Simple shipping tips we wish someone had told us when we started.
If you’ve just started an online business from home, first of all—welcome!
Whether you’re selling on Shopify, eBay, Amazon, Etsy, or your own website, you’ve probably realised that finding affordable shipping isn’t as easy as it looks.
Most new sellers ask the same questions:
- Why is shipping so expensive?
- How are my competitors offering cheaper delivery?
- Why does one courier charge $9 while another charges $18 for the same parcel?
- Am I using the wrong packaging?
The good news is that you’re not alone.
When we first started, we made many of the same mistakes. We used boxes that were too big, relied on just one courier, and never questioned the shipping rates we were paying.
Over time, we learned a few simple tricks that made a huge difference. Some changes saved just a few dollars on each order—but when you’re sending hundreds of parcels every month, those small savings quickly add up.
This guide isn’t written by a shipping company. It’s written by people who pack and send products every day. We hope it helps you avoid the mistakes we made.
Before Anything Else, Understand How Shipping Works
One of the biggest mistakes new businesses make is thinking that shipping is based only on the weight of the parcel.
In Australia, that’s not always true.
Most courier companies charge whichever is higher:
Actual Weight (Dead Weight) – what your parcel weighs on the scales.
Volumetric Weight (Cubic Weight) – how much space your parcel takes up in the delivery vehicle.
Imagine this.
You are sending a pillow.
It only weighs 500 grams, but it’s packed inside a huge box.
Although the parcel is light, it takes up a lot of space in the courier’s truck. Because of that, you’ll usually be charged based on its size instead of its actual weight.
That’s why choosing the right packaging is just as important as choosing the right courier.
How to Calculate Volumetric Weight
Most Australian courier companies use a simple formula:
Length (cm) × Width (cm) × Height (cm) ÷ 4000
Example
Your parcel measures:
30cm × 20cm × 10cm
30 × 20 × 10 = 6,000
6,000 ÷ 4,000 = 1.5kg volumetric weight
Even if the parcel actually weighs only 600 grams, many couriers will charge you for 1.5kg because that’s the greater weight.
This is one of the biggest reasons small businesses end up paying more than they should.
Tip 1 – Your Packaging Can Save You More Money Than Any Courier
This is probably the biggest lesson we learned.
Many businesses use the same box for every order because it’s easier to keep one size in stock.
Unfortunately, that’s also one of the most expensive ways to ship products.
Let’s say you sell:
- Phone cases
- Jewellery
- Beauty products
- Chargers
- Small electronics
These products don’t need a large shipping box.
Using an oversized box increases the volumetric weight, which means you pay more for shipping—and you also spend more on packing materials.
Instead, try to keep several packaging sizes available.
For example:
Small mailing boxes
Choosing the right size for each product can reduce your shipping costs without changing your courier.
For smaller products, you may even qualify for lower shipping weight brackets, which can save money on almost every order.
As an added bonus, customers also appreciate receiving parcels that are neatly packed instead of oversized boxes filled with excess paper.
Tip 2 – Never Depend on Just One Courier
This is another mistake many businesses make.
They open one courier account and use it for every shipment.
The problem is that no courier is the cheapest everywhere.
One company may offer excellent prices for Sydney deliveries but charge much more for regional Queensland.
Another courier might be perfect for Melbourne but expensive for Perth.
That’s why experienced online sellers usually have more than one shipping option available.
Many Australian businesses use a combination of:
- Australia Post
- Courier Please
- Aramex
- Sendle
- Direct Freight
- Shipping platforms that compare multiple couriers
Each has its strengths depending on where your parcel is going.
For example, Australia Post generally has excellent national coverage, especially for regional and remote areas. Courier companies often offer very competitive pricing for metro deliveries.
Instead of asking:
“Which courier is the cheapest?”
Ask yourself:
“Which courier is cheapest for this particular order?”
That small change in thinking can save hundreds—or even thousands—of dollars over a year.
