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I suggest go with a combination of flat rate satchels from Aust Post, and interparcel.com.au for bigger items. I offer flat rate shipping as well, and probably can comment a thing or two.

You are probably going to have some postage costs in some sales eating in your profits, ie. partially absorbing the postage costs. Eg, if I send a bulk item to QLD (local) vs WA, I am certainly looking at $20 difference in profit, because of the higher postage costs. But for satchels, since they are national, they all work out the same for me.

But having a smaller profit is better than no profit at all, so hopefully they balance out in the books. I would rather the customer order a big order, incur higher postage costs, (big order= bigger profit- higher costs) than a small order with low postage costs (small order=small profit-small costs)