Parcel delivery service Sendle has responded to Australia Post’s recent price surge by introducing a new “Ship & Save” program, allowing SMEs to unlock more delivery savings the more they ship.
Back in July Australia Post adjusted its pricing model, implementing a rate increase of up to 9.95%. Speaking to SmartCompany at the time, Australia Post said that adjusts its prices yearly and that economic pressures were the reason for the most recent hike.
The price for Australia Post’s 500g satchel is now at $10.60, a 24% price escalation since 2018. This places Australia among the priciest nations globally for domestic shipping, particularly compared to similar 500g parcel costs in Singapore, New Zealand, UK, and US.
And this has been a problem for small business owners, with nearly 50%, of the total parcel consignments in Australia sitting in the 500g bracket. Given the current backdrop of rising inflation, the soaring delivery costs are putting added pressure on SMEs.
Within a month Sendle has launched its own alternative solution — Ship & Save. According to Sendle, it’s offering up to 55% off its shipping rates. And it’s not being shy about gratuitously comparing its prices to that of Australia Post.
According to Sendle, high-volume users will unlock thousands in additional savings a year with the Send & Save program.
Sendle is replacing its former plan with a new ‘level’ system, which sounds somewhat similar to Australia Post’s ‘bands’. The amount you send during a four-week period will determine your starting customer level, with each subsequent level unlocking more savings.
Taking the 500g satchel example again, Sendle says it beats Australia Post across all of its bands. It’s worth noting that these prices do not include fuel surcharges, which Sendle first introduced in 2022.
Sendle also confirmed with SmartCompany that it also beats Australia Post pricing across other satchel weights, but used 500g in its examples due to it being one of the most popular.
Sendle is also offering band matching for new customers, again directly going after Australia Post customers.
“If you’re on Band 3 with Australia Post MyPost Business, we’ll welcome you to Sendle at Level 4. On Band 5? Come on over to Sendle’s Level 6,” the website reads.
According to Sendle’s Managing Director for Australia, Laura Hill, it was able to offer competitive pricing compared to Australia Post due to some adjusted shipping routes between key areas.
“We’ve really been able to really look at the different areas. One of the big changes we’ve actually made is we’ve introduced two new ranges to our rates, being a near metro and any capital rate which is really allowed us to sharpen the prices on those shorter distance and also the high volume lane,” Hill said on a call with SmartCompany.
“A near metro would be a Sydney to Gosford or a Wollongong for example. And a near capital — you can only imagine the parcels going between Sydney and Melbourne and Sydney and Brisbane.
“So we’ve really been up the tap into those high volume lanes to ensure that we’re passing on the best possible price to our customers.”
Sendle being a digital courier also helps. Unlike services such as Australia Post and Amazon that utilise their own shipping systems, Sendle taps into existing infrastructure and routes that were previously mostly reserved for larger businesses.
With the rising cost of operation costs for SMEs, we’d love to hear from you on this one. What has your experience been with Australia Post or alternative shipping options as a commercial customer? Let us know in the comments below or email at tjones@smartcompany.com.au
Senior Technology Journalist
A multi-award-winning journalist, Tegan has been reporting on technology, telecommunications and gaming for the past 10 years. She regularly appears on mainstream media channels as an expert tech commentator. Her previous roles include editor of Gizmodo Australia and global reviews editor at Finder. She has also served as a reporter and editor across Business Insider, Lifehacker and Kotaku Australia. Tegan was the co-host of one of the top technology podcasts in Australia, Queens of the Drone Age. You can find her on Twitter @Tegan_Writes.
