International Shipping for Small Businesses: How to Navigate Tariff Changes and Shipping Disruptions

Despite recent advancements in logistics and shipping technologies, international shipping for small businesses remains complex. The rise of the convenience economy and online shopping has heralded the shift from a “carrier handles everything” mentality to “merchants must be proactively thinking.”

Whether you’re worried about the end of the de minimis exemption in the U.S., counter-tariffs posed by other countries, or last-minute changes in regulations, you’re not alone in your concern. But instead of worrying about the potential downsides of new economic policies or customer expectations, focus on what you can control.

We spoke with leaders in ecommerce international shipping to understand how they’re navigating recent changes. Here are the top tips and takeaways from the discussion with key insights and ways you can continue driving business growth despite the rapid changes in domestic and international shipping for small businesses.

The insights in this article come from ShipStation’s Innovation Delivered virtual summit, where ecommerce experts share practical strategies for building resilient, customer-focused businesses. Learn more about Innovation Delivered and watch all event sessions here.

Cross-border shipping factors that small businesses can actually control

As a small business owner with limited leverage in the industry, you may feel like you’re being swept left and right with every new or adjusted policy. But there are still factors you can manage and make the best of any set of circumstances.

“Focus on the things that you can control,” said Shea Felix, Vice President at GlobalPost. “One of those things is the cost of shipping. You’re going to have a better chance for success instead of just putting your hands up and saying ‘well, I can’t deal with this.’”

1. Evaluate your international shipping cost strategy

Unlike domestic shipping, where speed varies only slightly in price, ecommerce international shipping is significantly more cost-intensive. You’re often left dealing with a limited number of companies that ship to your target customers and offer you relatively little bargaining power as a small business.

However, you can influence how your customers perceive your shipping options. Don’t push two-day shipping. Instead, highlight six- to ten-day shipping as the standard option, showcase it in your advertising, and select it automatically for customers during checkout.

Customers will then feel in control of price increases for faster shipping options. Not to mention, if they choose a slower shipping option (around two to three weeks) to save some money, they’ll still be satisfied with the timeline, and it won’t negatively impact their opinion of your business.

“If you look at a one- to two-day international service compared to a six-day, it’s a massive change in price,” noted Felix. “A six- to ten-day product is very common. In fact, most people ship within that timeline, and most recipients are used to that kind of speed level.”

Generally, customers don’t expect the same speed from international shipping as they do from domestic shipping. That’s especially the case if you’re selling outside of mainland North America, reaching farther markets like Europe, Asia, or Latin America.

That said, you can increase shipping speed by working with multiple carriers. Multi-carrier networks consistently outperformed single-carrier approaches by 24-37% in transit times, according to a recent study by ePost Global, which analyzed over 20 million customer shipment patterns from 2024.

“After thirty years in logistics, I’ve seen the same pattern—retailers believe carrier loyalty equals leverage, but our data on 20 million parcels proves otherwise,” said Kelly Martinez, Co-Founder and President of ePost Global Shipping.

Action step: Determine the right shipping solution for your business. Start by auditing the shipping options you currently offer, and consider renegotiating with logistics companies based on more realistic timelines or long-term deals. Think about reframing your pricing communications to customers.

2. Be diligent with product descriptions and customs documentation

Governments around the world notice the impact that international ecommerce has on their economies. In turn, they’re becoming more vigilant about what they allow across their borders by limiting quantities on certain goods and imposing tariffs on specific item types or countries-of-origin.

There’s little you can do in response to local regulations of a foreign country but there are still a few actions you can take to minimize complications:

• Detailed product descriptions: Provide customers with accurate and detailed product information of the shipment, preferably in a language accessible to customs agents.
• Use suitable packaging: Depending on the product or material, make sure the packaging meets the standards of the receiving country. The package should also declare hazardous materials in accordance with local regulations.
• Always be transparent: If a specific item is difficult to import, make that known and include all the necessary information on your website to allow customers to weigh their options and anticipate a potentially lengthy customs process.

