International Shipping for Ecommerce (2026)

International shipping is the process of sending products across national borders. In ecommerce, it expands a business’s customer base and adds duties, carrier rules, and taxes to each order.

DHL’s 2025 survey of 24,000 online shoppers across 24 countries found that 59% buy from retailers outside their home country, and 35% do so monthly. However, 46% cited longer delivery times, and 43% cited customs charges as reasons they avoid cross-border purchases.

This guide covers how international shipping works and how to manage it for cross-border transactions. 

What is international shipping?

International shipping is the transport of goods between countries. These shipments cross national borders before reaching the customer. 

Customs clearance is international shipping’s main difference from domestic shipping. Sellers submit documentation, such as a commercial sales invoice, for the destination country to review. International orders can incur duties and import taxes. Customs processing can also extend delivery times and increase shipping costs. 

Why international shipping matters

International shipping makes cross-border ecommerce possible by moving orders from a business’s home market to customers abroad. DHL’s 2025 survey of 4,050 ecommerce businesses found that 64% sell to customers in other countries.

Reaching those shoppers is one part of the process. They also want to know delivery costs before they buy. An International Post Corporation survey of 30,970 shoppers across 37 countries found that 61% considered clear delivery charges essential.

Fast cross-border delivery has become more common. Only 7% of orders in the IPC survey took 15 days or longer in 2025, down from 29% in 2020.

Businesses have to account for customs costs, too. A 2025 Avalara and Censuswide survey of more than 900 executives found that 35% struggle to calculate duties and taxes.

How to build an international shipping strategy

An ecommerce shipping strategy sets the logistics for delivering orders to each international market. 

Determine where and what you’ll ship

Choose the first market based on demand already visible in your store. A sessions by location report can reveal which countries shoppers are finding your products.

If Canada generates the most visits, for example, a US business could open shipping there first and evaluate its performance before adding another country.

Once you select a market, confirm that the product and price make sense locally. Launch the products that remain competitive and can withstand international transit, then use early sales to decide whether to expand the catalog.

Shopify offers two options for managing international markets:

• Shopify Markets provides storefront localization for each market.
• Managed Markets adds merchant-of-record services for cross-border transactions.

Get familiar with country rules and regulations

After choosing the market and catalog, confirm that each product can enter the destination country. UPS TradeAbility compares restrictions based on the shipment’s origin and destination. If a requirement is unclear, check with the destination country’s customs authority before enabling the product.

Carrier restrictions require a separate review. Lithium batteries, perfume, and nail polish can fall under dangerous goods requirements, which can limit air transport or change how a product is packed. Products that cannot meet those requirements should stay unavailable in that market.

For trade between the US, Canada, and Mexico, use Shopify’s USMCA compliance checklist to confirm tariff eligibility and document the product’s origin before claiming preferential treatment.

Be transparent about fees

An international shipping policy explains how duties and taxes are collected and whether the carrier will request payment on delivery. Clarity affects conversion because surprise costs can lower sales. DHL’s 2025 survey found that 36% of cross-border shoppers had abandoned a cart because of unexpected customs charges.

Display the expected landed cost before payment, then pair it with the estimated delivery date. Customers can evaluate the full international order before completing checkout.

You can also add flags to your top navigation to show your shipping availability. Letting your customers know where you deliver to doesn’t have to be just about costs. A tool like the Shipping & Promo Bar can help you promote your shipping and rates to a global audience.

How to calculate international shipping costs

The amount charged for international shipping covers these five components:

• Packaging
• Carrier charges
• Handling
• Duties and taxes
• Profit margin

Together, they establish the cost of fulfilling an international order and how much of that cost the business can absorb.

1. Packaging

Choose ecommerce packaging that protects the product during international transit and minimizes empty space. Oversized boxes use more material and can increase the carrier rate.

Include every layer of the product packaging design when calculating the material cost per order. If individual costs vary, divide one month of packaging expenses by the number of orders packed during that period.

Sources for cheap shipping boxes include postal services and bulk suppliers. USPS, for example, provides free supplies for specific mail classes.

2. Carrier charges

International shipping rates can vary widely across orders. Use each carrier’s calculator to quote the smallest, average, and largest packages you expect to send. 

Major carriers calculate a package’s actual weight and dimensional weight, then bill whichever cost is greater. Dimensional weight reflects the space a package occupies, so right-sizing the box can reduce the chargeable weight and lower the rate.

Consider and compare

Compare quotes directly through major carrier calculators:

• USPS
• Royal Mail
• Canada Post
• Australia Post
• UPS
• FedEx

Compare FedEx vs. UPS using an identical shipment and delivery target. 

Here are two examples of how different brands could approach global shipping:

Brand A:

• The smallest domestic sale costs $5.33 to ship internationally.
• Average domestic sales cost $15.47 to ship internationally.
• The largest domestic sale costs $124.55 to ship internationally.

Brand B:

• The smallest domestic sale costs $1.33 to ship internationally.
• Average domestic sales cost $2.75 to ship internationally.
• The largest domestic sale costs $3.25 to ship internationally.

Brand A has a broader range of shipping costs to cover, and Brand B’s range is relatively narrow. Brand A may be selling heavier and more varied products, while Brand B’s offerings seem more consistent in size and cost.

