Shipping is one of the biggest costs for Australian resellers. Here's how to minimise it and account for it correctly.
Australia Post is the default for most resellers due to its extensive network and post office locations. Rates are based on weight and size. Couriers (Sendle, CouriersPlease, StarTrack) can be cheaper for larger or heavier parcels but require pickup arrangements or drop-off at specific locations. For small items under 500g, Australia Post satchels are usually the cheapest option. For items over 3kg, compare courier rates.
MyPost Business is Australia Post's discount program for businesses. Sign up (free) to access discounted postage rates — typically 5-15% cheaper than standard retail rates. The more you ship, the better the discount tier. Most resellers shipping 10+ parcels per week should be on MyPost Business. Print labels at home for additional convenience.
Free postage increases your listing visibility on eBay and removes a friction point for buyers. But it means absorbing the cost, which reduces your margin. A hybrid strategy works well: free postage on lightweight items (where the cost is manageable) and calculated postage on heavier items (where absorbing $15-25 would destroy your margin).
All postage and packaging costs are fully deductible business expenses. If buyers pay you separately for postage, that payment is part of your gross income. Keep all postage receipts and label records. See our bookkeeping guide and Australia Post guide.
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