"I have been consistently impressed by their ability to handle our complex needs and willingness to say yes to any challenge. Most importantly, I believe in the character and work ethic of the team."
Mike, Co-Founder & CEO
"I have been consistently impressed by their ability to handle our complex needs and willingness to say yes to any challenge. Most importantly, I believe in the character and work ethic of the team."
Mike, Co-Founder & CEO
All e-commerce businesses need a way to get their products to customers. This is where shipping carriers come in. Shipping carriers facilitate the delivery process with standardized packaging and rates. However, the logistics of getting packages to customers involve more than just picking a carrier and mailing a box. Globalization has made shipping much more complicated, with companies constantly searching for efficient ways to mail their products to customers within national borders and in other countries. In this article, we will explore the differences between domestic shipping and international shipping to help you understand what options are available to you.
Domestic shipping is the transportation of packages within the borders of a single country. For example, if you ship a package from New York to Oklahoma, this is considered a domestic shipment because the package stays within the U.S.
Businesses have a range of options available and can select from many carriers that provide domestic shipping services at varying costs and speeds.
International shipping involves transporting goods outside the country that the goods originate from. Different modes of transportation can be used. Both businesses and individuals must comply with complex rules and regulations when shipping products across international borders.
Shipping goods internationally involves sending packages through customs. This process takes time, and delays may occur if documentation providing the value and weight of the shipment is incomplete. Certain products are banned in some countries, so special permits or licenses may have to be acquired before shipping.
Since international shipping may involve additional costs in terms of duties and tariffs, businesses need to prepare their shipments carefully. Global carriers who specialize in international shipping can ensure that deliveries arrive safely at their destinations without unreasonable delays.
Several factors, including cost and required documentation, differ depending on whether you’re dealing with domestic or international shipping.
Domestic and international shipping tend to have very different price points. Package weight, size, and delivery speed are among the factors that influence the final price.
Domestic shipping costs are determined by package size, package weight, shipping speed, distance traveled, and carrier service. In the U.S., major carriers such as USPS, UPS, and FedEx each have different pricing structures.
USPS, for example, provides cost-effective flat-rate shipping for documents and small-to-medium packages. Additional services include express delivery, ground shipping for heavier packages, and regional services that optimize last-mile delivery for faster, cheaper shipping.
Since there are many domestic carriers, choosing the best service can be challenging. In many cases, USPS is the cheapest for domestic shipments thanks to their flat-rate option.
International shipping rates fluctuate according to destination, package weight, and additional charges like tariffs. Since international shipping doesn’t have standard rates, large carriers like UPS and FedEx provide online calculators to help businesses estimate shipping costs based on various factors.
Businesses can use standard or expedited international shipping services. Expedited shipping is faster but much more expensive. For current price estimates, use the following resources:
Proper documentation is needed to facilitate the shipping process. Domestic shipments require minimal paperwork, whereas international shipments require customs clearance and additional forms.
Domestic shipping requires less documentation than international shipping since domestic packages don't cross international borders. In order to send a package with tracking so that its journey can be followed by both the sender and receiver, businesses may need the following documents:
International shipping requires additional documentation for customs clearance. Some important documents include:
Shipping times vary greatly between domestic and international shipments, depending on distance, customs clearance, and available transportation.
Domestic shipments are typically delivered faster than international ones, often in 1 to 5 business days, depending on the shipping speed purchased. Here are some estimates of domestic shipping times:
Retailers and e-commerce businesses can optimize domestic delivery by using third-party logistics (3PL) services that help them choose the cheapest and fastest shipping method.
Cross-border shipping times vary widely based on destination, carrier, and customs clearance. Delays can occur unexpectedly due to lost packages, incorrect documentation, and customs inspections. The day of the week a package is shipped can also influence its movement across borders, with packages sent Monday through Wednesday clearing the border easily and parcels sent later in the week sitting in customs over the weekend, sometimes buried under a backlog of packages.
Regulatory requirements are one of the most important differences between international and domestic shipments, with international packages undergoing additional scrutiny.
Domestic shipments don’t have to go through customs clearance since they never cross international borders; however, some products are subject to regulations. For example, certain hazardous materials are prohibited by certain carriers or are subject to special rules. Each shipping carrier has its own policy regarding the transportation of hazardous materials, so it’s important to do thorough research before choosing a domestic shipping partner.
