Australian shoppers now expect delivery in one or two business days, wherever they live. For a small or mid-sized online retailer, the traditional answer was to open a second warehouse, usually in Perth or Brisbane, to get close to customers. That doubles stock, staff and systems. For many retailers, domestic air freight offers a better route: fulfil everything from one site and fly orders to the parts of the country road cannot reach quickly.
This guide explains how that model works in practice. It is part of our complete guide to optimising your supply chain with domestic air freight.
Why one warehouse plus air freight works in Australia
Most of Australia's population lives along the east coast between Brisbane and Melbourne, where road express can deliver overnight or in two days. The challenge is the remaining markets: Perth, Adelaide, Darwin, Hobart and regional centres in north Queensland and Western Australia. By road, a parcel from Sydney to Perth commonly takes four to six business days. By air express, next or second business day is normal.
The major parcel networks already run on this model. StarTrack, owned by Australia Post, moves its express parcels on a dedicated freighter network operated by Qantas Freight. The newer Airbus A321 freighters in that fleet carry up to 208 cubic metres of cargo each, much of it online shopping. When you choose an express service, you are buying access to that overnight network.
The benefit for a retailer is that inventory stays in one place. Our article on using domestic air freight to reduce inventory and warehousing costs explains why consolidating stock locations can cut total safety stock significantly.
Choosing where your fulfilment centre should be
If you are running a single site, location matters. Consider:
- Where your customers are. Map your orders by postcode. Most national retailers find Sydney or Melbourne gives the best overnight road coverage of the east coast.
- Proximity to air freight hubs. A site with a late pick-up from your carrier and short travel time to the airport lets you offer a later order cut-off.
- Sydney's changing airport picture. Western Sydney International Airport opened for freight in late July 2026 and operates without a curfew. From 1 November 2026, overnight freight flights are intended to move there from Sydney Kingsford Smith, which matters for retailers in Western Sydney's growing logistics precincts.
- Inbound supply. If most stock arrives by sea through Port Botany or the Port of Melbourne, being close to the port reduces inbound costs.
Setting shipping rules by product and postcode
The retailers who make this model profitable do not fly every order. They set rules in their ecommerce platform or warehouse management system that pick the right service for each order automatically.
| Scenario | Suggested service | Why |
|---|---|---|
| Metro east coast, standard delivery | Road express or parcel | Overnight or two-day road already meets the promise |
| Perth, Darwin, Hobart, north Queensland | Air express | Saves several days over road |
| Customer pays for express anywhere | Air express | The customer is funding speed |
| Bulky or heavy items | Road | Cubic weight makes air uneconomic |
| Products with lithium batteries, aerosols or other dangerous goods | Road | Many cannot fly or need full dangerous goods handling |
| Returns | Road or parcel | Speed rarely matters for returns |
Tag every SKU that contains lithium batteries, aerosols, perfume, nail polish or other regulated items so your system never books them on an air service by mistake. Undeclared dangerous goods in air freight are a serious offence under CASR Part 92, and carriers will reject or return non-compliant parcels.
Keeping air freight costs under control
Air freight on every order to a distant zone adds up. These are the levers that make the biggest difference for online retailers.
Right-size your packaging
Parcel networks charge on cubic weight, often at 250 kg per cubic metre for express services. A few centimetres of empty space in every carton can add a lot to your bill. Stock several carton and satchel sizes, and use satchels for soft goods. Our guide to packaging for domestic air freight goes into detail.
Use zone-based shipping prices
Charging the same shipping fee everywhere means metro customers subsidise remote ones. Many retailers set a free-shipping threshold nationally but charge a small premium for express to distant zones, or set a higher threshold for them.
Negotiate on your profile
Carriers price on volume, average weight, cubic density and zone mix. Pull your order data by zone and weight band before you negotiate, and ask how rates, fuel surcharges and remote area surcharges apply. Our article on how domestic air freight rates are calculated explains each component.
Consider a parcel aggregator or 3PL
If your volumes are modest, aggregators and third-party logistics providers can give you access to rates and services you could not negotiate alone.
Order cut-off times and delivery promises
A fast network is wasted if orders miss the truck. Work backwards from your carrier's latest pick-up time and set an order cut-off that allows for picking and packing. Then show customers an honest estimate at checkout, based on their postcode and the service they choose.
- Publish your cut-off time clearly, and state it in the customer's time zone. Perth is two hours behind Sydney for much of the year, and three hours behind during daylight saving.
- Account for public holidays, which differ by state.
- Remember that regional and remote postcodes may take an extra one or two days even on air services.
- Track actual delivery times by zone and update your estimates if they slip.
Customers forgive a longer delivery estimate far more readily than a broken promise.
Planning for sale events and Christmas
Click Frenzy, Black Friday, Cyber Monday and the Christmas rush all fall between late October and December, when parcel networks run at their limits. Express services can slow down, cut-offs move earlier, and some carriers add peak surcharges. Agree forecasts with your carrier, move promotional stock into place early, and publish Christmas delivery cut-offs by zone. Our guide to planning domestic air freight around peak season includes a full checklist.
When a second warehouse starts to make sense
A single site with air freight is not right forever. A second fulfilment centre is worth modelling when:
- a large and growing share of orders go to one distant market, such as Western Australia
- air freight costs to that market exceed what you would spend on a small warehouse or 3PL arrangement
- many of your products cannot fly because of size or dangerous goods rules
- you need same-day delivery in that market
Until then, one well-run site with smart shipping rules and air express to distant zones is usually the leaner option. For the complete strategy, including when air freight fits and how to control costs, read our guide to using domestic air freight to optimise your supply chain.
Frequently asked questions
Can a small online store use domestic air freight?
Yes. Most small retailers access air freight through the express services of parcel carriers or aggregators rather than booking airlines directly. You simply choose an express service for orders going to distant zones.
Why can't some of my products be sent by air?
Items containing lithium batteries, aerosols, flammable liquids such as perfume and nail polish, and other dangerous goods are restricted in air transport. Some can fly with full dangerous goods handling, but many retailers send them by road instead.
How do I stop air freight costs eating my margin?
Right-size packaging to reduce cubic weight, set shipping prices by zone, apply rules so only orders that benefit from speed go by air, and negotiate with carriers using your real order profile.
What delivery time should I promise customers in Perth?
With air express from the east coast, next or second business day is common for metropolitan Perth addresses. Regional Western Australia can take longer. Use your carrier's transit times by postcode and track your actual performance.
Sources and review. This article draws on guidance from the Civil Aviation Safety Authority (CASA), the Cyber and Infrastructure Security Centre within the Department of Home Affairs, IATA, airline cargo conditions of carriage and published carrier information. Rates, surcharges and rules change often, so confirm current requirements with your carrier before you ship.
Written and reviewed by
George Brown
Senior Air Freight Editor, Georgeiv.net
George has 18 years of air cargo experience, from ramp operations at Sydney Airport to managing airline allocations and pricing for forwarders across Australia and Asia-Pacific. He leads our domestic air freight coverage and checks every figure and rule before publication.