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Knowledgebase:
Postage - How Do Sellers Offer Such Low Post Costs? Letters Parcels Pre Paid Satchels Calculated Shipping
Posted by Live Now Education G Support Team on 02 December 2016 03:20 PM

Australia Post offer 2x ways to post items, either as a letter or a parcel and the prices vary depending on the size, thickness and weight of the parcel.

If the parcel measures 260mm x 360mm or under, is not thicker than 20mm and weighs 500 grams or less you can send it in a tough bag as a large letter. To see all the the large letter sizes and current prices check out this link:

https://auspost.com.au/parcels-mail/sending-in-australia/domestic-letters/regular-letters-cards

If your item is larger than this or heavier, it will have to be sent as a parcel in which case you can either use the pre-paid satchels for the same price Australia wide, or enter your own dimensions and the price will be calculated on the size and postcode where it's going to.

This means an item that weighs 1kg for example could work out cheaper to use your own packaging than the pre-paid satchels depending on where the buyer is located. Check out this link to get postage quotes from Australia Post:

https://auspost.com.au/parcels-mail/calculate-postage-delivery-times/#/

If you see sellers offering postage cheaper than what it costs, they might not be aware of the pre-paid satchels and therefore don't know how much to charge the buyer, so they work out an average price based on a few different states to give a rough price and some sales they will lose money on postage and other sales they make money. Or they may be receiving postage discounts for shipping large quantities of post each week which allows them to charge less than what retail postage costs.

When you're listing items from around the house, you want to make the postage costs as easy as possible to work out and give flat rate prices regardless where the buyer is located in Australia. Buyers understand what postage costs and are usually willing to pay the pre-paid satchel prices.


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