How to Recession-Proof your International Shipping
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Global economics can get extremely complex, but certain principles of recession consumer behavior are straightforward. When people have less money and products are more expensive, the average consumer is going to purchase fewer or cheaper things.
However, there are proactive ways to optimize your sales and shipping to stay strong against the currents of recession, including shipping internationally to begin with!
In the spirit of preparedness, let’s look at three ways you can recession-proof your international shipping, no matter what turns the economy takes.
1. Strategize with the Global Market & Exchange Rate
Even during a global recession, waves of inflation and recession hit countries at different times. That means one of the most strategic moves you can make is to keep a keen eye on the global market and exchange rates. As currency values shift (especially the dollar, euro, yen, and yuan) and regions experience varied economic positions, certain parts of the world open and close for prime international shipping opportunities.
For instance, the US Dollar is currently reigning supreme over many major global economic players. That makes it an opportune time for US-based merchants to invest in international shipping and non-US-based merchants to target US consumers.
FlavorCloud helps merchants understand their best international shipping options and take advantage of economic turns.
2. Open up Shipping Options
An effective way to promote global sales during a recession is to increase your shipping options. We usually recommend merchants use DDP (delivered duty paid) shipping over DDU (delivered duty unpaid) when shipping internationally, as DDP is faster, simpler, and ultimately cheaper for the consumer. It also requires less effort on your end when it comes to customs and compliance.
However, DDU shipping lessens the financial burden for the end consumer at checkout, which could result in more sales overall. In times of recession, conversion optimization is key, and adding DDU as a shipping option is a good way to improve it.
It’s essential though, to make sure your end customers understand the pros and cons of both choices so they aren’t hit with unexpected charges when their item arrives.
3. Focus on Your Best Products
During a recession, it’s important to be constantly optimizing. You may have a long list of products you sell, but not all are international hits. It could be a good idea to cut back your product lists. You don’t have to sell every single product internationally—but focus on products that sell the most or provide the best return on investment.
During a recession, it’s best to prioritize your best investments.
If you work with buyer markets in different countries, tailor your products to fit each demographic. If you need help tracking your most successful products, FlavorCloud helps you analyze and track your shipments. Remember, simplicity will always win the scarcity game.
Use FlavorCloud to Manage your International Shipping
You’re already preparing to weather a global recession—the last thing you need is nightmares about international shipping logistics. Luckily, there’s no need for tossing and turning.
Contact FlavorCloud today for an all-encompassing shipping software and support team. With over 200 countries and regions served by more than 300 carriers, we have the experience and the know-how to get you through this storm in peace.
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