How Are Sellers Using Australia Post for Low-Cost Items?

Hi everyone,

I run a small side hustle where I buy products wholesale and resell them on eBay. I typically mark them up by around $10 to make a bit of profit. But I’ve run into a problem—Australia Post wants to charge me $12+ for postage, even on lightweight items.

I’m really confused how other sellers are offering products for $4–$5 with free shipping and still using AusPost. It doesn’t seem to add up—are they getting bulk postage discounts, using a different type of account, or something else I’m missing?

I’d really appreciate any advice or insights from sellers who’ve figured this out.

Thanks!

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How Are Sellers Using Australia Post for Low-Cost Items?

They are using either couriers or non-parcel postage.

 

Or they are from China where the Chinese Government subsidises postage for exports.

 

Or they are loss-leading.

 

Choose one or all.

 

I am unable to understand why postage for lightweight items would be $12+

 

A standard Small satchel is $10.95

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How Are Sellers Using Australia Post for Low-Cost Items?

Are you able to provide some examples of other sellers' listings which are doing this?  Just so we can try and work it out.

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How Are Sellers Using Australia Post for Low-Cost Items?

Sure, here's one example:
https://www.ebay.com.au/itm/175391555627

I actually purchased this item myself, and it was sent using an Australia Post label. Out of curiosity, I asked AusPost how much it would cost to post something like that myself, and they quoted me $10.

I'm genuinely trying to understand how sellers can afford to sell items for under $5, include tracked postage, and still make it work. Hoping someone can shed some light on how this is done — maybe there's something I'm missing.

Thanks in advance!

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How Are Sellers Using Australia Post for Low-Cost Items?

Thanks — I’ve definitely considered the China angle and loss-leaders. But in this case, the seller is based in Australia, and I’m almost certain the package came with a domestic AusPost label (I’ve got a photo of it somewhere).

My confusion is that even using a Small Parcel Post satchel at $10.95, there's barely any margin left if the item sells for $4–$6 with free shipping.

Are there discounted AusPost rates that apply once you hit certain volumes? Or are some sellers somehow managing to send large envelope-size parcels as letters under 5 cm? Just trying to wrap my head around the actual logistics.

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How Are Sellers Using Australia Post for Low-Cost Items?

large envelope-size parcels as letters under 5 cm?

 

No envelopes can contain items that are 5cm thick.

 

Standard DL envelopes are 5mm.

 

Larger envelopes are 20mm (2cm). I send a lot of books this way.

 

In the end all you can do is research postage rates and use the ones best suited to you.

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How Are Sellers Using Australia Post for Low-Cost Items?

Hi there! Thanks for the info. Just wondering—where do you usually source your envelopes from? I've been struggling to find good-quality ones that seal properly and hold up during postage. Appreciate any tips 😊

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How Are Sellers Using Australia Post for Low-Cost Items?

"Sure, here's one example:
https://www.ebay.com.au/itm/175391555627

I actually purchased this item myself"

 

That  listing shows   'Australia Post Domestic Regular Letter Untracked"

 

Shonky sellers like that with appalling feedback are  either 1) dropshipping  and/ or importing  stock from  Shein, Temu, China in general,  for next to nothing.  

 

Hard to believe you bought  and supported a seller with such poor feedback !

 

 

 

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How Are Sellers Using Australia Post for Low-Cost Items?

Australia Post prepaid.

 

With edges reinforced with sticky tape.

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How Are Sellers Using Australia Post for Low-Cost Items?

That’s how I send mine…

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