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How to sell online internationally: a step-by-step guide for small stores

· 8 min read · Selling Internationally

Short answer: To sell online internationally, start with one or two countries where your product already gets interest, show prices in their currency, decide up front whether you or the customer pays import duties and taxes, check each country's tax rules for low-value parcels, and ship with a tracked carrier and a proper commercial invoice. You don't need a separate store for every country, but each market does need its own prices, payment options and shipping rates. That's easier to run on an e-commerce platform with built-in sales regions and international shipping.

Step 1: Check that your product can travel

Before anything else, make sure your product can be shipped to the country you have in mind. Batteries, cosmetics, food, supplements and anything with plants or animal materials often face extra rules or outright bans. Your carrier publishes a list of restricted items for each destination; read it first.

Also find the HS code (the customs classification number) for each product. Customs uses it to decide which duty rate applies, and you'll need it on the commercial invoice.

Step 2: Pick your first markets

Don't open to the whole world on day one. Look at your analytics and past orders: where do visitors and enquiries already come from? Start with those countries. One or two markets you serve well teach you more than twenty you serve badly.

Step 3: Price in local currency and show the full cost

Shoppers trust a price they can read without a calculator. Show prices in the local currency, and set them per market rather than relying on a live conversion that changes every day. Include shipping in what the customer sees before checkout: unexpected costs at the last step are one of the main reasons people abandon their carts.

Step 4: Decide who pays duties and taxes (DAP vs DDP)

This is the decision most first-time international sellers miss. Two Incoterms rules cover it:

  • Who pays import duties and taxes — DAP (Delivered at Place): The customer, on delivery; DDP (Delivered Duty Paid): You, the seller
  • What the customer sees — DAP (Delivered at Place): A possible extra bill from the carrier; DDP (Delivered Duty Paid): One final price at checkout
  • Risk for you — DAP (Delivered at Place): Refused parcels if the fee surprises them; DDP (Delivered Duty Paid): You must know the charges in advance

DDP gives a better customer experience but means you collect and pay the charges. DAP is simpler for you, but say clearly on your site that the customer may have to pay import charges on delivery.

Step 5: Know the rules for low-value parcels

Rules for small parcels have changed a lot recently. Three big markets, as their tax authorities describe them:

  • European Union: For consignments with an intrinsic value of €150 or less, sellers can use the Import One-Stop Shop (IOSS) to charge EU VAT at checkout, so customs doesn't collect it again at the border. Sellers outside the EU need an EU-established intermediary to use IOSS. According to Ireland's Revenue, from 1 July 2026 the €150 customs duty exemption has been removed and a temporary flat customs duty of €3 per item (per tariff heading) is charged on consignments of €150 or less sent by non-EU sellers registered for IOSS.
  • United Kingdom: For consignments of £135 or less sold directly to customers in Great Britain, the seller charges and accounts for UK VAT at the point of sale, not at the border (GOV.UK).
  • United States: U.S. Customs and Border Protection suspended the $800 "de minimis" duty-free treatment for goods from all countries from 29 August 2025. Parcels that used to enter duty-free now need a regular customs entry and can be charged duties.

These rules decide whether DDP is practical for you. Check them for each market you add, or ask a customs broker or accountant.

Step 6: Ship with tracking and the right paperwork

International parcels need a commercial invoice that lists what's inside, its value, the HS code and the country of origin. Express carriers such as DHL Express, UPS and FedEx handle customs clearance and tracking end to end; postal services are often cheaper but slower and less predictable. To decide what to charge customers for it, see how much to charge for shipping.

Whichever you choose:

  • Send tracking links automatically, so customers aren't left wondering where their parcel is.
  • Publish delivery time estimates per country.
  • Write a clear international returns policy: who pays for the return and how refunds work. Consumer rights on returns differ by country, so check the rules in each market you sell to.

Step 7: Offer payment methods people trust

Cards are accepted almost everywhere, but checkout should be secure (3D Secure where it applies) and show the amount in the customer's currency. Check that your payment provider supports the currencies you want to charge in and how it settles foreign-currency payments to your account. We compare providers and their fees in how to accept payments on your website.

How Favenda helps

In Favenda you set up a sales region for each country, with its own currency, payment methods, shipping rates and a DAP or DDP customs rule. DHL Express, UPS and FedEx are built in: labels print from the order screen, a commercial invoice is created with the shipment, and tracking updates automatically. Card payments run on the payment provider's secure 3D Secure page (Stripe for international sales, iyzico or PayTR in Turkey). There are no transaction fees on your sales, and hosting, SSL, backups and updates are included.

See Favenda →

FAQ

Do I need to register for VAT in every country I sell to?
Not always, but it depends on the destination and how you ship. The EU's IOSS lets you handle VAT for low-value parcels through one registration, and the UK requires VAT at the point of sale for parcels up to £135. Ask an accountant who works with cross-border sellers before you launch.

Should I charge duties at checkout or let the customer pay on delivery?
Charging at checkout (DDP) usually means fewer refused parcels and happier customers, but you need to know the charges in advance. If you choose DAP, tell customers clearly before they buy.

What's the cheapest way to ship internationally?
Postal services are usually the cheapest per parcel; express carriers cost more but are faster and handle customs for you. Compare both for your typical parcel size, and remember that a lost or refused parcel can cost more than the shipping you saved.


Sources: Revenue (Ireland), "Import One Stop Shop (IOSS)"; GOV.UK, "VAT and overseas goods sold directly to customers in the UK"; U.S. CBP, CSMS # 66065494; ICC, Incoterms 2020. All read on 23 October 2026. Tax and customs rules change often; check them for your market before you sell.