International shipments must comply with customs laws in both exporting and importing countries. Common requirements include:
Failure to meet customs regulations can result in delayed shipments, fines, or the return of packages. Businesses must ensure compliance to avoid these disruptions.
Choosing the most suitable shipping provider is necessary for cost-effective, timely deliveries. Domestic and international shipping carriers differ in the following ways:
For domestic shipments, businesses can choose from among various national and regional carriers, each with a number of shipping options that vary in price and speed. USPS, UPS, and FedEx provide a range of options, from cost-effective ground shipping to express overnight delivery. USPS is commonly used for small packages and low-cost, nationwide shipping, while UPS and FedEx offer reliable express shipping with advanced tracking. A number of factors go into choosing a domestic carrier, including delivery timeframe, shipping volume, and budget constraints.
Shipping internationally requires carriers with an international delivery network in place. Major carriers, such as DHL, FedEx, and UPS, offer standard and express service. DHL is mostly used in Europe and Asia, while FedEx and UPS are more common in North America. When choosing an international carrier, it's important to consider delivery speed and coverage. (For example, carriers based in the U.S. will not ship to countries that are subject to an American trade embargo.)
Being able to track a shipment offers buyers and sellers peace of mind. Domestic shipments are easier to track, while international shipments may not include as many tracking updates.
Tracking domestic shipments provides real-time information about a package’s location. Customers can easily track packages on carrier websites or the original seller’s site with precise location and delivery time updates. This process is easier on a domestic level because the package often stays with the same carrier from start to finish.
When a package is handed over to a domestic carrier in the destination country, it becomes harder to provide tracking updates. DHL Global, for example, will transfer imports to USPS for last-mile delivery. This means that customers may need to call the carrier’s customer service or access multiple tracking platforms to receive updates on international shipments.
Domestic shipping offers the following advantages:
Domestic shipping ensures faster delivery of goods since it typically covers shorter distances than international shipments. Services like FedEx can guarantee same-day delivery for urgently needed items, like medical supplies and legal documents. Businesses can benefit from prompt delivery services, as they contribute to brand reputation and enhance customer satisfaction.
Shipping domestically is generally much more affordable than international shipping because the distances are shorter, and there is no need to pay duties on shipments. Companies that need to ship large volumes of items can find a fair price with carriers like USPS, which offers some of the best rates in the U.S. These savings can be used to offer low-cost shipping to customers and, ultimately, improve sales.
Domestic shipments usually only require a simple shipping label, as opposed to the complex paperwork needed for shipping overseas. Less time spent on documentation equals more time spent on other important aspects of your business. If you use a domestic fulfillment service, all the paperwork will be done for you so that you can focus on growth.
Domestic carriers offer transparent tracking from start to finish. You and your customers will be able to access real-time updates on a single platform, reducing the number of inquiries you receive on the status of shipments. Efficient tracking also allows shipping companies to optimize delivery routes for fast shipping that meets customer expectations.
Domestic shipments don’t have to go through the unpredictable customs clearance process that causes international shipments to sit for days or weeks at the border. This means that domestic shipments arrive on more predictable timelines. This predictability allows businesses to make realistic delivery promises to customers and avoid the frustration of unexpected delays.
Shipping within national borders typically involves fewer carrier-to-carrier handoffs, which significantly decreases the chances of packages being damaged or lost. Reputable shipping companies take great care to ensure packages reach their destinations without damage. By choosing reliable domestic shipping companies, businesses can minimize returns due to damage and maintain a positive customer experience.
Shipping abroad offers solid growth opportunities that domestic-only businesses are missing out on. Here are the main advantages of international shipping:
International shipping makes your goods available to customers all over the world. It also enables you to tap into markets where your goods meet a unique demand or have less competition than they do in your home country. Exporting provides protection against regional economic slowdowns while allowing you to target developing nations with increasing consumer spending.
International sales can dramatically increase your customer base, generating multiple revenue streams that can fuel growth. Having various sources of income can provide you with a safety net to fall back on when sales decrease in a particular market. In addition, promoting your existing products in new markets enables you to drive sales without having to create new product lines.
Domestic shipping offers faster delivery times, simpler documentation, and lower costs, making it perfect for businesses serving local markets. In contrast, international shipping opens up opportunities to reach a global consumer base. The choice between the two depends on your business priorities. Ask yourself, "Do I need speedy, cost-effective shipping for domestic customers, or am I looking to expand my reach internationally?” The most successful businesses typically use both shipping methods to target as many potential customers as possible.
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