The Opportunity Is Massive — And So Are the Headaches
Here's the pitch for international shipping: there are roughly 2.7 billion online shoppers worldwide, and only about 270 million of them are in the United States. By shipping only domestically, you're ignoring 90% of the global e-commerce market.
Now here's the reality check: international shipping involves customs paperwork, unpredictable delivery times, duty and tax calculations, higher carrier costs, and return logistics that can make your head spin. I've watched sellers get excited about their first international order, then spend 45 minutes figuring out how to fill out a customs declaration.
But it can absolutely work. I know sellers doing 30-40% of their revenue internationally with solid margins. The difference between them and the ones who gave up? They understood the real costs upfront and picked the right tools.
The Real Costs Beyond Postage
When you ship domestically, your cost is basically postage + packaging. International shipping adds several layers:
Duties and import taxes are charged by the destination country based on the product category and declared value. The customer typically pays these on delivery (unless you prepay them — more on that shortly). EU countries charge 20-25% VAT on most goods. Australia adds 10% GST on imports over AU$1,000 (they lowered this from the previous threshold). Canada charges 5-15% depending on the province.
Brokerage fees are what carriers charge to process your package through customs. FedEx and UPS charge $5-15 for this on most shipments. USPS generally doesn't charge brokerage because the destination country's postal service handles customs processing.
Customs processing delays aren't a direct cost, but they eat into your customer satisfaction. A package sitting in customs for 5-10 days generates support tickets. Budget extra time for responses.
Returns are expensive internationally. A return from Germany to the US can cost $20-40 in postage. Most international sellers either offer store credit instead of returns or eat the cost on high-value orders and write off low-value ones.
DDP vs DDU: The Decision That Shapes Your Customer Experience
This is the most important concept in international shipping, and it's surprisingly simple:
DDU (Delivered Duty Unpaid) means the customer pays duties and taxes when the package arrives. The carrier or postal service collects the charges at delivery. This is how most small sellers ship internationally by default.
The problem: your customer ordered a $30 item, paid $12 for shipping, and then gets hit with $8 in duties plus a $5 brokerage fee at their door. They weren't expecting it, and now they're angry. Some refuse delivery entirely.
DDP (Delivered Duty Paid) means you collect duties and taxes at checkout and prepay them. The customer pays one price upfront and nothing on delivery. This is a much better experience but requires you to accurately calculate landed costs.
Tools like Easyship calculate DDP costs at checkout automatically. If international is more than 10% of your orders, DDP is worth the setup effort. Your refund and complaint rates will drop significantly.
Customs Documentation: What You Actually Need
Every international shipment needs customs paperwork. Here's what's involved:
Customs Declaration (CN22/CN23): This is the form attached to every international package. It lists what's inside, the value, and the HS code. Your shipping software fills this out automatically — you just need to provide the right product information.
HS Codes (Harmonized System): These are universal product classification codes that determine duty rates. "Cotton t-shirt" is HS code 6109.10. "Scented candle" is 3406.00. Getting these right matters because the wrong code can mean higher duties or customs holds.
Look up HS codes at hts.usitc.gov. For most consumer products, you need 6-digit codes. Your shipping software might suggest codes based on product descriptions, but verify them — a wrong HS code can delay your package or cause your customer to overpay on duties.
Commercial Invoice: Required for shipments valued over $2,500 or when shipping with commercial carriers like FedEx and UPS (they require it for all shipments regardless of value). This lists the buyer, seller, product descriptions, quantities, values, and HS codes. Again, your shipping software generates this automatically.
Choosing the Right Carrier for International
Not all carriers are created equal for international, and the right choice depends on destination, speed, and budget.
USPS First Class Package International is the cheapest option for items under 4 lbs. A 1 lb package to the UK costs about $15-17. Transit time is 7-21 days (yes, that range is real — USPS international tracking gets spotty once it leaves the US). Best for: low-value items where speed isn't critical.
USPS Priority Mail International gives you 6-10 day delivery with better tracking for $28-45 depending on weight and destination. Includes $200 of insurance. Best for: mid-value items where you need reasonable speed and tracking.
DHL eCommerce is a sweet spot between price and reliability. They handle the international transit and hand off to local postal services for last-mile delivery. Rates are competitive with USPS but tracking is more consistent. Transit time is 5-12 days. Accessible through Shippo and other shipping platforms.
