Logistics & Fulfilment

Australia Post flags parcel shipping price rises

Small businesses will soon pay more to send their goods via Australia Post, as the service gears up to increase the cost of parcels, shipping bags, and other prepaid products.

Australia Post quietly announced a price hike earlier this month, impacting select domestic and international parcels, international mail, prepaid envelopes, money orders, and other core products.

From September 5, the cost of 10 small prepaid satchels will rise from $93.10 to $97, with increases flowing through the prepaid satchel range. Extra-large satchels will soon cost $199.90 per pack of 10, up from $191.60.

Similar tweaks will hit domestic envelopes with tracking. While the cost of 10 small envelopes will remain the same at $30, the cost of 10 large envelopes will rise slightly, from $58.40 to $60.

A small international express pre-paid satchel, designated for shipping to the UK and Europe, will rise in price from $44.40 to $46.

All told, the cost of domestic parcel shipping options will increase by 4.5 per cent, with the average international parcel rising in cost by 4.8 per cent.

A full list of new prices can be found on the Australia Post website.

In a statement provided to SmartCompany, an Australia Post spokesperson said the increase was borne of a standard pricing review.

“We regularly review our products and services across a range of factors, including the changing needs of our customers and the increasing cost of delivery,” they said.

The increase was needed so Australia Post “can continue providing a sustainable postal service for all Australians”.

News of the cost increase comes months after Australia Post revealed profits of $4.8 billion in the six months to December 2021, although CEO Paul Graham indicated a downturn in the second half of the 2021-22 financial year would result in a “modest” full-year profit.

Australia Post is set to reveal its full 2021-2022 results in September.

Fuel prices a factor for postage and small businesses alike

Australia Post’s pricing review corresponded with a dramatic increase in the cost of fuel, an unavoidable factor impacting Australia Post’s nationwide fleet of trucks, vans, and postie bikes.

While the cost of petrol has receded from the extraordinary highs recorded in the middle of 2022, the return of the full fuel excise from September 29 will add an extra 22 cents per litre at the bowser.

The looming bump in petrol prices and the heightened cost of shipping also means small businesses, especially those reliant on postage, are likely to face even higher costs in the months ahead.

Other shipping options are becoming pricier, too.

Sendle recently introduced the first fuel levy in its eight-year history, and now charges 4.05% extra on top of its base shipping options.

“Since Sendle began in 2014, we’ve never before passed on a fuel levy,” the company said.

“But, like any business, we’re not immune to inflated fuel costs.”

“The surcharge will be reviewed monthly, meaning it may go up, down, stay the same or be removed entirely,” the company added.

The story is originally published on Smart Company.