Australia Post Increases Postage Yet Again!

Bonsaichop on 07/10/2014 - 18:10
Last edited 07/10/2014 - 18:11

http://auspost.com.au/parcels-mail/pricing-updates.html

On 6 October 2014, price changes will take effect for selected international letter and parcel services, domestic and international Registered Post, domestic prepaid envelopes, Mail Redirection and Hold, selected bulk mail products and special services, and certifying documents.

Argh/rant!! As a small business owner, who sends quite a lot of parcels domestically and overseas this just makes my blood boil! It wouldn't be so bad if their service was decent enough, but its just getting worse and costing more. The biggest complaint we get from our customers (actually almost the only complaint!) is why the postage is so high, and now we have to increase it yet again.

For example one of our international large letters we send used to cost $6.45, now its $7.40 an increase of $0.95! It might not sound like much but that's a 12.8% increase from the last price increase.. 5 MONTHS AGO!!! When you're a small home business doing tens of thousands of dollars in shipping ever year these minor increases add up.

Now that we have eBay and PayPal charging us a final value fee on shipping, we have to increase our shipping to compensate for the increased postage costs and lose out more in fees.

Luckily domestic letters have not gone up, but still, apparently their profit of $116 million dollars last year was not enough.

Sigh.. I just wonder when will they stop increasing prices.. when all the small business has died because they can no longer afford to send to customers who are not willing to pay for ridiculous shipping costs?

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Comments

  • scrimshaw on 07/10/2014 - 18:15
    +2

    Take this to the ACCC?
    https://www.accc.gov.au/regulated-infrastructure/postal-serv…

  • King Tightarse on 07/10/2014 - 18:16
    +2

    This is getting well out of control.
    So a 600gm Pack and Track (trackable) parcel to China will cosy us $32.30 now!!! Somehow I dont think it costs that much the other way.
    Same thing to the UK $46.10!! Are they freakin serious???

    • Bonsaichop on 07/10/2014 - 18:28
      +4

      What's worse is that if you are an eBay seller, who uses paypal for overseas transactions (which is nearly everyone), the parcels have to have a form of tracking that can be viewed online with confirmation of delivery otherwise you're not protected!

      I have lost so much business because I have to chose the most expensive sending option to make sure there is tracking and insurance because all the parcels get thrown about anyway. On top of that, if something does get lost, it takes AP 3 months to find out what went wrong, PayPal will refund the money within 45 days so out of luck if someone overseas opens up a claim.

      In fact its become so bad, we have blocked quite a few countries from purchasing our items because they take so long to arrive, so long to find out what's going on and I end up being the only loser!

      • King Tightarse on 07/10/2014 - 18:32
        +4

        Right, I really don't know how you can stay afloat with Australia Post's hideous price gouging and eBay/PayPal's unstoppable fee rises. Don't you have to pay an even higher premium to PayPal for receiving funds from someone not registered in Australia?
        Even their hidden fees have hidden fees.

        • Bonsaichop on 07/10/2014 - 18:40
          +3

          Depending on the transaction we usually now factor 12% to eBay/Paypal, then 10% GST. So there goes 22% of the final sale price not including initial purchase price and whatever other associated costs. There's not much left after all is said and done.

  • whodidthat on 07/10/2014 - 18:20
    +2

    AP are learning far too much from ebay!
    How to lie and cover up with spin.

    Really annoys me how AP harp on about the massive drop in letters being sent.
    But they (conveniently) forget to mention the huge increase in large letters. But then again, they did categorise them as small packets to work the figures recently.

    Annoying how much the CEO has given to his business family too!

    • Bonsaichop on 07/10/2014 - 18:24
      +4

      It's annoying to see how much the CEO has been paid himself seeing as how AP has to keep increasing prices, crying poor and declaring a slump in profits..

      http://www.abc.net.au/news/2014-06-11/critics-question-austr…

      • King Tightarse on 07/10/2014 - 18:29
        +2

        Yeah he needs 4.8million, very stressfull job that, makes him feel sad and only 4.8million per year makes everything OK again.
        $4.8million. Wow.

        • Bonsaichop on 07/10/2014 - 18:32
          +1

          Personally I wouldn't even care how much he earns (there's always someone who will make more, and someone who will make less than you), but the fact that the whole service is so rubbish and they keep jacking up the prices is what kills me.

          Pay them what you want, so long as they're competent!

  • ozhunter on 07/10/2014 - 18:32
    +1

    apparently their profit of $116 million dollars last year was not enough.

    Surprisingly that figure is 35% lower than the previous year.

