How Can Ecommerce Businesses Cut The Cost Of International Sales?

How Can Ecommerce Businesses Cut The Cost Of International Sales?

If you run an ecommerce business, expanding into international sales is a good way to boost your revenue. Many businesses find that it’s a good way to increase their conversion rate because they are opening themselves up to larger markets. But it’s not all good news because you also have to cover the increased costs associated with international sales. The shipping costs are higher and there are also other administrative costs that you must absorb.


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You could, of course, increase your prices in international markets to cover some of these costs but that makes it difficult to stay competitive. Why would somebody buy from your site if local competitors can offer the same products at a lower price?

The solution then, is to find ways to cut costs on your end so you can continue to offer competitive prices on international sales. These are some of the best ways to cut the extra costs associated with international ecommerce sales.

Consider Your Payment Methods

The payment methods that you choose make a big difference to the fees that you have to deal with. The exchange rate between currencies can eat into your profits and some payment platforms will charge fees if you want to take payment in a different currency. That’s why it’s best to have native bank accounts in the countries that you are shipping to. For example, if you have a USD bank account, it’s a lot easier to take payments in America without incurring extra fees. Make sure that you do some research into your different payment and bank account options in different countries, so you can find solutions with the lowest possible fees.

Find Ways To Reduce Shipping Costs

International shipping costs can be high and although a lot of that is absorbed by the customer, you need to be careful about pushing the price too high. If you are able to reduce international shipping costs, you can increase your own profit margins and offer a better deal to the customer. You may be able to negotiate better rates with your carrier if you are sending large volumes. Take a look at your packaging as well and streamline it so your parcels are as small as possible. Buying your packaging materials in bulk is another simple way to cut your shipping costs.

Avoid Countries With High Tariffs

Import tariffs are a big problem for ecommerce businesses that want to trade internationally. If you have to pay a fee to send products to specific countries, this is going to end up costing you a lot of money. Unless you want to put that extra cost on to the customer, you will have to absorb it yourself. You should consider the tariffs and whether it is worth your while sending products out to those countries or not. In some cases, the tariffs are not too steep and you can still make a good profit on the product. But countries with high tariffs may be worth avoiding.

Follow these simple steps and you can reduce your international shipping costs and increase your profit margins.