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If you are looking to trade over long distances, but you have become confused by shipping costs, it is important that you try to take the time to understand them, so that you will know whether you are paying over the odds for the service you are getting, or whether you are getting the deal of a lifetime. In this informative article, I will discuss the differences between domestic shipping and international shipping, so that you will gain a deeper understanding of both concepts.
Domestic shipping is the term used to refer to the transportation of goods from one location in one country, to a different location in the same country. Domestic shipping can cover relatively short distances, such as the transportation of goods from one city to a neighboring city, or it could cover much greater distances, such as transporting goods from the East Coast to the West Coast. The term International Shipping is used to refer to the transportation of goods from one country to another country. Like with domestic shipping, the distances travelled in international shipping can vary hugely. Although goods may only be transported a few miles, from one border town to another, it is still international shipping. On the other hand, goods may be taken thousands of miles from the United States of America to the People’s Republic of China!
Whilst distance may play a part in shipping costs, it is not the “be all and end all” when it comes to working out costs. A longer domestic delivery will usually cost less than shorter international shipping, because of the other costs involved. When a package crosses a border, you will often have to pay additional costs, such as customs and excise fees. These are imposed by many countries to help to prevent the cost of foreign goods from crippling the local economy. Customs and excise costs often vary from country to country, meaning that it can often be cheaper to ship to a country which is further away, than it is to ship to one which is on your doorstep. This is because the government may have negotiated trade agreements with those countries in order to help to reduce cross-border trade fees.
The methods of shipping which are used for international and domestic shipping can also vary. Those who need international shipping will regularly choose ocean shipping or air freight shipping, whereas those who are doing domestic deliveries may choose to do their deliveries by road. That is not to say that international shipping cannot be done by road or domestic shipping cannot be done by plane, because these options are both available. It will often depend on the timeframe in which the delivery needs doing, and the location which the package needs to be shipped to. For example, if you choose to have something flown to its destination (in country) it will usually arrive much faster, however it is likely that it will cost more too. Flying would be impractical over short distances, so most people would choose road, if this was a consideration.
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