Makes You Consider Going ‘Postal’

So as you may of heard, as of yesterday, Australia Post will have raised their domestic prices.  This was (hopefully) the last rise in prices we will see them implement from the new business model they introduced on the 8th of April (http://auspost.com.au/about-us/april-price-rises.html)

This may seem like fair play or a logical business decision on their behalf, I mean since universal statics show that online shopping has seen a $2 Billion rise in the past year! But this is where things start to get a little sticky.  

Australia Post claims that these price rises are just to compensate for the losses that their new customer service scheme will cost.  They are adding a whole range of new services, such as expanding their holding and drop off locations to affordable and easy to use currency conversion cards. 

This all well and good as they are great services that are going to increase their overall cross-market appeal, which is invaluable in today’s fast moving online global market, but it really puts Australian online services in an uncomfortable position.  We are now in a situation where you can buy a book online, from an Australian company, and ship it from Brisbane to Sydney for nearly twice what it costs in shipping for the same book from England to Sydney.

This may yet prove to be very problematic.  We all rather guilty of buying a product online from another country when it may save us a couple of dollars, but when the product is the same cost but the shipping in such a vast increase?  Australian businesses are definitely going to feel that pinch. 

Australia Post have already faced petitions to try and prevent the role over but so far to no avail.  They claim that the costs are completely within reason and deny the accusations of what this may do to effect Australia’s standing in an online global market.  But a strong case seems to be stacking up against them with the backing that these price rises are just their way of regaining the losses that they sustain from having to comply to the international shipping agreements they sign decades ago.  A ruling which sets a consistent pricing rage that countries must stay compliant with.

How will this pan out? We are really yet to know. Will our business feel the hit? We think it may be likely.  Can we do much about it? Well I suppose only time will tell.

 

– Mason

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