eBay has welcomed the proposed study to investigate a new approach to processing particles, particularly international parcels.

In its latest submission in response to the Productivity Commission’s draft inquiry into the retail industry, eBay has highlighted that advice from Customs, Australia Post and express carriers indicates reform is needed to facilitate increased parcel volumes associated with the growth in online retailing.

eBay managing director Deborah Sharkey said: “Postage inefficiencies should not impose additional barriers to trade or operate to protect the domestic industry from import competition.”

The Peterson Institute Report noted that Australia ranks only 18th in the Top 20 Countries Global Logistics Performance Index ranking, which takes into account processes and systems relating to customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timeliness.

According to Sharkey, eBay’s research shows that postage costs are limiting the growth of Australian online businesses.

“A recent survey of 1000 respondents operating on eBay.com.au details shipping cost and reliability comparisons that are not favourable for Australia,” she said.

“However the study also shows that given the right logistics solutions, there is a vast opportunity for continued ecommerce growth.

“Based on its global experience, eBay suggests that Australia’s domestic postal infrastructure, while improving through innovations made by Australia Post and express carriers, requires investment to upgrade and make cost-competitive the domestic postal delivery and tracking services to meet increasing consumer expectations and assure customers speedy delivery of the goods they buy online.”