The Delivery Cost Reality
Bulky goods delivery isn't like parcel shipping. Two-man delivery, assembly services, and specialist logistics carriers create costs that vary dramatically by product size and customer location.
A sofa delivered to London might cost £60. The same sofa to the Highlands costs £180. Your Google Ads don't know the difference. They show the same ad to both customers.
"Free delivery" doesn't mean free cost. It means the cost comes from your margin instead of the customer's pocket.
Average two-man delivery costs for furniture range from £50-200 depending on size and location. Highland and island surcharges can add another £50-100.
How Delivery Erodes Margin
Let's trace the margin erosion on a typical furniture sale:
Example: £800 Sofa Sale
That 60% gross margin becomes 36% after logistics and returns. Your break-even ROAS just jumped from 1.7x to 2.8x.
POAS After Delivery
Calculating accurate POAS for furniture requires including all logistics costs:
Formula
POAS = (Revenue - COGS - Delivery - Returns - Fees) / Ad Spend
Hidden Costs Often Missed
- •Return collection fees (often £80-150 for sofas)
- •Failed delivery re-attempts
- •Damage claims during delivery
- •Restocking and refurbishment costs
Geographic Strategy
Delivery costs vary dramatically by location. Your Google Ads strategy should reflect this:
Delivery Cost Zones
Use location bid adjustments to reduce bids in high-delivery-cost areas. Or exclude areas where delivery economics make profitable advertising impossible.
Product Selection
Not all furniture products are equally advertisable:
High Margin, Low Delivery: Best for Ads
Smaller items like side tables, chairs, and accessories often have better economics. Delivery costs are lower, returns are simpler.
High Value, High Delivery: Cautious
Sofas and beds have high AOV but delivery costs and return complexity require careful targeting and conservative bidding.
Low Margin, High Delivery: Avoid
Low-margin bulky items often can't be profitably advertised. Better to let these products appear organically.
Practical Solutions
1. Build Delivery Into Feed
Add delivery cost as a custom attribute. Calculate margin-after-delivery for each SKU. Use this for campaign segmentation.
2. Geographic Bid Modifiers
Lower bids in high-delivery-cost postcodes. Use location targeting to match bids to actual economics.
3. Product-Level Targets
Set different ROAS targets by delivery complexity. A bedside table and a sofa need different targets.
4. Charge for Delivery
Passing delivery costs to customers improves margin and may reduce conversion, but surviving conversions are profitable.
The goal isn't to advertise every product everywhere. It's to advertise products profitably to customers where economics work.
Frequently Asked Questions
How does furniture delivery cost affect Google Ads profitability?
A £50-200 delivery cost on a £500 sofa can turn a profitable 3x ROAS into a loss. If you're subsidising delivery or offering free delivery, that cost comes from margin. POAS calculations must include the actual delivery cost, not the charged amount.
Should I exclude high-delivery-cost products from Google Ads?
Not necessarily exclude, but bid appropriately. Products requiring two-man delivery to Scotland need higher ROAS targets than small items with standard shipping. Segment by delivery cost tier and set targets that maintain profitability after logistics.
How do I calculate true margin on bulky furniture items?
True margin = Sale price - Product cost - Actual delivery cost - Returns cost - Payment fees. For furniture, returns often require collection fees. Many retailers discover products with apparent 40% margin are actually at 15% after delivery and returns.
Selling Bulky Goods?
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