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The Disparity of Australia Post and it's effects on e-commerce

Updated on December 20, 2015

After many years of selling within Australia online in particular using the realization that as a seller, the biggest contributor to the demise of so many online dreams ie postage costs is the one which in my opinion has this overwhelming desire to grab your profit margin by the throat and ever increasingly tighten its grip to the point of suffocation.

So what do I exactly mean ?

Well Australia is one heck of a large country, in fact it's a continent so one would assume the costs of transporting a package would be higher than say if you lived in the United Kingdom. They do say that if by land mass alone you divided Australia's by the United Kingdom's then the UK would fit into Australia at least 31 times, so that does kind of put some perspective on my theory behind higher operating costs to post in Australia. However as a seasoned seller you soon come to realise that there is as the title states "A Disparity" in the postal costs and it does have a detrimental effect on the success of small start ups based solely around e-commerce platforms such as eBay that service Australian customers alone.

The disparity is not between Australian residing sellers but between sellers located offshore and exporting to Australia, in particular from China. I have from personal experience purchased goods from China and paid the likes of DHL a small fortune to get the goods to me in a reasonable time frame so as not to wait for some YAK driven postal service from China to eventually deliver my goods. Now it's from this point on where you start to feel your profit dissipate, not from the added DHL costs as that has already been factored into your costs, but its from the ridiculous situation that arises as a result of Australia post not charging the appropriate postal costs on items arriving into Australia from China.

A seller in China can list the same item you have just bought, (and probably off him) on ebay Australia, send it from the depths of China to as far as Western Australia for virtually nothing in terms of postage yet a seller within Australia gets charged an absolute fortune for sending the same parcel from Queensland to say Victoria ? this is where the "Disparity" lies and does not create a level playing field for Australian based sellers.

In fact it gets worse as one factor as to why our post is so high is that these added costs or "losses" inflicted upon us as a result this reciprocal agreement are being passed on to us, so we get hit twice. I cannot understand as to why our National postal service is assisting in the suffocation of home grown business in this way whilst it allows foreign enterprise to flourish.

If the correct rate of postage for items using Australia post services being sent from China in particular were applied it would discourage this avenue of imports and sales yet I believe boost the Internal Australian e-commerce market.


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      3 years ago

      I believe that any overseas based seller sending items into Australia should have Australian postage on the package for it to be delivered inside AU. If it arrives here without any AU stamps (or other visible sign of AU paid postage) then the recipient should be billed to collect it. In much the same way as underpaid postage is treated here internally. Doing this would mean that the rest of us would not have to cover these costs.

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      3 years ago

      Right On!!! So WHY are Australia Post hitting us hard and increasing costs when they can go after tha O/S market? Another thing i see is the Goverment want Australia Post to increase the prices to STOP online businesses and get people back into the stores! BUT most stores are NOW online! Some thing needs to give though because within the next few years we wont be able to use the postal service it will be way to expenisve. Its already outta control!!!


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