Customs shouldn't cost you customers

When you sell to customers outside the EU, the customer experience doesn’t end at checkout.

If your customers only discover customs duties and import VAT once the package is on its way or about to be delivered, an otherwise good purchase experience can quickly turn sour. At the other end, that often means refused deliveries, packages returned to sender, and customers who don’t place another order. In other words, a lost sale after you’ve already paid to ship the item.

And if the customs information isn’t correct, it can also lead to delays, extra costs, or the shipment being returned. That’s why customs shouldn’t be treated as just admin. It’s also part of the customer experience you create when you sell internationally.

Customs affects more than the work in your warehouse

An order that crosses a border comes with a few more things to keep track of. International e-commerce places more demands on your shipping setup than selling within the EU. So when an order has to cross a customs border, the necessary information needs to be in place. That includes the product description, tariff code, country of origin, weight, and value.

Missing or incorrect information can lead to delays, extra costs, or returns. For businesses with many export orders, the consequence isn’t just more admin. It can also affect the experience the customer has after the purchase.

The larger your international volume grows, the more important it becomes to have a consistent process for customs handling.

Make it clear who pays customs duties and import VAT

When you ship goods to countries outside the EU, the shipment may be subject to customs duties and import VAT. This is where the delivery terms you ship under matter. With DAP, the receiver pays any duties and import costs. With DDP, the sender covers them.

For the customer, the difference is very concrete: Will there be an extra charge on import, or has the business already taken care of the cost?

That makes the choice between DAP and DDP a bit more than a question of customs clearance. It’s also a choice about how your international delivery experience should work.

The customer has found the product, added it to the cart, and completed the purchase. The last thing they expect is an extra bill when the package is delivered.

If customs duties and import VAT come as a surprise, you risk the package being refused and returned. Then you’re left with an order you’ve already spent time and money processing and shipping, without the item ever reaching the customer.

DDP can remove an unexpected cost on delivery

When you choose DDP in a setup that supports it, you as the sender cover the duties and import costs instead of the customer.

In practice, this means the customer can receive the package without first having to deal with an extra customs bill.

Among other things, Shipmondo lets you choose who pays customs duties and import VAT on relevant shipments. The options depend on the carrier, the carrier agreement, and the destination. This way, you can factor customs into the rest of the customer experience instead of dealing with it only once the order has already shipped.

Accurate customs information helps the shipment through customs

A package can be ready to leave the warehouse without being ready to cross a customs border. A good international delivery experience therefore requires the right information to travel with the shipment.

For exports, you may need, among other things:

• Product description in English
• HS code (tariff code)
• Country of origin
• Weight
• Value of goods
• Commercial or pro forma invoice

The specific requirements depend on factors such as the destination country and the carrier.

That’s why it’s important that your product data is correct before the order even reaches the warehouse. Then your staff don’t have to look up and enter the same information manually for every export shipment.

Automate customs handling with Shipmondo

One export order is manageable. But when 50, 100, or 500 export orders come in, it’s a different story.

If you have many export shipments, manual customs handling quickly becomes a repetitive task. With Shipmondo, you can automate filling in customs documents based on your product data.

Once your products are set up with the necessary customs information, details such as country of origin, product description, HS code, and weight can be applied automatically when you create export shipments.

Depending on the carrier and destination, customs information can be transferred electronically, while any required physical customs documents can be created together with the shipping label.

This makes it possible to build customs into your existing order and shipping setup instead of treating each export order as a separate manual process. For businesses with high order volumes or large product catalogs, it creates a more consistent setup that’s easier to scale as exports grow.

Checklist: Sell outside the EU with customs under control

Before you scale sales to markets outside the EU, it’s worth checking the entire flow:

• Make sure your products have accurate customs information.
• Use the correct tariff/HS code and product description.
• Clarify whether you or the customer will pay duties and import costs.
• Check the requirements of your chosen carrier and at the destination.
• Automate filling in customs documents where your setup supports it.
• Test the entire order flow before you scale volume.

Once exports start to grow, it’s rarely the individual orders that are the problem. It’s all the manual work between them.

In other words, customs doesn’t have to be a manual bottleneck in international e-commerce. With the right product data and an automated shipping setup, customs handling can become an integrated part of your operations, even as the number of export orders grows.

If you’d like to talk through your shipping setup and automation needs, we’d be happy to hear from you. Our Customer Success team is made up of shipping experts who advise international e-commerce businesses every day on shipping, logistics, and customs automation.