As small businesses contend with the highest parcel delivery costs on record, Sendle is offering a lifeline to small business with its new “Australia-Post busting” 500g pricing.
Why is this a timely initiative for small businesses?
In July this year, Australia Post announced that it was bumping up its parcel and package delivery services by as much as 9.95%. With Australia Post’s 500g satchel now sitting at AUD$10.60, Australia is now one of the most expensive countries in the world for domestic shipping, when comparing pricing for a 500g parcel sent within the same major city in markets such as Singapore, New Zealand, the United Kingdom and the United States.
With 500g parcels representing approximately 50% of total parcel volume in Australia, many small businesses are feeling the burn from high parcel costs in a high inflation environment. To help combat rising costs for small businesses, Sendle has announced rewards of up to 55% off on all its shipping rates. This is primarily meant to encourage small businesses to ship and shop around. The new ranges are part of its Ship & Save program launched this month.
Sendle’s Australia-Post busting 500g pricing
For the 500g parcel category, Sendle has dropped the prices of its three busiest 500g lanes in Australia (Sydney to Melbourne, Melbourne to Sydney and Melbourne to Brisbane) by almost $2 per parcel. Meanwhile Australia Post has increased its standard 500g rates.
In 2018, it cost $8.55 including GST to send a 500g parcel with Australia Post and as of July 2023 it’s $10.60 — a whopping 24% increase! To ensure pricing transparency and to help small businesses understand the savings from shopping around, Sendle has made price comparisons available for its new 500g rates against Australia Post’s 500g rates.
What does this mean for Aussie small businesses?
Small businesses across the country are already welcoming Sende’s groundbreaking new Ship & Save program and the need for more competitive prices for parcel delivery services, including online fitness shop The WOD Life and charity sock brand, Sydney Sock Project.
“In the next year we expect to save $150,000 on shipping now that we’ve switched most of our volume to Sendle, which we’re excited about. With these savings we’ll be able to reinvest more into our team, equipment, product and back into growing the business and helping our community discover what they’re capable of,” said Ben Dineen, co-founder of The WOD Life.
“With the cost of living at an all time high, being able to save on shipping couldn’t be more important. When I switched to Sendle last November I immediately saved $8,000 on shipping costs. With the new Ship & Save program I’ll now be saving an additional $7,200 per year. I’m also considering bringing more of my 500 gram volume over to Sendle because the rates are just too good,” commented Andres Herrero, Founder of the Sydney Sock Project.
What does this mean for Sendle?
Sendle’s Managing Director for Australia, Laura Hill said, “SMBs have grown tired of Australia Post obfuscating parcel pricing and jacking up shipping costs to offset their inefficiencies and subsidise their big business customers. So Sendle is making it easier for small business owners to compare Sendle’s pricing with Australia Post and see the value for themselves.”
“Choice breeds competition and competition breeds innovation. In this case, small business owners are the winners and we are delighted to deliver for them,” Laura Hill further said.
Since 2014, Sendle has been solving the problem of complicated and expensive shipping for SMBs in Australia. Earlier this year, Sendle petitioned the Australian Govt to open up Australia Post’s network to create a better and fairer shipping experience for Australian businesses and consumers, as part of the Government’s Postal Services Modernisation consultation.
For more information about Ship & Save, please visit the website.
