Small and medium-sized businesses (SMEs) face many challenges when expanding their business into international markets. In particular, choosing the right shipping partner can significantly affect success. Whether selling on a marketplace, distributing products through a dedicated e-commerce platform or selling offline, it is crucial to consider the following six factors when choosing a shipping partner to facilitate cross-border business.
1. Reliability
A reliable shipping partner is essential for success both at home and abroad. Customers benefit, especially if the partner has sufficient experience and a strong local presence in the target markets. A well-established network and long-standing expertise are strong indicators of a partner’s reliability. A shipping partner that has proved its reliability can help build trust and strengthen long-term business relationships between customer and company. Having a reliable partner with relevant local or regional expertise on-site is particularly beneficial when entering new markets.
2. Speed of delivery
Speed of delivery plays a critical role in end customer satisfaction. Fast delivery times help increase customer satisfaction and provide a competitive advantage. Customers appreciate when their orders are delivered quickly and on time – which positively affects brand reputation. However, it is important to ensure that speedy delivery doesn’t come at the cost of damage to items or lack of delivery oversight. Therefore, offering different service levels to meet individual needs is advisable.
3. Delivery options
Different markets have different preferences for delivery options. It is important to ensure that various delivery options are offered to meet the needs of international customers. Customers increasingly seek not only to select the speed of delivery but also to choose a preferred convenient delivery location, such as parcel lockers or service points. Depending on the service, customers are even given the freedom to choose their preferred delivery options while the shipment is already in transit. This flexibility allows customers to confidently select the shipping method that best aligns with their evolving needs and, at times, last-minute schedule changes.
4. Landed costs
Customers appreciate being informed of all costs up front and not being faced with hidden charges. Therefore, transparent and fair shipping costs are very important to end customers. To provide a seamless purchasing experience free from unexpected costs, and avoid unpleasant surprises, sellers should ensure that prices to customers include all shipping and customs charges. Transparent pricing can help increase customer confidence, facilitate purchase decisions and build customer loyalty.
5. Returns
Returns can be complex and costly, especially when they cross international borders. Therefore, it is advisable to ensure that the chosen shipping partner has the right solutions to make returns as easy as possible for business and customer. This includes a well-established, straightforward process and the ability to create return labels online. A smooth returns process is an important element in increasing customer satisfaction and building trust in the brand. Informing customers about the landed costs up front offers the additional advantage of reducing return rates by preventing surprises and ensuring transparency from the outset.
6. Transportation costs
Comparing transportation costs between different carriers is also critical. From the customer’s perspective, it is not just price that matters but also the quality of services offered, such as tracking and tracing, shipment protection and customer service options. Depending on the business model, other decision factors could include the availability and use of modern technologies, flexibility, a sustainability strategy and strategic partnerships that can serve as a basis for further scaling.
Broad expertise for global market expansion
Partnering with an experienced and reliable shipping company offers many advantages, especially when the services offered are tailored to the needs of small and medium-sized businesses. This customer group benefits from a global network with customized solutions for individual needs, and various shipping services from express to freight. All these factors make it clear that selecting a shipping partner is a strategic choice for SMEs, as it lays the foundation for optimized international shipping processes and global success in new markets. With that, businesses can focus on their growth and expansion while having peace of mind thanks to reliable logistics and shipping services.
Small or growing businesses looking to improve their logistics efficiency and expand their market reach across borders can find valuable insights and tips to optimize their operations in DHL’s new content space at www.dhl.com/international-expansion/us