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Why Green Logistics is Something You Should Pay Attention To | SME Shipping

Modern SMEs need to know! Why 'clean transportation' is more important than you think.

Today, consumers and business partners worldwide place increasing importance on sustainability and environmental conservation. As a result, carbon footprint has become a crucial indicator that businesses need to pay attention to, especially in the transportation sector, which is a major source of greenhouse gas emissions. For SMEs (small and medium-sized enterprises), focusing on this is not just about building a positive image, but also about tangible business opportunities. This article by SME Shipping will help you understand why 'Carbon Footprint' is more important than many realize.

What is the carbon footprint of transportation?

A carbon footprint is the total amount of greenhouse gases emitted, both directly and indirectly, from the activities of individuals, organizations, or the production of goods and services over a period of time. Examples of activities that generate a carbon footprint include:

  • Electricity usage in homes or offices.
  • Traveling by car, plane, or other means of transport.
  • Product manufacturing and transportation processes.

For transportation, the carbon footprint depends on various factors such as distance, weight and size of the goods, as well as the mode of transportation used.

Why is carbon footprint important for SMEs in the transportation sector?

Freight transportation is one of the activities that generates the most greenhouse gas emissions because it uses fossil fuels such as diesel and gasoline, which, when burned, release carbon dioxide and other gases that cause global warming. SMEs are increasingly focusing on measuring and reducing their carbon footprint in transportation, and choosing transportation services that are not only environmentally friendly but also have positive impacts on their business in several ways, as follows:

1. Reduce costs in the long term.

Improving transportation processes, such as consolidating delivery rounds, choosing energy-efficient methods, or selecting logistics providers that focus on green transport, can actually reduce fuel costs and time.

2. Meet the needs of modern customers.

Customers worldwide, especially in Europe and America, prefer environmentally friendly brands. SMEs that transparently display their carbon footprint will build credibility and increase market opportunities.

3. Increase export opportunities.

Many countries and organizations require partners who can provide environmental information, such as carbon labels or environmental reporting. If SMEs can clearly state this information, they will have a competitive advantage.

4. Prepare for future laws.

Many countries are beginning to implement regulations on carbon reduction, such as the EU's CBAM (Carbon Border Adjustment Mechanism), which imposes import taxes based on carbon emissions. If SMEs prepare themselves and adapt early, they will be able to remain competitive in the long run.

5. Create a sustainable business image.

Paying attention to its carbon footprint enhances its image as a socially responsible business (CSR), which is a key selling point for building customer loyalty and attracting partners.

 Paying attention to "carbon footprint in transportation" is not just an environmental issue; it's a business tool that helps reduce costs, build credibility, and increase competitiveness internationally. SMEs that start measuring and improving today will have a competitive advantage in both the present and future markets.

7 Tips for Running Promotions for International Markets | SME Shipping

How to make promotional strategies for international markets work.

When Thai brands or businesses begin expanding into international markets, one of the key strategies to reach consumers is "promotion." However, there's no single formula for effective promotions in every country. If entrepreneurs want their sales promotion campaigns to be successful internationally, they need strategies tailored to the context of each market. This article from SME Shipping will explore approaches to help you run effective international promotions that meet the needs of today's customers.

1. Study the behavior and culture of consumers in each country.

Before planning a promotion, it's crucial to understand consumer purchasing behavior in each country. For example, consumers in Japan prioritize quality and brand over price, while in India or the Philippines, people may respond better to discounts and giveaways. Additionally, consider the specific culture and festivals of each region, which can be used as selling points or themes to create a more locally relevant promotion.

  • Japan: Emphasis on quality and reliability.
  • India: I like promotions that offer good value.
  • China: Emphasizes promotional activities during festivals such as 11.11 (Singles' Day).

2. Clearly define the goals of the promotion.

Promotional activities shouldn't be done simply because competitors are doing them, but must have a clear objective. For example, these could include increasing short-term sales, encouraging trial of new products, or building brand awareness among target customers. If the goals differ, the format and messaging of the promotion must be adapted accordingly to achieve the desired results.

