On average the holiday's increase sales by 30% for US merchants. Many merchants also experience an increase in fraud and charge backs during this time. One of the main reasons is because of the lack of tracking and the inability to determine whether a shipment has been delivered.
While the USPS is cheap it's somewhat unreliable and has no tracking to the door. Shipping with FedEx, UPS or DHL are a better solution to this problem; however, the higher shipping costs are the barriers to entry. If you don't have the international shipping volume you are penalized with higher international shipping rates. All carriers gives shipping discounts based on volume, so the higher the volume the better the discount and the converse is true.
Another issue merchants run into are duties and taxes. International consumers are responsible for paying the duties and taxes (D&T) and merchants run the risk of being charged those D&T's if the consumer refuses to pay if they are shipping with FedEx or UPS. FedEx and UPS will eventually deliver your product (or ship back at your import rates - if you don't import then you'll pay the rack rate), when the consumer refuses to pay and the "shipper" (you) are charged the D&T fees. However: DHL does not deliver the shipment until the D&T are paid by the consumer. if consumer refuses to pay, DHL will return your products at NO Extra cost. Keep in mind you are still responsible for the original shipping cost, so I advise having something in your shipping policy saying "if D&T are refused, we will reimburse the cost of the product but not the shipping costs". DHL is a huge saver in this area.
Holiday App Solutions Recommendations:
- Riskified - Charge Backs (up to $50k in sales no cost): They will validate the consumers information and provide a risk score based on the data provided by the consumer. They are insurance for charges backs.
- InXpress - USPS alternative (Free): Their systems ties into DHL's and they will request a DHL account on your behalf, the account is no different than if you went directly to DHL and opened an account; however, you receive a discount based on InXpress's entire group of companies (keep in mind they are the 5th largest DHL customer). The volume discount is based on 15,000+ international shipments a month and $1.4M per/week in revenue with DHL. Your rates will be extremely competitive with the USPS. On average, merchants are saving 45% - 50% off their existing FedEx or UPS rates. Shipments will arrive in 3 days or less anywhere in the world (assuming no customs issues) and you will be able to provide tracking to the door for your clients, PayPal (if needed), and peace of mind. You will also have direct access to InXpress's Certified International Specialist to answer any questions you may have about what documents are needed or how to set up their seamless app.
- How to create int'l shipping labels and documents? ShipStation (free 30 day trail): Create your domestic labels for USPS, FedEx, UPS. You can mix and match them and connect any of your other Marketplaces (Amazon, eBay, etc...) and print from one location. ShipStation will also provide you with all the international shipping documents you need and submit the electronically. ShipStation will also automatically email your customer the tracking number (write-back) for each shipment.
I hope this helps.