What is a delivery expense? Read on for a quick guide to delivery expenses.
Delivery expenses are all the costs incurred by a business delivering a product to a customer or client.
This can include everything from fuel costs, transportation, to third party delivery/parcel delivery costs.
Depending on how large your organisation is there may be many costs incurred during the delivery process.
Potential delivery expenses include:
- Fuel costs
- Packaging costs
- Labels / Franking machine
- Freight management
- Warehouse management
- Shipping & delivery management
- Shipping & warehouse integration services
- E-commerce shipping integration costs
- Third party delivery costs (parcel delivery, freight)
Any fuel costs – petrol/gas – often worked out in terms of mileage for expenses purposes.
Fuel cost calculator: www.petrolcostcalculator.com.au
Packaging costs can be a substantial factor in e-commerce, including everything from the envelopes / boxes themselves, to packing mediums such as Styrofoam/brown paper, boxes and pallets.
Labels / Franking machine
Labelling and the use of a franking machine can be used to add postage labels to products.
Freight management software can allow you to manage freight teams and integrations.
The role of a Freight Consultant or 4PL consultant is critical in the every change world of Freight and Logistics. They are independent and work on the side of the customer to identify, optimise and manage the ongoing needs and requirements of the customer. Source
Warehouse management software and integrations can help manage stock and integrate with delivery and other systems.
Shipping & delivery management
Shipping & delivery management integrations can help you connect to the best shipping provider for the particular order.
E-commerce shipping integration costs
You can connect your e-commerce backend system direct to your shipping and warehouse system.
Third party delivery costs (parcel delivery, freight)
The actual cost of shipping using a third party delivery provider.
This page is part of our bookkeeping glossary resources and also our series on e-commerce and delivery. We worked with Australian parcel delivery company Couriers and Freight to ensure this entry was correct and up to date.