Shipping From USA to Australia | Complete Guide To Fulfillment
There are several things you need to know when shipping from the USA to Australia. You can check out our guide here to learn more.
As an eCommerce business, expanding your exports internationally is a great way to scale. The Australian market particularly shows a lot of promise for businesses.
For one thing, the country’s economy ranks the 13th largest in the world. Within the Asia-Pacific region, Australia’s economy ranks the 5th largest.
Shipping from USA to Australia can also help you break into other international markets. Whether you’re trying to scale or you’re just getting into eCommerce, here are some tips on how to ship to Australia.
Shipping Products From USA to Australia
Wondering how to ship your eCommerce products to Australia? There’s a lot to know about international shipping. Cost is definitely an important factor for any business.
However, you’ll also need to understand various shipping methods and their delivery times.
Whenever you’re doing any sort of international shipping, you should know the customs guidelines.
Cost to Ship to Australia
The cost to ship to Australia largely depends on various taxes. For this part of the process, it’s important to be familiar with Australian customs laws. Besides the shipping method, here’s how you can break down the cost of importing products to Australia:
- Value of Goods
- Freight Cost
- Import VAT/GST
- Import Duty and Tariffs
You may also add shipping insurance to these costs if you choose to use it. However, this varies depending on the type of product and the shipping location.
Shipping insurance can provide more assurance that packages remain intact and delivered. Insurance services typically protect against lost, damaged, or stolen packages and reimburse your investment. Their rates depend on the services they offer.
The value of goods is probably the cost you’ll recognize the most. It’s simply the price of your product, which can change depending on how Australian customs value the product.
Freight costs are expenses related to transportation. Airfreight often provides more reliable transportation than ocean freight. However, ocean freight is generally more cost-effective than air freight. For each method, the price depends on the size and weight of your packages.
Taxes and Duties: VAT/GST and Import Duty
Most industrialized countries have a sales tax for imported products. Australia is one of these countries that continue to enforce this tax.
A value-added tax is a type of sales tax included with certain items. Products collect more value during the manufacturing, distribution, and sales processes. Therefore, a value-added tax is collected during each of these processes. This tax is widely used in nations that are joined with the European Union, such as Australia.
Value-added tax is levied based on the gross margin. The gross margin changes during each manufacturing, distribution, and sales process. So the value-added tax will change as well.
For other sales taxes, value is added at the end of manufacturing, distribution, and sales. The USA still imposes these taxes and only the consumer pays for this added value, but Australia does not impose this tax.
VAT/GST Rates and Low-Value Imports
In 2019, the standard value-added tax (VAT) rate for Australia was 10 percent. It continues to stay at this level in 2020. Fortunately, Australia has some of the lowest VAT rates, even since 2015.
The VAT is also known as the Goods and Services Tax (GST). In general, products with a value of AUD1000 are considered low-value imports. They may not be taxable, in some cases, but this does depend on the product.
Recently, Australia ruled that these low-value goods could still collect the tax. As of July 1, 2018, imports with a value of AUD1000 or lower were made taxable. The transportation method also requires a Self-Assessed Clearance (SAC) Declaration.
There are some additional costs for items that exceed the AUD1000 value. They require an import Declaration and you must pay their taxes or duties at the border.
The import duty, or “customs duty,” is another tax you’ll need to consider. It’s determined by the product’s overall value and certain Australian customs criteria.
Shipping Times and Methods
Most shipping services have a range of priority and standard shipping rates. Priority shipping methods often guarantee delivery within 1-3 business days.
Days from Monday through Friday are considered business days, but Saturday is also included with some services. The largest shipping services include UPS, USPS, and FedEx.
UPS Shipping From USA to Australia
UPS has more choices of delivery times and ranges than most other methods.
UPS Express Critical is the fastest method and gives you a hard and fast delivery time deadline. The time that you place the order primarily determines the time of delivery.
There are three shipping methods that deliver within 1-3 business days. Each method offers a slightly earlier or later arrival time on the day of delivery.
UPS Worldwide Express Plus ships items within 1-3 businesses. On the day of delivery, packages typically arrive in the morning at 8:30 or 9:00 am.
UPS Worldwide Express similarly delivers within 1-3 business days in the late morning.
Finally, UPS Worldwide Saver delivers within 1-3 business days at the end of the day.
The next two shipping methods offer the latest delivery times. They require at least 2 days of shipping. UPS World Expedited shipping has a maximum shipping time of 5 business days, and delivers by the end of the day.
UPS standard shipping has an indefinite waiting period and delivers by the end of the day.
USPS Shipping – USA to Australia
USPS has the next largest selection of international shipment methods and rates. It has four methods of delivery with varying delivery times.
The fastest method is Global Express Guaranteed, which delivers within 1-3 business days.
Priority Mail Express International ships within 3-5 business days and Priority Mail International ships within 6-10 business days.
If you choose First-Class Package International Service, the destination determines the shipping time. This method has the longest waiting period and takes at least 6 days to deliver.
FedEx Shipping – USA to Australia
FedEx offers two shipping methods: FedEx International Economy and International Priority.
FedEx International Economy requires at least 4-6 business days. If you need faster shipping, you can use FedEx International Priority shipping to deliver within 1-3 business days.
Start Shipping to Australia
If you’re ready to start shipping from USA to Australia, we can help you with each step in the exporting process.
Your eCommerce business deserves a reliable service, which is why we process orders 7 days a week.
Need custom branding or real-time inventory management? We also provide software that integrates with your eCommerce store that can help you do that and more.
Contact us today to start selling!