3. Choose a promotional format that is suitable for that particular market.

Types of promotions that work in Thailand may not work in other countries. For example, flash sales or time-limited promotions are popular in Western markets where consumers respond to urgency, while some markets prefer buy-one-get-one-free or free gift offers that give a greater sense of "value." Therefore, promotional strategies should be based on the specific behavior of consumers in the target market (including local seasonal promotions).

4. Adapt marketing to each local area (Localized Marketing).

Localized marketing is key to successful promotions overseas because consumers in different regions have distinct tastes, languages, and beliefs. Campaigns must communicate in a language that aligns with the local context, culture, and trends, rather than simply providing a literal translation. Furthermore, using well-known influencers or presenters in that country helps build credibility and reach the target audience more deeply.

5. Communicate promotions clearly and appropriately for the channels in each country.

Choosing the right communication channel is another key to success. Marketing should select channels that align with the lifestyles of customers in each area, and choose platforms that match the consumer behavior of that country, such as:

  • China: WeChat, Tmall
  • Japan: LINE, Rakuten
  • USA/Europe: Instagram, TikTok, Facebook

6. Continuously measure results and adjust promotional strategies.

Measurement is key to developing more effective promotions. A good campaign should be tracked and analyzed in real-time to use the data to improve future plans in terms of cost, efficiency, and return on investment. Key performance indicators to focus on include:

  • Click-through rate (CTR)
  • Sales from the campaign.
  • Conversion Rate
  • Number of users who used discount codes

7. Collaborate with local partners to gain genuine market access.

Having partners who understand the context of the target country helps brands adapt to the market effectively. Whether it's local distributors, advertising agencies, or influencers, these individuals possess insights that brands cannot obtain through general analytics. They can provide advice, feedback, or even help design campaigns tailored directly to local consumer behavior.

 Successful promotional strategies for international markets aren't about how much discount you offer, but about understanding consumer behavior, culture, and communicating at the right time. If you can adapt well to the local market, global brand growth is within reach. 

Understanding Online Consumer Behavior in International Markets | SME Shipping

Understanding the behavior of international online buyers: How to sell effectively to them?

In a world where online marketing knows no borders, businesses can reach a wider range of customers through online media, leading to adaptation and targeted marketing strategies for new customer segments. Many Thai businesses are also turning to international customers through global e-commerce platforms. However, achieving high sales isn't simply about having good products or low prices. Consumer behavior differs drastically from country to country, including preferred channels, payment methods, product selection, and even expectations regarding after-sales service. This article from SME Shipping explores how buyers from China, the US, and Europe think when shopping online and outlines strategies to best meet their needs.

Analyzing the behavior of international online buyers.

1. North America (USA / Canada)

  • American consumers prioritize ease of ordering; websites must load quickly and be user-friendly.
  • Transparency in delivery; showing the exact delivery date and providing clear tracking information.
  • Credit cards and PayPal are commonly used.
  • Reviews are very important: Reviews from previous customers have a significant impact on purchasing decisions.

2. Europe (e.g., Germany, France, United Kingdom)

  • Interested in sustainable/eco-friendly products?
  • I like websites that have clear company information and a supportive return policy.
  • Europeans often prefer to read websites in their local language, not just English.
  • Popular payment methods include bank transfers (SEPA), PayPal, and Klarna.

3. East Asia (China, Japan, South Korea)

  • I mainly make purchases via mobile phone.
  • I like promotions and flash sales.
  • Chinese customers will use specific applications such as WeChat Pay / Alipay.
  • Speed of chat response / customer service is key.

4. Southeast Asia (e.g., Indonesia, Vietnam, Philippines)

  • Shop via social media (Facebook / TikTok / Instagram)
  • They exhibit the behavior of "taking a long time to look at something, and making a quick decision when there's a promotion."“
  • Cash on delivery (COD) is a popular payment method.

Sales strategies to appeal to international customers.

1. Localize your content. Use easy-to-understand language for each country, provide detailed product descriptions, include multiple images and demonstration videos to increase conversions.

2. Choose the platform that best suits each market, as follows:

  • China: JD.com, Tmall
  • America/Europe: Amazon, Etsy
  • Southeast Asia: Shopee, Lazada, TikTok Shop
  • Social commerce: Facebook and TikTok Live are also gaining popularity in many countries.

