Australia Post’s Parcel Pause: Experts Weigh In

Power Retail By Power Retail | 29 Sep 2021

Australia Post has announced it would be using the parcel collections for e-commerce retailers in Metro Melbourne for five days, starting October 1st. We spoke to a series of experts and to explore the changes, ramifications and advice for retailers in Melbourne. 

This pause aims to reduce the strain for Australia Post as they work through the backlog of deliveries amid the e-commerce surge.

James Chin Moody, CEO and Co-Founder of Sendle:

“It’s been a tough couple of years for the Australian small business community who’ve borne the brunt of the financial crisis brought on by COVID. This decision to pause pickups for standard and eParcel services in Melbourne is another blow for our small businesses who heavily rely on these delivery services. On the other hand, big businesses with larger shipping volumes remain unaffected by the move.

“By pausing pickups for only standard and eParcel services in Melbourne, Australia Post is unfairly penalising small businesses, which are the lifeblood of our economy. This move will create added stress for the Melbourne small business community at a time when they need our support the most,” he said.

What advice does Sendle have for retailers and how can they minimise as much stress as possible?

“It’s important to communicate these delays and disruptions to your customers clearly and early. Small businesses rely heavily on word-of-mouth, so while your parcels might be delayed, it’s vital that your customer service remains of a high standard,” he said.

“While this is a difficult time for small businesses, to reduce future stress, make use of this time to ensure your business is prepared for any further disruptions. Essentially, look at alternative delivery options, and plan ahead for ordering packaging and stock – especially if you are ordering stock internationally. Looking forward will ensure your small business is going to be prepared for whatever the next few months may throw at you.”

What is the potential impact of this delay may be on the industry?

“These delays will only work against small businesses in the lead up to Christmas. Many are already asking customers to shop early for Christmas – a sign that they’re bracing for disruptions in the months ahead,” said Moody.

“This move from Australia Post will be another setback. Unlike larger businesses, those at the smaller end of town often have tighter cashflow, and the impact of these challenges could greatly influence their ability to keep up with demand.”

More to come.

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