Jul 18, 2023

Shipping packages with Auspost? Here’s what it will cost.

Thinking of using Australia Post to post your eCommerce packages? Here’s a guide on posting costs and how to set up a shipping policy.

Fulfilments impact customer experience

Most of the customer experience in eCommerce happens online; shoppers value a well designed storefront with high quality product shots, transparent policies, reliable payment options, low or free shipping and delivery tracking. But a critical moment in the eCommerce shopper’s journey happens when they receive the physical product. 

Packaging and shipping can be the make or break when it comes to customer satisfaction, loyalty and increasing your Repurchase Rate. A thoughtfully packaged, undamaged product shows that care and quality is a priority for the brand and that the buck does not stop at point of sale. 

What does posting with Auspost packages cost?

The cost of packaging and posting for eCommerce depends on a wide range of factors just as the cost of manufacturing products or holding inventory could vary. Depending on the category of product, the nature of the product (consumable vs non-consumable), the material, the weight and so on- some times of packages will be more suited to your packaging needs. Here are a few things to consider;

  • Type of packaging: Will you be using your own packaging or Auspost packaging? Will you need to add protective filling in your packaging?. If your products are of irregular shapes or are fragile you’ll most likely need to use parcel boxes. For print items like posters and paintings you will need to use mailing tubes. Unless your inventory consists of a few items of similar sizes, weight and material, it is likely that you will need a range of packaging options to cover all of your eCommerce needs. Refer to this handy list of Australia Post boxes and bags for all of your packaging needs.

  • Determine shipping costs:  Your shipping cost will depend on the weight of the items being shipped, the distance that the products need to travel and the speed at which you require the items to be shipped/ delivered. Australia Post has a useful postage calculator that helps you determine the cost of postage for domestic and international deliveries. Simply enter your parcel dimensions and the delivery details and you’ll be able to view all of the costs associated with using Auspost to ship.

  • Manage fulfilments centrally: To manage all of your parcel deliveries, sign up for a free MyPost Business account. Every parcel delivered with MyPost Business is carbon neutral, and even saves you money, as you move up the five savings bands (up to 40% on eligible domestic parcels and up to 35% on international postage). Integrate your MyPost Business account with shipping rates and fulfilment management apps like Shipping by AMP to access live rates, create packing slips, print shipping labels, manifest and more.

How do I set up a Shipping Policy?

Setting up a shipping policy that is fair to shoppers yet competitive with other brands can be tricky. Do you offer a flare rate regardless of the order volume or value? Will offering free shipping be an incentive to purchase? How should your policies differ for domestic and international orders? There are many factors to consider.

Here are 3 shipping strategies adopted by eCommerce brands;

  • Actual rates: As implied by the name, using actual rates means you charge the customers the actual cost of the shipping without rounding the total or offering discounts. An easy way to do this is to install an app that allows you to apply actual rates in real-time to the checkout cart.

  • Flat rate: A flat rate is an easy option for both you and your customers. Flat rates are easy to display in your cart to avoid confusion. To calculate a flat rate that does not eat into your profit margin but is still fair to your customers, determine your average cost of shipping and round up to an even amount.

  • Free shipping: There are two ways to offer free shipping. The first is to offer free shipping on all orders. The second is to offer conditional free shipping- this might be a time-bound condition ( Eg: Free shipping for all orders placed within the next 48 hours!) or it could be determined by order value (Eg: Free Shipping on orders above $200) or, it could even be determined by geography ( Eg: Free shipping to Australia and New Zealand). If you are offering conditional shipping, ensure that you can make announcements or run promotions within your checkout cart to promote the terms of your free shipping policy and drive up AOV.

Nailing down a shipping policy that works for your brands and aligns with your customer’s expectations takes time and some amount of trial and error. Understand how your shipping rate is affection conversion and impacting your bottom line, to develop a strategy that works for your eCommerce brand.

Manage Auspost rates and order fulfillments in one platform

Neeta is the Content & Community lead at AMP. She has over 8 years experience in eCommerce marketing having previously worked for TradeGecko.

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