Cross-Border Ecommerce Explained: A Simple Guide for Growing Brands

#What is Cross-Border Ecommerce? A Simple Guide for Growing Ecommerce Brands

Thinking about selling internationally? Start here.

If you’re running an ecommerce brand and thinking about expanding into international markets, you’ve probably started looking into cross-border shipping — and quickly realised it can feel a little overwhelming.

Customs. Duties. Taxes. Paperwork. Delivery times.

There’s a lot to think about, and when you’re trying to grow a business, the logistics side can feel like a maze.

The good news? It doesn’t have to be complicated.

To break it down, we spoke to Simon Perkins, Commercial Director at SAMOS, who has more than 25 years’ experience in global shipping and logistics. We asked him to explain the fundamentals of cross-border ecommerce — in plain English — and share some of the most common mistakes brands make when selling internationally.

#Q: Simon, after over two decades in logistics you must have seen it all. Let’s start with the basics — what is cross-border ecommerce?

Simon: Haha, I often tell customers, “I’ve seen every bit of mischief a cardboard box can get into.” And after this long in logistics, that’s not far from the truth.

In simple terms, cross-border ecommerce is when you sell products online to customers in another country.

Most brands do this through their own website or through international marketplaces. Once an order comes in, a logistics partner takes care of getting the parcel from the seller to the customer.

Where it gets a little more complicated is everything in between — customs, duties, taxes and compliance rules, which vary depending on the country you’re shipping to.

#Q: What are the biggest mistakes ecommerce brands make when selling internationally?

Simon: The biggest one I see is brands treating international shipping as if it’s just an extension of their domestic operations.

Unfortunately, it’s rarely that simple.

You’re dealing with different customers, different regulations and often different expectations around delivery.

One really common mistake is not using Delivered Duty Paid (DDP) shipping. That means the customer ends up paying import duties and taxes when the parcel arrives. Nobody likes costly surprise charges, so parcels often get refused or returned.

Then there are the smaller details that can cause big issues later on, like:

• Incorrect HS (commodity) codes
• Misclassifying goods
• Incorrect labels
• Missing compliance documentation

They sound minor, but they can cause delays, extra costs or even goods being held at customs.

#Q: This might sound like a basic question… but how do parcels actually travel internationally?

Simon: You’d be surprised how often people ask that!

With international shipping, it’s mainly a hub and spoke system where goods from various origins (spokes), are transported to a central facility in the UK (the hub) for sorting, before being redistributed to final destinations.

As you can imagine, this gets complicated with Europe, because there are different rules and regs for each country. That’s why SAMOS keeps it simple and delivers straight to one hub in Europe.

#Q: So how long does international shipping usually take?

Simon: For most international ecommerce deliveries, you’re typically looking at around 2–6 working days.

Of course, it depends on the destination and service level, but that’s a good general rule of thumb.

#Q: What factors affect international shipping times?

Simon: There are quite a few actually.

Delivery speed can depend on things like:

• The mode of transport (air vs road)
• How efficient the customs process is in the destination country
• Local delivery networks
• Weather or other environmental disruptions

For example, road transport can take longer than air freight.

#Q: One thing brands hear a lot about is import duties. What exactly are they?

Simon: Import duties are taxes charged by a country when goods enter from overseas.

They’re used to protect local industries and generate revenue for the government. The amount depends on things like:

• The value of the goods
• The product category
• The HS (Harmonised System) code

Duties can either be paid by the customer when the parcel arrives (DAP) or by the seller at checkout (DDP).

For ecommerce brands, DDP usually provides a much better customer experience because customers see the full cost upfront.

#Q: How are import duties calculated for international orders?

Simon: There are three main factors customs authorities look at:

• The total value of the goods
• The HS code used to classify the product
• The country of origin

Trade agreements can also influence duties, and many countries have a de minimis threshold, which means goods below a certain value can enter without duties or taxes.

#Q: Why do recipients sometimes get charged customs fees when their parcel arrives?

Simon: That usually happens when shipments are sent using DAP (Delivered Duty Unpaid) terms.

In those cases, the customer is responsible for paying:

• Import duties
• VAT
• Sometimes a courier handling fee

These charges are triggered when the parcel value exceeds the country’s import threshold.

#Q: What’s the difference between customs duties, VAT and import taxes?

Simon: People often use these terms interchangeably, but they’re slightly different.

Here’s the simple version:

• Customs duties: Taxes applied to goods entering a country
• VAT (Value Added Tax): A consumption tax applied to the total value of goods, including duty and shipping
• Import taxes: A general term that covers both duties and VAT

#Q: Can ecommerce brands calculate duties and taxes before shipping?

Simon: Yes — and it’s something I strongly recommend.

Most brands do this using landed cost calculators or automated shipping tools that integrate with their ecommerce platform.

These tools use the product’s HS code, value and destination country to calculate the duties and taxes in advance.

If you’re shipping using DDP, those costs can be collected at checkout, so customers know exactly what they’re paying.

#Q: What documents are required for international ecommerce shipping?

Simon: Documentation is really important for smooth customs clearance.

The exact requirements vary depending on the country and the type of goods, but most shipments will need:

• Accurate product descriptions
• HS (commodity) codes
• Shipping labels

Getting these right helps avoid delays at the border.

#Q: What is an IOSS and do all brands need them?

Simon: This is a big cause of confusion for brands shipping to the EU.

The IOSS scheme was introduced after the UK left the EU. It allows you to settle the VAT on EU imports monthly through a unique IOSS ID number. What many brands don’t realise is that it’s not compulsory to have one – it’s not always the most cost-effective option for smaller businesses.

The good news is, SAMOS can help you ship to the EU with or without an IOSS.

#Q: What is a commercial invoice and why is it important?

Simon: A commercial invoice is essentially a document that tells customs what’s inside the parcel and how much it’s worth.

It includes information like:

• Buyer and seller details
• Product descriptions
• The value of the goods
• Shipping terms

Since the UK left the EU, this information is required, as it is for most other international destinations. The good news is, we don’t need a paper document at SAMOS because we process all the data electronically though your shopping platform or marketplace. Nice and simple.

#Q: And finally — which platforms work best for cross-border ecommerce?

Simon: There are lots of good options depending on how your business is set up.

Many brands use Shopify, which makes it easy to sell internationally from one store.

Others prefer Woo Commerce, which is very flexible thanks to its plugin ecosystem.

From a logistics perspective, we also integrate with platforms like Helm, Mintsoft and Shiptheory, which help automate order fulfilment and shipping.

We’ve also recently partnered with Loop, which is doing some really interesting things around ecommerce returns.

So there’s definitely no shortage of tools — it’s just about finding the right combination for your business.

So there you have it, cross-border ecommerce (and all its pitfalls) in a nutshell.
At SAMOS, we know it can feel complicated at first, but once you understand the fundamentals, it becomes much more manageable.

With the right shipping setup, clear pricing and accurate documentation, selling internationally can open the door to entirely new markets and customers.

And as Simon puts it: "Once you’ve done it a few times, it all starts to make sense — even if the occasional cardboard box still finds a way to cause trouble."

For more clarification on how to handle cross-border ecommerce like a pro, you can get in touch with our expert team, including Simon. Contact SAMOS today for practical solutions in simple terms.