#SmallBusinessAdvice

Domestic Shipping: What It Is & How to Set It Up for SMEs

Anna Thompson
Anna Thompson
Discover the content team
4 min read
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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 without excessive hassle or cost. To help with this, DHL Express can support your business needs with efficient and reliable domestic shipping solutions. Here’s everything to consider, with tips and best practices.   

What is domestic shipping?

If you're wondering what domestic shipping means, it refers to the movement of goods between two points within the same country. So, how does it differ from international shipping? Unlike international shipping, which crosses borders, domestic shipping stays entirely within the nation, whether it's a package sent across town or to a different region.

Domestic vs international shipping

The meaning of international shipping is when goods are moved between countries and across borders. t It is a bigger and more complex operation than domestic shipping due to various factors, including customs and border regulations. 

Shipping internationally requires additional documentation, such as customs duty and declarations and import/export paperwork, which can lead to delays if not handled correctly. It also tends to incur higher costs because of tariffs, taxes, and longer transit times. What's more, international deliveries often take more time due to the distance, possible customs inspections, and varying shipping methods, making the process far more intricate compared to domestic shipping.

How long does domestic shipping take?

The timeframe depends on several factors, including the carrier and the shipping option selected. Most express carriers offer expedited, next-day shipping as standard to meet increasing customer demand. For DHL Express, domestic shipping typically takes next-day delivery or up to three working days, depending on the service chosen and the destination within the country.

Benefits of domestic shipping to your business

For small businesses and start-ups, domestic shipping is the best place to begin their journey. There is less admin h than international shipping (e.g., no customs documents), leaving more time to focus on the many other demands that a new business has.

Domestic shipping affords better quality control — businesses can conduct on-site inspections when their suppliers are closer, whilst any problems (such as a customer’s order going missing) can more quickly be resolved.

Most importantly, domestic shipping is typically fast — and if there’s one thing your customers love, it’s speedy delivery.

Once you have conquered domestic shipping, you can look to grow your business on an international level — with support from global logistics experts, DHL.

Planning your domestic shipping strategy

Whether your business has just started selling products or it’s 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

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.

Offer customers flexible delivery

Offer customers flexible delivery

Sometimes a customer knows they won’t be at home to receive their delivery, so would like the option to divert it to their workplace or a parcel locker. They might also prefer to save money by selecting slower delivery. In short, the more flexibility you provide at checkout — such as allowing customers to change delivery times or authorise leaving the parcel at their front door — the less likely customers are to become frustrated and abandon the purchase altogether. Partnering with a logistics leader with an extensive fulfilment network, like DHL Express, will help you meet these expectations.

Evaluate your products – and then pack accordingly

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. Wondering how to pack a parcel? Products should be packed in suitably sized boxes with minimal excess space. Integrating software to automate the labelling process will save you valuable time and reduce errors, too.  

Decide how to charge customers

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. 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

Think green

A DHL survey 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. DHL’s GoGreen Plus service has recently launched an initiative which allows customers to reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel. Increase your green credentials, here.

Offer full tracking

Offer full tracking

Customers love to track their shipments. With DHL, you can offer them full tracking in real time, complete with SMS and email notifications about their delivery status. DHL Express also provides tracking updates through other channels, such as WhatsApp, ensuring that customers stay informed no matter their preferred method of communication. By offering this level of visibility, you can improve customer satisfaction and build trust throughout the delivery process.

Anticipate returns

Anticipate returns

It’s an unfortunate side of e-commerce that, on average, approximately 30% of all online orders are returned by customers4. Small and medium-sized businesses  should integrate this factor into their  budgets, and make allowances accordingly. It may be that a small business has to charge customers for returns to minimise the impact.  DHL Express’s guide to handling customer returns will navigate you through the process in more detailso your business can be prepared and take steps to reduce the costs!

How much does it cost to ship domestically?

Carriers set their domestic shipping rates based on factors like the package’s size, weight, contents, and selected delivery speed. This means that the cost can vary depending on the specifics of each shipment. There are some best practices you can follow to keep costs low. Since carriers tend to charge depending on how much space your cargo takes up, it’s a good idea to avoid excessive packaging. Many carriers also offer special deals for B2C clients who ship regularly, so be prepared to negotiate!

DHL’s domestic shipping services

When it comes to domestic shipping, businesses need speed, reliability, and flexibility to keep customers happy. 

So, how can DHL help your business?

DHL Express offers a fully tracked next-day delivery service for domestic shipments. With a MyDHL+ account, small and medium businesses and e-commerce merchants have an easy way to create shipments and schedule courier pickups — for single and multiple shipments.   

Find the best rates for your business’ specific needs — i.e., shipping frequency, speed and average volumes — 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. Apply for a DHL Express account, here