you money on shipping.

Freight Shipping and Labeling

For multiple pieces of freight, provide a Bill of Lading with an accurate number of pieces and a detailed description of the products. This is especially important for companies to help prevent shortages. Labels should be placed on the packages and pallets, and all labels should match the Bill of Lading to ensure proper delivery. For special labeling to describe the package or to give special instructions, use brightly colored labels.

Freight Shipping to Other Countries

Freight shipping internationally requires certain documentation depending on the country. There are special Bill of Ladings, commercial invoices, a Shipper’s Export Declaration (SED), the NAFTA Certificate of Origin, and other documents to consider.

Save Money on Freight Shipping

When shipping freight, it’s wise to do your homework beforehand. Compare freight services, their requirements, and their pricing. You might also save big by using a freight broker instead of dealing directly with a trucking company. Freight brokers often receive huge discounts because they are dealing with trucking companies from a "wholesale" perspective. You can enjoy some of these savings as well if you plan to ship freight often.

Use this guide and check with freight companies to enjoy savings on all your freight shipping needs.

Tags: Freight, International shipping, less than truck load, saving money, shipping methods
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Selling Products Online - Go Global

Friday, November 16th, 2007

The Internet has opened up a whole new range of possibilities for entrepreneurs all over the world. There has never been such a big opportunity when it comes to reaching a huge customer base that could potentially use the products or services you offer, and with such a small outlay of capital.

Conducting global business when it comes to selling your products, though, means that there are some things you need to keep in mind. There’s a different approach for selling goods in different countries; let’s take a look at some of the most important things that you should be aware of.

Exchange Rates

If you are a business owner, and sell products globally, you need to be aware of the different exchange rates for currency in the countries you are selling to; it can make the difference between a big profit or a small loss. The recent skyrocketing of the Canadian dollar next to the United States dollar is a good example; receiving Canadian money now means that business owners in Canada are getting more product for their money.

Many businesses all over the world are taking advantage of this by taking Canadian money “on par” - that is, one dollar is equal to one dollar - and this means that instead of making one dollar on a sale, you are actually making $1.07 or so. Not a huge difference, but it adds up when you are talking big sales!

Finding a Market

Obviously, successful global product selling is going to mean that you need to suit your products to the needs of the people in the country where you are selling. Often this can mean just a minor tweak in a product that already sells well.

Use The Internet For Marketing!

Well, you already know that you are going to use the Internet to sell your goods, but you should also consider that this tool can also be used to attract new customers. Selling globally will mean that you use the same Internet marketing strategies that you use in your own country, but tailored to a specific “target” population.

You will have to research the keywords that are used the most by other countries, and that may even mean using different spellings than those you are used to. A good grasp of the customs, hobbies, and jargon of other countries can also help you to spread the word about your business on a global scale.

Something you may consider is partnering with someone from that country who can advise you on your marketing and selling strategy.

Shipping

Of course, the major concern when it comes to selling products globally online is shipping. Not only do you need to source the goods, you also need to ensure that the products make their way from wherever you have them stored to the customer safely and cost effectively.

This may even mean that you never come into contact with the products you sell yourself, besides the occasional sourcing trip; it will probably be cheaper to buy, sell, and ship products using companies that are totally based outside of your own country.

Selling products on a global scale has never been easier, and there is a lot of money to be made. The trick is in paying attention to some of the most important details and finding ways to meet potential customers on their terms; the right touch can lead to a very successful business.

Tags: Doing Business Internationally, E-Commerce and E-Business, International shipping, Leeia Ladipoh, selling internationally, shipping
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Taking the Next Step: Exporting Your Goods

Monday, November 12th, 2007

So, your products have been selling so great here in the U.S. that you’re thinking about selling them in another country. That’s great! Exporting can be a terrific way to grow your business and expand your market.

Exporting can seem a bit intimidating to those who have never done it, but if you have all the information and take the time to thoroughly understand the process, you’ll find that exporting can be a fairly simple process.

Here are some basic steps to help you understand the exporting process:

Finding your overseas market - Once you’ve decided that you would like to export your products, you will need to find buyers for your products. Many exporters find that working with a foreign partner makes the most sense, since they have the buying contacts. Finding the right overseas retailers or distributors for your products may be time consuming but it’s definitely not impossible. A good place to start is on two websites that are sponsored by the U.S. Commerce Department: www.export.gov and www.buyusa.com . Both sites contain directories of foreign buyers.

