Last week, Australia Post increased its parcel delivery prices and it is the second price increase in 2019.
Australian carbon neutral delivery service, Sendle is challenging Australia Post by rolling out price relief measures designed for small business. The small business relief package from Sendle drops international delivery rates, enabling small businesses to send a 250g parcel anywhere in the world for $12.95.
With Sendle’s Price Guarantee, all size-for-size same city and national parcels are guaranteed to be cheaper than Parcel Post. This aims to save small businesses an average of 20% when compared to Parcel Post rates,
Sendle’s 2kg parcel size now allows for 3kg. With more than 70% of eCommerce deliveries coming in below 3kg, this change has the potential to boost profitability margins.
For added peace of mind over the peak sending season, Sendle is waiving excess on loss claims. Sendle Cover introduced today provides free, $0 excess cover up to $300 for all parcels sent domestically and internationally.
James Chin Moody, co-founder and CEO of Sendle said, “From day one, Sendle has been for small business. We believe that affordable rates, high quality service, and responsible environmental practices should be achievable for all — not just the top end of town.
“Australia Post is a functional monopoly and small businesses are at its mercy with frequent price hikes that remain unquestioned and unchallenged. We are here to change this with parcel delivery that is simple, reliable and affordable for small businesses at the critical period leading up to Christmas.
“Consumers are demanding cheaper and faster shipping than ever and many small eCommerce businesses don’t have the ability to negotiate competitive rates, like big businesses do. The last thing they need is another price increase to squeeze profitability in the busy holiday season. Small businesses shouldn’t have to be burdened with buoying up Australia Post’s profit margin in this make or break period.”
Australia Post strikes back
An Australia Post spokesperson confirmed new national flat rate satchels in four sizes (small, medium, large, extra-large) and that customers can pack up to 5kg in any of the satchels with If It Packs, It Posts. However, these new flat rates will only impact individuals and micro/small businesses that send their parcels over the counter in a post office or buy prepaid satchels online.
“If It Packs, It Posts is the biggest change Australia Post has made to its parcel products in nearly 30 years, with the move to national flat rate pricing for sending parcels anywhere in Australia to be much simpler for customers and providing certainty of price upfront,” the spokesperson told Appliance Retailer.
“Like stamp prices, which are a flat rate no matter how far a letter travels, these new flat rate parcel prices mean we are being fairer to more Australians with many of our customers to pay less, especially those sending small heavy items and those sending to or from rural and regional Australia.”
Australia Post also offers the following services, that it claims its competitors may not, including pickup from all Australian addresses, delivery to PO boxes, locked bags or parcel lockers, SMS tracking and email notifications, as well as Express Services and guaranteed delivery times.