3. Support local payment methods.

  • Boost your confidence with a payment system you're familiar with.
  • Use a payment gateway like Stripe, PayPal, or 2C2P that supports multiple countries.

4. It has a reliable international transportation system.

  • Fast shipping, with tracking information and a return policy (if possible).
  • Use fulfillment logistics services such as Fulfillment by Amazon (FBA) or SME Shipping.

5. Build credibility.

  • Customer reviews / Store rating / Quality guarantee
  • There is an About Us page / displays certificates / guarantees data security.

Selling online in a global market isn't just about translating a website; it requires a deep understanding of customer behavior, culture, purchasing channels, and expectations in each region, then adapting strategies accordingly, including sales channels, promotional strategies, and payment methods.

What is an Export License and what you should know | SME Shipping

What is an Export License? Who needs this license?

 Exporting goods to foreign countries is one of the key ways to expand business opportunities for Thai entrepreneurs. However, exporting is not just about preparing and shipping goods to their destination. There are also related legal requirements, especially if the goods are in the government-controlled category. In such cases, entrepreneurs may need an export license to ensure compliance. This article from SME Shipping will explain in simple terms what an export license is and who needs to obtain it before exporting goods.

What is an Export License?

An export license is a document issued by a government agency that allows businesses to legally export certain types of goods to other countries. It is typically used for goods that are government-controlled or have special export regulations, such as certain agricultural products, industrial goods with specialized technology, weapons, and goods that may harm the environment or natural resources.

Why is an export license required?

An export license is a document that shows you have been properly authorized by the government agency to export certain types of goods. This is necessary for:

  • Comply with legal requirements for products under government control.
  • Prevent customs issues in case the destination country requires verification documents.
  • Reduce the risk of suspension or seizure of goods if inspected and found to lack the necessary licenses.

Who needs an Export License?

Not everyone who exports goods needs this license, but if you are one of the following types of businesses, you will need to apply for an Export License:

  1. Exporting goods that are subject to government control, such as rice, sugar, minerals, firearms, live animals, processed wood, or hazardous materials, is prohibited. A list of controlled goods can be found at the Department of International Trade.
  2. Exports to countries with trade controls or restrictions, such as countries on sanctions lists or countries experiencing political conflict.
  3. There are specific requirements from the destination country. Some countries require an export license from the country of origin as a condition for import.
  4. Exporting goods related to intellectual property, such as software programs and high-tech machinery, may require prior inspection and authorization.

What are the consequences of exporting without a license?

Exporting goods without the necessary licenses can have serious consequences, such as:

  • The item was denied customs clearance on both the Thai and foreign sides.
  • The seizure or confiscation of goods can cause financial damage.
  • Subject to fines or legal action; liable to fines or imprisonment according to the law governing that product.
  • This affects the business image and the trust of business partners.

The agency that issues export licenses in Thailand.

In Thailand, the agencies authorized to issue export licenses are usually the Department of International Trade, Ministry of Commerce, or specialized agencies such as...

  • Department of Industrial Works (for chemical products)
  • Department of Forestry (for timber and wood products)
  • Department of Fisheries, Department of Livestock Development (for animals and animal products)

 Export licenses are "essential" for businesses exporting controlled or specially mandated goods. Businesses should always check the type of goods and requirements of the destination country before exporting to ensure that international trade is conducted legally and to avoid unnecessary additional costs.

Title: FTA: Tax Reduction Opportunities That Businesses Should Know | SME Shipping

Free Trade Agreements (FTAs) and opportunities for tax reduction for Thai SMEs.

The concept of a Free Trade Agreement (FTA) is a key strategy that opens "doors of opportunity" for Thai SMEs to access foreign markets at reduced costs, especially in terms of import tariffs, which can be reduced to as low as 0% in many cases if the benefits of an FTA are used correctly. It's like a "business pass" that helps Thai products access new markets more easily without bearing the burden of tariffs that hinder competitiveness. This article from SME Shipping will explore what Thai SME entrepreneurs should know about FTAs.

What is an FTA?

A Free Trade Agreement (FTA) is an agreement between two or more countries to promote trade by "reducing or eliminating trade barriers," such as import/export tariffs, tariff measures, or quantitative restrictions, in order to facilitate smoother trade between them. The goal is to enable goods and services from each country to move across borders "freely and fairly."“

With whom does Thailand have FTAs?

