Shipping, couriers and freight
Delivery is part of what your customer buys. Get it right and they order again; get it wrong and no product page will save you. This guide covers choosing carriers, packing and pricing, what you can't send, and your obligations when a delivery goes wrong.
In short
- Choose carriers by where your customers are, what you send and how fast they expect it - many businesses use two or more.
- Weigh and measure every packed product; carriers charge on the greater of actual and "cubic" (volume) weight.
- You're responsible for checking whether your goods are dangerous or prohibited before you send them.
- Under the Australian Consumer Law, you must supply what customers pay for within the time you said, or a reasonable time.
- Tell customers about delays early and offer a solution - a refund or replacement - when you can't deliver.
Your shipping options
| Option | What it is | Good for | Watch out for |
|---|---|---|---|
| Postal service | Australia Post parcel services, from a post office or a business account | Small parcels to anywhere in Australia, including regional and remote areas | Size and weight limits; prices rise with distance and speed |
| Courier companies | Door-to-door delivery, often with set pick-up times | Metro deliveries, larger parcels, business customers | Coverage and prices vary outside cities |
| Same-day and on-demand couriers | Booked per delivery, often through an app | Urgent local deliveries, food, documents | Cost per delivery |
| Shipping platforms | Software that compares carriers, prints labels and tracks parcels | Online stores sending more than a few parcels a week | Monthly fees; check which carriers they support |
| Freight and pallet services | Road, rail, sea or air freight for heavy or bulky goods | Wholesale, furniture, building materials | Booking rules, loading and access at both ends |
| Third-party logistics (3PL) | A warehouse that stores, packs and ships for you | Growing online stores that have run out of space or time | Storage and pick-and-pack fees; less control |
| Local pick-up | Customers collect from you | Local customers, bulky items | Opening hours, your address being public |
Most small businesses end up with a main carrier for everyday parcels plus a second option for urgent, bulky or remote deliveries.
Choosing carriers
Ask each carrier (or compare in a shipping platform):
- Coverage: do they deliver to all the postcodes your customers live in, at what price and how fast?
- Speed and reliability: standard and express timeframes, and how often they’re met.
- Size and weight limits.
- Tracking, signature and photo-on-delivery options.
- Pick-up: daily pick-ups, drop-off points, cut-off times.
- Claims: what they’ll pay for lost or damaged items, how to claim, and what extra cover costs.
- Account terms: minimum volumes, fuel surcharges, and how prices change over time.
Read the terms and conditions, especially limits on liability. Some carriers’ standard cover is low, and some goods are excluded altogether.
Packing
Good packing reduces damage, returns and shipping costs.
- Right-size the box. Empty space costs money and lets items move.
- Protect the item: at least a few centimetres of padding on every side for fragile goods; wrap items separately.
- Seal properly with strong tape across all seams.
- Label clearly with the full address, including unit numbers, and a phone number for the courier.
- Think about unboxing. A clean package with a thank-you note or care instructions builds repeat business. Recyclable packaging is valued by many customers; only claim it’s recyclable or compostable if it is.
Pricing shipping
- Weigh and measure every product once packed.
- Understand cubic weight. Many carriers charge on whichever is greater: the actual weight or a weight calculated from the parcel’s volume. Large, light parcels can cost much more than you expect.
- Choose a pricing approach: - Real-time rates at checkout: accurate, but can scare off buyers. - Flat rates by zone or order size: simple to understand. - Free shipping over a set amount: encourages larger orders; build the cost into your prices.
- Show delivery costs and timeframes before checkout. Surprises at the last step are a leading cause of abandoned carts, and the total price must not mislead.
- Review prices every few months, especially after carrier price changes.
What you can’t send
As the sender, you’re responsible for checking whether your goods are dangerous or prohibited. Australia Post’s guidance lists everyday items that can be dangerous goods, including:
- flammable liquids such as nail polish, paint and perfume
- aerosols and lighters
- some batteries, especially loose lithium batteries
- corrosives, poisons and some cleaning products.
Each carrier has its own prohibited and restricted items list and packaging rules. Check the list for every carrier you use, and read the rules for lithium batteries carefully if you sell electronics. Some goods can only travel by road, not air, which affects delivery times to some areas.
Product safety
If you sell products to consumers, Australian product safety laws apply however you deliver them. The ACCC’s guidance for online sellers says you must comply with mandatory safety standards, not supply banned products, and recall unsafe products, and you must report deaths, serious injuries or illnesses linked to a product you supplied. Include warnings, labels and instructions with the product. See Selling online.
When deliveries go wrong
Under the Australian Consumer Law, when you accept payment you must supply the product within the time you said, or within a reasonable time if you didn’t say. The ACCC’s guidance for businesses also says:
- Don’t take payment for things you can’t supply on time or at all.
- If there’s a delay outside your control (supplier or postal delays, for example), give customers clear and accurate information about availability, likely delivery timing and what you’ll do if you can’t deliver, such as a refund or replacement.
- Update customers proactively if delays arise after they’ve ordered.
A practical process:
- Track every parcel, and check undelivered ones daily.
- Contact the customer first, before they contact you.
- Lodge a claim with the carrier straight away for lost or damaged parcels. Keep photos of packed items and proof of postage.
- Fix it for the customer while you sort it out with the carrier: send a replacement or offer a refund. Your customer’s agreement was with you, not the courier.
- Record the problem and review patterns. Is one carrier, area or product causing most of the issues?
If a product arrives faulty or damaged, the consumer guarantees apply. See Customer service that keeps customers coming back.
Sending overseas
- Check the destination country’s import rules and prohibited items. Australia Post’s International Post Guide lists customs rules by country.
- Complete customs declarations accurately, with a clear description and true value.
- Tell customers up front that import duties and taxes may apply in their country, and who pays them.
- Expect longer delivery times and more returns admin.
- For larger export plans, Austrade has guidance and support for exporters.
Returns
- Write a clear returns policy and link it from every product page and the checkout.
- Decide who pays return postage for change-of-mind returns (if you offer them). For faulty products, the consumer guarantees apply.
- Use prepaid return labels if returns are common.
- Inspect returned goods promptly and refund quickly.