Customers won’t be satisfied if a company isn’t clear and honest in the product description when the package reaches customs. Planning ahead can prevent delays where packages are held for further inspection. Additionally, a vague or inaccurate description can result in added fees passed to you or your customers.

Action step: Look into utilizing Harmonized System (HS) codes for your products. As a unified global classification system, all HS codes should be regularly reviewed and updated to meet the latest standards.

Additionally, prioritize detailed product descriptions. Even if it’s “just a t-shirt,” go above and beyond to describe the material blend, weight, sizing, and manufacturing location. Ensure all values stated on the package paperwork are accurate.

3. Communicate to the customer and set expectations

As a business owner, you likely use industry jargon that may not be in the average customer’s vocabulary (naturally). For example, customers don’t understand the differences between DDP and DDU, which is why avoiding technical acronyms outside of the Terms of Service or legal documents is so helpful.

Even moreso, it’s important to clearly communicate pricing and delivery expectations during the checkout process (rather than after). Being upfront helps foster long-term customer loyalty over short-term profit.

“What we typically recommend is that you employ a delivery duty paid model,” said Craig Reed, General Manager at Avalara. “So in other words, you’re telling your customers how much they’re going to pay at checkout so they’re not surprised.”

Action step: Show total costs at checkout, including duties, taxes, and tariffs. Many customers today worry about hidden charges due to increased tariff rates. Let the customer know they won’t be faced with any additional costs after the purchase (or if they may be, let them know that may be a possibility).

Secondly, explain the delivery timelines proactively. Be forthright with notifying customers of any potential delays, provide the reason why, and tell them when it’s expected to be resolved.

What you cannot control—and why that’s OK

Sometimes, you have no choice but to adhere to market and regulatory conditions. It’s important to accept that U.S. tariffs are here to stay, including the elimination of the de minimis exemption on certain packages. Geopolitical shifts and rising tensions between countries and regions are inevitable. Planning for a rainy day or “worst case scenario” is critical.

Your customers are also faced with the same uncertainty in their domestic market, whether it’s increased tax rates, international tariffs, or supply chain bottlenecks. Today’s customers know international ecommerce shipping is complex, especially with the increased processing times of packages at the borders.

This isn’t an entirely unique time. There have always been some systematic delays. But you can still alleviate much of it by building buffers into your budget and managing customer expectations around anticipated delays.

You can also mitigate risk using a multi-carrier shipping solution that reduces the likelihood of delays altogether. According to the same study by ePost Global, businesses relying on a single carrier faced more capacity constraints and service failures.

Shift your perspective from the things you can’t control to the ones you can. You’ll likely find money-saving opportunities, identify new markets domestically or abroad, or expand and diversify into neighboring industries. Embrace a more flexible and adaptable mentality, working within the confines of the current economy instead of waiting for future changes that may or may not manifest.

Again, communication is key. Whether it’s your customers or your business partners, nobody likes being left in the dark, and providing a simple update on the state of your inventory, shipping delays, or increased costs can do wonders to establish and maintain trusting customer relationships.

3 ways to build resilience for long-term international shipping success

Longevity and future-proofing your business requires planning for the future, leveraging technology for seamless global expansion, and building ways to adapt to inevitable external factors.

1. Make data-driven decisions

Guesswork shouldn’t be part of the equation. Neither should your own recollection of past events and industry trends. Here’s how you can make informed decisions:

• Experiment and look for patterns: Always try new ways of working and track the impact. Which ways contributed positively to your business, and which ones were just industry noise or passing trends?
• Prioritize customer satisfaction: Monitor customer feedback across different shipping methods. Do your customers prefer cheaper but longer shipping options, or are they willing to pay a premium for speed? Could you offer free shipping when a customer purchases over a specific amount?
• Analyze complaints: Order returns and customer complaints highlight some of the most pressing issues in your business, particularly ones that matter to your customer base. Negative feedback is also an avenue for surfacing opportunities and exploring solutions. What can you offer to reward your most loyal, repeat customers?