Currently, Thailand has both bilateral and multilateral FTAs with many countries, such as:

  • ASEAN
  • China
  • Japan
  • South Korea
  • Australia – New Zealand
  • India
  • Chile – Peru – Hong Kong
  • RCEP (Regional Comprehensive Economic Partnership)

In total, it covers more than 18 countries, representing more than 60% of Thailand's international trade.

Why do Thai SMEs need to know about FTAs?

In today's global trading world, where cross-border competition is commonplace, Thai SMEs need to seek new opportunities abroad. This is because it's a shortcut to reducing costs and increasing profits for exports. For Thai entrepreneurs, understanding and utilizing the benefits of FTAs will help...

  1. Export goods without paying import duties in the destination country (for some items, the duty code is 0%).
  2. Competing in the global market becomes easier because product prices have decreased.
  3. Expand your market to countries that have FTAs with Thailand with confidence.
  4. There is an opportunity to access new customers who may previously have been an obstacle due to taxes.

How can SMEs take advantage of FTAs?

  1. Check if your products are eligible for FTA benefits by visiting the Department of International Trade website or the FTA e-Tariff system to verify whether your products qualify for import tariff reductions.
  2. Apply for a Certificate of Origin (CO) to demonstrate that your goods were manufactured in Thailand, in accordance with FTA requirements. Applications can be submitted to the Department of International Trade or via electronic systems such as e-Form D or e-CO.
  3. It is important to understand the "Rules of Origin" (ROO), as each FTA has specific rules regarding "what types of goods" are considered to be manufactured in Thailand. For example, goods may be manufactured or assembled in Thailand, or use domestic raw materials exceeding a specified percentage.
  4. Prepare all necessary documents, including tax invoices, ingredient lists, production documents, shipping bills, and other documents required for applying for a Certificate of Origin (CO).
  5. Stay informed about new FTAs, as Thailand is still negotiating market access with new countries such as the EU, EFTA, etc.

Examples of SMEs that have benefited from FTAs.

  • A dried fruit manufacturer exporting to China is utilizing the Thailand-China FTA to reduce import tariffs to 0%.
  • A wooden furniture factory exporting to Australia uses the Thailand-Australia FTA to reduce tariffs by several times.
  • Garment factories use the rule of origin stating "Made in Thailand" to obtain tax breaks in Japan.

FTAs aren't just for big corporations; Thai SMEs of all sizes can use them as a tool to reduce costs, export more easily, and effectively penetrate new markets, if they prepare and utilize them wisely starting today.

Shipping API: A tool for online stores | SME Shipping

What is a Shipping API? A key tool for online stores.

In the era of rapidly growing online commerce, managing a modern and accurate shipping system has become a crucial factor for businesses to gain a competitive edge. One key tool in modern logistics is the Shipping API, which connects your store with external shipping providers, simplifying and automating the processes of shipping cost calculation, label creation, and parcel tracking. This article from SME Shipping will explore what a Shipping API is and why it's essential for online stores in this day and age.

What is an API?

A Shipping API is an application programming interface that allows websites or e-commerce platforms to connect directly with various shipping service providers such as Kerry Express, Flash Express, DHL, Thailand Post, etc., without having to manually enter data or switch between multiple systems. It is developed for the following uses:

  • Automatically calculate shipping rates.
  • Reserve and print shipping labels.
  • Track your package status in real-time.
  • Check the service area and delivery time.

Why should online stores use a Shipping API?

Using a Shipping API will help you expand your business more quickly and smoothly. The advantages of a Shipping API include:

  1. Reduce data entry errors by directly linking shipping information with the service provider.
  2. Automatic shipping cost calculation reduces guesswork and makes calculations more accurate.
  3. Real-time parcel tracking allows you and your customers to know the delivery status at all times.
  4. Save time and increase efficiency by eliminating the need to re-enter data multiple times and reducing manual work.
  5. Enhance the customer experience with fast and accurate delivery.

How does the Shipping API work?

