Factors to consider
When choosing international carriers, it's essential to look beyond the basic costs. Each carrier offers different options, from shipping speed and customer choice to tracking capabilities and reliability. Considering these factors will help create a shipping strategy that aligns with your customers' expectations while managing costs effectively. Below are the key factors to keep in mind when evaluating carrier options.
Choice: Ensure customers have multiple shipping options
Providing a range of shipping options at checkout can enhance the customer experience and boost conversion rates. When shoppers see only one shipping option, they face a yes-or-no decision. Offering two or three options gives them more flexibility and increases the likelihood they'll complete their purchase.
Three types of shipping to offer:
Ideal for cost-conscious customers willing to wait longer for delivery. See examples below.
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UPS: Worldwide Economy or UPS Standard (international to Canada and Mexico)
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FedEx: FedEx International Connect Plus (FICP)
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USPS: First Class Package International or USPS Retail Ground
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DHL: DHL eCommerce
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Canada Post: Expedited Parcel International (for non-urgent deliveries)
A middle-ground option balancing speed and cost. See examples below.
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UPS: Worldwide Expedited
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FedEx: International Economy
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USPS: Priority Mail International
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Canada Post: Xpresspost International
Perfect for customers who want fast delivery and are willing to pay a premium. See examples below.
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UPS: UPS Worldwide Express or UPS Worldwide Express Plus
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FedEx: FedEx International Priority
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USPS: Priority Mail Express International
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DHL: DHL Express Worldwide
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Canada Post: Priority Worldwide International
Speed: Meeting customer expectations
Shipping speed is a significant driver of customer satisfaction. While some customers are willing to wait for a lower-cost option, others prioritize speed and will pay for faster delivery. Offering a range of shipping speeds—from express to economy—helps ensure the needs of various customer segments.
Cost: Aim to offer customers the lowest shipping costs
Shipping costs can make up a significant portion of a shopper's total order value, so it's important to negotiate rates with carriers where possible. Additionally, consider potential hidden costs like demand surcharges, oversize surcharges, and additional handling surcharges. Be aware of each carrier's options for duty and tax payment (e.g., bill sender, bill third party, bill consignee), and choose one that aligns with a business's pricing strategy.
Additional considerations: Tracking, reliability, and insurance
Businesses should consider additional factors like tracking services, reliability, and insurance to optimize the shipping strategy further, especially for businesses that ship high-value goods.
Types of carriers
When shipping internationally, merchants have a choice of carriers and service levels, each with unique advantages and challenges. Understanding these types is crucial for selecting the right partners that align with your business's needs, whether cost, speed, or reliability. Below, we outline the main types of international shipping carriers and their characteristics to help you make an informed choice.
Postal services
Postal services are ideal for small, lightweight packages and offer broad global reach. They are cost-effective but may be slower and provide less detailed tracking, especially for international shipments where tracking can become inconsistent after transfer to another country's postal system. One significant limitation of traditional postal services is their inability to support Delivered Duty Paid (DDP) shipping, leaving recipients responsible for duties and taxes at delivery. To address this, Zonos offers a solution that makes DDP possible for postal shipments, enhancing the international shipping experience for businesses and their customers.
Zonos has pioneered a solution that enables postal services to support Delivered Duty Paid (DDP), providing businesses with a low-cost, transparent, and streamlined international shipping option. Learn more about Zonos Postal DDP.
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Examples: USPS, Deutsche Post, Swiss Post
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Choice: Offers a range of slower or faster services, from economy to priority.
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Speed: Slower delivery, often with limited tracking.
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Cost: Low, ideal for lightweight packages.
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Reliability: Typically less reliable, but depends on the country.
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Tracking: Basic, may not provide proof of delivery. Only certain postal service levels provide tracking. For example, USPS only offers tracking for the following service levels: Priority Mail Express International, Priority Mail International, and First Class Package International Service.
Integrators/express carriers
Integrators handle the entire shipping process, from pickup to final delivery. They provide reliable, global coverage with advanced tracking, distinguishing them from more cost-effective options like postal services and consolidators. They also offer DDP shipping, which allows sellers to either cover the duties and taxes for shipments or implement a solution to let shoppers pay for them upfront, reducing delivery delays and eliminating surprise fees for customers. Prepaid duty and tax can be a key advantage for ecommerce businesses looking to streamline cross-border transactions and enhance the customer experience.
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Examples: FedEx, UPS, DHL.
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Choice: Includes standard, economy, and express services.
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Speed: Faster delivery options, with express services reaching most global destinations in a few days.
