Why one carrier account costs you more
A single account means every parcel pays that carrier's rate, even where another carrier is better value or faster for that postcode and weight.
Every carrier is strong on some lanes and weak on others. One may be well priced into Sydney and Melbourne but expensive into regional Queensland; another may have a satchel bracket that suits your products better. At a few hundred orders a week, those differences add up to thousands of dollars a month.
How per-parcel carrier rating works
Every order is rated across more than ten carriers on destination, weight, size and service level, and goes with the best-value carrier that meets the delivery time.
Regional and PO box deliveries usually go with Australia Post; metro deliveries go with the best-value carrier that still meets the delivery time. Cheaper never means slower or riskier: carriers that slip on on-time delivery stop getting the parcels. You see the carrier and the price on every order.
Why weight and size matter more than the headline rate
Carriers charge on the higher of a parcel's actual weight and its cubic weight, so packaging size often matters more than the rate itself.
Dead weight is what the parcel weighs on the scale. Cubic (dimensional) weight is calculated from its length, width and height, because a big light box takes up as much room on the truck as a heavy one. Put a 300 g item in a carton built for a pair of boots and you pay for the carton, not the item.
Measuring each parcel at the packing bench and choosing the right satchel or carton size stops you paying for air. It also means the rate you are quoted is the rate you are charged, with no adjustments from the carrier weeks later.
What order consolidation is and when it saves money
Consolidation means shipping fewer, better-packed parcels, and pooling volume so you get rates your size alone could not.
At the order level, it is combining multiple orders or items going to the same customer into one parcel: two orders placed an hour apart go out in one box, not two. At the warehouse level, it is pooling volume across many brands so each one benefits from rates a single brand at their size could not negotiate alone.
A worked example at 1,000 orders a month
On round, conservative numbers, moving from one retail-style account to per-parcel rating saves around $3,000 a month.
Illustrative example, not a quote
| Single account | Rated per parcel | Difference | |
|---|---|---|---|
| Average shipping cost per order | $12.00 | $9.00 | $3.00 |
| Monthly shipping cost (1,000 orders) | $12,000 | $9,000 | $3,000 |
Your numbers depend on your parcels, destinations and current rates. Send us 30 days of orders and we will price every one.
Questions to ask any 3PL about shipping
Five checks tell you whether a 3PL's shipping price will hold up.
- How many carriers is each parcel rated across?
- Do I see the carrier and the price on every order?
- How are fuel levies and surcharges passed through?
- Are parcels measured at the packing bench?
- Is your margin on freight fixed and agreed up front?
Frequently asked questions
How can an eCommerce brand reduce shipping costs in Australia?
Rate every parcel across several carriers instead of one account, measure each parcel so you are not paying for air, and consolidate orders where you can. A 3PL rating across 10+ carriers sends each parcel with the best-value carrier that meets the delivery time.
Is it cheaper to use a 3PL for shipping than my own carrier account?
Usually, once you ship a few hundred orders a week. A 3PL pools volume across many brands to get rates a single brand rarely can, and rates each parcel across 10+ carriers rather than one.
What is cubic weight and how does it affect shipping cost?
Cubic weight is a weight carriers calculate from a parcel's length, width and height. You are charged on whichever is higher, the dead weight or the cubic weight, so a light item in a big box can cost far more than it should.
What does order consolidation mean in eCommerce fulfilment?
It means combining multiple orders or items going to the same customer into one parcel, and pooling shipping volume across many brands. You ship fewer, better-packed parcels at better rates.
How much can I save by switching how my parcels are shipped?
It depends on your parcels, destinations and current rates. Brands that have priced their orders with us have typically found 20 to 30% off their shipping. Send us 30 days of orders and we will price every one.