Australia Post - have they lost the plot?

[tonalidesigns]

The latest increase in postage costs has prompted this post.

Australia Post is currently losing around $70m a year, largely apparently because of the costs incurred for delivering items which arrive from overseas (as a result of some sort of international postage treaty agreement and probably also as a result of various free trade agreements).

I actually don't have a real problem with any of this in theory  - but I DO have a big problem with the way it is implemented, especially as it seems that the latest round of price (and more importantly) policy adjustments (eg the apparent extension of cubing to items weighing under 500g) to DOMESTIC costs are driven to a large extent by the need to recover this loss.

If Government (or its utilities) agree to international treaties that should - and usually is - a cost born by government through general taxes. 

Except - apparently - postage. Here the Australian user pays not only for their own costs of postage but is also paying for the costs of imported items.

My view is that if there are treaties we have entered into that increase costs to AP then these need to be excluded from any domestic costings ... as these are intergovernmental agreements that's a government cost.

And if you want to get an idea of just how much Oz Post is straying from its core business go to their home page. What you'll see is a picture of Halong Bay (just over the border from China) and a promo for buying international money cards.

Silly me .. I thought Australia Post's prime business was the delivery of letters and parcels.

[tonalidesigns]

Sorry  - last line should have read "delivery of AUSTRALIAN letters and parcels".

[dylan11235813]

Last time I read their yearly financial statement it looked like they made almost $200 million, I think overseas mail delivery to Australia ran at a loss.

They really should change this international agreement rather than make us pay for it, I have no idea how it works though (maybe someone that knows about it should fill us in). The cost that sellers pay for post from china, hong kong, etc.. is so little compared to the cost to us. Something that costs less than $1 to post from china would cost us almost $10 to post within Oz.

[putney32]

dylan, if you want to know more google Universal Postal Union.

established to facilitate the transfer of mail posted from one country to another.

[phorum_junkie*]

How on earth could it work any other way? International mail would cease to be viable if all countries did not deliver international mail at no extra cost.

If it didn't work like that then how would you work it? These are not true figures but just an illustration of the absurdity of any other system.

China post only charges the equivalent of  $2 so when the parcel reaches Australia the difference between that and what AP charge for a domestic delivery is added, the buyer has to pay the extra.

Royal Mail charge £2 more than AP for a parcel of a particular weight so when the parcel hits Australia AP refund somebody the $3 difference before delivering!

AP is costly because of the vast distances that some mail has to travel even between capital cities and then there are all the properties out in the back of beyond.

Actually when you compare AP parcel prices with many other developed countries their domestic rates are not overly onerous.

[kafav]

yep they do lost mind,because if before bulky item didn't charge like cubic,from February if over 1 kg they all going like cubic,i get lucky few days when training didn't charge like cubic,it was over 5 kg,and i put in space bags,its just crazy,i feel sorry for some costumers because come state post very high,i ask post why its different now they say some bulky items take alot space( 

[jensmanchester-australia]

Actually when you compare AP parcel prices with many other developed countries their domestic rates are not overly onerous.

For items which fit into the prepaid products the rates are reasonable.

For other items, which apparently are all going to be cubed even if they are under 500gm the cost has gone totally out of control.

For example a bulky item posted in a satchel weighing around 5.5 kg currently costs around $40.00 from WA to country QLD.

Under the new system that same parcel will now cost around $108.00.

[thecatspjs]

This is an issue that I reckon is going to be bigger than any change to shop fees.

An excellent example from a poster on the powersellers boards was that the cost to post a 100 metre roll of bubble wrap will increase for that seller to buy from his purchaser,  from around $11 to $35 in postage, when the actual cost of the roll is only $25.

IMO cubing is only going to force Australian consumers to shop internationally, and of course who bears that the cost of delivery of those goods, Oz Post and in turn consumers.

:-(:-(:-(

[tonalidesigns]

PJ - not sure I understand what you are saying ....

... last time I purchased an item from China (which was a while ago) I didn't get charged any extra by Australia Post, ad I haven't seen any reports or feedback from buyers purchasing from China suggesting they are being hit by Australia Post for the costs ... unless its duty on items priced over $1000.

[davewil1964]

Use C&S. No cubing.; Cheaper than standard AP for satchels. Use couriers - as long as you and the buyer can be at home to accept pickup/delivery.

C&S has flat rate boxes that have a weight limit of 15kg.

I'm thinking there are other avenues that sellers could take, even within AP,. to minimise postage costs.

But that's just my take.