Australia post is ludicrously expensive

[bobcat-bobcat]

Just venting..........Many examples I can think of. Here's just 1.....Recently bought 2 tee shirts. 1 from a Sydney seller the other from an American seller. Postage was dearer for Aust. Post satchel than USPS. How can it be possible knowing that the USPS item is handled by Aust. Post when it hits our shores????? Can't get my head around it!!!!! Suffice to say we are being shafted!!!

[viewmont1071]

http://www.upu.int/en.html

why does our freight seem so expensive compared to the rest of the world????

Financial performance Australia post 2010/11

After declines in both revenue and profit last year, we have returned to growth.
Trading revenue was $5.0 billion (an improvement of 2.8 per cent on 2009–10)and we delivered profit before tax of $332.3 million.

This is up $79.1 million on last year’s result of $253.2 million (excluding restructuring costs).

While this is 31.3 per cent higher than in 2010, it only brings us back into line with our 2009 profit result. The direction is positive, but there is still much to be done.
part copy and paste AP annual report 2010/11 (3.3meg download) page 7

Our inbound parcels volumes boomed this year as more consumers took advantage of the strong Aussie dollar to shop offshore, but we lost money on the delivery of inbound parcels weighing under 2 kilograms because of the structure of international payments to us under the Universal Postal Union’s global agreement

YET AP still made a profit

.. APs local customers (me and you) subsidize inbound freight ...simple .....

rather than addressing the UPU agreement lopsided situation which has become considerably greater because of the aussie dollar's exchange rate.

sound business practices :|:^O

[appletreeaaa]

Actually the post in Australia should cost less than the USA because in the Australia most of the population lives in  concentrated areas which is the major cities , if you were sorting mail in the USA at a postal exchange centre  , there would be a huge range of bags for the large amount of states and cities that the USA does have and the amount of delivery vans compared to Australia would be massive .

If you sell used books in Australia , about 90 % of the books over 500grams are not saleable by post because people can buy the books with the postage from overseas for less than the postage cost in Australia.

When in business , something is often better than nothing , if Australia Post charged less for it's media mail , people would more likely buy the books in Australia and Australia Post would not be losing millions delivering overseas parcels at a huge lose because if Australia Post is losing millions on overseas parcels , it is only their Australian customers who are paying more to make up for the shortfall in profits .

[***super_nova***]

Actually the post in Australia should cost less than the USA because in the Australia most of the population lives in  concentrated areas which is the major cities

Actually US has a very urbanized population, with 82% residing in cities and suburbs in 2008, and Australia is just about the same. 

[davewil1964]

Totally agree appletreeaaa.

Viewmont, I believe AP tried to address the UPU issue, but it needs a majority to agree, ie those who would have to wear the extra payment to AP for delivering THEIR (the originators') parcels.

AP said something about new arrangements that are supposed to be coming into force about now, which may be why Royal Mail parcel rates are set for a significant increase. I doubt, however, that any increased payments AP receive for delivering international parcels will be reflected in lower costs for domestic posters. More likely they will get tacked onto the bottom line, with the excuse that AP still lose money delivering OS mail, just not as much.

[appletreeaaa]

Often business managers think that the only way to increase profits or to sustain profits is too increase their prices but with  increased price , what they often forget is that once a price gets to a certain level , they start to lose volume and potential volume .

With used book sales in Australia , many buyers will not buy a cheap novel  for around $5 , if it weighs just over 500 grams and it costs around $12 to post .

They would rather buy the book with postage from overseas for $10 or buy if off line for a lot less .

My predictions is that if Australia Post had a trial of media mail in Australia for 12months where all books under 500 grams cost $4 to post and all books under 2 kilos cost $6 to post . 

The Australia Post's volume in Australian books being posted would go up 400% and their profits on delivery would go up nearly 180% also they would  gain about 60% savings on the multi-milllions lost each year from overseas book parcels .

If Australian booksellers have more competitive prices with overseas booksellers , it is only natural that Australia Post will get more venue from Australia than delivering overseas books at a lose also there is only minimal extra costs if Australia Post pick-up vans are picking up full mail bags instead having half full mail bags and half full trucks of mail .

[davewil1964]

They used to have a media mail system. I have books that explicitly state on the publication page that they are registered for transmission as a book.

I try not to buy things over 500g that aren't 1st ed HCs or MMPBs that will go in a B1 box. And tend to concentrate on books that are OOP and unlikely to get the dropshippers competing as they generally use publishers' catalogues as a basis for their listings.

[collectibleclassiques]

The price increase is NOT based on CPI increases unless we now have runaway 30% inflation in this country. Last time i looked it 10 times less than that. This cannot be defended as sound business practice - it is a blatant rip off, price gouging that will destroy small online businesses

[cq_tech]

Deborah, I have to take exception with your statement regarding AP's pricing policy being based on annual CPI increases. If that was true, I wouldn't object in the least to an annual price rise in AP products and services of approximately 3%, which is what Australia's annual inflation has been averaging for the last few years.

So how does that possibly explain or justify some increases in excess of 250% ? X-(

[low_db_drum_gear]

Totally agree, Australia Post fees are just ridiculous. The small seller can no longer subsidise sending packages, which is what is happening, in order to reduce postal costs

[pactrpo]

yes and they have got even slower too.

What used to take 4 business days to get from NSW to WA metro areas now take 7 to 9 business days.

Ahhh Australia Post more expensive and more slower.

Might as well just use fastway or couriers please.