Furniture ecommerce business feels impossible
I’m looking into starting a small furniture ecommerce business in Australia, but the shipping costs are making the numbers feel impossible.
I have a product with a USP, but it costs around $90/unit (Australian Dollars) to manufacture and ship to me. The issue is domestic shipping to the customer. Because the product is bulky, shipping can be around $60–$90 AUD, depending on the customer’s location.
So before marketing, fees, packaging, and possibility of returns and damages, the cost is already roughly $150+ per unit.
I originally wanted to sell it for around $160, but that obviously leaves almost no margin. Even selling it at $199 with free shipping, which is already more expensive than competitors, only leaves around $40 gross profit in the best case scenario, before other costs.
I understand that bigger companies have better logistics, courier rates, volume discounts, etc., but for a small business it feels impossible to enter the furniture industry when shipping costs are this high due to the weight and size of the product.
Would really appreciate any advice from people who have dealt with this or something similar.