So, your business is up and running. Congratulations! But before you start plotting how to grow internationally, you should be fine-tuning your domestic shipping strategy, to ensure your products get to your customers on time and with minimal hassle to you.
This article will guide you through the essentials of domestic shipping, from understanding what it is, to setting up an efficient system for your small or medium-sized business (SME). We’ll cover the differences between domestic and international shipping, the key considerations for setting up your shipping process, and best practices to ensure customer satisfaction.
What is domestic shipping?
Domestic shipping is about moving goods from one place to another within the same country. That much is obvious. But here’s something you might not know: sometimes shipping to a country’s territories is also considered part of domestic shipping. For instance, shipping from mainland France to French Guiana or from the U.S. to Puerto Rico counts as domestic shipping because these territories are part of their respective countries. This makes the delivery process smoother, ensuring goods stay within the national network.
Domestic vs international shipping
International shipping is clearly a bigger and more complex operation than domestic shipping, due to the various customs processes and border regulations involved. Often, domestic services are extremely fast, benefiting from the lack of customs clearance and international regulations that can sometimes slow down the cross-border shipping process. What this means is that businesses can deliver their products more quickly and with fewer logistical hurdles.
Cost of shipping
Domestic shipping is generally less expensive than international shipping. The cost is influenced by factors such as the package size, weight, and delivery speed. While domestic shipping typically involves fewer fees and simpler logistics, international shipping incurs higher costs due to customs duties, taxes, and longer transit times.
Speed of delivery
Domestic shipping is often faster due to shorter distances and fewer regulatory hurdles. How fast the delivery timeframe is depends on several factors, including the carrier and the shipping option selected. DHL Express offers expedited, next-day shipping in most countries to meet customer demand.
Documentation requirements
Domestic shipping requires minimal documentation, usually just the shipping label and an invoice. In contrast, international shipping necessitates more detailed paperwork, including customs declarations, commercial invoices, and possibly certificates of origin. Proper documentation is crucial for ensuring compliance with regulations and smooth customs clearance.
Restrictions
Domestic shipping is subject to fewer restrictions compared to international shipping. While certain items may be restricted or prohibited within a country, international shipping must navigate varying regulations in different countries, including bans on specific products, additional safety measures, and compliance with international trade agreements.
Quality control
Domestic shipping affords better quality control than international shipping. It's easier to conduct on-site inspections when your suppliers are in the same country, and any problems (such as a customer’s order going missing) are more quickly and easily resolved.
How to set up shipping for a small business
Whether your business has just started selling products or is rapidly growing, a well-planned shipping strategy is the key to meeting customers’ expectations and saving your business time. Here are some best practices for domestic shipping:
Think speed
It’ll be no surprise to you to hear that customers consistently place high value on the speed of delivery when ordering online. Offering your customers an express option at checkout will ensure they have a great experience with your business and return again and again. Partnering with DHL Express allows you to provide fast, reliable shipping options that enhance customer satisfaction.
Offer customers flexible delivery
Having the option to divert a parcel from a home address to a workplace or a parcel locker is helpful for customers who know that they won’t be at home to receive their delivery. Some customers also prefer to save money by selecting slower delivery. In short, the more flexibility you can offer your customers at checkout, the less likely they are to become frustrated and abandon the purchase altogether.
Evaluate your products – and then pack accordingly
With many carriers charging shipping per dimensional weight, the packaging you use for your products is very important. Products should be packed in suitably sized boxes with minimal excess space. Integrating software to automate the labeling process will save you valuable time and reduce errors, too.
Decide how to charge customers
66% of consumers now expect free shipping on every purchase they make online1. Offering this may seem a big expense for your business but it’s a huge incentive for customers to shop with you – in fact, 60% of e-commerce businesses report that “free shipping with conditions” is their most successful marketing tool.
Alternatively, you could offer a flat-rate shipping fee or a carrier-calculated shipping fee(2). These might seem the cheapest options for your business, but not if they cause customers to abandon their carts. Getting your pricing right may be a trial-and-error process which you adjust as you learn more about its impact on your sales. Just remember to be upfront with your customers about your shipping fees – no one likes nasty surprises at checkout.
Think green
A DHL survey3 found that 58% of European shoppers are willing to wait longer for a delivery if it means it’s more sustainable – even if same- or next-day delivery is available. As part of DHL’s commitment to green logistics, DHL’s GoGreen Plus service has recently launched an initiative that allows you to reduce the carbon emissions associated with your shipments through the use of Sustainable Aviation Fuel.
Offer full tracking
Besides highlighting the standard domestic shipping time on your e-commerce store , it’s important to provide full tracking capabilities. Customers love to track their shipments. With DHL Express, you can offer them full tracking, in real-time, with SMS/email notifications of its status. This transparency enhances the customer experience and builds trust in your brand.
Anticipate returns
It’s an unfortunate side-effect of e-commerce that, on average, approximately 30% of all online orders are returned by customers4. You should factor this into your budget, and make allowances accordingly. It may be that you have to charge customers for returns to minimize the impact. Our guide to handling customer returns will help navigate the returns process in more detail. You can’t hide from it, so it makes sense to be prepared and take steps to reduce the costs.
Set up domestic shipping for your small and medium business with DHL’s shipping services
So, how can DHL help your business?
Setting up shipping for a small business with DHL Express ensures that you can efficiently manage your logistics. We offer a fully tracked next-day delivery service for domestic shipments as well as shipping options that best suit your business’s needs. With a MyDHL+ account, small and medium businesses and e-commerce merchants have an easy way to create shipments and schedule courier pickups for both single and multiple shipments.
Find the best rates for your business – whether it’s shipping frequency, speed or volume that you're looking for – and benefit from the brand trust DHL has already established with customers all over the world.
Whatever you’re selling, get it to customers fast, on time, and with full visibility with DHL Express.
