Effective Shipping Strategies for US eCommerce Companies Targeting UK Consumers
eCommerce platforms let businesses seamlessly manage orders, receive cross-border payments, and grow their online business – which means starting an eCommerce store has never been easier. While commerce was once restricted to physical locations, eCommerce platforms give businesses a global reach, opening up lucrative sales channels and market opportunities.
However, while starting an online business using an eCommerce platform is relatively easy, finding the right eCommerce shipping solutions can be a significant challenge. UK consumers have high expectations for online sellers, and expect fast, hassle-free parcel delivery.
If your business is located in the US, it can be even harder to ship products to the UK, due to the customer’s location and other challenges like importing and customs clearance. Therefore, for US eCommerce companies looking to sell online in the UK, developing an eCommerce shipping strategy and finding the right shipping options is crucial.
In this article, we’ll provide an in-depth look at the most effective eCommerce shipping solutions for US companies targeting UK customers. We’ll discuss how choosing the right international shipping solution can reduce shipping costs, speed up the delivery process, and keep UK customers satisfied.
Why Should US eCommerce Companies Target UK Customers?
For US eCommerce companies looking to expand their global reach, the UK market presents a lucrative opportunity. With a population of over 67 million, the UK has a large consumer base with significant purchasing power. Moreover, 4 out of 5 British consumers shop online and the UK eCommerce market is the third largest in the world, next to China and the US.
The UK’s robust logistics infrastructure and strategic location as a gateway to Europe further enhance its appeal for US eCommerce companies. By tapping into this market, US eCommerce businesses can diversify their revenue streams, gain valuable global experience, and position themselves for long-term growth in the dynamic and prosperous market.
What to Consider When Selling to UK Consumers?
Consumer Differences
Achieving success in the UK market hinges on a deep understanding of British consumers’ preferences, behaviours, and expectations. There are many cultural nuances and local trends that can have a huge impact on the success of online sellers from the US.
For example, more customers in the UK habitually shop online for non-food products, compared to their US counterparts.
Conducting comprehensive market research and tailoring products, marketing strategies, and customer service to resonate with UK shoppers is crucial. This includes adapting product descriptions, branded packaging, and messaging to align with local preferences and ensure clear communication.
Customs Clearance
Navigating customs clearance is a critical aspect of shipping eCommerce orders from the US to the UK. US eCommerce companies must thoroughly understand the required documentation, product classifications, and applicable duties or taxes to avoid delays, additional costs, or potential penalties.
Partnering with a customs broker who has industry experience can help ensure smooth and compliant customs clearance processes. To support US businesses in importing goods into the UK clearBorder provides training on shipping, importing, freight, rules of origin, and customs procedures.
Moreover, clearBorder’s consultancy services help US businesses comply with the rules, regulations and requirements that govern UK customs and trade, and adapt their systems to new and evolving border requirements.
VAT
Value-Added Tax (VAT) is a consumption tax applied to goods and services in the UK. US businesses must register for VAT if their UK sales exceed the established threshold, and must properly calculate and collect VAT from UK customers.
Failure to comply with VAT regulations can result in significant fines and legal consequences. Therefore it’s crucial to seek professional guidance or utilise VAT compliance solutions to ensure accurate VAT calculations and reporting.
Shipping Time and Costs
To stay profitable in the UK market, US businesses must be able to ship orders to UK customers quickly and affordably. For example, in the UK, 90% of consumers expect their online orders to arrive within four days, without paying for express shipping services. Failure to provide the standard level of shipping service UK customers expect may prevent your eCommerce business from succeeding in the UK market.
Slow and expensive eCommerce shipping can lead to customer dissatisfaction and reduced trust in online businesses, leading to fewer sales and ultimately, an inability to sustain operations. Therefore, for US businesses, it’s crucial to select shipping solutions that meet customer expectations. When evaluating shipping options for your US eCommerce business, consider these features:
Shipping insurance: Shipping insurance is crucial, especially for international shipping where products travel large distances and are more prone to damage. Many shipping carriers offer shipping insurance as part of their service, but you’ll need to decide whether to offer this for free to customers.
Tracking shipments: Find shipping software that allows for tracking shipments and providing tracking numbers to UK customers.
Shipping rates: Businesses can choose between several eCommerce shipping rates. For example, an eCommerce business can choose between offering free shipping, shipping discounts and flat rate shipping.
Local shipping services: Research the available shipping companies in the UK (eg., Royal Mail) and choose the ones that work best with your shipping rates. Make sure to consider not only the shipping cost but also the efficiency and reliability of the shipping company.
Shipping platform: Choosing the right shipping platform is essential to providing exceptional eCommerce shipping. Platforms like the built-in Shopify shipping software can make it easy to integrate your US eCommerce store with UK shipping solutions.
Customer returns: Customer returns are an often overlooked aspect of shipping, but US eCommerce businesses need to decide how they will handle returns. By setting clear and transparent policies for shipping customer returns, US businesses can build trust with UK consumers and improve customer retention.
By carefully considering these aspects of eCommerce shipping, US businesses can optimise delivery times and minimise costs for UK customers.
Why Effective eCommerce Shipping Solutions are Key to Success
In the competitive landscape of eCommerce, shipping services have emerged as a critical differentiator between businesses. The eCommerce shipping solution you choose can shape the overall customer experience and ultimately determine your business’s success or failure.
When selling in the UK market, efficient, reliable, and seamless international shipping solutions can foster customer satisfaction, cultivate brand loyalty, and create a positive perception of the company. On the other hand, delays, damages, or hidden costs can quickly erode trust, tarnish brand reputation, and drive customers away from a business.
By choosing the right eCommerce shipping platform and partnering with reputable import consultants, businesses can leverage advanced technologies and industry knowledge to streamline the entire shipping process, from order fulfilment to customs compliance and final delivery.
Success Stories of US eCommerce Companies Shipping to the UK
Everlane: By collaborating with an experienced eCommerce shipping provider, Everlane was able to offer competitive shipping rates, real-time tracking capabilities, and reliable delivery times to its UK customers.
This commitment to a seamless shipping experience, coupled with transparent communication and exceptional customer service, contributed significantly to Everlane’s rapid growth and positive customer reviews in the UK market.
FabBitFun: US-based subscription box company FabFitFun leveraged a professional shipping solution tailored specifically for eCommerce businesses. They were able to provide UK subscribers with transparent shipping costs, clear delivery timelines, and efficient handling of customer returns.
By offering a streamlined shipping experience and a curated selection of high-quality products, FabFitFun was able to meet customer expectations and establish a loyal customer base in the UK.
These examples illustrate that by prioritising efficient, customer-centric shipping and partnering with reputable providers, companies can provide efficient shipping services that differentiate themselves from competitors. This helps build brand loyalty and paves the way for long-term success in the demanding UK market.
Choosing an eCommerce Importing Partner
Selecting the right eCommerce shipping and importing partner is crucial for US businesses looking to successfully enter the UK market. The standard for delivery services is high in the UK, with many consumers even expecting next day delivery, or even same day delivery.
As a dedicated international trade consultant, clearBorder possesses in-depth knowledge of cross-border shipping regulations, customs procedures, and trade agreements. Their team of experts can provide tailored guidance on import compliance, VAT registration, and optimised shipping strategies, ensuring your business can ship to UK customers with ease.
From customs clearance to carrier selection, clearBorder streamlines the entire process of shipping products to UK customers. Our deep understanding of UK market dynamics and strong partnerships with logistics providers allows us to offer efficient and reliable shipping solutions, ultimately enhancing customer experience and driving business growth.
Contact clearBorder today for expert support in shipping your products to UK customers.