Parcel Delivery Costs Hitting Small Businesses In Christmas

Small businesses across Australia are feeling the pinch when they look for a courier comparison, as increasing delivery costs are stifling them, which, given their operators, is a huge problem for them.

Such is the case with Tracey Barnes, a Melbourne entrepreneur who operates Frothn Flames Candles and Soap. According to her, parcel delivery costs are increasing faster than the consumer price index on the months leading up the Christmas, and for a small business that only turns over less than $250,000 annually, that’s a problem.

Many small online retailers in the country spoke out before the Christmas retail rush, claiming that customer expectations mixed with recent hikes in parcel delivery fees at Australia Post meant that they had trouble keeping up with larger retailers. When people look for a courier comparison, she says, everyone is offering discounts, wanting more for less.

While major retailers like Amazon Australia offer free shipping on orders worth more than $50, or two-day delivery from around $10, while it costs $11.30 to have Australia Post deliver an express post parcel.

Australia Post announced an annual increase in their parcel delivery costs around October, on top of changes to their ‘Send and Save’ discounts for their business customers in the same month, which increased the discount that their business customers could get when they have the Australia Post send parcels to the same metro area. However, many smaller businesses pointed out that this policy didn’t have any price relief for inter-regional deliveries across the country, which they say puts increase pressure on them.

In response, Australia Post, via a spokesperson, has stated that businesses can still receive discount for sending regional orders. For many customers, the Post says, the changes in pricing will be largely offset by the savings they get for sending parcels between metro areas and major regional centres.  They add that MyPost Business customers who usually send to regional areas can still get discounts up to 12.5% by buying bulk pre-paid satchels.

The carrier also encouraged companies to talk to them directly in order to make sure that they get that best deals that they can from them.