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Strategies for Global eCommerce Success: Navigating International Shipping and Sustainability
Discover the strategies for navigating international shipping and sustainability.
With 82% of merchants surveyed by UPS Capital preparing to enter global markets, they're also contending with delivery delays and shifting import/export policies — the stakes have never been higher. The rise of eCommerce has revolutionized the way consumers shop and businesses operate, breaking down geographical barriers and creating endless possibilities. However, with this newfound global reach come a host of challenges and considerations that merchants must navigate, notably when it comes to international shipping and sustainability.
Charting the Course of International Shipping
International shipping is the lifeblood of eCommerce, opening doors to new markets and offering consumers access to global products. According to a recent report by UPS Capital, nearly half of merchants currently ship more than 20% of their orders internationally, with an overwhelming majority (82%) looking to expand their global customer base in the coming years. And consumers are equally enthusiastic about borderless shopping, with 73% already making online purchases from overseas vendors.
Despite the allure of international commerce, there are unique challenges associated with cross-border transportation. From delivery delays and import/export policy changes to regulatory paperwork and language barriers, merchants face a myriad of complexities when shipping products across borders. In fact, a staggering 73% of merchants surveyed report that their businesses have been affected by international shipping mishaps (delays, damage, or theft) in the last year due to congested overseas ports.
Common International Shipping Issues for Merchants:
- Delivery delays – 50%
- Import/export policy changes – 42%
- Damages – 37%
- Regulatory paperwork – 36%
- Inaccurate tracking – 34%
- Unanticipated costs – 34%
- Theft – 22%
- Language Barriers – 14%
To address these challenges, merchants should consider extending their shipping insurance coverage beyond domestic borders. Teaming up with a trusted provider who offers extensive international coverage like UPS Capital’s InsureShield® Shipping Insurance can help companies effectively manage the intricacies of cross-border transactions and take proactive measures to protect both their bottom line and global reputation.
The Environmental Impact of Going Global
As eCommerce continues to grow globally, so does its environmental footprint. From carbon emissions associated with transportation to packaging waste and reverse logistics, the industry faces mounting pressure to adopt sustainable practices.
Merchants recognize the importance of sustainability, with 81% of those surveyed planning to expand their eco-friendly initiatives in the coming years. Additionally, many are already taking steps to mitigate their environmental impact, with top strategies that include using recyclable shipping materials, working with eco-friendly shipping carriers, and implementing green energy within warehouses.
This is a smart move given consumers are placing a high priority on sustainability when choosing what to buy and who to buy from. In fact, 64% of those surveyed, particularly younger generations like Gen Z and Millennials, express a greater inclination to purchase from brands that integrate eco-friendly practices into their shipping operations.
Despite the shared interest in sustainability, merchants face challenges in implementing green practices, including cost concerns and the need to balance shipping speed and environmental impact.
Merchants’ Greatest Challenge in Implementing Sustainable Shipping:
- Demands for faster shipping compromise environmental efforts – 37%
- Limited control beyond packaging materials – 36%
- Cost prohibitive greener options – 35%
- Balancing speed with lower emissions – 33%
- Lack of visibility into carbon impact of shipping routes – 27%
Navigating Towards a Sustainable Future
While the global eCommerce landscape offers unprecedented opportunities, it also presents many new challenges that must be addressed. By adopting innovative solutions and partnering with a reliable provider that offers comprehensive international shipping coverage like UPS Capital, merchants can successfully navigate the complexities of international shipping while minimizing their environmental footprint. Together, we can create a more sustainable and successful future for global eCommerce.
