Tuesday, July 26, 2011

Australia Post again


Further to my previous post about this Government owned monopoly, I have since found an article in the West Australian about Australia Posts huge losses.

Where are they losing money? Not from Australian postage, in fact they're making bucketloads out of that, but not enough to cover their losses from processing overseas packages.

It seems we're all shopping online overseas (maybe because postage is cheaper?) and the postal service is inundated with all those parcels. To try to rectify this, AP has put in a submission to the Productivity Commission to change the rules governing international parcel handling costs. If they are successful, expect to see an extra charge passed on to you, the consumer, on the receival of an overseas package.

In the meantime, AP will just keep putting up the prices of domestic parcels to try to make up the shortfall. Which means, that Australian online shops are going to either lose customers to the overseas online shops or bear the brunt of the cost. Consumers will turn to overseas online shops because of the wider variety, often cheaper prices and, of course, the cheaper postage.

Here's an online article all about it. Read the last line, in particular.
Thanks, Australia Post, for making it difficult to run an online business because I live in the country.



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