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.

[davewil1964]

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 ?

Yes? My last roll of bubblewrap was $32.70 free post, so I assume the seller built the postage and FVF into the price. If the postage goes up, I assume the new price will include the increased postage cost PLUS the increased ($2 odd) FVF.

There is no way I would buy bubblewrap from OS, so I look for the best deal in-country.

Still not exactly sure what your point is, but I'm sure you will elucidate. In detail.

[davewil1964]

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.

These increases seem to be for standard postage only. As C&S has been cheaper than standard for some time, and will be even more so if C&S prices don't increase (as seems to be the case), then the only sellers who will be affected are those who refuse to buy a printer and pay for some ink.

I have no sympathy for Luddites. I welcome them, though, because they make my own offerings more attractive to prospective buyers.

[thecatspjs]

lol davewil - it is clear you just don't get it

but after May you will - and its gunna hurt your hip pocket 

[jensmanchester-australia]

These increases seem to be for standard postage only. As C&S has been cheaper than standard for some time, and will be even more so if C&S prices don't increase (as seems to be the case), then the only sellers who will be affected are those who refuse to buy a printer and pay for some ink.

I have no sympathy for Luddites. I welcome them, though, because they make my own offerings more attractive to prospective buyers.

Dave - for items which fit into the prepaid products and the click and send satchels and boxes they are not the ones which are going to be most affected.

All other parcels are going to be cubed and it is these parcels which are going to be considerably more expensive to post. The larger lightweight parcels will be most affected as they may only weigh a couple of kg but they could cube to well over 10kg.

[b3llag1na]

The sad fact is not everything will fit into C&S satchels or flat rate boxes - MOST of my items will not fit in either so I am now having to totally re-think if it is going to be worthwhile trying to have an online shop at all.

I already use C&S for just about everything , using whatever box, carton or other packaging I can fit the item into, and adding the C&S labels - but the fact that ALL PARCELS are now going to be cubed is what will be the killer for me.

And we have no idea if Australia Post is going to even continue to have C&S - or if they are going to totally change the sizes / charges / parameters etc.......

[thecatspjs]

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

even those who have eparcel contracts are going to have their parcel costs calculated by cubing

all parcels will be cubed, including irregular sizes, Australia Post have announced new whizz-bang machinery to do just this 😞

[davewil1964]

I sell books, jens (and catspjs). Actual weight is always going to be over cubed weight, and my postage is quoted on C&S flat rate products. Or large letters, which are also flat rate. And also appear to be not increasing.

As far as buying goes, I have alternate suppliers for what I need, and I'm sure at least one of them will be able to accommodate the increased AP prices without pricing themselves out of the market.

So, catspjs, I doubt it will affect my hip pocket. Jens, sorry if it does yours.

[davewil1964]

The sad fact is not everything will fit into C&S satchels or flat rate boxes - MOST of my items will not fit in either so I am now having to totally re-think if it is going to be worthwhile trying to have an online shop at all.

I already use C&S for just about everything , using whatever box, carton or other packaging I can fit the item into, and adding the C&S labels - but the fact that ALL PARCELS are now going to be cubed is what will be the killer for me.

And we have no idea if Australia Post is going to even continue to have C&S - or if they are going to totally change the sizes / charges / parameters etc.......

Try Temando

[jensmanchester-australia]

As far as buying goes, I have alternate suppliers for what I need, and I'm sure at least one of them will be able to accommodate the increased AP prices without pricing themselves out of the market.

Dave - the really massive online sellers like DD will be okay as they have the power to band together and come to a deal with AP so yes you probably will find an alternative supplier.

How it will affect each individual seller really depends on the type of product they sell and to an extent where they are located.

You are fortunate in that the type of product you sell won't really be affected but there will be many many sellers who will either end up giving up selling or they will have to rethink what products they will be able to offer.

The big loser out of this will be the buyers as they are the ones who ultimately will be paying for the higher postage costs and possibly have less choice available to them.

B&M stores could also benefit from this if buyers move away from online buying due to increased postage charges.

I have actually been saying to my AP account manager for the last couple of years that the biggest problem facing the growth of online sales within Australia is the ever increasing postage charges and with this latest change there is now the real potential for online sales to fall or remain stagnant.

[davewil1964]

My major, postage volume-wise, purchase is bubblewrap. I can always go to Officeworks if the eBay market gets prohibitive; it's just that I prefer to buy where I sell.

So, in that respect, you are correct.