Making your product ready for a foreign market - This isn’t always simple. If you are selling an electrical product, you may need to make modifications to both the voltage and adapter. Another thing to consider is whether or not your product needs to be in metric standards in order to integrate with other foreign products. Also, your instructions, warranties, product packaging and labels will need to be in that country’s language, with an easy way for foreign customers to submit warranty information.

Shipping Your Products - There is a lot of documentation involved in exporting products and many companies choose to hire a freight forwarder to take care of the shipping and prepare the paperwork. The money that you spend on a freight forwarder will many times be saved by their shipper connections and discounts. For more about freight forwarding, read our article Choosing and Using a Freight Forwarder .

Here are the documents you may need in order to ship your products overseas:

Export license - Normally, exports don’t require this license, however, there are certain categories of products which do need an export license in order to leave the U.S. They are:
* Foodstuffs and chemicals
* Agricultural products

Certificate of origin - In order to qualify for a country’s preferential tariff treatment, you will need to have this form. Many countries allow products a duty-free entrance into their country as long as you comply with their rule of origin.

Insurance certificate - This is usually required in order for your goods to be in transit. Usually the exporter pays for insurance up to the arriving port and then the shipping company provides insurance to the final delivery destination.

Bill of Lading - This is the contract between the exporter and your carrier. The carrier is typically the issuer of this document; however the terms are usually negotiable.

Airway bill - This is only needed for freight shipping via air. Again, the carrier issues it; however, this bill is typically non negotiable.

Invoice - If your goods are being shipped to a particular buyer, and not to a warehouse, then your shipment should include an invoice. This will contain exporter information, payment terms, pricing information, total quantities and the shipment’s weight.

Packing list - The packing list needs to clearly state exactly what is in the containers, the value of the products, and the weight of the products. If there is a mistake on your packing list, it may result in your shipment being delayed in customs.

If you’re a first-time exporter, it may be wise to enlist the help of a freight forwarder to help you with all the details and to make exporting even easier to you. You’ll find that once you understand the process, exporting isn’t as mystifying as you once thought.

Tags: Carrie Hinkel, Doing Business Internationally, expanding, exporting, International shipping, selling overseas
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Choosing and Using a Freight Forwarder

Thursday, October 25th, 2007

Freight forwarders are professionals who handle the shipping of items, usually from overseas. They provide you with all of the information of a shipment, including routes and rates, and they are even able to book cargo space for you. Depending upon the responsibilities outlined in the shipping instructions, the freight forwarder will do many different things for you. They are also able to handle document issues for importing goods.

It’s important to choose the right freight forwarder for your business needs. There are many places that can help you find the one that will fit your needs. You can, of course, check your local yellow pages for freight forwarders to help with your shipping. However, some people are hesitant to choose a business this way. If you do, be sure to check the company’s references and speak to someone about the way they do their business, such what they are most familiar with, and what (if any) areas they specialize in. You can also check on their fees. Find out also if they have any experience with shipping items similar to your items. It’s okay to ask questions to find out if the company will be the one you want to use. If they are hesitant to answer questions, or don’t want to take the time, go with another company!

Most people prefer to use a freight forwarder that has been recommended. If you are this way as well, try checking with other local businesses that may use a freight forwarder. Ask about their level of satisfaction with their freight forwarder and see if you can get names. This way, you will have a bit of an inside scoop on how they perform and what kind of customer satisfaction they provide.

A freight forwarder will handle many things for you, including finding and planning the most proper route for your cargo to go. They will also make sure that the package is delivered to a warehouse for distribution when it arrives at its final location. When it is needed, the freight forwarding company may even transfer the goods for you to the final location. They will see to special needs such as a courier service or hand delivered item. Your freight forwarder should be able to arrange air or sea carriers for your shipments as well. One of their top concerns should be making sure that you make your deadlines as far as shipping goes. It is important that your freight forwarder provides all of these services to you. Before you hire a freight forwarding company, check to make sure that all of these services and anything else you would need is provided

Working with a freight forwarder gives you the peace of mind to know that your shipments are being handled, which is one less thing for you to worry about if you own a business.

Tags: Doing Business Internationally, Freight, International shipping, shipping, shipping methods
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Tips for International Shipping

Wednesday, September 26th, 2007

Tags: calculated shipping rates, Doing Business Internationally, Freight, International shipping, shipping, UPS
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