Logistics Terms That Quietly Kill Your Margins

A Plain-English Guide for Women E-Commerce Founders

Most small brands don’t lose money because they’re bad at selling.They lose money because they agree to logistics terms they don’t fully understand.

These aren’t “advanced” concepts they’re everyday fulfilment terms that quietly impact your margins, cash flow, and stress levels.

This guide explains what actually matters, without jargon.

SECTION 1 - DIMENSIONAL (DIM) WEIGHT

What it sounds like:A technical shipping calculation.

What it actually is:A pricing rule that charges you for space, not just weight.

If your packaging is bulky or inefficient, you can:

• Pay more than expected per shipment

• See margins shrink as volume grows

• Feel confused when courier invoices don’t match estimates

Founder takeaway:Packaging decisions are financial decisions.

SECTION 2 - PICK & PACK FEES

What it sounds like:A simple per-order cost.

What it actually is:A fee structure that can change dramatically based on:

• Number of SKUs per order

• Inserts, bundles, or custom packaging

• Manual handling requirements

Some brands outsource thinking costs will “go down” — then discover pick & pack makes small orders expensive.

Founder takeaway:Ask how orders are packed, not just what it costs.

SECTION 3 - STORAGE FEES

What it sounds like:Rent for shelf space.

What it actually is:A charge influenced by:

• How fast your inventory moves

• How efficiently it’s stored

• Whether you overstock “just in case”

Slow-moving inventory quietly eats cash when stored incorrectly.

Founder takeaway:Inventory strategy matters as much as sales strategy.

SECTION 4 - MINIMUMS & CONTRACT TERMS

What it sounds like:A commitment for “serious brands”.

What it actually is:A risk if your business is still evolving.

Long contracts or order minimums can:

• Lock you into systems that no longer fit

• Penalise seasonality

• Limit flexibility during slower periods

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Founder takeaway:Flexibility is a feature - especially in early growth.

SECTION 5 - COURIER RULES & EXCLUSIVITY

What it sounds like:“Don’t worry, we handle shipping.”

What it actually is:A set of rules that affect:

• Delivery times

• Customer complaints

• Your brand reputation

If courier performance isn’t transparent, you absorb the blame.

Founder takeaway:Your courier experience is your customer experience.

FINAL THOUGHT

You don’t need to master logistics to scale but you do need to understand the levers that affect cost, control, and growth.

The goal isn’t perfection.It’s informed decisions.

About the author

Songul Oksuz is the founder of Arda Logistics - Australia’s first hijabi-led warehousing, transport & 3PL company.She works with women-led and small e-commerce brands navigating fulfilment decisions with clarity, not pressure.