Expanding into international markets can unlock significant growth opportunities, but selecting the right delivery model can help you ensure profitability, operational efficiency, and customer satisfaction.
After all, the selected delivery model will impact every part of your operations, from overall shipping costs to compliance, requiring careful evaluation of your product and business goals. With a projected increase of 7% in parcel deliveries year after year, logistics companies are becoming more streamlined and important than ever.
Let’s explore the primary factors and steps involved in choosing the right international delivery model for your products.
3 Powerful Factors to Consider When Choosing an International Delivery Model
The most powerful factors you must consider to ensure that the international delivery model you choose aligns with the product you are shipping are:
#1 Characteristics of the Product
When finalizing a suitable international delivery model for your product, you must consider its physical and logistical characteristics.
When shipping bulky items such as plastic wrapping rolls and paper tissues, the shipping process can be expensive due to space constraints. On the other hand, if you are dealing with dense items such as steel rods or books, the shipping process is comparatively more efficient as you can better utilize your shipping capacity.
On the other hand, high-value and lightweight items such as electronics can lead to higher shipping costs. In these cases, you should consider opting for sea freight over air freight to lower the overall shipping costs. Whereas, you need cost-efficient shipping options for market viability when dealing with low-value, heavy items such as ores or sand.
Additionally, fragile or highly valuable products require special handling, efficient packaging, or temperature-controlled logistics.
#2 Profit Margins
International shipping costs can impact your profit margins, including warehousing, customs duties, freight charges, fuel, and even insurance. Aside from this, you must consider crucial aspects such as freight rates, market demand, and operational and compliance costs.
The ideal international delivery model must consider regulatory requirements and documentation, which can significantly contribute to your overheads, and the ability to optimize costs and protect your bottom line.
#3 Customer Expectations & Preferences
Understanding the expectations and preferences of your international customers is important before deciding on a delivery model. Remember, the international delivery model you choose must be capable of driving satisfaction and repeat business.
The primary customer expectations to consider in the process of choosing an international delivery model are:
- Many customers prioritize lower or free shipping costs and are sensitive to fluctuations in delivery costs. In fact, over 61% of global online shoppers prefer next-day delivery but are unwilling to pay extra for it.
- Most customers expect deliveries to be expedited and fulfilled within 3 to 4 days, and would be willing to wait only if informed in advance
- Global consumers expect features like tracking, easy returns, and reliable deliveries
- Consumers have different thresholds and limitations with speed and costs depending on their location
How to Choose the Right Delivery Model for Shipping Your Product Internationally?: 5 Steps to Follow
Now that you know the primary factors to consider when choosing the right international delivery model, here’s how to go about the process of implementing one in your shipping process:
#1 Assess Requirements and Goals
Depending on the nature of your business and the role that the shipping and logistics process plays in your operational success, your business objectives are quite important. Define the primary business objectives, including speed enhancement, boosting cost savings, or penetrating new markets.
What’s more, the characteristics and value of your product will also play a crucial role in determining its shipping needs. Lastly, you need to identify and analyze the target markets for your products before understanding the customer expectations in the region.
The choice of delivery model must be tailored to align with all of these preferences and aim to boost customer satisfaction levels.
#2 Consider the Available Delivery Options
The next step in implementing the right delivery model for your business is a thorough assessment of all available options.
You should evaluate the different types of delivery models at your disposal:
- Postal services, if you are looking for a cost-effective option and don’t mind limited speed and tracking options
- Freight forwarders make for suitable options for large, bulk, or specialized cargo shipments
- Courier services offer faster and better tracking options, but they are more expensive than most options
Each of these delivery models and options can help align your products with customer expectations.
#3 Compare Shipping Rates and Services
Get quotes from multiple courier service providers to compare shipping rates and services. Aside from this, you should also consider other factors such as service coverage in your target markets, delivery speed, and reliability. You can also opt for value-added services like insurance or customs support, which should ideally be balanced with overall shipping costs.
#4 Comply With International Regulations
Depending on the nature of the goods you are transporting, certain shipping or delivery models may not be considered viable options. For instance, if you are sending goods that are explosive, hazardous, or corrosive, they are subject to restricted shipping in many countries, and air freight is not a viable delivery option.
Moreover, you must ensure that your chosen international delivery model complies with all the customs, documentation, and relevant regulations for each destination. In addition to these factors, you must work with partners who offer expertise in customs clearance so that you can minimize delays and avoid penalties.
#5 Find the Right Shipping Partner
In most cases, choosing the right delivery model for your international shipments can be as simple as picking the right shipping partner. Even otherwise, experienced shipping partners can help you navigate the process of choosing the right shipping partner effectively.
However, you must prioritize shipping partners with a strong track record, particularly in your target markets. They should also ideally demonstrate expertise in customer support and helping scaling businesses. You should also prioritize and actively implement technology-driven solutions that offer robust features such as real-time tracking and efficient issue resolution.
Concluding Remarks
Choosing the right international delivery model for your goods is a strategic decision and can impact your financial and business performance. You must evaluate your product characteristics, customer expectations, and profit margins carefully by comparing all the available options. You can build a resilient and scalable international shipping strategy and strengthen your brand reputation by choosing the right delivery model.