Sendle takes on Australia Post

Carbon neutral delivery company Sendle is taking measures to out-compete Australia Post. This follows a widespread price hike by the postal operator.

“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.

Sendle state that this amounts to a 7% price increase just ahead of the coming peak season.

“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.

To take on Australia Post, Sendle has announced certain ‘price relief measures’. These including dropping its international rates. A small or medium business can send a 250g parcel anywhere in the world for AU $12.95 between the 7th October and 31st December.

“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.

As well as international deliveries, Sendle is taking on the postal operator domestically. A ‘price guarantee’ ensures that all size-for-size, same city and national parcels will be cheaper than Australia Post’s Parcel Post standard parcel postage. This could typically save businesses 20% compared to that of the postal operator.

The low carbon delivery firm is adding an extra 1kg to its ‘shoe box’ category, offering weights up to 3kg from 2kg.

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.

The last thing they need is another price increase to squeeze profitability in the busy holiday season. “Small businesses shouldn’t have to be burdened with buoying up Australia Post’s profit margin in this make or break period,” Moody concluded.

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