When an order is placed, the store system sends the necessary information to the connected shipping provider's API to retrieve shipping rates and details. The API will respond with important information such as:

  • Calculate accurate shipping costs based on weight, package size, and destination.
  • Display shipping service options for customers to choose from, such as express delivery, standard delivery, or economy delivery.
  • Automate the creation of parcel numbers and shipping labels, reducing manual work and minimizing errors.

This entire process happens in real-time and is automated, resulting in faster, more convenient product delivery and greater customer satisfaction.

How to choose the right Shipping API for your store.

When choosing a shipping API for an online store, businesses should consider the following factors:

  1. Carrier coverage: Choose an API that supports connectivity with multiple carriers.
  2. Supporting your platform: Find APIs that can easily integrate with your store's system, such as Shopify, WooCommerce, or Magento.
  3. API documentation and support: Ensure the API documentation is clear and provides quick support for Q&A.
  4. Supported features: Choose an API that can handle features such as tracking multiple packages simultaneously and generating shipping reports.

 In short, a Shipping API acts as a bridge between your online store and shipping provider, allowing you to retrieve shipping information, calculate costs, create shipping labels, and track packages in real-time without having to re-enter data or switch between multiple systems. Whether you sell products on an e-commerce website, marketplace, or social media, connecting to a Shipping API will help you manage orders professionally, save time, reduce errors, and enhance the customer experience at every stage of the shipping process.

What you need to know about import taxes and fees at the destination | SME Shipping

Caution regarding import fees and taxes for goods at destination.

Although exports from Thailand are exempt from Value Added Tax (VAT 0%), businesses should not overlook the taxes and fees that the recipient overseas may have to pay. These can affect customer satisfaction and the overall cost of international trade transactions. This article from SME Shipping will guide you through the precautions regarding import fees and taxes to ensure your business runs smoothly.

What is import tax?

Import duty is a tax levied by the government of a destination country on goods imported from other countries. Its purpose is to protect domestic producers, increase government revenue, and control the types of goods allowed to enter the country.

Import tariffs vary depending on the type of goods and the destination country, such as:

  • Fashion clothing: 10–30%
  • Electronic device: 0–15%
  • Food and beverages: Additional taxes and hygiene requirements may apply.

Import duties are usually calculated based on:

  • Value of the goods (including shipping and insurance costs)
  • Customs Tariff Code (HS Code)
  • Regulations of the destination country.

How do taxes and duties affect your shipment?

Import taxes and duties can directly impact all types of export businesses, regardless of...

  1. The total cost to the customer at the destination, including any additional taxes they may have to pay upon receiving the goods, could result in a price higher than expected.
  2. Delivery delays may occur if customs documentation is incomplete or if the goods require special inspection.
  3. Customers may be dissatisfied if they have to pay taxes without prior notice, or if there is a misunderstanding about the charges.
  4. The risk of goods being rejected if import taxes are too high: Customers may refuse to accept the goods, forcing the seller to bear the burden of returning the products.

Taxes and fees to be aware of.

1. Import Duties

  • Each country has different import tax rates, depending on the type of goods and their value.
  • Certain types of goods may be exempt from tariffs if they are covered under a free trade agreement (FTA).

2. Value Added Tax (VAT / GST) at the destination.

  • Many countries levy value-added tax or service tax (e.g., GST in Australia, VAT in the European Union).
  • Even though the goods may be exempt from tax by the exporter, the recipient may have to pay VAT upon delivery.

3. Customs Clearance Fees

  • Some countries charge import handling fees or special inspection fees.
  • You should check with the logistics provider in advance.

 4. Transportation company fees (Handling Fee / Brokerage Fee)

  • Shipping companies such as DHL, FedEx, or UPS may charge additional fees for customs processing.

 Recommendations for entrepreneurs.

  • Clearly inform customers that there may be additional charges at the destination.
  • Study the destination tariffs in advance, or use the services of an international logistics consultant.
  • Use Incoterms appropriately, for example:
  • DAP (Delivered At Place): The seller is responsible for delivery to the destination, but the customer is responsible for import taxes.
  • DDP (Delivered Duty Paid): The seller is responsible for all shipping costs and import taxes.

Although it is possible to claim a VAT refund in Thailand, it is advisable to consider the "total cost including destination" to ensure a positive customer experience, avoid misunderstandings, enable professional international pricing planning, and ensure smooth business growth alongside the economic downturn.