“Look at your own data, see where you think your best opportunities are,” said Kate Muth, Executive Director of International Mailers Advisory Group (IMAG). “If you can just do a little bit of research, I think you can feel fairly confident starting out and then learn as you go, rely on your providers, and then expand from there.”

2. Expand into new markets gradually

Entering new international markets is very different from expanding to new cities in the same country. Unique government regulations, tax rates, and consumer habits require research, adaptation, and contingency plans. A scaled approach to international shipping for small businesses makes that manageable. Don’t jump into the next market just because your first endeavor has a couple good months.

Start with neighboring countries with similar geopolitics or economies to reduce the number of unknown factors you’ll likely face. You should also take into account local competition that might offer the same products at lower prices, but with faster delivery times. Does the culture itself favor local brands over international ones? Will you need to localize or translate your website and marketing materials?

When choosing a new market, pick one based on data, not assumptions. Treat the first couple of international releases as data collection experiments. You can then take what you learned and apply it to additional countries and regions abroad.

“It’s interesting if you’re coming into the global market now and you’re a small business looking to expand,” adds Muth. “You’re almost skipping right over some of the problems that some legacy companies have, which still rely on a lot of data in hard copy form or customs forms.”

As a small business, you’re more flexible and can easily adapt to a new state of operations that includes international customers. You might lack the extensive resources as many large, legacy companies can tap into, but you can pivot to meet the market demands of other countries quickly because your supply chain is tighter and less rigid.

3. Automate where possible

Manual processes, while cheaper to set up, take much longer to construct and scale. At a time when market rules are frequently changing, manual operations can drag your business behind, costing you more down the road.

On the other hand, integrating automated processes into your business’s operations, supply chain, and other areas of your shipping infrastructure can be costly at first but saves you time and money in the long run. And as a small business, it’s easier now than ever to embrace automation.

“Previously, you had to be a certain size to use technologies for selling internationally,” said Aurélien Leftick, Senior Director of Strategic Partnerships at WooCommerce. “It would involve separate solutions that you’d have to integrate to make everything. Today, there are more and more solutions coming out that are easier to adopt, pre-integrated with your ecommerce platform, and are seen as a suite of offerings.”

Think of automation as an investment in your future rather than an expense. You’re investing in software and tools that handle the complexity of international shipping, letting you focus instead on growing and evolving your business.

“There are solutions out there to help with shipping automation with tariffs, taxes, and all those calculations and duties we need to go ahead and track,” said Adam Zurawski, Principal Solution Consultant at NetSuite. “Everything is just changing so fast. Taking advantage of the tools out there to automate as much as possible helps companies stay nimble.”

Start by adopting the shipping automation solution with the highest return, then gradually upgrade other areas of your shipping infrastructure by leveraging the money you saved from your initial investment. There’s no need to rush to follow a trend.

Start taking advantage of your status as a small business

Challenges you’re currently confronting aren’t going away on their own. Uncertainty is a natural and permanent part of international commerce that you can’t afford to wait out. In fact, problems tend to get bigger the longer you wait to solve them. It’s important to act now.

You can gain an edge by focusing on factors you can control like customer relations, international marketing, and operational efficiency. While other businesses panic and overreact to temporary market trends, you can steadily gain market share with preparation.

The good news is that you’ve already established a strong foundation for your business and can be confident in your ability to build on your success.

“If you’re already selling domestically, you’re already winning,” said Leftick. “You already have a product and a website, know how to get customers, and how to handle taxes. So you can do this, but as a smaller merchant, you do need to align yourself with good partners and the good solutions out there.”

Watch the full session, “Global Horizons: Mastering Cross-Border Growth,” for more detailed guidance and examples on cross-border shipping and taking your ecommerce business abroad.

Todd Greenbaum

More articles by Todd Greenbaum