Another helpful tip is to create both an Australia Post eParcel account (if eligible) and a MyPost Business account.
As your shipping volume grows, you may qualify for better pricing tiers and additional discounts. It never hurts to review your rates and ask if better pricing is available based on your shipping history.
Remember, shipping costs change over time. The courier that offers the best deal today may not be the cheapest six months from now.
That’s why successful businesses compare rates regularly instead of assuming one courier will always be the best choice.
Tip 3 – Don’t Charge the Same Shipping Price for Every Customer
This is something many new businesses don’t think about until they start losing money.
Australia is a huge country. Sending a parcel from Sydney to Melbourne is very different from sending the same parcel to regional Western Australia or Far North Queensland.
If you charge every customer a flat shipping fee, you’ll probably make a small profit on some orders—but lose money on others.
A better approach is to understand where most of your customers live.
For many Australian online businesses, around 60–70% of orders come from major metro areas, while the rest are sent to regional or remote locations. Although every business is different, it’s common to see most sales coming from Sydney, Melbourne, Brisbane, Perth and Adelaide simply because that’s where a large part of Australia’s population lives.
Here’s an example.
Imagine your average shipping cost is:
- Sydney Metro – $8
- Melbourne Metro – $9
- Brisbane Metro – $10
- Regional WA – $18
If you charge everyone just $10 shipping, you’ll lose money every time someone orders from a remote area.
Instead, let your website calculate shipping automatically or add a small surcharge for regional deliveries. Most customers understand that remote locations cost more to deliver to.
It protects your profit and keeps your shipping prices fair.
Tip 4 – Review Your Shipping Rates Every Year
Many businesses negotiate prices once and never look at them again.
That’s a mistake.
As your business grows, so does your buying power.
Sending 20 parcels a week is very different from sending 500.
Courier companies value loyal customers, and many are willing to review your pricing once your shipping volume increases.
Set yourself a reminder once every 12 months.
Contact your courier and simply ask:
“We’ve increased our shipping volume over the last year. Is there a better pricing tier available?”
You might be surprised how often the answer is yes.
Even saving 50 cents per parcel can make a big difference.
If you send:
100 parcels every week
5,000 parcels every year
Saving just 50 cents per shipment means:
$2,500 saved every year.
That’s money you could invest in new products, marketing, or growing your business.
Tip 5 – Premium Couriers Aren’t Always the Best Choice
Many new businesses believe that expensive couriers automatically provide better value.
That’s not always true.
Companies like StarTrack, FedEx, UPS, DHL and Toll offer excellent services, especially for business-to-business deliveries, urgent freight and international shipping.
But for many small online stores sending everyday parcels, they can cost much more than necessary.
If you’re shipping:
- Phone accessories
- Clothing
- Cosmetics
- Homewares
- Gifts
- Small electronics
you may find that a more economical courier offers similar delivery times at a much lower price.
The key is matching the courier to the job.
There’s no point paying premium prices if your customer doesn’t need a premium service.
One Small Change Can Save Thousands
Let’s compare two businesses.
Business A
Uses one box for every product.
Uses only one courier.
Never reviews shipping prices.
Charges every customer the same shipping fee.
Business B
Uses the correct packaging size.
Compares courier prices.
Reviews shipping contracts every year.
Adjusts pricing for remote deliveries.
Both businesses sell exactly the same products.
The only difference is how they pack and ship them.
By the end of the year, Business B could easily save several thousand dollars without selling a single extra product.
That’s the power of improving your shipping process.
Think Beyond Shipping
Saving money doesn’t always mean choosing the cheapest courier.
Sometimes the biggest savings come from choosing the right packaging.
A box that’s just a few centimetres smaller may reduce your shipping cost.
A lightweight bubble mailer may replace a cardboard box.
A honeycomb mailer may protect your product just as well while weighing less.
Small improvements like these can reduce both your packaging costs and your freight charges.
