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It's
a subject that can send a shiver up a seller's spine. Why? Often
sellers shy away from international transactions, fearing high
costs, shipping delays, paperwork, complications, and limited
recourse in the event that a sale turns sour. Granted, you might
have to summon some additional patience, but selling and
shipping internationally isn't always the nightmare it's
purported to be. In fact, international buyers can make great
customers, and if handled correctly, worldwide sales can be a
bountiful addition to your online auction biz. Going global
doesn't necessarily mean going crazy.
World
View
Logistical headaches and exorbitant shipping costs are perhaps
the two most common concerns that sellers have about
international shipping. On the first count: yes, there will be
more considerations when you accept bids from Japanese or South
American buyers (for example, customs forms, which are discussed
later), but it shouldn't be enough to prevent you from
conducting international sales. On the second count: obviously,
it's going to cost more to ship a package to Paris, France, as
opposed to Paris, California. However, understand that
international bidders will often expect to pay for any
additional shipping costs that you may incur.
If you decide to sell internationally,
make sure that you're up front about it in your auction listing.
If you're going to require your international customers to take
on the extra shipping costs, say so. And though most sites have
a "Will ship internationally" option during the
listing process, it's still a good idea to spell out your
international policy in the item description itself. If you're
unwilling to sell and ship worldwide, include a disclaimer that
states "Sorry, but no sales outside the U.S." This
will steer international bidders away from your auctions, saving
time for both you and the buyer.
Payment
Yen, pounds, deutsche marks, guilders--no, you don't have to be
an international banker or a Donald Trump type to understand the
payment options for international shipping. Credit cards and
international money orders are your best bet. International
buyers may seek out sellers who accept credit cards, and credit
card companies such as Visa and MasterCard will convert foreign
currencies for no extra charge. If you don't accept credit
cards, then international money orders, made out in U.S.
dollars, are a great way to go. Though they carry an $8 fee,
they can be cashed right at your local post office.
Surprisingly, it's not uncommon for international buyers to send
cash. Although cash transactions are always a risky endeavor,
you can usually exchange foreign currency for U.S. dollars at
your local bank for a minimal charge.
For foreign currency conversion
information, check out The
Universal Currency Converter or the OANDA
Currency Converter.
Shipping
and Packaging
As always, do some comparison-shopping to see which company
offers the best rates and services when it comes to shipping
internationally. Most shipping companies have Web sites that
allow you to plug in the weight and dimensions of a package and
get an estimate of what the shipping will cost. The United
States Post Office, United
Parcel Service, and Federal
Express all offer this helpful service. Some sellers also
give buyers shipping choices. For example, if you go through the
USPS, you could let the seller choose between the 30-day rate or
airmail. You'll find that most opt for airmail, especially when
the merchandise is small and not that heavy, in which case the
shipping will cost less than $10.
As far as packaging is concerned, make
sure your packages are meticulously wrapped, adequately padded,
and durable--they have a long way to go. Merchandise shipped
internationally also needs to have labels so that customs
officials can determine the required duties, value added tax
(see below), and other fees. In general, you should include two
labels, one on the inside of the package and one on the outside.
Make sure that each label contains a description of the item and
associated value. Also note the cost of the shipping and
insurance (if any) and the name and address of both yourself and
the buyer.
It's
the Custom
Yes, you'll have to fill out a customs form (which doesn't take
long). Customs forms are required when you send dutiable letter
packages, small packets, printed matter, and parcels to
international destinations. The forms come in two flavors: the
green-colored 2976 and the white 2976-A (which includes an
accompanying plastic envelope sleeve, the 2976-E). The form
you'll need will depend on the type of mail, the weight of the
item, and the regulations of the destination country. Customs
forms are available at U.S. post offices. It's helpful if you
describe your item in language that custom officials will
understand, i.e., "video game" and not "Quake,
first-person shooter blastfest, w/ mission pack."
Added
Tax
Some countries require a provincial or a national sales tax
(Canada, for instance, imposes a 7 percent goods and services
tax). Most European countries have what's called a value added
tax (VAT). The rate varies from country to country. For the most
part, items are classified as taxable according to a specified
rate, a zero tax rate, or as exempt (in which case no tax is
applicable). For more information, here's a VAT
guide. Also watch out for international buyers who ask you
to declare an item as a gift, in hopes of avoiding certain
taxes.
Insurance
and Escrow
As in all transactions, make sure that you determine who will be
paying for insurance and escrow if the buyer requests them. You
can insure an international package with either the USPS or an
express shipping company. There will be some additional fees,
though. Escrow is another consideration. Check with individual
escrow services to see how they handle international sales. In
i-Escrow's international transactions, the credit card company
converts non-U.S. currency into U.S. dollars for the purchaser.
The seller is then paid in U.S. dollars.
In
the Zone
Lastly, you'll need to know a little about international time
zones. Why? Two reasons. One, since auction sites run on U.S.
standard time (usually pacific or eastern), consider amending
your auction start and end times. Two, your prospective buyer
will be on a completely different time schedule than you. When
you send an email and don't get a timely response, remember that
your buyer might be at work or asleep. Having a general grasp of
the world's various time zones will you help in your
international transactions. But don't worry about having to
memorize the earth's multiple time zones. Just check out CNN's
Worldtime.
Bonus!
Here's a quick one: Don't assume that a bidder with a foreign
email address will necessarily lead to an international sale.
For example, your German bidder could actually be a U.S.
serviceman who wants the item shipped to his mother's home in
Las Vegas. So even if you don't engage in international
transactions, don't be too quick to blow off a potential bid. It
could actually be just a regular domestic sale.
Back to Auction tips &
tactics
by Vendio Services
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