Pros and Cons of Selling Internationally

Let's start with the big question: Should you sell internationally? The answer to this isn't a simple one. It depends a lot on your tolerance for differences (in money, in language, in routine), and your ability to deal with unusual post-auction activityespecially in regard to payment and shipping.

The pros of opening your auctions to non-U.S. bidders include the following:

• You might be able to attract additional biddersand thus sell more items at (presumably) higher prices.

• You can offset some of the seasonality of the U.S. market; when it's winter here, you can still be selling swimsuits to the summer market in Australia.

• You establish a reputation as a hard-working global trader .

• It's fun (sometimes) to interact with people from different countries and cultures.

The cons of selling outside the U.S. include the following:

• You might run into difficulties communicating with bidders from outside the United States.

• You might have to deal with payment in non-U.S. funds, on non-U.S. banks.

• You'll have to put extra effort into the packing of an item to be shipped over great distances.

• You probably won't be able to use your standard shipping serviceswhich means investigating new shipping services and options.

• Shipping costs will be higher than what you're used toand will need to be passed on to the buyer.

• You'll need to deal with the appropriate paperwork for shipping outside the U.S.including those pesky customs forms.

• If there are any problems or disputes with the item shipped, you have an international- sized incident on your hands.

Just looking at this list, it may appear that the cons outweigh the pros. That might not always be the case, howeverespecially if you're a real "people person." Many eBay sellers get great joy from interacting with people from different cultures, sometimes turning foreign buyers into lasting friends . I can vouch from my limited personal experience that most non-U.S. buyers I've dealt with are exceedingly polite and tolerant of the extra effort required to complete an international transaction.

If you decide to sell outside the U.S., you'll want to state this in your auctions, along with a line indicating that "shipping and handling outside the U.S. is higher," "listed shipping charge is for U.S. only," or something to that effect. If, on the other hand, you decide not to sell internationally, state that in your ad alsowith a "U.S. bidders only" type of notice.

Selling Outside the U.S.

If you decide to take the leap and open your auctions to an international audience, you need to be prepared for a new world of activitiesno pun intended. Selling outside the U.S. especially the shipping part of the processis much different from selling to someone in New York or California. Although I can't prepare you for all the issues you might encounter, I will point out some of the bigger hassles to look out for.

Communicating with International Bidders

One of the joysand challengesof selling internationally is communicating with non-U.S. bidders. Although citizens of many countries speak English, not all door do so well. This means you're likely to receive emails in fractured English, or in some language that you might not be able to easily translate.

The solution to this problem isn't always easy. It's one thing to say you should send nonEnglish-language emails back to the buyer, requesting communication in English. But if the buyer can't read or write English, how is he supposed to read your request? This problem is a tricky one.

I have found, however, that communication goes more smoothly if you keep your written communications short and simple. Use straightforward wording and avoid slang terms and abbreviations, and you stand a good chance of being understood .

In addition, you have to deal with the time difference between the U.S. and many other countries. If you're dealing with a buyer in the Far East, you're sleeping while he's sending emails, and vice versa. This introduces an unavoidable lag into the communication that can sometimes be problematic .

The only advice I can give you here is to be aware of the time differences, and plan accordingly . Don't expect an immediate response from someone on a different continent , and try to avoid the kind of back-and-forth communications that can go on for days and days.

Accepting Foreign Payments

One of the issues with selling outside the U.S. is in dealing with foreign currency. First, you have to convert it to U.S. dollars. (How many lira to the dollar today?) Then you have to receive it in a form that is both secure and trusted. (Do you trust a personal check drawn on a small Spanish bank?) Then you have to find a way to deposit those fundsand convert them to U.S. dollars. (Does your bank handle foreign deposits?)

The currency issue is simplified somewhat when you specify bidding and payment in U.S. funds only. This puts the onus of currency conversion on the buyer, which is a plus.

Tip

When you need to convert foreign funds, use the Universal Currency Converter (www.xe.net/ucc/).

The payment process can be further simplified when the buyer pays by credit cardor, even better, by PayPal. PayPal is now active in 55 countries (including the U.S.) and can handle all the payment, conversion, and deposit functions for you.

Shipping Across BordersAnd Oceans

The biggest difficulty in selling to non-U.S. buyers is shipping the item. Not only are longer distances involved (which necessitates more secure packagingand longer shipping times), but you also have to deal with different shipping options and all sorts of new paperwork.

Chances are your normal method of shipping won't work for your international shipments. For example, you can't use Priority Mail to ship outside the U.S.not even to Canada or Mexico. This means you'll need to evaluate new shipping methods , and possibly new shipping services.

If you want to stick with the U.S. Postal Service, you can check out Global Priority Mail (reasonably fast and reasonably priced), Global Express Mail (fast but expensive), Airmail (almost as fast, not quite as expensive), or Surface/Parcel Post (slow but less expensive). In addition, UPS offers its Worldwide Express service, FedEx offers its FedEx Express service internationally, and DHL is always a good option for shipping outside the U.S. Be sure to check out your options beforehand, and charge the buyer the actual costs incurred.

Tip

Given the increased chances of loss or damage when shipping great distances, you should consider purchasing insurance for all items shipping outside North America.

You'll also have to deal with a bit of paperwork while you're preparing your shipment. All packages shipping outside U.S. borders must clear customs to enter the destination countryand require the completion of specific customs forms to make the trip. Depending on the type of item you're shipping and the weight of your package, you'll need either Form 2976 (green) or Form 2976-A (white). Both of these forms should be available at your local post office.

When you're filling out these forms, describe the item in terms that ordinary people can understand. That means using simple, generic terms. An "Alicia Keyes greatest hits CD compilation" becomes "compact disc." A "SimCity extension pack" becomes "video game." And so on.

Note

Customs forms aren't required on non-duty items that weigh less than 16 ounces.

You should also be honest about what you're shipping. Some buyers will try to talk you into describing the item as a gift so that they can save on duties or tax on their end. That's lying, and you shouldn't do it.

In addition, there are certain items you can't ship to foreign countriesfirearms, live animals and animal products, and so on. (There are also some technology items you can't ship, for security reasons.) You need to check the government's list of import and export restrictions to see what items you're prohibited from shipping outside U.S. borders. Check with your shipping service for more detailed information.

Tip

eBay offers several pages of advice for international trading at pages.ebay.com/globaltrade/.

Finally, note that shipping across borders takes longer than shipping within the U.S. This is especially true if an item is held up at customs. Make sure your international buyers know that shipping times will be longer than what you might state for domestic buyers.