International shipping calculation with Paypal?

Question

We're offering Paypal checkout as a way to purchase items on our website, and offer our goods internationally. Our problem is that when a user selects Paypal there's no easy way to set a shipping cost based on their location...

For instance if a user is from the USA, his/her shipping cost will be $3.85

If a user is from the UK, his/her shipping cost will be $5

Aside from having users pre-select their country (which seems pretty flimsy because they could just select domestic, then change their address to something international) is there a way for Paypal to adjust shipping based on user's shipping address??

Answer 1

Does https://www.paypal.com/cgi-bin/webscr?cmd=xpt/shipping/EasyCalculateShipAndTax-outside help at all? It describes a way to (within PayPal's interface) pre-set shipping costs for different destination countries.

Answer 2

It looks like this article and thread may have fallen into the abyss but I thought I might chime in and give my two sense.

The challenges I have struggled with around international sales are really two parts.

First, and I won't dive too deeply as its more related to the merchant service and credit card processing side of the business, but merchant services and payment gateways have yet to deploy a system that roots out fraud. The unfortunate fact is that assuming a customer abroad uses a fraudulent credit card it will almost certainly slide through the gateway and merchant services as a good sale, then deposited into the retailer bank account, only to be identified as suspicious weeks later. Naturally the banks reach in and extract the fraudulent funds and leave the retailer holding the bag.

The other side of it the logistics, and more precisely the competitive or noncompetitive pricing leading to sales.

Amazon.com has been a steamroller throughout the marketplace and many would argue the vast benefits it has brought with it byway of competitive forces. Amazon has been a God send to many particularly small businesses who without the Amazon marketing advantage would be little more than a doodle on the back of a napkin at the looking drinking hole. They are great at reaching a domestic consumer and their impact in the larger international space is growing fast.

But for those of us who try to sell through our own website, foregoing the massive commissions paid to the behemoth, it can be a little daunting to tackle the international shipping.

First, the rates. Getting rates that compete is tough. Have you seen the retail rates from Fedex, DHL, or TNT? They are insanely expensive and unrealistic for a retailer. I negotiated rates with UPS, TNT, and DHL, but the results were not good. Not enough volume to drive real discounts. This is when competing with Amazon makes you feel really really small.

I'm measuring the percentage of lost business against incremental increases to shipping rates and its extreme.

Frankly, as a seller who has evolved through the past decade of Amazon ups and downs I've learned through heartache and loosing lots of money, whether through BiG Bank Merchant Services who take no prisioners or the hefty costs for international shipping. Where I have moved my inventories is away from Amazon and FBA and into fulfillment centers capable of handling all my logistics issues.

For instance, reverse logistics. For those of you who may be new to the term, it refers to the process of returning merchandise from end consumer to merchant. Managing this with international customers can be complex. Additionally, fulfillment centers offer volume rates I'm not able to get on my own with the aforementioned carriers; UPS, FEDEX, DHL, TNT. Rather, the fulfillment operations I work with tend to be flexible and understand the cost correlation associated with international sales.

The fulfillment companies I have used are:

Good - Amazon FBA Better - Shipwire Best - Newgistics

I won't ooze over any of them, but I'll say that as my requirements have evolved FBA was incapable of keeping pace. With the other solutions I have full EDI integration by and between me and all my distribution partners. Partners that make life a lot more manageable.

As for international shipping rates that beat retail published rates, check out these international shipping calculators:

USPS DHL MyUS American eBox
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These will at the very least send you in a direction that makes sense. I hope this personal recount provides help to those who are transitioning through differing stages of growth.