When online businesses emerged at the turn of the millennium, the new dynamic revolutionized the world of shopping—and the world of shipping right along with it.
If you run an ecommerce shop, understanding shipping and different shipping methods—for both retail and freight—is a vital component of running a successful business. Here’s what to know about domestic shipping services and how to handle your shipments in an effective and cost-efficient way.
What is domestic shipping?
Domestic shipping refers to the process of moving products when the destination country and country of origin are the same. When shipping stays within your country’s borders, your goods aren’t subject to the regulations, tariffs, and customs that an international shipment faces. In the United States, domestic shipping includes delivery to all 50 states (though some carriers have special rules for Hawaii and Alaska), and it requires a shipper to follow rules of the chosen carrier.
What are regional carriers?
Regional carriers, as the name implies, are smaller carriers that deliver within geographical limitations. Depending on where you live and run your business, you’ll have access to different regional carrier companies—and possibly even local carriers. These carriers are limited by geographical restraints, meaning they won’t ship across the entire country. But they may give you more flexibility and speed when you’re shipping from one place to another within a specific region. This type of carrier includes United Delivery Service (UDL), OnTrac, and CDL.
What are national carriers?
National carriers cover the entire country with a sprawling infrastructure and shipping locations. Using a national carrier will get your products or materials from point A to point B, but there may be less flexibility and personalized service, since many of these carriers, such as UPS and FedEx, are massive companies that handle mind-boggling amounts of freight and packages every day. Take a look at some basic rates for the major national carriers—based on shipping a one-pound parcel across the US:
| Speed | UPS | FedEx | USPS |
| Overnight | $121.75 | $137.55 | $73.30 |
| 2–4 days | $51.94 | $50.70 | $31.70 |
| 4+ days | $15.80 | $39.86 | $11.95 |
Single vs. multicarrier approach
You can choose to ship your packages via one carrier exclusively or via a combination of multiple carriers:
Single-carrier approach
A single-carrier approach uses one domestic shipping carrier for all domestic shipping. A company works with a single carrier (like UPS) to ship all its goods, meaning there’s only one interface and there will be consistent domestic shipping costs from one company. Though convenient, a single-carrier approach for your shipping strategy may not get you the best shipping rates for each package, and your company may be more vulnerable to unforeseen circumstances, like a company-wide outage at your carrier’s business or worker strikes.
Multicarrier approach
A multicarrier approach is a shipping strategy that relies on using several shipping carriers for your domestic shipping operations. Instead of choosing one company to do your business, you get quotes for each shipment (or type of shipment) from several carriers.
This could include more than one large national carrier or several regional carriers. The benefit of multiple carriers is that your shipping operations are less vulnerable to single-company issues, and you can price shop based on the needs of a specific shipment. But this strategy will likely include more administrative tasks, and establishing a lasting relationship with a single carrier can mean better service.
Tips for optimizing domestic shipping
- Compare carriers
- Use insurance and tracking for important orders
- Only pay for speed when necessary
- Try Shopify Shipping
Compare carriers
When you’re looking for the best shipping options for your company, it can be cost-effective to compare both specific and average prices across several carrier options. Some regional carriers may offer better rates or flexibility between certain ZIP codes than national carriers.
Use insurance and tracking for important orders
It’s great if you find a shipping option that offers a low cost, but nothing can tank customer satisfaction like a lost shipment or damaged goods. If you run an ecommerce business that sells anything fragile, using shipping insurance can be a lifesaver, and using the variety of tracking tools from each carrier can assure you know exactly where your parcels are at any given time.
Only pay for speed when necessary
While everybody loves speedy shipping, expedited shipping is expensive. Reserving same-day or overnight shipping options, like USPS’s Priority Mail Express, for truly urgent shipments can save your company a lot of money. If you can wait five to seven business days to deliver a package, use cheaper options like basic ground shipping over pricey same-day air.
Try Shopify Shipping
Using a tool like Shopify Shipping can minimize the time-consuming task of shopping around for a shipping company, and it can optimize your shipping strategy, too. It allows you to see and compare relevant quotes from several carriers at once for any shipment’s exact specifications. Shopify Shipping also offers both international and domestic shipping, and it centralizes your shipping operations so you can quickly find everything you need in one place.
What is domestic shipping FAQ
Is UPS domestic or international?
UPS offers both domestic and international shipping. For domestic shipping, they offer a variety of delivery speeds, classes, tracking, and insurance options. For international shipping, they feature several services, like tracking and customs support.
What is the cheapest way to ship domestically?
Shipping expenses range widely depending on material, speed, and the size of the package. For some products, flat-rate shipping through USPS may be the cheapest option. However, if you need a large product delivered within two business days, a national carrier like FedEx or UPS will deliver for less money.
How do I choose a domestic shipping carrier?
Speed, weight, cost, and coverage area are all factors to take into account when choosing a domestic carrier. You may also want to factor in if the company provides tracking services and insurance, earns good customer service reviews, and if they offer any special services, like special handling for fragile items.
