Yahoo Finance Aussies set to face higher costs for online shopping
Price hikes by Australia Post could change how you shop.
Aussies may have to spend extra to get their online shopping delivered, with retailers likely to pass on Australia Post's price hikes, which have come into effect this week.
Australia Post said the changes were necessary due to ballooning costs to run the self-funded enterprise, with the cost of parcels and package-delivery services jumping by as much as 10 per cent.
Small pre-paid parcels will increase from $9.95 to $10.90, while a small Express Post satchel will jump from $12.95 to $14.40. A standard-sized Express Post letter will rise from $7.80 to $8.55.
Also read: Telstra hikes prices: How Aussies can save $816 a year
Also read: 6 million Aussies cutting back on heating: 'Too much of a burden'
Also read: ATO reveals 'red flag' for Aussies lodging their tax returns
Getting an ID photo taken will also be more expensive. The price is set to go from $19.95 to $21.95.
However, there will be no changes to the prices of the concession stamp ($0.60) or seasonal-greeting stamp ($0.65). The new prices for all other services can be viewed on Australia Post's website.
Not just Australia Post
Rob Hango-Zada – co-founder and co-CEO of Sydney-based e-commerce logistics platform Shippit – told Yahoo Finance Australia that, while Australia Post may be the more vocal carrier, the price increase was a consistent trend across the industry.
"What this highlights is the cost of doing business in Australia has gone up, and that creates an incredible amount of pressure for the small business sector, who don't have a lot of margin or scale in their offering," Hango-Zada said.
"It's no different to any other sector where the cost of materials have gone up. You just look at the average grocery shop these days and what that costs the consumer. If you look at fuel prices, labour prices ... they're all going up, and I guess the carrier system is not immune to that."
Carriers under pressure
Hango-Zada also noted Labour shortages were having a significant impact on the carrier industry due to additional factors such as immigration and the growth of the gig economy.
"There has been a significant talent shortage in the service sector, so the availability of [delivery] drivers ... has been quite slim with immigration down," he said.
"The gig economy has grown over the last three years. People have moved into different sectors through the pandemic, so you had people who would otherwise drive a van now taking on office jobs in the tech sector and the like. And I think we're feeling this cost pressure, in terms of labour, hitting the services industry more broadly," Hango-Zada added.
Ripple effect on small businesses
Several small business owners have already posted notices to clients over social media that they're increasing shipping costs in light of Australia Post's move.
"This is something I didn't want to write BUT after receiving this yesterday from Australia Post, I really wanted to let you know," one business owner wrote in a Facebook post.
"Unlike Australia Post, I have not raised my flat-rate shipping in over two years and have just copped the extra costs, but now with this extra rise guys, I'm sorry but I just can't afford it anymore."
Delivery costs likely to hit consumers
According to Hango-Zada, retailers need to start thinking of strategies to combat the rising cost of doing business.
"Retailers should think about how they're actually offering shipping to their audience," he said.
"We're seeing carriers passing that cost onto business owners, but do business owners really want to pass that to consumers, and will that impact demand?
"What that would imply is, we're going to probably see more real pricing coming to market. You just think about the collapses of some start-up businesses. The true cost of doing business is being exposed across industries, and this is no different."
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
