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.

[thecatspjs]

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

[davewil1964]

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.

[thecatspjs]

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

[davewil1964]

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.

[kafav]

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

[kafav]

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

[davewil1964]

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?

[thecatspjs]

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 ?

[jensmanchester-australia]

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.

[thecatspjs]

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.