Published 6/8/2025
How to scale international shipping without destroying your margins

A fortnightly deep dive into the shipping and delivery questions that need answering, sent to your inbox.
Is international shipping keeping you up at night?
According to this year’s State of Shipping report, 82.8% of ANZ retailers said international shipping expansion was at least slightly important to them, with 17.2% saying it is very important. And with global ecommerce forecast to hit US$6.8T by 2028, the opportunity is bigger than the fear.
But many brands still treat cross-border shipping like a side project with no lane strategy, no landed-cost model, and no clear way to negotiate rates before they scale. Often, that’s what makes it costly, not the shipping itself.
For this edition of Delivered, Bian Robianesar, Shippit’s Senior Shipping Solutions Manager, who manages international shipping solutions across ANZ and Southeast Asia, provides insights to strip the emotion out of it and talk through a pragmatic playbook: how to enter your first market, protect margin, and avoid self‑inflicted delays.
Let’s get into it.
If your international model can’t work in one country, it won’t work in five. The best logistics teams aren’t building global operations off hope and spreadsheets, they’re pressure testing every variable in a single lane before scaling.
→ One SKU range.
→ One carrier setup.
→ One delivery promise.
→ One forecast period.
New Zealand is often the first market for Australian-based retailers due to how close it is - three-to-five day transit, no major customs drama, culturally aligned, and just far enough to reveal the cracks.
Freedom Furniture proves this approach works. They used a multi-carrier strategy across both Australia and New Zealand to achieve 20% freight cost savings. By automating fulfilment across 50+ stores and 100+ dispatch points, they expanded their carrier options and removed previous shipping restrictions that were limiting their New Zealand operations.
The US and UK might seem attractive at first, but they’re some of the hardest markets to land cleanly, especially with the recent announcement of the U.S. de minimis removal for all goods, regardless of manufacturing origin. You're dealing with stricter customs documentation, unpredictable delivery timelines, and layers of compliance like Food and Drug Administration (FDA) checks, Value Added Tax (VAT) requirements, and Economic Operators Registration and Identification (EORI) registration. It's not just complexity but the cost, time, and support tickets if you’re not set up properly from the start. But, when taking into account similarities in language and culture, as well as demand, it may still be a feasible option for certain industries.
The post-COVID years gave us enough failed playbooks to learn from. Retailers who went live in three to five markets at once got eaten alive by shifting carrier capacity, warehouse delays, and surprise surcharges they couldn’t re-route around. The ones who focused on one lane had the data to adapt, pause, or renegotiate before things spiralled.
👉 Data Point: The global cross-border ecommerce market is expected to reach $5.06 trillion by 2028.
👉 Strategic Implication: If you're not testing international lanes, you're falling behind the majority of your competitors.
You’re not just proving customer demand in a new market, you’re testing how your P&L holds up under real freight stress. That means tracking things like landed cost per SKU bundle, refund rates by shipping model, support load per 1,000 orders, and delay variance by postcode cluster. If that model can’t hit your margin floor in New Zealand, it’s not going to work in the US.
For most retailers, customs feel like a black box. You send something out, and then suddenly... silence. Customers start asking, "Where's my order?" and all you can do is shrug.
“The basic information and documents that you need comes down to three things. One is the commercial invoice, second is product description, and lastly the Harmonised System (HS) code. The most common cause of delays is when the commercial invoice is incomplete or inaccurate.”
“The basic information and documents that you need comes down to three things," Bian explains. "One is the commercial invoice, second is product description, and lastly the Harmonised System (HS) code. The most common cause of delays is when the commercial invoice is incomplete or inaccurate."
Each country has its own little quirks. You might be shipping smoothly to New Zealand and assume the UK will be the same. But then the UK asks for a VAT tax ID, and suddenly you're in customs limbo.
Here's what Bian recommends for realistic delivery windows: "For standard shipping to US and UK, expect up to 10 days. To Asia, for example Singapore or Hong Kong, expect around 4-6 days. And for New Zealand, expect 3-5 days."
For those who need an extra hand making sure their international setup runs smoothly, shipping platforms like Shippit partner with global ecommerce solutions like Global-e and Zonos to power a complete cross-border solution, from managing international payments, duty and tax calculations based on SKUs and lanes, and even checkout and product page localisation.
If you're scaling cross-border, get your customs game right and make sure your paperwork is not left as an afterthought.
International returns don't have to be a margin killer if you approach them strategically. The key is understanding your return patterns and building a policy that protects both customer experience and profitability.
If you're selling a $45 pair of sandals and it costs $30 to bring them back to Australia (plus duties and reimport admin), you need to weigh the true cost of that "customer-first" approach against alternatives.
There are smarter ways to play it without making your customers foot the bill:
→ Hybrid refund model: Offer exchanges with prepaid shipping, but ask customers to cover return costs for cash refunds
→ In-country returns: Work with third-party processors in key markets to handle returns, refurbishment, resale locally
→ Disposal and liquidation: Consider if the item getting recycled, destroyed, or sold to a third-party in-country makes more economic sense than processing it as a return
When return volumes are consistently low and shipping costs exceed product value, some retailers do consider local disposal or liquidation as last resort options. But the goal should always be building a sustainable return process that works for both you and your customers.
“Not all products require returns. Categories like fashion and wearables typically see higher return rates than consumables or even beauty products. The smart approach is to analyse your return volume and costs, then design a policy that makes sense for your business.”
Also, consider a refund tech platform to automate the process, rather than leaving it to manual emails and spreadsheets. Make your policy clear from the start, and focus on creating a returns experience that maintains customer trust while protecting your bottom line.
If you're running a seasonal product line, and you're still local-only, you're likely spending months each year sitting on idle inventory and untapped demand. This is when shipping into markets that offset your slump becomes a smart play.
And the opportunity is real, as Pitney Bowes found in their 2024 survey of 13,000 adults across 13 countries found 86% of Australians had made at least one purchase from an international online store, which tells you the appetite for cross-border products works both ways.
But, it’s not as simple as duplicating your domestic playbook.
You need to time your logistics to match when they buy, not when you sell. You might be packing summer stock locally while your overseas customers are already hunting for winter holiday gifts. That means forecasting Lunar New Year delays in China when your Aussie warehouse is also preparing for back to school and Australia Day sales, which also means rethinking inventory allocation entirely.
→ Swimwear, snow gear, allergy meds are all examples of products that could be shipped to global markets to tap into reverse seasonal windows. If you’re tied to one hemisphere’s calendar, international expansion is survival math for you.
→ Map your seasonal calendar against target markets: if you're shipping summer swimwear, Northern Hemisphere customers start shopping in March-April, not when Australian summer begins.
The brands that survive seasonality long-term are the ones that treat demand curves like global tides. They push products into the right market at the right time, not by chance but by design. And they build capacity to test into new seasonal calendars, learn which SKUs translate across hemispheres, and pull back or double down accordingly.
It’s about going global, so your business doesn’t stand still for three to six months of the year.
✅ Test one lane properly before scaling
Start with New Zealand. Prove your unit economics, customs process, and carrier relationships work in one market before expanding.
✅ Master your customs documentation
Invest in getting commercial invoices, product descriptions, and HS codes right from day one. Don’t let incomplete paperwork damage your customer experience before your international operations have a chance to scale.
✅ Know when to say no to returns
Calculate the true cost of reverse logistics vs. alternatives. Consider if you have to make the call to go for local disposal/liquidation in order to protect margins long-term.