The Ultimate Guide To Cost-Effective International Shipping

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This post was reviewed for accuracy on 18/11/2024

Here it is, we’ve collected our extensive knowledge and expertise to bring you the ultimate guide to cost-effective international shipping. If you’re looking for cost-saving hacks, then you’ve come to the right place.

 

The Importance Of International Shipping

Before we get into our guide to cost-effective international shipping, you should understand why international shipping itself is so important!

If you are a small business in the UK who is looking to import goods from around the world, then international shipping is integral to making this happen.  

Importing goods to the UK grants your business wider access to a range of materials and ingredients. As an outcome, you can expand your product offerings, which will align your brand with diverse consumer preferences.  

International shipping grants small businesses a competitive advantage, as not only does it enhance the appeal of products but can also reduce costs. Some products may be significantly more affordable in other countries, so sourcing them in bulk could be more cost-effective.  

Some products available internationally may have a superior quality, due to craftsmanship, advanced technology, unique expertise or specific climates. Thanks to international shipping, businesses have access to premium goods that are not available to the same standard locally. 

Ensuring this process remains cost-effective is necessary for businesses. While importing to the UK can support our economy, we must ensure we are making sustainable choices for our businesses.  

 

image of a cargo ship in a port for blog The Ultimate Guide To Cost-Effective International Shipping

 

Important Factors For A Guide To Cost-Effective International Shipping

Distance

One obvious factor influencing the shipping price is the distance it must travel. The farther the distance, the greater the cost. This is down to the fact that more resources and time is required to complete the shipping process.  

The overall cost accounts for the fuel required for the journey and the labour. There are more handling operations during further afield shipping, as the shipment passes through multiple logistics zones.  

Freight Dimensions

The larger and heavier a shipment is the more it costs to transport. This is due to the amount of space it requires in shipping containers and the increase of labour, or even machinery, needed to handle the shipment. 

Shipping Times

Some customers require speedier shipping due to tight deadlines. Express shipping comes at a higher cost, as it requires not only an increase of speed but more resource-intensive logistics operations. 

Meanwhile, standard shipping comes at a lower rate, however, the shipment will take longer to arrive. Companies choose to ship worldwide but find an optimal balance between speed and cost.  

Customs And Duties

International shipping also requires covering customs duties, taxes and customs clearance. These costs are necessary and the inability to cover them could have a detrimental impact to your shipment.  

Businesses choosing to ship worldwide should ensure the shipping quote is transparent on these charges so they can accurately control their expenses. To estimate duty and VAT expenses, you can always use our online calculator 

Warehousing Fees

Usually, once your shipment has arrived at its destination country, it then goes to a warehouse where it is prepped for delivery. 

 Warehousing fees will be included in the overall shipping costs to account for logistics, transfer and labour. It is best to choose a shipping company that will organise this for you and find nearby warehousing facilities.  

 

image of Shippo warehouse for blog The Ultimate Guide To Cost-Effective International Shipping

Our Guide To Cost-Effective International Shipping

At Shippo, we are considered masters of all things sea freight, so here is our step-by-step guide to cost-effective international shipping.

  1. Compare Freight Forwarder Rates  

This does not mean choosing the lowest rate possible. In most cases, cheaper prices come at the sacrifice of attentiveness.  

Obviously, it is important to choose a budget-friendly quote, however, there are risks associated with international shipping that you should ensure are mitigated by your forwarding company.  

Sometimes, the cheaper quotes also will not include the hidden costs of international shipping, which will come in later. To avoid being blindsided, it is important to get a transparent quote. 

2. Optimise Packing  

As we know, weight and dimensions influence the cost of worldwide shipping. If the packaging of a shipment contributes to its bulkiness, this could negatively impact the shipping price. Opting for space-saving, lightweight packaging can be a simple way to reduce shipping costs.  

3. Consolidate Shipments  

By getting the most out of your shipment, you are equally making the most of your investment. If you’re shipping more than one package to the same place, you could consider options to consolidate those shipments and avoid needing to settle the cost of multiple shipments.  

4. Avoid Shipping At Peak Times 

As with more industries, there are peak shipping times, wherein the global demand for goods and shipping increases. An obvious one is the lead up to Christmas, but of course, when we’re talking international shipping, there are other holidays to consider (such as national holidays in China).  

Planning your shipping in advance will mean you can avoid congestion, inevitable delays and price fluctuations associates with peak times.  

 

Cost Effective International Shipping With Shippo

We hope this guide to cost-effective international shipping has been useful!  

For more tips and tricks on cost-saving shipping, take a look at our blog post that offers ‘10 Ways To Save Money When Shipping Via Sea Freight’.  

If you would like to know how Shippo can further help in your international shipping venture, then contact us today or get a quote here.  

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