A shipping configuration setting - call to the brains trust

[Chefery]

We (will) have a shop that will sell kitchen/ homeware products both as individual items and as part of a bundle (gift basket).

The baskets will not be suitable for shipping - too delicate - but LOCAL DELIVERY ONLY.

The individual products can be shipped (anywhere) preferably Australia Post

The products AND the bundles will be available in our physical store as well as online. 

The online store will additionally also have a few items via drop-shipping (most likely only Aus based ,not Alibaba) so these will not be available in my physical store.

I am in Australia (regional) so limited delivery/fulfillment options

We will be using the Shopify POS as well in the physical store.

I can't figure out how to set up shipping rates, shipping options or whether I need specific apps to manage this?

I am currently on the basic plan.

(My thinking was to have a 'warehouse location' that offered the drop-shipping items only and then a 'shop' location that offered shipping and local delivery. But I can't really wrap my head around this.)

Any help will be appreciated.