This week’s Let’s Talk feature brings together industry experts to discuss the shipping challenges facing small retailers in today’s competitive marketplace.
As e-commerce continues to reshape retail, small business owners are grappling with rising shipping costs that can make or break their profit margins. With customers expecting fast, affordable delivery options similar to what they receive from major retailers, finding cost-effective shipping solutions has become more critical than ever.
Whether you’re just starting out with your first online store or looking to optimize your existing shipping strategy, our experts discuss proven methods to reduce costs while maintaining customer satisfaction and delivery reliability.
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Laura Hill, Chief Commercial Officer and Managing Directo at Sendle
“For any retailer today, offering affordable shipping is a real game-changer as customer expectations grow by the day. The good news is, small retailers and e-commerce businesses don’t have to swallow the cost to make their customers happy, but choose to ship smarter.
“A great first step is to look beyond using just one carrier. When you have a few options, you can compare prices and find the best deal for every parcel you send. This also means you won’t be left in the lurch if your main provider has delays.
“Another easy win is to look at your packaging. You’d be surprised how many businesses overpay by using boxes that are too big. Matching your packaging to your product is a simple way to stop paying for empty space.
“Finally, be tactical when it comes to “free shipping”. By offering it on orders over a set amount, you encourage customers to spend that little bit more. This simple move often covers the cost of the delivery itself. It’s about turning a shipping strategy into a sales strategy, making it a powerful asset for your growth.”
John Hollings, Director of Consumer, Apple and Component at Ingram Micro
“The most affordable approach is one that’s efficient, scalable and sustainable. At Ingram Micro, we support small retailers by leveraging our national network and the scale of our Eastern Creek Advanced Logistics Centre – the largest technology distribution centre in Australia – to make shipping smarter and more cost-effective.
“We’ve built a logistics ecosystem that fuels growth for every partner – big or small – and we’re proud to play a role in a future that’s more efficient and sustainable.
“One of the simplest savings, both from a cost and environmental perspective, has been using right-sized packaging at Eastern Creek. By tailoring packaging dimensions to fit each product, we have achieved a 15 per cent reduction in cardboard usage compared to the past. This decreases shipping volumes by reducing wasted space and helps protect the product in transit, which in turn reduces any damage-related costs.
“Finally, we have reduced over time reliance on plastic packaging and are shifting to recyclable materials as a way to lower long-term costs and meet increasing consumer expectations around sustainability.
“All this provides cost savings while contributing to a lower carbon footprint and Ingram Micro’s 10 to Zero Initiative, which aims for zero waste and zero greenhouse gas emissions by 2030.”
John-David Klausner, General Manager, International at Loop
“Shipping can be one of the biggest ongoing costs for small retailers – but it doesn’t have to be. Encouraging customers to buy more in one transaction, using bundling or minimum order thresholds for free shipping, can significantly reduce per-unit shipping costs. The goal is fewer shipments, not fewer sales, resulting in a higher Average Order Value (AOV). Retailers should embrace and encourage exchanges over returns to turn bracketers into successful buyers.
“The shipment journey doesn’t always end when the customer receives their package – which is why it’s important for retailers to optimise their returns processes as well. As margins tighten, more Australian businesses are moving away from free returns and looking for smarter ways to manage these expenses without damaging the customer experience. Loop works with leading Australian retailers that offer shoppers the option to pay a small fee at checkout to unlock free returns later. About 70% opt-in, but most don’t end up returning their items. That money is then passed onto the business, which can significantly improve cash flow.”
Brian Hack, Managing Director at EES Shipping
“Importing products can feel like a significant business cost – particularly for smaller retailers – but it doesn’t have to be. When looking to ship products affordably, consider the following options and advice;
- Consolidation: Paying only for the container space you use means you can order smaller amounts more frequently, rather than tying up cash flow waiting to build a full container load.
- Check the Details: Ensure your Customs Broker checks correct Harmonised System (HS) Codes are provided to avoid overpaying duty and whether goods are eligible for a Free Trade Agreement to help reduce tariff costs.
- Consider Options: Different shipping terms – like ex-works or free-on-board – can affect costs in ways that aren’t always obvious upfront. The key is understanding what you’re responsible for, and whether those choices are the most cost-effective for your business.
- Plan Ahead: Especially ahead of peak periods and to avoid costly rush shipments. Consider whether stock is arriving ‘just in time’ vs ‘just in case’. Inventory buffers can be beneficial in times of increased demand or shipping delays.
- Seek Expert Advice: Engaging with a freight forwarder who has strong overseas connections and buying power means better shipping rates, priority bookings and minimises the risk of unexpected delays, and ensures you’re well informed with any industry-related development that could impact shipments.”
Samuel Levi, Founder at LuxeSticks
“In my opinion, Australia Post or MyPost Business are the most affordable and reliable options for small retailers in Australia. It’s free to join, with tiered discounts that kick in after sending just 8 parcels over 4 weeks. The more you send, the better your savings up to 40% off standard rates. You can choose from Regular Parcel Post (cheapest) or Express Post (faster), and use flat-rate satchels for simple pricing. All parcels include free tracking, and you can drop them off or book pickups from $5.50.
“It’s perfect for my brand LuxeSticks, where a single product (under 500g) would cost around $9.70–$10.60 for standard post. Express sits at around $12–$13.50, depending on the location. You can also integrate MyPost Business with platforms like Shopify or WooCommerce, automate labels, and upload bulk orders, saving you time and money.
“For businesses just getting started or growing steadily, it’s an easy and scalable solution that doesn’t lock you into a courier contract. Plus, it offers national coverage, customer confidence, and flexible return options.”
Juan Velasquez, Co-Founder and Principal Solutions Engineer at Shipperfy
“Shipping is one of the most difficult and costly aspects of running a small retail business. I discovered the painstaking reality of it first-hand – which is exactly how Shipperfy was born. Our e-commerce tech platform is purpose-built to simplify fulfilment through smart automation and real-time carrier optimisation. It’s a budget-friendly solution for small retailers wanting to streamline the entire fulfilment journey, from order import right through to final delivery notification.
“Beyond saving time and reducing stress, cost savings start with understanding volume-based pricing. Carriers like MyPost Business and Sendle offer tiered discounts based on a four-week shipping volume. By consolidating shipments with a single provider, retailers can unlock bigger discounts and lower their per-parcel cost.
“Flat rate packaging is another smart way to control shipping expenses. Perfect for smaller parcels, these options offer consistent pricing across Australia, making it easier to forecast spend and maintain healthy margins.
“For businesses sending more than 2,000 parcels a year, you can unlock further savings through a custom eParcel contract with Australia Post, providing access to negotiated rates.
“This is where Shipperfy adds real value. Our platform integrates with multiple carrier accounts and uses advanced algorithms to automatically select the most cost-effective, efficient option for every order. This empowers retailers with fulfilment tech that’s scalable, powerful and built for the e-commerce era.”
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