Sendle is targeting Australia Post’s recent price hikes by sending 250g packages anywhere for $12.95

Sendle CEO James Chin Moody. Source: supplied
  • Sendle is rolling out a range of new measures to combat Australia Post’s parcel delivery hikes.
  • Australia Post is reportedly increasing its parcel delivery prices by 7% from September 30.
  • To challenge the hikes, Sendle is allowing 250g parcels to be sent anywhere in the world for $12.95 and increasing its parcel delivery weight limit from 2kg to 3kg.

Sendle continues to go head to head with Australia Post.

The 100% carbon neutral delivery service is offering a range of solutions to combat Australia Post’s recent price hike.

Australia Post highlighted that a number of price changes and product improvements will take effect on September 30. It includes changes around domestic parcels as well as international letters and parcels.

“These upcoming changes will help us to continue providing an efficient, accessible and sustainable community post service for businesses and consumers Australia-wide,” Australia Post said on its website.

According to Sendle, Australia Post rolled out a 7% increase on average on parcel delivery prices on September 30, just ahead of the Christmas season. And Sendle is not too happy about it.

“The new rates have some of the largest price increases on parcel delivery in years and are the corporate giant’s second increase in 2019,” Sendle said in a statement.

In a bid to challenge the price increases, Sendle is offering small businesses a range of ‘price relief measures’.

The company has dropped its international rates, allowing small businesses on a premium or pro plan to send a 250g parcel anywhere in the world for $12.95. The new rate will be available from October 7 to December 31 2019.

“The offering opens the door to more competitive exporting, as small Australian retailers look overseas for new opportunities amid the difficult trading conditions that have hit many hard this year,” Sendle said in a statement.

Another one of the price relief measures is the ‘price guarantee’, which ensures that all size-for-size, same city and national parcels posted are cheaper than Parcel Post (standard parcel postage). With the price guarantee, small businesses are set to save on average 20% compared to Parcel Post rates, Sendle said.

Sendle is also offering an extra 1kg allowance to its ‘shoe box’ category – taking its initial parcel size limit from 2kg to 3kg. With more than 70% of eCommerce deliveries coming in below 3kg, Sendle said this change could possibly boost the profitability margins for businesses that ship with them.

Sendle cofounder and CEO James Chin Moody said the company has been a supporter of small businesses since day one. “We believe that affordable rates, high quality service, and responsible environmental practices should be achievable for all — not just the top end of town,” he said in a statement.

“Australia Post is a functional monopoly and small businesses are at its mercy with frequent price hikes that remain unquestioned and unchallenged. We are here to change this with parcel delivery that is simple, reliable and affordable for small businesses at the critical period leading up to Christmas.”

Moody added that consumers are demanding cheaper and faster shipping, and many small eCommerce businesses don’t have the ability to negotiate competitive rates like big businesses do.

“The last thing they need is another price increase to squeeze profitability in the busy holiday season,” he said.

“Small businesses shouldn’t have to be burdened with buoying up Australia Post’s profit margin in this make or break period.”

Australia Post announced that from September 30 2019, it will extend its national flat rate for parcels up to 5kg.

Under the ‘If it Packs, It Posts’ scheme, Australia Post will provide a flat rate price based on a parcel’s size instead of a combination of weight and destination.

Nicole Sheffield, executive general manager community & consumer at Australia Post said in a statement, “Our national flat rates mean customers sending to or from remote parts of the country are no longer at a disadvantage. The cost of sending something from Broome to Bondi will be the same as sending cross-town.

“In fact, many of our customers will actually pay less, especially those sending small, heavy items and those sending to or from rural and regional Australia.”

In August, Australia Post proposed a 10 cent increase on the price of its stamps to support its postal service. It lodged a draft application with the Australian Competition and Consumer Commission to increase the basic postage rate from $1 to $1.10 beginning January 2020.

Business Insider Australia has contacted Australia Post for a comment.

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