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Cost: Higher than postal services, especially for express options.
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Reliability: Generally high, bolstered by advanced tracking features.
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Tracking: Detailed and real-time across every leg of the shipment.
Consolidators
Consolidators combine multiple merchants' shipments into one larger shipment or container, which allows them to reduce shipping costs, especially for high-volume shippers. While slower than integrators, they offer significant savings for larger shipments.
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Examples: Ascendia, DHL eCommerce Solutions
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Choice: Usually offers slow, economical options.
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Speed: Slower delivery times, but more affordable.
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Cost: Lower due to bundling shipments.
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Tracking: Basic, though less comprehensive than integrators.
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Reliability: Solid for eCommerce, but not as fast or flexible as integrators.
Resellers
Resellers negotiate bulk shipping rates with carriers and pass these discounted rates on to businesses. They can offer significant savings, especially for companies without the volume to negotiate directly with carriers.
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Examples: EasyPost, Parcel Monkey
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Choice: Resellers offer discounted services from major carriers like FedEx, UPS, and DHL.
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Speed: Varies depending on the carrier and service chosen.
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Cost: Lower rates than going directly to the carrier.
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Tracking: Same as the carrier service used.
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Reliability: Dependent on the performance of the primary carrier used.
Third-party logistics providers (3PLs)
3PLs handle all logistics services for ecommerce merchants, including warehousing, order fulfillment, and shipping. Many 3PLs partner with multiple carriers, providing flexible shipping options and bulk discounts.
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Examples: Geodis, Landmark Global
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Choice: A single provider will offer a range of carriers and shipping options.
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Speed: Generally, 3PLs provide a range of service levels and carriers to offer flexible speed options to accommodate different business needs.
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Cost: Usually lower due to bulk discounts, with various service options.
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Tracking: Provided by the carrier used for the shipment.
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Reliability: Depends on the quality of the 3PL and its carrier partners.
Regional carriers
Regional carriers bring specialized knowledge and experience within their specific geographic areas. This regional expertise allows them to navigate local customs, regulations, and logistical nuances more effectively than global carriers. This specialization leads to smoother deliveries, fewer delays, and higher customer satisfaction. These carriers often provide better tracking and localized support, enhancing the delivery experience.
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Examples: Aramex (Middle East), Yamato (Japan)
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Choice: Limited to specific regions but highly specialized.
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Speed: Fast within its region of service.
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Cost: Often lower for regional deliveries compared to global carriers.
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Tracking: Reliable within its region of service.
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Reliability: High for local deliveries due to regional expertise.
Volume-based carrier options
With an understanding of the different carrier types you can explore tailored options for your business based on your shipping volume.
Options for small to medium businesses
For small businesses, choosing the right international shipping carrier should be a balance between costs, delivery speed, and reliability. While larger businesses can negotiate better rates and work with multiple carriers, small businesses often face more constraints. However, by understanding their shipping volume and needs, small businesses can still select carriers and solutions to optimize their international shipping strategy while maintaining competitive pricing and options that appeal to their shoppers.
Sticking with postal services is often the best approach for businesses shipping only a few international packages monthly. Postal carriers like the United States Postal Service (USPS), Royal Mail (UK), or Correos (Spain) offer affordable shipping rates, especially for light packages. These services are reliable for small shipments and come with basic tracking. While the shipping speed may be slower, postal services typically don't require you to hit a minimum volume to get reasonable rates, making them ideal for low-frequency shippers. Small businesses should assess their carrier strategy annually as they increase volume or expand to new markets. Regular re-evaluation helps ensure that the chosen carriers still align with the business's evolving needs and customer expectations.
Carrier types to consider:
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Postal services: Best for lightweight, low-value items.
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Cost: Low
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Speed: Typically slower but suitable for non-urgent deliveries; also offers express options for a higher rate.
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Tracking: Basic but sufficient for low-value items.
As businesses start shipping more frequently but still lack the volume to secure their own discounted rates, moving to a reseller or third-party logistics provider (3PL) can help them access lower rates. Resellers allow businesses to benefit from discounted rates with integrators/express carriers (like FedEx, UPS, or DHL) due to the reseller's volume, providing better shipping rates without requiring high volume.
Carrier types to consider:
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Resellers or 3PLs: A middle ground between postal and direct express carriers—allow you to leverage better rates and service levels.
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Cost: Lower than going directly to express carriers.
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Speed: Express and standard options are available to offer faster deliveries for high-value packages.
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Tracking: More robust options compared to postal services.