When you’re sending hundreds or even thousands of orders each year, those small savings quickly become significant.
The goal isn’t simply to spend less on shipping.
The goal is to ship smarter.
10 Common Shipping Mistakes New Online Sellers Make
Starting an online business is exciting, but it’s easy to make small shipping mistakes that slowly eat into your profits. Here are some of the most common ones we see.
1. Using One Box for Every Product
This is probably the biggest mistake. A box that’s too large increases your shipping costs and wastes packing materials. Keep a few different box sizes so you can choose the best fit for each order.
2. Forgetting About Volumetric Weight
Many people only weigh their parcel and never check its dimensions.
Remember, if your parcel is large but lightweight, you could be charged based on its size instead of its actual weight.
Always measure your parcel before comparing shipping prices.
3. Depending on One Courier
No courier is the cheapest for every destination.
Comparing rates between different providers can often save money, especially if you ship to different parts of Australia.
4. Buying Cheap Packaging
Everyone likes saving money, but low-quality packaging can become expensive.
If a box collapses during transit or a mailer tears open, you’ll likely end up replacing the product, refunding the customer, and paying for shipping all over again.
Good packaging protects both your products and your reputation.
5. Not Ordering Packaging in Bulk
Buying one pack at a time usually costs more.
If you know your best-selling products, ordering your packaging in bulk can reduce your cost per order.
6. Ignoring Customer Experience
Your packaging is often the first physical impression customers have of your business.
A neat, well-packed parcel creates a much better experience than an oversized box with too much empty space.
Simple improvements like branded boxes or custom printed mailers can make your business look more professional.
7. Not Tracking Shipping Costs
Many new businesses know how much they spend on products but never calculate their shipping costs.
Keep track of your average shipping cost each month.
You’ll quickly spot areas where you can save money.
8. Forgetting Remote Area Costs
Regional and remote deliveries can cost much more than metro deliveries.
Understanding these differences helps you set fair shipping charges and avoid unexpected losses.
9. Never Reviewing Courier Prices
Shipping companies regularly update their services and pricing.
What was the best option two years ago might not be the best option today? Review your shipping strategy at least once a year.
10. Thinking Bigger Packaging Means Better Protection
Many people believe using a larger box automatically protects the product.
In reality, the best protection comes from using the correct-sized packaging with suitable cushioning.
A well-fitted parcel usually travels much more safely than a product moving around inside an oversized box.
Choosing the Right Packaging
Think of packaging like choosing the right shoes.
You wouldn’t wear hiking boots to the beach, and you wouldn’t wear sandals for a mountain walk.
The same idea applies to shipping.
| Product | Best Packaging |
| Jewellery | Bubble Mailer |
| Phone Cases | Bubble Mailer or Honeycomb Mailer |
| Cosmetics | Small Mailing Box |
| Candles | Mailing Box |
| Books | Mailing Box |
| Electronics | Mailing Box with protective filling |
| Clothing | Mailing Box or Mailer |
| Gift Items | Custom Printed Mailing Box |
The right packaging protects your products, keeps shipping costs under control, and gives customers a better unboxing experience.
Final Thoughts
Every successful online business looks for ways to improve.
Sometimes that means finding better products.
Sometimes it means improving your marketing.
But very often, the easiest way to increase your profit is simply to spend less on shipping.
Small changes can make a big difference:
✔️ Choose the right packaging size.
✔️ Compare courier prices regularly.
✔️ Review your shipping rates every year.
✔️ Understand volumetric weight.
✔️ Use quality packaging that protects your products.
None of these changes are difficult, but together they can save your business hundreds—or even thousands—of dollars every year.
We hope this guide has helped you better understand how shipping works in Australia.
If you’re looking for strong, sustainable packaging that helps reduce shipping costs, our team is always happy to help you choose the right solution for your products.
Happy shipping, and we wish you every success as your business grows!
