How big are your packages?
With small packages, you got a problem.
With large packages where the cost difference is significant, you may want to offer your customers an option.
We send a lot of baseball caps to International customers. We tell them the cost for UPS, and compare it to Postal Service. If they want to save the money, we let them know 2 things -- 1)we will have it shipped to our office and then reship to them (a little extra, but not much).
2) Once past the US borders, we can't track it or be responsible for lost or stolen packages like you can with UPS.
Some customers are willing to take the extra few days and liability to save the money, but many of them now are able to understand why the difference in cost and that justifies it in their minds.
It ends up as a Kudo for you because you have given them control of the choice and shows your willingness to work with them (and hey, it ain't your fault anymore --it's that big, bad UPS company)
That has really worked well for us in keeping loyal customers.
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