Conditions for claiming VAT refund for exported goods | SME Shipping

Conditions for Value Added Tax (VAT) refund for exported goods.

Exporting goods to foreign countries is another business that receives government support and generates significant import and export value every year. Under Thai Value Added Tax (VAT) law, exported goods are exempt from the 0% (Zero-rated VAT) rate to promote the competitiveness of businesses in the global market. However, even though exporters don't have to pay VAT on exported goods, they can claim a refund of VAT paid to domestic suppliers of raw materials, services, or goods. This article from SME Shipping will guide you through the process of claiming a VAT refund for goods, raw materials, or services related to exports, subject to the conditions set by the Revenue Department.

1. Those eligible to claim a VAT refund.

  • We are a VAT-registered business operator.
  • The goods were actually exported in accordance with legal procedures.
  • There is complete and accurate supporting evidence and documentation. 

2. Key conditions for claiming a VAT refund.

2.1 This is an export product eligible for VAT exemption code 0%.

  • Exporting goods from Thailand directly to foreign countries.
  • It must be proven that the goods have actually left the Kingdom.

2.2. Complete export documentation is available.

  • Export Declaration
  • Full tax invoice
  • Proof of shipment, such as a bill of lading (or air waybill).

2.3 Submit a tax refund request within the specified period.

  • Within 3 years from the due date for filing the VAT return form (Form P.P.30) for the relevant month.

3. Documents required for VAT refund application.

  • Form K.P.10 (Tax Refund Request Form)
  • Purchase tax list
  • Tax invoice
  • Copy of the customs declaration form / shipping document.
  • Other supporting documents as required by the Revenue Department. 

4. How to apply for a VAT refund.

  • Submit it through the Regional Revenue Office where the business is registered.
  • Alternatively, you can choose to submit the form online through the Revenue Department's e-Filing system.

Products eligible for Value Added Tax (VAT) refund.

Businesses can claim a VAT refund on exported goods only if the goods meet the criteria stipulated by law, which generally means they were genuinely exported outside the Kingdom and have complete export documentation.

✅ Types of products that meet the criteria

  • Products exported from Thailand to other countries.
  • Shipping by sea, air, or international postal parcel.
  • An export declaration form that has been cleared by the Customs Department is required.
  • Goods in the form of raw materials or parts used in manufacturing and export.
  • Examples include electronic components, food raw materials, packaging, etc.
  • It is necessary to demonstrate a genuine connection to the exported products.
  • Products are sold to international customers and shipped directly overseas.
  • This is not a sale to individuals within the country, even if the customer is located abroad. 

❌ Products that do not meet the criteria.

  • Products that are sold and consumed domestically.
  • Goods exported "without a customs declaration" or without evidence of movement out of the country.
  • Goods that have been exported but have not undergone proper customs clearance.

Claiming a Value Added Tax (VAT) refund for exported goods is a tax benefit that businesses should not overlook. It can effectively reduce costs and improve business liquidity. However, strict adherence to the Revenue Department's procedures and conditions is crucial to avoid rejection or future problems. The refund process has clear criteria and conditions, particularly regarding supporting export documentation, application deadlines, and eligibility criteria for goods and services. Therefore, businesses should carefully study this information to ensure they don't miss out on these tax benefits.

How to check the status of international parcel delivery | SME Shipping

How to track the status of international parcels, giving customers peace of mind.

International shipping can be daunting for many customers, especially when delivery takes longer than domestic shipping. To build confidence and trust with customers, businesses should provide clear information and tracking options. This article from SME Shipping will show you how to easily check the status of your international parcel.

1. Provide the tracking number immediately after shipping the goods so that customers can track the status at all times.

2. Recommend websites for checking parcel status. Specify websites or links for checking parcel status from various companies, such as:

  • DHL: https://www.dhl.com
  • FedEx: https://www.fedex.com
  • UPS: https://www.ups.com
  • Thailand Post (EMS World): https://track.thailandpost.co.th

3. Tracking via application: We recommend that customers download the shipping company's app or a comprehensive parcel tracking app such as ParcelTrack, 17TRACK, or AfterShip, which allows you to check the status of multiple providers in one place.