Structure your pricing

Stores use one of three different pricing structures:

• Free shipping. Free shipping moves the label cost into the product price or profit margin. A minimum order threshold can offset that cost when the additional order value generates enough margin to cover delivery.
• Carrier-calculated shipping. Carrier rates give customers a price based on their order and destination. Shopify connects with USPS, DHL Express, and UPS in the US. Canadian businesses can use Canada Post, and Australian businesses can use Australia Post.
• Flat-rate shipping. A flat rate gives customers a predictable price before checkout. Calculate the rate from your order mix, then monitor the average shipping cost and profit per order. Some shipments will cost more than the rate, and others will cost less.

3. Handling

A handling charge recovers the labor used to prepare an order for shipment. Measure the time spent on the full process. For an international order, that includes completing the customs information.

Calculate the labor cost with this formula:

Handling cost = (minutes / 60) x hourly labor cost

If an employee earns $11 per hour and spends 10 minutes preparing an order, the handling cost is $1.83:

(10 / 60) x $11 = $1.83

Add a separate handling charge only when that labor is not already covered by the product price or shipping rate. Otherwise, the customer pays for the same cost twice.

4. Duties and taxes

Customs authorities calculate duties from the product’s value, origin, and classification. The destination country determines the applicable tax.

A duty calculator can provide an estimate, but de minimis rules vary by destination and change frequently. Confirm the current rule before quoting duties or landed costs.

In the US, the $800 de minimis exemption is suspended for most commercial merchandise from all countries. US Customs and Border Protection (CBP) introduced a postal informal-entry process for eligible international mail valued at $2,500 or less in July 2026. That figure is an entry-processing threshold, not a duty exemption.

The EU ended its duty exemption for low-value imports on June 30, 2026. From July 1, 2026, a temporary €3 customs duty applies per tariff-classified item in consignments worth up to €150. The duty is separate from VAT and applies until July 1, 2028.

The allocation of import responsibilities is defined through Incoterms:

• Under Delivered at Place (DAP), sometimes described by the legacy term Delivered Duty Unpaid (DDU), the buyer completes import clearance and pays the resulting charges. 
• Under Delivered Duty Paid (DDP), the seller completes import clearance and pays those charges, usually after collecting them at checkout.

Once you choose DAP or DDP, use a matching shipping service and submit the required customs information. Shopify generates customs forms when you buy an eligible international shipping label through the admin.

Two documents commonly accompany international shipments: a commercial invoice and an export packing list.

Commercial invoice

A commercial invoice records the sale between the seller and buyer. Customs authorities use it to confirm the shipment’s value and calculate duties. 

It generally includes:

• Seller and buyer information
• Product description and quantity
• Price and payment terms
• Shipping method

Some carriers transmit this information electronically. DHL Express, for example, offers Paperless Trade for eligible destinations.

Export packing list

An export packing list describes how the shipment is packed. It identifies the carrier and transport method, then records the package weight and dimensions. Customs officials and carriers use it to verify the shipment against the commercial invoice.

5. Profit margin

Calculate margin after shipping and fulfillment costs, including any delivery subsidy offered to the customer.

Glasvin encountered near-zero margins on international orders because their wine glasses were heavy and required large protective packaging. After activating Managed Markets, the company reported 71% growth in global sales and an 11% increase in global conversion.

Test different product prices and shipping charges with Shopify’s free profit margin calculator. The calculation will show how much shipping cost the business can absorb before an international order becomes unprofitable.

How to reduce international shipping costs with Shopify

Eligible businesses can use Shopify Shipping to compare rates and buy discounted labels from supported carriers in the Shopify admin. Carrier availability varies by fulfillment location. Shopify Fulfillment Network also connects businesses with third-party logistics providers that store inventory and fulfill orders.

When printed documents are required, Shopify provides customs forms for international labels. On paperless routes, customs officials access the information electronically. 

To calculate duties and taxes at checkout, eligible businesses can use Managed Markets. Through Global-e, the service also takes responsibility for cross-border tax and import obligations.

The cost difference can be substantial for an individual shipment. In the LAZRUS Golf case study, founder Colton Draper said shipping the same product could cost $140 through the brand’s previous setup and $35 with Shopify Managed Markets.

1. Costs

Compare the final rate for each shipment across the carriers available through Shopify. The lowest-cost carrier can change with the destination, package dimensions, or selected service.

Look at the full price over the advertised base rate. Carrier surcharges can change which option is cheapest. 

2. Delivery options

Compare shipping speeds through economy, standard, and express tiers. Economy shipping gives price-sensitive customers the lowest rate and longest wait. Standard shipping provides a middle option, and express shipping charges more for the shortest carrier estimate.

Each tier needs a realistic delivery range. That range includes fulfillment time before dispatch and possible customs delays after the parcel reaches its destination country. Use estimates for each route and display the resulting range at checkout.

3. Tracking and insurance

Once an order ships, tracking shows whether it is progressing within the estimated range. Labels bought through Shopify automatically add tracking information to the order. Businesses can also use the Shopify admin to schedule pickups for eligible UPS, USPS, and DHL Express labels.

Tracking provides shipment status, and insurance limits the financial loss if a parcel is lost or damaged. Eligible US businesses can purchase up to $5,000 in shipping insurance through Shopify, administered by Shipsurance. 

Some eligible shipments on Grow, Advanced, and Plus plans include up to $200 in coverage. Review existing carrier coverage and policy exclusions before purchasing more.