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Postal services: Best for lightweight, low-value items.
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Cost: Low
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Speed: Typically slower but suitable for non-urgent deliveries; also offers express options for a higher rate.
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Tracking: Basic but sufficient for low-value items.
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At this stage, small businesses begin to reach a volume that justifies direct negotiation with express carriers like FedEx, UPS, or DHL. When businesses reach this level, it may be worth considering signing contracts directly with these carriers to negotiate better rates and services. They may also explore consolidated shipping options, where packages are bundled to reduce costs further or consider using region-specific carriers for high-volume destinations (e.g., Europe or Canada).
Carrier types to consider:
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Direct express carriers: This is the best option for businesses needing fast shipping when they have enough volume to negotiate better rates.
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Cost: Negotiable based on volume.
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Speed: Fast, with multiple service levels.
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Tracking: Detailed and reliable for all shipments.
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Consolidators or regional carriers: Ideal for targeting high-volume lanes to specific countries.
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Cost: Low for bulk shipments.
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Speed: Standard shipping, but with cost savings.
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Tracking: Good, though it may vary based on the carrier.
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Options for large/enterprise businesses
For enterprise-sized businesses shipping large volumes internationally, the complexity and scale of their operations open up various carrier options. The primary focus here is optimizing costs, enhancing speed, and maintaining reliable service, all while offering a range of choices to customers at checkout.
Most large businesses meet or exceed this volume. At this level, businesses have significant negotiating power with carriers. They can explore advanced shipping options like consolidating shipments, working with multiple carriers across different regions, and even setting up localized fulfillment centers in key markets.
Carrier types to consider:
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Express carriers: Businesses with high shipping volumes can negotiate highly competitive rates with express carriers. Businesses can work directly with the carrier's enterprise team to customize their shipping strategy based on the size and weight of shipments.
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Cost: Negotiated at high-volume rates.
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Speed: Fast and flexible.
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Tracking: Advanced with detailed visibility at every stage.
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Consolidators for bulk shipping: Consolidators become especially useful when shipping large volumes to specific countries. By aggregating shipments, consolidators can offer lower rates and help manage customs clearance more efficiently, speeding up delivery and reducing costs.
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Cost: Low for high-volume shipments.
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Speed: Standard shipping, but cost-effective for large shipments.
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Tracking: Standard with regional variation.
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3PLs with regional expertise (e.g., Airhouse) when businesses have localized fulfillment centers: For businesses shipping globally, setting up local fulfillment centers in key markets like the EU or Canada can significantly reduce shipping times and costs. Local inventory also allows for faster last-mile delivery, improving customer satisfaction. Partnering with a 3PL that can handle distribution and fulfillment in various regions helps streamline operations.
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Cost: Moderate, depending on the fulfillment center location and services.
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Speed: Fast, as goods are stored closer to the customer.
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Tracking: Comprehensive, with visibility across the entire supply chain.
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Summary
Whether a small business is shipping just a few international packages each month or a large enterprise handling hundreds of shipments daily, aligning carrier choices with shipping volume and needs is key to optimizing an international shipping strategy.
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Low volume: Use postal services for affordability.
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Moderate volume: Use resellers or third-party logistics providers to access better rates.
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High volume: Negotiate directly with express carriers and explore consolidator services or local fulfillment options.
As a business grows, it should regularly re-evaluate its carrier strategy to stay aligned with changing customer expectations, new shipping destinations, and evolving market conditions. This ongoing assessment helps ensure that businesses continue offering their customers the best options while effectively managing costs. By aligning carrier strategies with business needs, companies can navigate the complexities of international shipping with greater confidence and success.
This approach ensures that businesses keep offering competitive options for customers while controlling costs, allowing them to navigate the complexities of international shipping with greater confidence.
Choose the best international shipping carrier
Make informed decisions for your business based on several factors.
For ecommerce businesses shipping internationally, selecting the right carrier is essential for streamlining operations, reducing costs, and ensuring customer satisfaction. The size of a business can play a significant role in this decision—larger companies may be able to negotiate better rates or handle multiple carriers. In contrast, smaller businesses need to prioritize cost-effective solutions. Each country comes with its own set of shipping challenges, making it vital to select carriers that suit a business's needs in terms of speed, service, and cost. Often, this means using more than one carrier for different regions or order types.
This guide covers everything you need to make informed decisions across four key areas:
Factors to consider when selecting carriers
Types of international shipping carriers
International carrier options for small businesses
International carrier options for large/enterprise businesses