4. Provide periodic status updates. If the shipping system is not updating in real-time, the store should periodically inform customers of the status, such as "item has left warehouse / arrived at distribution center / in the process of customs clearance," etc.

Advantages of international parcel tracking services.

Tracking international parcel status is essential for both merchants and customers to conveniently and reliably monitor the progress of their shipments. Here are the advantages of tracking international parcel status.

1. Increase customer confidence.

The ability to track package status allows customers to know where their packages are in transit and to estimate their expected delivery date. It also helps reduce concerns about delayed or lost deliveries.

2. It helps stores manage their deliveries better.

Stores can track the status of packages directly during transit, allowing for immediate coordination with the shipping company in case of any problems or errors. Tracking also helps stores improve service and achieve faster delivery times.

3. Reduce the risk of loss or delays.

Tracking parcel status allows you to monitor the progress at each stage of shipping. If there are delays or problems that could lead to parcel loss, you can immediately notify the shipping company for resolution, reducing the risk of issues that may occur during international shipping.

4. Reduce complaints and inquiries.

When customers can track their own packages, stores receive fewer complaints or inquiries about shipping status. This saves both stores and customers time and reduces the hassle of contacting customers during delivery.

The fact that various shipping companies provide customers with ways to track international parcels themselves is crucial in building customer confidence, increasing the convenience of tracking delivery status, and reducing anxiety for customers who may order high-value items and need to constantly monitor their shipment status. It also allows businesses to manage shipments efficiently and reduces customer complaints in case of unforeseen events. Therefore, parcel tracking is a tool that enhances customer satisfaction and the shopping experience, and strengthens the trust of your business.

Is Cash on Delivery (COD) available for international shipments? | SME Shipping

Is Cash on Delivery (COD) available for international shipments?

In today's fiercely competitive online retail market, service providers employ various strategies to attract customers, from shipping and packaging to payment. One popular payment method in the domestic market is "COD," which provides buyers with confidence that the goods will arrive before payment. However, when it comes to international shipping, many may wonder if COD is still applicable, and what limitations or conditions they should be aware of. This article from SME Shipping will guide you through the essential details of "COD," or "Cash on Delivery."

What is cash on delivery (COD) service?

Cash on Delivery (COD) is a payment service that allows you to pay upon receiving the goods. It's ideal for customers who want peace of mind before paying. Customers pay the delivery person when they receive the package at their home or designated pickup point. After payment is completed, the shipping company will transfer the money back to the store or seller according to their established transfer schedule.

  • C = Cash | O = On | D = Delivery
  • COD (Cash on Delivery) - Payment is collected upon delivery of the goods.

The reason why COD (Cash on Delivery) is not usually used for international shipments.

Although cash-on-delivery (COD) services are very popular in domestic trade, as they build customer confidence and boost sales, they are rarely used or are severely limited when it comes to international shipping. This is due to security concerns, the complexity of international transactions, and the requirements of various international shipping companies, particularly regarding taxes, customs, and financial procedures that are significantly more complex than those for domestic sales.

  1. There is a payment risk as the carrier cannot guarantee that the recipient overseas will pay.
  2. Tax and customs complexities are involved; goods shipped internationally often have to pass through customs, making COD (Cash on Delivery) difficult.
  3. Refunds to the seller in the country of origin can be time-consuming and involve high fees.
  4. Most multinational shipping companies do not support COD (Cash on Delivery), such as FedEx, DHL, UPS, or Thailand Post (for international shipments); they generally do not offer COD service.

Recommended alternatives to COD for international sales.

  1. Make a prepayment through a secure platform: such as PayPal, Stripe, Wise, or bank transfer.
  2. Sell through global e-commerce platforms: such as Amazon, eBay, Etsy, and Shopee Global, which have systems to protect both buyers and sellers.
  3. Use a payment gateway that supports multiple currencies: to build confidence with international customers.

Advantages of COD service

  • Customers are confident that they will receive the goods before paying.
  • Suitable for customers who do not have a credit/debit card or are unable to transfer money.

Disadvantages of COD service.

  •  There is a risk that customers may refuse to accept the goods or fail to pay.
  • Sellers may incur additional costs, such as COD (Cash on Delivery) fees.
  • The money is being delayed because we have to wait for the transfer to be processed back.