Local and small business usually needs special shipping options, therefore we created fixed rate shipping module, where you can create as many shipping options as you need. For example you can allow people to choose between different shipping methods.
Or you can add different locations, for example if your business is located in Manhattan you may offer free shipping in Manhattan, but charge a little fee for the delivery in the rest of New York. Or if your business is in Italy you may want to charge extra for delivery to islands like Sicily and Sardinia.
You can download this plugin from WordPress plugins directory: http://wordpress.org/extend/plugins/wp-e-commerce-fixed-rate-shipping/