Australia Post price hikes throw e-tailers off-side

Australia Post price hikes throw e-tailers off-side
SHARE
THIS



New price hikes of up to 30% on Australia Post’s prepaid packages are a smack in the face for domestic online retailers and a win for independent delivery services, an e-tail expert has told B&T.

Australia’s postal service today boosted the prices of its prepaid packages, by almost a third according to most reports, to further cash in on the online shopping revolution.

When contacted by B&T an Australia Post spokesperson suggested the 30% figure quoted by the ABC, Sydney Morning Herald and The Age was an exaggeration, claiming she believed the rises to be more around the 7% mark. 

The majority of Australia Post's revenue currently comes from parcels instead of letters and more than two thirds of its delivered parcels stem from online transactions.

Bernie Johnson, director at Adrenalin Media – the digital agency responsible for the online retail presences of Guthy-Renker and Appliances Online – today told B&T that while the move might deliver higher profit margins, it would encourage the online retail community to seek out alternative distribution partners.

“Australia Post has plenty of domestic competition in the parcel delivery business through the likes of companies such as Temando, so it might be the catalyst for online retailers to re-assess their supplier options,” Johnson said.

Other budding delivery services include Mail Call, a start-up used by leading online retailer The Iconic and leveraged by Want It Now – a company dedicated to providing fast delivery from online retailers Australia-wide will no doubt be clapping their hands too. 

But the move is a blow to the local e-tail market which increasingly has to compete with competitive propositions from overseas and global online retailers, like ASOS and Amazon.

“The downside is obviously for online domestic retailers, who are already struggling to compete against low-cost overseas rivals amidst pretty stagnant trading conditions. Tight margins just got a whole lot tighter,” said Johnson.

But the changes are not likely to send flourishing e-tail ventures out of business.

“I would surprised if it was the single factor in sending any online retailers bust. If your margins are that tight it’s probably time to re-evaluate the business model,” said the Adrenalin director.

According the NAB's Online Retail Sales Index, Australia's annual online retail spending hit $13bn in the year to January 2013 which represents a $2.5bn increase in online retail spending over the previous year.

Australia Post posted a 16.6% annual profit increase to $281m in October last year driven by increases in parcel delivery.

Regulated mail business losses widened to $148m on the back of mail volume and revenue declines while strong performance in parcels and retail produced profit of $546m.

Late last year CEO Ahmed Fahour pledged $2bn to transforming the national logistics network to create a “world class parcel delivery network”.

 

Please login with linkedin to comment

Latest News

Why Consumer Brands Are Failing Aussie Mums
  • Marketing
  • Opinion
  • Partner Content

Why Consumer Brands Are Failing Aussie Mums

Is your game chainsaws or large marlin wall-hangings? Can't seem to attract the mums? This couldn't come soon enough.

Opinion

by B&T Magazine

B&T Magazine
Network Ten Creditors Approve CBS Deal
  • Media

Network Ten Creditors Approve CBS Deal

It seems the fight for Ten between CBS and media moguls Lachlan Murdoch and Bruce Gordon may finally be over.

by B&T Magazine

B&T Magazine
MKTG Signs Exclusive Commercial Partnership With PlayersVoice
  • Marketing
  • Media

MKTG Signs Exclusive Commercial Partnership With PlayersVoice

MKTG has announced it has signed an exclusive commercial partnership with newly-launched sports storytelling site PlayersVoice.com.au – an agreement that will see the agency move into a new territory of sports marketing. The partnership between MKTG and PlayersVoice will see the business managing brand partnership opportunities for the new platform; working with clients to deliver […]

Domo Introduces New Data Security Software Solution
  • Marketing
  • Technology

Domo Introduces New Data Security Software Solution

Domo has announced it has introduced new cloud security technology for its Bring Your Own Key (BYOK) software, which includes unique capabilities like rolling generation of data encryption keys and a built-in kill switch. Domo BYOK is the first BYOK enterprise software solution for cloud analytics and business intelligence, and builds on the company’s existing security, compliance and […]

Shopper Media Group Grows Sydney & Melbourne Sales Teams
  • Advertising
  • Marketing
  • Media

Shopper Media Group Grows Sydney & Melbourne Sales Teams

Shopper Media Group (SMG) has continued to grow its Sydney and Melbourne sales teams to keep up with the demand for Smartlite Panels for shopping centres. Ashley Munro joins SMG as group sales manager for Sydney, having previously worked in a similar role at NOVA Entertainment. Laura Mason has been appointed as SMG’s business manager […]

RIO DE JANEIRO, BRAZIL - AUGUST 14:  Usain Bolt of Jamaica competes in the Men's 100 meter semifinal on Day 9 of the Rio 2016 Olympic Games at the Olympic Stadium on August 14, 2016 in Rio de Janeiro, Brazil.  (Photo by Cameron Spencer/Getty Images)
  • Advertising
  • Media

Olympics, Census Prove Tough Hurdles For Media Agencies: SMI

Australia’s media agency market has experienced another tough month in August, according to the latest data by Standard Media Index (SMI). SMI noted the softer demand this time around was primarily due to the Rio Olympics and Census providing abnormal bookings last year, resulting in demand for August 2017 so far being back 12.1 per […]

The Monkeys Takes Over From M&C Saatchi On NRMA’s Creative Account
  • Advertising

