China direct or an Australian warehouse: how to decide for each order
Ship from China when a SKU is new, slow or sold in several countries. Ship from Sydney when it sells steadily in Australia and the customer expects fast local delivery. The two prices answer different questions, so compare them on the same basis.
What is the short answer?
Ship a SKU from the China warehouse when it is new, sells slowly or unevenly, or is sold into more than one country. Ship it from the Sydney warehouse once it sells steadily in Australia and your customers expect delivery in a few working days. Most growing brands end up using both: China for testing and the long tail, Sydney for proven sellers.
The decision is not only about the parcel price. China direct is charged per kilogram plus a per-parcel fee, so it is cheapest for very light parcels and costs more as the weight rises. From about half a kilo up, a Sydney order is cheaper to deliver, but the stock has to be bought, shipped, cleared and stored in Australia before the first order arrives. China direct saves you from holding stock in the destination country.
What does each option cost per parcel?
These are reference prices from the China-to-Australia route page for an apparel parcel to postcode 3000 (Melbourne), 10 × 5 × 2 cm, using the September 2026 China lane card and the August 2026 Sydney card. They are not a formal quote.
China direct, apparel economy, fuel included: AUD 6.89 at 0.2 kg, AUD 9.89 at 0.5 kg, AUD 14.04 at 1 kg and AUD 22.55 at 2 kg. The lane is priced per kilogram plus a per-parcel fee. Reference transit is 7–12 working days.
Sydney local fulfilment, same parcel: economy AUD 8.43 at 0.2 kg and 0.5 kg, AUD 9.54 at 1 kg, AUD 10.17 at 2 kg; standard AUD 10.20 at 0.2 kg; express AUD 13.52 at 0.2 kg. Sydney fuel at 6.1% of the freight is added on top. Reference transit is 3–10 working days for economy, 2–7 for standard and 1–4 for express.
On the parcel alone, China direct is cheaper at 0.2 kg and the two are close at 0.5 kg. At 1 kg Sydney economy is about AUD 4–4.50 cheaper, and at 2 kg about AUD 12 cheaper. That gap is the budget the Sydney stock has to pay for before it is the better option, so the heavier the item, the stronger the case for Sydney.
What does the Sydney price leave out?
The Sydney figure is the local fulfilment price: storage, putaway, dispatch, packaging and carriage from the Sydney warehouse. It does not include getting the stock there. Before Sydney can ship, the goods need replenishment freight from China, import clearance, any customs duty, and the cash tied up in stock that has not sold yet.
Those costs are spread across the units you send. If a SKU sells quickly, the cost per unit is small and Sydney wins. If half the units are still on the shelf three months later, the storage and the cash cost per sold unit rise, and China direct often comes out ahead even when its parcel price is higher.
China direct has its own extra item: China warehouse handling (scan-in, outbound picking and storage) is confirmed on the formal quote and is not inside the parcel prices above. Compare like with like by adding handling to the China side and the replenishment costs to the Sydney side.
How should GST be treated in a fair comparison?
GST should not be counted as a difference between the two options. If you are registered for GST and sell to Australian consumers, you charge GST on the sale either way. For low value imported goods (AUD 1,000 or less) sold to Australian consumers, GST is collected at the point of sale by the seller or marketplace under the ATO rules. For bulk stock imported into Sydney, GST is paid at the border, and a GST-registered business can usually claim it back as an input tax credit.
Customs duty is different. Bulk stock entered into Australia may attract duty depending on the product and its origin. Many goods of Chinese origin can qualify for preferential rates under the China–Australia Free Trade Agreement when the origin requirements are met. Check the treatment for your products with a licensed customs broker before you build the comparison.
When does China direct win?
New products. You can list a style, send a small batch to the China warehouse and learn what sells before committing stock to Australia.
Long-tail SKUs and sizes. Slow sizes and colours tie up the most cash per sale when they sit in a destination warehouse. Keeping them in China means you only pay to move a unit when someone has bought it.
Several countries from one stock pool. The same China inventory can ship to Australia, the United States, the United Kingdom, Japan and other routes. A brand selling in several markets does not need a separate stock position in each one.
Uneven demand. Promotions, influencer spikes and seasonal drops are easier to serve from one central stock than from a forecast split across countries.
When does Sydney local win?
Steady sellers in Australia. When a SKU sells predictably, the replenishment cost per unit is low and the cheaper local parcel price adds up quickly.
Fast delivery promises. If your store promises delivery within a few working days, Sydney standard (2–7 working days) and express (1–4 working days) are the realistic options. China direct is quoted at 7–12 working days.
Local returns. A Sydney return can come back to the Sydney warehouse, which shortens the return journey for Australian customers.
How do the transit times compare?
All reference transit ranges count working days from the order leaving the warehouse to delivery, for the postcodes the product serves. They are reference ranges, not a median and not a guaranteed delivery date. China direct apparel economy to Australia is 7–12 working days. Sydney economy is 3–10, standard is 2–7 and express is 1–4. Orders leave the China warehouse seven days a week, which helps keep the range steady, but China direct is not as fast as a local express service.
Can I use both at the same time?
Yes. Each order leaves from the warehouse that already holds the SKU. If Sydney has stock, the order ships locally. If it does not, the order ships from China. The two journeys are priced separately; they are never added into one combined figure.
A practical rule is to start every new SKU in China and move it to Sydney only when its Australian sales are steady enough that the stock you send will sell within the period you are comfortable financing. Review the list each month. SKUs that slow down can stay in China for the next replenishment cycle.
Worked example: 100 orders a month of one garment
One apparel SKU, such as a hoodie, 1 kg packed in a 30 × 25 × 8 cm mailer, 100 orders a month to Melbourne postcodes. China direct freight: 100 × AUD 14.04 = AUD 1,404, plus China warehouse handling from the formal quote. Sydney economy: 100 × AUD 9.54 = AUD 954, plus 6.1% fuel on the freight, so at most about AUD 1,012.
The parcel saving from Sydney is therefore about AUD 392–450 a month. Sydney is the better choice for this SKU only if replenishment freight, import clearance, any duty and the cost of carrying unsold stock come to less than that each month. For a fast seller this is often true. For a slow size run it often is not. For a 0.2 kg item the picture changes: China direct is also cheaper per parcel, so Sydney makes sense only when customers need faster delivery.
What should I send for a quote?
Send the SKU list with packed weight and dimensions, monthly volume by destination country, the postcodes you ship to most, and whether any items contain batteries. We will show both journeys for each SKU and confirm warehouse handling, fuel and any tax treatment on the formal quote.