Australia Post Shipping Costs: Parcel rates, flat rate options & MyPost Business savings

Starting an online business? Understanding postage costs is essential for building a profitable eCommerce strategy. Here’s your complete guide to Australia Post parcel rates, shipping strategies and how to save with MyPost Business.

Delivering a great eCommerce experience

Packaging, postage and shipping are major elements of your eCommerce business. Your priority is to get customers’ orders delivered safely, quickly and on budget.

Many start-ups underestimate fulfilment and shipping costs, which can impact profitability. To avoid surprises:

• Research packaging and shipping fees upfront.
• Adjust product pricing accordingly.
• Determine your shipping strategy early.

How much does it cost to post a package?

Shipping costs vary based on:

• Parcel weight and dimensions
• Destination zone
• Delivery speed (Parcel Post vs Express Post)

Start by choosing the right packaging. Here’s a quick checklist of the best options for protecting different types of products:

• Boxes or satchels for clothing / general lighter items
• Mailing tubes for posters or prints
• Padded mailers for fragile items

Compare all sizes and costs of Australia Post’s packaging options.

Want to keep costs down and maintain your brand identity?

Discover how using your own packaging can save you money and elevate your customer experience.

Estimate your shipping costs

Use our postage calculator to:

• Enter parcel dimensions and weight
• View domestic and international rates
• Compare costs for boxes, padded bags and mailers

Save more with MyPost Business

If you send parcels regularly, a free MyPost Business account can help you:

• Create labels and manage deliveries
• Integrate with eCommerce platforms
  
• Access savings of up to 40% on domestic parcels and 35% on international postage as you move up the five savings bands¹
• Take advantage of the new extra small/250 g option, which applies when sending items up to 250 g in your own packaging or up to 5 kg using Australia Post’s extra small flat rate packaging.
• Enjoy reliable tracking, nationwide delivery and local support.

What shipping strategy should you use for your online store?

Not sure which shipping option is best? Here are the most popular strategies:

• Flat rate shipping: One simple fee for all orders. Easy for customers and predictable for you.
• Free shipping: Great for attracting new customers and reducing cart abandonment - best for small, low-cost items.
• Free shipping over a certain amount: Encourages bigger orders. Always a great idea to promote this offer clearly on your site.
• Actual shipping rates: Charge customers what it really costs to ship, consider adding tools like an Australia Post API to automatically calculate shipping rates for customers at checkout – and then simply add this rate to the final cost of purchase.

No matter which shipping strategy you choose, remember you’re not locked in. You can always tweak your approach as your business grows or run free shipping promos to boost sales. 

Keep an eye on your cart abandonment rates and watch how shipping costs affect your bottom line. Regularly reviewing these metrics will help you find the shipping strategy that works best for your online store.

This article was originally published on 18 November 2022 and has been updated with new information.

¹ Your savings band will be based on your spend on products and services over specific periods using your MyPost Business account, with certain exceptions. Savings apply to MyPost Business products, with certain exceptions. For more information on the spend requirements of each savings band and for a full list of MyPost Business Products, including the list of exceptions, read the MyPost Business Rates and Savings Guide (PDF 642kB).