This post was originally published on this site.
Many ecommerce businesses sell products that do not fit in a flat-rate envelope, so to speak.
Fitness equipment, safes, arcade machines, specialty furniture, and other freight-grade items are heavy, expensive, and complicated to ship domestically, let alone abroad.
Nonetheless, Robert Khachatryan, founder and CEO of Freight Right, argues that some of those merchants may have international demand they are not serving.
Demand
Learning if a product or company has overseas appeal can be as simple as reviewing the analytics. A U.S. merchant, for instance, could check visitors’ locations, such as the United Kingdom, Australia, or Canada.
Selling to those would-be customers at just half the domestic conversion rate could generate significant revenue.
Robert Khachatryan
A second indication of an untapped, cross-border profit opportunity comes in the form of freight quotes. A merchant’s website says it ships 800-pound kayak trailers only within the United States, but in reality, shipping to, say, Latin America is comparable in cost.
Visitors from Latin America who checked the U.S.-only shipping policy likely looked elsewhere.
Proper Products
Thus if international visitors express an interest, decide if the cost of delivery makes a sale worthwhile.
For example, Khachatryan was not suggesting that any bulky, awkward, or heavy item is a candidate for global ecommerce. The math only works when the product has enough margin to justify freight, duties, and taxes.
“Nobody pays $700 or $1,000 to ship a $500 product,” Khachatryan said.
Yet bulky products are often candidates for international shipping when their selling price reaches into the thousands.
Such high-ticket purchases are common in B2B transactions. Need a high-speed laser welder in Idaho? Order it from Germany. It’s worth the freight.
The same may be true for select B2C or D2C cross-border items. Examples include commercial-grade fitness equipment, arcade machines, and even above-ground pools, a U.S. product marginally popular in the U.K.
Local Scarcity
Locally scarce goods can imply demand.
Commodity products rarely work. “People don’t buy a couch from another country. They buy from their local Ikea,” Khachatryan said. If a comparable product is readily available locally, international freight becomes difficult — even impossible — to justify.
Compliant
As a final check, would-be ecommerce exporters need to ensure a product is legal, usable, and compliant with safety and consumer regulations in the destination country.
Common differences are voltage and plug standards. Others are less obvious. Mattresses, according to Khachatryan, can have different requirements in Europe than in the U.S., for example.
Investigate whether incompatible or noncompliant products are easy to modify. Would a relatively small change open a promising cross-border market?
Regardless, shipping heavy wares internationally can be easier than expected.
Freight forwarding services will do the quoting, logistics details, and even white-glove delivery. Many, including Khachatryan’s Freight Right, have a Shopify App and an API to calculate freight at checkout.
Moreover, freight forwarders usually manage cross-border taxes and regulatory compliance.
Returns
Returns, in contrast, can be the most challenging aspect of cross-border selling. Return shipping is expensive, and recovering taxes and fees can take time.
The key, says Khachatryan, is having a plan.
He noted that products in good working condition could remain in a local warehouse until the next order.
Finally, shipping insurance can be a good idea. Some insurers, such as Xcover, cover the cost of return freight for rejected orders.
In short, cross-border ecommerce for large items is not for every merchant. But those selling high-value, differentiated products with existing international interest can unlock meaningful growth.