FedEx International Economy and UPS Worldwide Expedited are the premium options at $40-80+ per package. Transit time is 2-5 days with full door-to-door tracking. They handle customs clearance and brokerage. Best for: high-value items where you need speed and reliability.
DHL Express is the fastest international option at 1-3 days worldwide, but expect to pay $50-100+ per package. They're the gold standard for international B2B and high-value B2C.
Country-Specific Issues You'll Hit
Every experienced international seller has horror stories about specific countries. Here are the ones that trip people up most:
Brazil has notoriously strict and slow customs. Packages can sit for 30-60 days. Duties are steep (up to 60% of declared value), and there's an additional ICMS tax. Many sellers simply don't ship to Brazil, and honestly, unless it's a huge market for you, it might not be worth the support burden.
The EU and VAT (IOSS): Since July 2021, the EU requires VAT to be collected at the point of sale for orders under EUR 150. If you're selling into the EU, you need to register for IOSS (Import One-Stop Shop) or your customers will be charged VAT plus a handling fee at delivery. Easyship and some other platforms can handle IOSS registration and remittance for you.
Australia GST: Australia charges 10% GST on imported goods. If your annual sales to Australia exceed AU$75,000, you're required to register for and collect GST. Under that threshold, parcels under AU$1,000 are generally GST-free at the border.
Canada is one of the easiest international destinations. De minimis is CA$20 for taxes and CA$150 for duties, meaning small orders often arrive without any additional charges. USPS to Canada Post handoff works well, and transit times are typically 5-10 days.
UK post-Brexit: The UK has its own VAT system separate from the EU. Orders under GBP 135 require you to collect 20% VAT at checkout. Above that, customers pay at delivery.
Tools That Make It Manageable
You don't have to figure all this out manually. Here are the platforms that actually help:
Easyship is purpose-built for international shipping. Their standout feature is the landed cost calculator — it shows your customer the total cost including duties, taxes, and shipping at checkout. They support 250+ carriers and handle customs documentation automatically. If international is a core part of your business, Easyship is the first tool I'd recommend.
Shippo handles international label generation well and offers competitive rates through DHL eCommerce and other international carriers. Their API is excellent if you need custom integrations. Not as deep on the duty calculation side as Easyship, but solid for label printing and rate comparison.
AfterShip isn't a label printing tool — it's a tracking platform. For international shipments where tracking gets unreliable between handoffs, AfterShip consolidates tracking data from multiple carriers into one view. This cuts your "where's my package?" support emails dramatically.
When to Use Regional Fulfillment Centers
If you're shipping more than 100 international orders per month to a specific region, it's worth considering a fulfillment center in that region. Storing inventory in a UK warehouse, for example, means UK customers get 1-2 day delivery at domestic shipping rates, with no customs or duties.
Services like ShipBob, ShipMonk, and Amazon FBA all offer international fulfillment centers. The economics usually work at 100+ orders per month per region — below that, the storage and management fees outweigh the shipping savings.
Handling International Returns
This is the part nobody wants to talk about. International returns are expensive and complicated. Here's what works:
- Under $30 value: Issue a refund and tell the customer to keep it. The return shipping will cost more than the product.
- $30-100 value: Offer a partial refund (50-70%) without return, or full refund with return at customer's expense. Most will take the partial refund.
- Over $100 value: Provide a prepaid return label. Consider using a return consolidation service that batches international returns and ships them back in bulk.
- Set clear expectations: Your international return policy should be prominently displayed. Many sellers offer a 30-day window for domestic and 45-60 days for international to account for shipping time.
Getting Started Without Getting Overwhelmed
If you haven't shipped internationally before, don't try to go global overnight. Start with Canada and the UK — they're English-speaking, have reasonable customs processes, and are high-spending e-commerce markets.
Ship your first 20-30 international orders manually through USPS or DHL eCommerce via Shippo. Learn the customs forms, understand the timelines, and see what questions your customers ask. Then scale up with Easyship for DDP pricing and expand to additional countries.
International shipping has real friction, but so does ignoring 90% of your addressable market. The sellers who figure it out gain a meaningful competitive advantage over those who won't bother.