Best Shipping Strategy for New ECAs

Shipping costs are always a very important cost consideration for ECAs. In some cases, shipping costs can even be higher than the actual cost of goods depending on where in the world the ECA is operating from. For a fairly new ECA, since you want to sell your products and in a very competitive market, you must watch your shipping costs very closely.

Generally speaking, the farther you ship your goods, the higher your shipping costs. For that reason, I am inclined to recommend to fairly new ECAs to limit their shipping to their geographical regions of the world at first to “test the waters” of international commerce. By the time you get known in the business and your customer base is encouraging, you can decide to expand further afield. That to me is what makes good commercial sense.