5 Tips to Keep Costs Down in Parcel Delivery for E-Commerce Stores

Shipping costs can cut into profits faster than most small e-commerce owners realise. With rising courier rates, fuel surcharges, and handling fees, keeping delivery affordable has become one of the biggest challenges for online stores in Australia. Big retailers like Amazon can keep delivery costs low because they ship in bulk. But smaller stores can still find ways to cut costs. 

Here are five practical tips to help you keep parcel delivery costs down without compromising on service or speed.

How to Get Cheaper Shipping for Your E-Commerce Store

Running an e-commerce store in Australia doesn’t mean accepting high delivery costs. Here are five proven ways to keep parcel delivery affordable:

• Work with a Third Party Logistics (3PL) partner: Bundle your shipments with other businesses to access shared bulk rates.
• Negotiate better courier rates: Negotiate volume discounts or prepaid label packs for predictable costs.
• Use flat-rate satchels: Great for small but heavy items where fixed pricing beats cubic weight.
• Compare multiple couriers: Compare different couriers to find the most cost-effective and reliable option.
• Optimise packaging: Right-size boxes and use lightweight fillers to avoid surcharges.

Combining these strategies delivers far greater savings than relying on just one. Couriers & Freight’s 3PL platform makes it easy to combine bulk discounts and compare courier rates in one place.

Cut Your Parcel Delivery Costs

Save more on every shipment with Couriers & Freight’s 3PL solutions for Australian e-commerce stores.

Get a Quote Now

1. Outsource to a 3PL for Cheaper and Smarter Shipping

Partnering with a third-party logistics (3PL) provider is one of the most effective ways for small and mid-sized e-commerce stores in Australia to cut delivery costs and save time. A 3PL combines freight from multiple businesses, giving you access to bulk shipping rates that are usually reserved for larger retailers.

Lower Rates

By pooling parcel volume, your store can access discounted courier pricing, often close to what major players like Amazon pay.

Smarter Technology

A 3PL’s platform can automatically route each order to the courier offering the best balance of price and delivery speed. For instance, a parcel from Sydney to Perth might be sent with the fastest, lowest-cost carrier automatically, without you needing to compare rates manually.

Time Savings

Many 3PLs also handle warehousing, inventory management, and order fulfilment. This frees your team from manual packing and dispatch tasks, allowing you to focus on growing your business.

Couriers & Freight’s 3PL service combines these advantages: lower rates, smart automation, and efficient fulfilment, in one platform built for Australian e-commerce.

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2. Negotiate Better Rates with Carriers

Many small e-commerce stores in Australia pay the standard courier rate without realising they can often negotiate better terms. Even if you don’t ship thousands of parcels a month, consistent volume gives you room to negotiate.

Try these steps:

• Ask about volume-based discounts: Communicate with your carrier about how many parcels you send each week and secure a lower rate. Check volume discounts here.
• Use prepaid label packs: Buying labels in advance can lower the cost per parcel and make your expenses predictable.
• Access pooled discounts through Couriers & Freight: By combining your shipments with other small businesses, you can access bulk rates usually reserved for high-volume senders.

A boutique skincare store, for example, saved 15% on shipping just by guaranteeing 40 parcels a week. They weren’t a large retailer; they were simply consistent. Each negotiation adds up, and over a year, those savings can make a noticeable difference to your bottom line.

3. Use Flat-Rate Satchels and Prepaid Options

Flat-rate and prepaid satchels are a simple way to lower shipping costs for Australian e-commerce stores. They charge a fixed price within weight limits, which makes them ideal for small, heavy items. Common options include Australia Post and CouriersPlease.

A coffee roaster, for example, switched from sending 1kg parcels in cubic-weighted boxes at $15 each to flat-rate satchels at $9. That $6 saving per order quickly added up to hundreds of dollars a month.

Prepaid satchels also make costs predictable because you pay upfront for each shipment. Just avoid using oversized boxes for light items, as it can double your fees. Choosing the right satchel or prepaid option keeps every parcel cost-effective and consistent.

Couriers & Freight helps e-commerce stores decide when flat-rate or prepaid shipping makes sense, ensuring every parcel ships at the lowest possible cost.

4. Compare Multiple Couriers Before Booking

Courier rates across Australia can vary more than most e-commerce stores realise. Sticking to one courier out of habit can cost your business hundreds of dollars a year. Comparing prices before booking is one of the easiest ways to save money.

When comparing couriers, look at:

• Price: Check how rates differ by parcel size and delivery zone.
• Speed: Balance cost savings with delivery times your customers expect.
• Reliability: Read reviews or check performance ratings for consistency.

Top courier options include DHL, FedEx, StarTrack, and CouriersPlease.

With Couriers & Freight’s instant quote tool, you can view all major carriers’ prices in one dashboard and instantly book the most cost-effective option. A store shipping 50 parcels a week could save around $2 per delivery - that’s thousands in annual savings while keeping deliveries on schedule.

• DHL
• FedEx
• StarTrack
• CouriersPlease

5. Optimise Packaging to Avoid Surcharges

The way you package your products can make a bigger difference to shipping costs than most store owners realise. Couriers calculate fees based on cubic weight: the parcel’s size and shape, not just its actual weight. Oversized or irregular boxes can trigger extra handling charges and sometimes double your costs.

Use these strategies to keep costs down:

• Choose the right box: Fit the packaging closely around your product to avoid paying for empty space.
• Use lightweight fillers: Materials like bubble wrap or honeycomb paper protect items without adding unnecessary weight.
• Avoid oversized or irregular shapes: Bulky or uneven parcels often attract manual handling fees.

One Australian store owner shared on Reddit how a small item shipped in a large box cost them nearly twice as much due to cubic weight fees. Paying attention to packaging keeps your delivery costs predictable and your customers happy.

Ship Smarter with the Right 3PL Partner

Managing shipping costs is one of the toughest parts of running an e-commerce business in Australia. The right 3PL partner can change that. With Couriers & Freight, you get access to bulk delivery rates, advanced shipping tools, and expert logistics support that help reduce costs and improve efficiency.

Working with a trusted 3PL means your deliveries stay reliable, affordable, and on schedule. This gives you more time to focus on growing your store and serving your customers. 

Couriers & Freight helps you ship with confidence and keep your business moving forward.

Cut Your Parcel Delivery Costs

Save more on every shipment with Couriers & Freight’s 3PL solutions for Australian e-commerce stores.

Get a Quote Now