How Do You All Ship with Australia Post in The Most Cost Efficient Way?

I am interested in selling on eBay and I've been doing product research but I guess you can call me a beginner. I looked a lot of things up and just picked things up as I went.

Trying to source things to sell for a high profit margain can be quite difficult due to Australia Post's really high postage rates. I mean $8 for sending an ordinary package bites out a lot of the potential profit if the shipping postage wasn't so costly.

I sort of concluded that the best way to do it is to find an item to sell that's thinner than 20mm so it can classify as a letter and you'll have to pay $2 for stamps, 30ยข for a padded envelope, and you're set. But that limits what you can sell and there must be an easy way around it. Also, it won't allow you to use tracking postage which is a lot more professional and convenient.

What do you all do?

Some people use the method of dropshipping so they never have to pay for the postage but it gives you a lot less control of the product's shipping times and if anything could be defective which could lead to negative reviews beyond your control.

Anyway, I'm interested to see how you do it. Thanks!

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  • +14

    I sell on ebay.

    95% of my products are slim and fit in a standard envelope.
    i choose products that are not breakable so they can go in a normal envelope. with $1 postage
    i place the item in cardboard pocket (taped up) - recycled packaging. this stops the item folding/bending the envelop and getting caught in the auspost sorting machine.

    i don't use tracking.

    I very rarely have an item go missing. if it does go missing then my profit margin is so high that sending a second item still yields a profit.

    I don't dropship.

    my rule for selling stuff is : if I'm not making at least $5 profit on an item then it's not worth my time.

    exception- sometimes i buy cheap stuff in bulk only to sell at a slight profit just to increase my positive feedback . e.g. I bought in bulk OTG cables (19cents each) and sold them for $2 posted. doing this with a new ebay account gets you an upgrade in selling limits.

  • Sendle?

  • +2

    I do a bit of ecommerce selling and i just use different carriers for different things. Lots of stock can go out in a B4 sized envelope with standard envelope rates, anything up to 1kg I use bulk 1kg parcel post satchels, then from there use sendle or australia post depending on postcode (sendle gets expensive to send to remote areas). Any australia post satchel i buy in bulk, single pricing sucks.

    I factor in a bit of the price of postage in the products so i can do free shipping on things that fit in an envelope, or once people spend $99 theres enough margin to cover free postage.

    If you are selling a lot of items you can get the send'n'save or whatever it is scheme from MyPost Business but i believe max discount is like 10 or 15%. Big shippers negotiate a contract with auspost eparcels which lets them send a lot cheaper.

    Only real advantage to sending stuff here is the time taken to deliver is a lot quicker than if i held stock overseas.

    All in all it highly depends on what you're selling and whether you're willing to structure the business around what's most effective to send… or even take the route of offshore dropshipping at the cost of some higher lost-in-transit % and lower customer satistaction from slow shipping times

    edit: also, why ebay? Run your own wordpress + woocommerce / shopify/ whatever site and SEO it. If you're niche enough and can get marketing out there then it could work well. Ebay if you must as a channel but look at it as that, a channel that costs you money but has a better number of eyeballs on it.

  • +8

    Don't bother with ebay. It's not worth the time. May give you a little extra money but only after you do the math will you realise it's not worth it. Australia Post charge an absolute premium for a poor service but it's the ebay fees + the over demanding customers which ruined it for me.

  • I used the Australia Post small satchel 500g to send a vide game on the 11th and it still hasn't arrived. ebay reports estimated delivery of a few days but it's not arrived. Tracking only shows final delivery and it hasn't reached that point yet so I know it hasn't been stolen from the letterbox. I wish I paid the extra for express on this one.

  • +2

    Also keep in mind that PayPal will hang onto the money for a little while before giving it to you, and if you happen to sell thousands of some hit product PayPal could hold onto the money for weeks/months, so make sure you can pay your suppliers in the meantime.

  • +2
    ll business parcel delivery from $4.75ex GST*
    Send parcels door to door for low flat-rates, across Australia and around the world

    Australia Post is too expensive