Do you know how much you’re really paying for cross-border shipments?
With the recent spotlight on international trade—coupled with the realization they have been missing out on revenue opportunities from the collection of duties, taxes and fees—many governments are cracking down on international e-commerce shipments. Now many shoppers (who have historically chosen postal shipping options in hopes of slipping under the customs radar) are having to pay duties, taxes and fees upon delivery. On top of these costs, they are sometimes charged a hefty collection fee. The result? Unhappy shoppers, abandoned shipments in foreign countries and customer journeys that do not end well.
Let’s look at some of the recent developments in international trade, and ask yourself – is my checkout flexible enough to account for these ever-changing trade agreements that I hear about in the news every day?
- Upcoming PENDING replacement for NAFTA – the United States-Mexico-Canada Agreement (USMCA)
- Australia is now charging GST (Goods and Services Tax) to any merchant who sells over 75K AUD annually into the country
- Daily changes in sanctions and tariffs between the U.S. and China
So what can merchants do to improve the customer journey for their shoppers?
Think about when you shop online. It’s often an emotional experience that brings on good feelings. And you are often anticipating the delivery with excitement. But this excitement can quickly turn to disappointment if there are unexpected fees due upon delivery. And you may even decide that your purchase is not really that exciting anymore and refuse the shipment because you don’t want to pay the fees at delivery!
Merchants can eliminate this ‘bump’ in the road by providing their shoppers with a customer journey that offers multiple shipping options (rates and speed) AND the option to prepay duties, taxes and fees at checkout —giving the shopper full visibility into the fully landed cost of their order and eliminating any surprise charges upon delivery.
Providing customers with a simplified checkout process is important—especially when selling cross-border. However, calculating the fully landed cost of an order is no easy task! With every country having a unique tariff, country-specific de minimis rules, different methods of calculating duties and taxes, as well as separate trade agreements with multiple countries, it is impossible for a merchant to stay on top of this!
So what are the options for merchants?
One solution in the market today is DHL eCommerce’s Fully Landed Cost Calculator —an API solution that can quickly be integrated into a merchant’s cart to provide total delivery costs for online shoppers including duties, taxes and other governmental fees. Trade data is updated daily to reflect the latest changes in duties, taxes and fees for over 200 supported countries. By providing online shoppers with full cost visibility, this new service helps to improve customer satisfaction.
And how does this benefit the merchant?
From the merchant´s perspective, this service can help increase sales by reducing cart abandonment and returns due to unknown or unexpected costs in the delivery process. In addition, with a solution in place to calculate duties, taxes and fees upfront, the merchant maintains ownership of the checkout process while retaining full control over foreign market product prices, branding, customer service and customer analytics.
Don’t turn your checkout and customer service over to another party to manage on your behalf. Take charge of your customer experience and maintain your brand image. Simply implement an API into your checkout and you are ready to go!
To learn more about DHL eCommerce’s Fully Landed Cost Calculator, click here: https://www.logistics.dhl/content/dam/dhl/local/us/dhl-ecommerce/documents/pdf/us-ecommerce-fully-landed-cost-calculator.pdf