The Monkeys Takes Over From M&C Saatchi On NRMA’s Creative Account

Accenture-owned agency The Monkeys has bolstered its client ranks, having been chosen to handle the creative for the NRMA. The Monkeys CEO Paul Green confirmed to B&T that the agency had been appointed to the NRMA account by parent company IAG, which also includes brands CGU and Swann Insurance. M&C Saatchi was the incumbent creative […]

by B&T Magazine

B&T Magazine
A waitress carries beer mugs in the Hofbraeuhaus tent after the opening of the famous Bavarian
  • Marketing

Study: Why No Or Low Alcohol Beers Are Fast Becoming Drinking’s “New Cool”

New research from global market intelligence agency Mintel reveals that over a quarter of consumers in France (28 per cent) and Germany (27 per cent ) agree that low (under 3.5 per cent) or no alcohol beer tastes just as good as full-strength beer. And while younger consumers may have been the most enthusiastic drinkers in previous generations, […]

Engine Group Encourages Queenslanders To ‘Go Local’ In New TVC For State Govt
  • Advertising
  • Campaigns

Engine Group Encourages Queenslanders To ‘Go Local’ In New TVC For State Govt

Brisbane creative agency Engine Group has launched an integrated campaign for the Queensland government promoting the benefits of buying locally and supporting local small businesses. The ‘Go Local, Grow Local’ social marketing campaign celebrates small businesses across Queensland and highlights that small businesses are the lifeblood to growth in local communities. Central to the new […]

Sam Weir, Editor - The Advertiser & AdelaideNow 
 Editorial 
 
 Picture: Turner Matt
  • Media

News Corp Appoints New Editor For The Courier-Mail

News Corp Australia has announced the appointment of Sam Weir (pictured above) as editor of Queensland’s The Courier-Mail. Weir is one of Australia’s most accomplished editors, having edited the Perth Sunday Times and for the last four-and-a-half years, The Advertiser in Adelaide. News Corp Australasia executive chairman Michael Miller said: “I am delighted Sam has […]

Is This The Creepiest Ice-Cream Ad Ever?
  • Campaigns

Is This The Creepiest Ice-Cream Ad Ever?

Look, a terrifying ice-cream ad! And by "terrifying" we really mean Tony Abbott in his sluggos kind of "terrifying".

by B&T Magazine

B&T Magazine
Creatives, Step Up To The CX Plate!
  • Marketing
  • Opinion

Creatives, Step Up To The CX Plate!

Aussie creatives urged to step up to the CX plate! That's the Adobe boss saying it; like B&T would never say try harder.

Opinion

by B&T Magazine

B&T Magazine
InMobi’s Anne Frisbie On Ad Fraud
  • Advertising

InMobi’s Anne Frisbie On Ad Fraud

B&T sat down for a chinwag with InMobi’s Anne Frisbie who thought only half of our questions were poor & unresearched.

by B&T Magazine

B&T Magazine
Facebook Provides More Clarity & Control For Brands
  • Advertising
  • Media

Facebook Provides More Clarity & Control For Brands

Facebook has announced it is taking action to provide more clarity and controls for advertisers. The updates include: Third-party verification Facebook is seeking accreditation from the Media Ratings Council and set a timeline of 18 months to audit, review and accredit Facebook measurement across three key areas: first-party served ad impression reporting; third-party viewability partner […]

Ogilvy Duo To lead Miami Ad School’s 2017 Social Media Boot Camp
  • Advertising

Ogilvy Duo To lead Miami Ad School’s 2017 Social Media Boot Camp

Miami Ad School has announced that Ogilvy’s Alex Watts (head of social) and Jennifer Ngai (lead social strategist), will lead its Social Media Boot Camp in the coming spring term. The 10-week boot camp is an intensive program where students work on live briefs to create fully-executed social media campaigns, and will run from Monday […]

Kim Portrate Calls For Review Of Viewability Standard For Video Ads
  • Marketing
  • Media

Kim Portrate Calls For Review Of Viewability Standard For Video Ads

Kim Portrate, chief executive of ThinkTV, has welcomed a call today by the renowned marketing science academic Professor Karen Nelson-Field for the global advertising industry to review the current MRC viewability standard for video advertising. Speaking at ReThinkTV in Sydney, Portrate said: “Last year we asked Karen to help us understand how TV works. We […]

Streetfighter Media Adds ‘Lettered’, Choreographed Teams To Its Guerilla Marketing Offering
  • Marketing

Streetfighter Media Adds ‘Lettered’, Choreographed Teams To Its Guerilla Marketing Offering

Guerilla marketing company Streetfighter Media has launched what it claims is a world-first offering for marketers. Lettermen is people wearing letters, walking around town and pulling some choreographed moves. They spin, dance, jump, strut around and spell the word like a Mexican wave. A full range of letters and numbers are available with multiples, along […]

Outdoor Player goa Offers Charities To Win Share Of $1m Worth Of Media Space
  • Advertising
  • Media

Outdoor Player goa Offers Charities To Win Share Of $1m Worth Of Media Space

Queensland outdoor media provider goa is once again welcoming applications from community organisations far and wide looking to share their message with South East Queensland via THE goa GRID and THE ICONIC SERIES. Each year, goa chooses a number of community organisations through their Community Partnership Program to partner with and share in a whopping […]

Macpac Chooses Tryzens To Be Its E-commerce Delivery Partner
  • Marketing

Macpac Chooses Tryzens To Be Its E-commerce Delivery Partner

Outdoor apparel and equipment brand Macpac has announced it has selected Tryzens as its e-commerce delivery partner. Tryzens will help Macpac leverage capabilities of the Salesforce Commerce Cloud platform to deliver an enhanced customer experience and provide a robust, scalable platform for international expansion. Mark Jagger, digital marketing manager at Macpac, said: “e-commerce represents a […]