topic Re: Australia Post - have they lost the plot? in Selling

Australia Post - have they lost the plot?

tonalidesigns — Fri, 15 Mar 2013 09:30:35 GMT

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.

Re: Australia Post - have they lost the plot?

tonalidesigns — Fri, 15 Mar 2013 09:32:41 GMT

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

Re: Australia Post - have they lost the plot?

dylan11235813 — Fri, 15 Mar 2013 09:43:06 GMT

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.

Re: Australia Post - have they lost the plot?

putney32 — Fri, 15 Mar 2013 10:03:49 GMT

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

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

Re: Australia Post - have they lost the plot?

phorum_junkie* — Fri, 15 Mar 2013 10:16:54 GMT

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.

Re: Australia Post - have they lost the plot?

kafav — Fri, 15 Mar 2013 10:19:00 GMT

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(

Re: Australia Post - have they lost the plot?

jensmanchester-australia — Fri, 15 Mar 2013 10:27:06 GMT

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.

Re: Australia Post - have they lost the plot?

thecatspjs — Fri, 15 Mar 2013 10:34:26 GMT

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.

:-(:-(:-(

Re: Australia Post - have they lost the plot?

tonalidesigns — Fri, 15 Mar 2013 10:46:29 GMT

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.

Re: Australia Post - have they lost the plot?

davewil1964 — Fri, 15 Mar 2013 10:49:52 GMT

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.

Re: Australia Post - have they lost the plot?

thecatspjs — Fri, 15 Mar 2013 10:51:35 GMT

And how Davewil do you fit a 100 metre roll of bubblewrap into a satchel ?? - or the myriad of other goods sent by sellers ??

Re: Australia Post - have they lost the plot?

davewil1964 — Fri, 15 Mar 2013 10:55:56 GMT

Dunno. But my last 100m of bubblewrap will last me 12 months, so I'll deal with it then.

My point was/is that there are other avenues.

Re: Australia Post - have they lost the plot?

thecatspjs — Fri, 15 Mar 2013 11:10:31 GMT

lol davewil- what are they ?? and are they cost effective ?? I suppose drop shipping may start to look more and more attractive

there will be some sellers that are going to go out of business through this change, and click and send satchels and boxes ain't going to save the day

change and adapt - for sure, but if there is a significant increase in our consumer dollars being spent internationally to purchase and import goods, then that ain't good for any Australian as it has a detrimental effect on our economy

Re: Australia Post - have they lost the plot?

davewil1964 — Fri, 15 Mar 2013 11:22:37 GMT

The other avenues are not necessarily eBay ones. As USPS prices have gone through the roof/become realistic and Royal Mail is set to follow in a fortnight, I expect that Australian sellers will get an edge.

Not just from those who consider supporting their country's economy to be a good thing, but from those whose only criterion is the lowest price, regardless.

Re: Australia Post - have they lost the plot?

kafav — Fri, 15 Mar 2013 11:29:06 GMT

not all items can fit into satchels or even box,if that box was a bit wide also satchels(

Re: Australia Post - have they lost the plot?

kafav — Fri, 15 Mar 2013 11:33:30 GMT

its possible to post chip,but you need to have eParcel ,but to have that you need sell 20 item a day(((

Re: Australia Post - have they lost the plot?

davewil1964 — Fri, 15 Mar 2013 11:37:44 GMT

I'm 100% sure what you posted made sense to you. For the rest of us, care to elucidate in words of five syllables or less?

Re: Australia Post - have they lost the plot?

thecatspjs — Fri, 15 Mar 2013 11:48:35 GMT

Not just from those who consider supporting their country's economy to be a good thing, but from those whose only criterion is the lowest price, regardless.

So, based on the example in post 7, the seller of bubble wrap should absorb the increased post price and reduce the bubble wrap price from $25 and sell the roll for $1.

Or alternatively, the consumer will be preparred to pay a post cost that has increased from $11 to $35 for the same product ?

Re: Australia Post - have they lost the plot?

jensmanchester-australia — Fri, 15 Mar 2013 12:21:04 GMT

Lets not also forget the ordinary everyday people who want to send a parcel to someone.

For example I have a lightweight cushion I sell which is under 500g and which currently would cost around $6.60 to post Australia Wide.

With the new cubing rule coming into effect the cost to send it from Perth to Melbourne will be $17.70.

This move by Australia Post is not only going to affect sellers but it is going to affect everybody who sends parcels through Australia Post.

Re: Australia Post - have they lost the plot?

thecatspjs — Fri, 15 Mar 2013 12:43:27 GMT

Indeed Jen.

I reckon its going to effect more than those who send and receive parcels. If you dampen demand domestically as this increase will do, then it will have a negative flow on effect on jobs big time and our economy generally.