Choose the Right Box, Not Too Big

This is where the leak often occurs. International carriers use volumetric weight — a large box that's half empty = pay more.

International volumetric weight formula: (Length × Width × Height cm) ÷ 5000 = volumetric weight kg. The vendor will charge the larger of the actual weight and volumetric weight.

Real-life example: Shipping 5 t-shirts to Singapore

Consolidating Several Packages into One

There is a minimum charge per shipment. Sending 5 separate packages = pay minimum charge 5 times. Combine = only 1 time.

Many vendors have a minimum charge of 0.5-1 kg. This means sending a 100 gram package is still calculated as 0.5 kg. If you send many small packages to the same address, combining them into one shipment will save significantly.

Scenario for UMKM with 5 skincare products to Malaysia

Avoid Peak Season if Not Urgent

International shipping rates increase by 20-40% during certain periods. Adjusting your schedule = significant savings.

International carriers apply a peak season surcharge (PSS) when demand surges. Causes: limited aircraft capacity, rising cargo slot prices, and increased fuel costs. This surcharge is passed on to shippers.

Main peak season periods:

• October - December: Black Friday, Cyber Monday, Christmas — especially for shipments to America & Europe
• January - February: Chinese New Year (Imlek) — factories in China close, shipping capacity across Asia increases in demand
• May - June: Eid al-Fitr — shipments to Malaysia, Brunei, Singapore increase significantly
• Late July: Preparation for back-to-school in many Western countries

Utilize De Minimis Threshold

Each country has a threshold value for packages exempt from taxes. Breaking large packages into smaller ones below the threshold = tax savings.

De minimis is the minimum import package value not subject to duties & taxes. As long as the package value is below the threshold, the recipient doesn't pay taxes — which are often 10-30% of the item price.

De minimis threshold of popular destination countries:

Use the Correct HS Code

A wrong HS Code can make customs tariffs 5-15% higher than they should be.

HS Code (Harmonized System Code) is an international classification for goods. Each category has a different import duty tariff in the destination country. Wrong classification = pay more, or worse: package is detained by customs.

Real-life example of a wrong HS Code:

Consider Sea Freight for Large Volumes

For shipments >100 kg that are not urgent, sea freight can be 4-8x cheaper than air freight.

Many shippers default to air freight even though they don't really need the speed. However, the price difference is significant for large volumes.

Scenario: Shipping 200 kg of furniture to Australia

Rp 31 million difference for one shipment. If you can arrange a schedule with an estimated 1 month, sea freight is the clear choice.

Use Free Pickup Service

Many vendors offer free pickup in the Jabodetabek area or major cities. Save on shipping costs and your time.

Drop-off to the vendor's warehouse seems free, but there are costs: transportation costs (parking, gas, or ojol), your time, and risk of damage during transportation. If there is a free pickup service, take advantage of it.

Check before booking:

• Is your area included in the free pickup? Usually Jabodetabek, Surabaya, Bandung, Semarang, Yogyakarta.
• What is the minimum weight for eligible free pickup? (usually 5-10 kg)
• Is there a flexible pickup time slot?
• Confirmation: Free pickup is not "pickup cost included in shipping cost"

Become a Member Tier for Periodic Discounts

Regular senders can get discounts of up to 15-20% via tier membership. Suitable for online sellers with a fixed volume.

Almost all major freight forwarder vendors have a tier membership program. The system is simple: the more frequent you ship, the higher the tier, the bigger the discount. For resellers or sellers with a fixed volume, this can provide a significant ROI.

Example of Erge Asia's 6-tier system:

Take Selective Insurance, Not Default

It's not a suggestion to "skip insurance" — but optional insurance. Use it for packages valued at >Rp 1 million, skip for low-value packages.

The insurance premium for international shipping usually ranges from 0.3-1% of the item's value. For a package worth Rp 200,000, the premium would be Rp 2,000-3,000. However, if your package gets lost, filing an insurance claim often takes 30-60 days with complicated paperwork.

For low-value packages, it's more efficient to self-insure — consider it a cost of doing business. For high-value packages (gadgets, jewelry, important documents), insurance is mandatory.

Practical rules:

• Value <Rp 500,000: Skip insurance, save on premiums
• Value Rp 500,000-1,000,000: Consider, depending on the type of item (fragile = yes)
• Value >Rp 1,000,000: Always insure
• Fragile items: Always insure regardless of value

Compare at Least 3 Vendors for the First Package

The price difference between vendors can be 20-40% for the same route and weight. But don't just look at the price — also compare delivery time, tracking, and service.

New shippers often stick to one vendor due to familiarity. However, for the first package to a specific country, it's best to request quotes from at least 3 vendors for benchmarking. If suitable, then commit long-term.

Things to compare (not just price):

Bonus: 3 Additional Tricks for Pro Shippers

Advanced strategies for frequent shippers.

1. Negotiate rates for fixed volumesIf you ship >50 kg/month to the same route, contact the vendor's sales team to request a special rate. Usually, it can be 8-15% cheaper than the website rate.
2. Use local currency when shipping to e-commerce buyersIf your buyer in Singapore purchases via Shopee International, declaring the value in SGD is more accurate and avoids exchange rate fluctuations for customs calculations.
3. Bundle with fellow sellers for consolidationOnline seller communities often bundle shipments to buyers in the same city for consolidation. Save up to 40-60% on shipping costs, plus networking benefits.

Frequently Asked Questions