    • rambutann on 07/10/2014 - 20:11

      And the fact that they made something around a $300 million loss on their letter service.
      Parcels basically subsidise letters.

      Remember for domestic services AP are the monopoly when it comes to the non business related parcels because they have the infrastructure available to store undelivered parcels near your home. E.g. if you get something via another logistics provider such as TNT or Toll they simply come back a week later (this varies from state to state i believe..).

      When the government de-regulates the fact that AP must reliver mail 5 days a week they will most likely be able to slow down on the parcel price increases.

  • NancyCat on 07/10/2014 - 19:47

    And I've just found out recently, Aust Post doesn't do sea mail to Asia. Everything has to be sent by air… i.e. more expensive!

  • Hoju on 07/10/2014 - 20:18
    +1

    Does anyone know how postage costs are distributed?

    For example, it costs almost nothing to send a parcel from the US or HK to Australia. In fact, I found it cheaper to send something the 5,000km from Hawaii to Sydney than it would have cost to send it 10 metres down the road within Sydney via Auspost. But although USPS gets the $5 payment, Australia Post has a lot of man hours to pay in receiving, sorting and delivering that parcel.

    So how is that cut of $5 divided? If it all goes to the postal service in the country of origin (which is my guess), then no wonder Australia Post's costs are skyrocketing. Everyone is buying from overseas and Australia post is sorting and delivering all these packages without receiving a dime.

    But correct me if I'm way off… I'm just not sure how there could be a system that does divide the postage cost (otherwise how could Chinese/HK sellers send everything with 'free' postage and still make a profit?)

    PS I also find the costs an outrage and take great pleasure in finding unfranked stamps and steaming them off for…uhh.. my stamp collection.

    • theoneandonlylml on 07/10/2014 - 20:58

      Basically because of the strong AUD, convert it to Yuan/HKD and you get quite a lot of money. Plus, postage in China/HK is dirt cheap. I just bought something which apparently cost 10 yuan to deliver = 1.85 AUD. If I had sent it from here, I would've had to pay $5.35

    • mskeggs on 07/10/2014 - 21:22
      +4

      The Universal Postage Union sets a treaty for how post costs are handled. Basically, you are responsible for delivery once it gets to your country, but if there is a discrepancy in the mail volumes, the higher sending party has to pay a charge.
      This is called terminal dues.
      Wikipedia suggests fro China to the US recently it was around $1/kg.
      There is a formula on the UPU website, but it is complex. They also appear to be making a change from flat rate per kg to a per piece charge plus a per kg fee. My guess this is driven by the vast number of small packets coming out of China.
      For reference, I looked into some mail charges last year and China to AU was approx 28c for up to 100g.
      http://www.upu.int/nc/en/activities/terminal-dues-and-transit-charges/about-terminal-dues-and-transit-charges.html?sword_list[0]=terminal&sword_list[1]=dues

  • harrribo on 08/10/2014 - 02:03
    +2

    ! Insanity !

    Higher charges for even less service

    ( where I am Newtown NSW snail pace workers ) - usually only one servicing counter the rest humming about in the lunch room in the back - the most unfriendly lot you can imagine )

    I have boycotted using them since the last increase

    And to send presents to EU friends and family for occasions and Xmas

    I just purchase gifts via ebay with either free delivery

    Or a fragment ( Asian TRACKED) postage of what these cut- throats are asking for

  • srhardy on 08/10/2014 - 10:11
    +3

    How do places like china ship something to my door for almost nothing like a $2 item i bought that INC POSTAGE but when i repost it costs me $6-8 to post on to my sister?

    Postage from china to the sunshine coast, inc item was 1/4 the cost to repost to Brisbane, a mere 40min drive?!?!?!?! I think AUSTRALIA POST need to put up their (china) postage & lower ours as this is insane as it redeces any decent ozzie from being able to send items and products overseas and make US money.

    Keep this up, we wont have to move to china, THEY WILL ALREADY BE HERE AND OWN EVERYTHING and then maybe we get cheap postage as slaves sending things to the rest of the world. It could be worse, but not much IMO

  • skillet on 08/10/2014 - 14:40
    +3

    You know what's worse? Courier companies like Toll, Fastway, follow suit just because Aust Post do it. They just screw us small timers who don't send 10k of volumes a year to earn discounts.

    • ozhunter on 08/10/2014 - 15:17

      Though that's just common business sense.

      If I sell a product $20 cheaper than the next guy, who then increases his prices so that the difference is $40, I too would also increase my price to get back to the $20 as customers would still buy from me.

      The couriers may also have increasing costs.

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