Australia Post’s Digital iD service has received the highest level of accreditation for an Identity Service Provider by the Digital Transformation Agency (DTA), providing customers and businesses alike added confidence when completing their identity transactions. Read more
In a boost for online shoppers and local employment, Australia Post’s new Redbank facility – said to be the largest parcel facility and delivery centre in the southern hemisphere – is set to open its doors this October. Read more
Australia Post is releasing a commemorative stamp to celebrate 50 years of the principle of equal pay for equal work in Australia.
While the principle of equal pay for equal work has now been around for 50 years, women are still fighting for equal pay for work of equal value. In 2019 a significant gender pay gap still exists at 14.1 per cent.
Speaking on the stamp release, Australia Post Executive General Manager People and Culture Sue Davies said over the past two years Australia Post was proud to be one of the few large Australian organisations to have achieved gender pay parity.
“It’s important that people continue to have conversations about gender pay parity and we hope our commemorative stamp raises awareness amongst the Australian public of how, collectively, we can achieve this important goal,” Sue said.
In 1969 the Australian Council of Trade Unions (ACTU) brought a case to the Commonwealth Conciliation and Arbitration Commission (CCAC) against the Meat and Allied Trades Federation (and others) arguing for “equal pay for equal work”. The ruling included the important principle that when women were engaged in the same work as men in traditional male roles they were entitled to equal remuneration.
The commemorative stamp designed by the Australia Post Design Studio features the slogan current at the time, “Equal Pay for Equal Work”, with a photograph of demonstrators in front of Trades Hall, Carlton, Victoria in 1969.
Australia Post has announced the trial of a new Australian-built three-wheeled electric delivery vehicle. Read more
The number of Australians jumping online to shop continues to increase, with new research from Australia Post showing the total online spending in 2018 topped $27.5 billion, a 24 per cent increase for the year.
Australia Post has released its annual Inside Australian Online Shopping Report – an overview of Australia’s eCommerce market that provides key insights into who is shopping online, and what they’re buying.
It shows that Australians are embracing online shopping at an accelerated rate – with the online goods spending for 2018 reaching 10 per cent of total retail – two years faster than expected.
Australia Post general manager for parcels and express services Ben Franzi said the report also shows that 73 per cent of Australian households shopped online in 2018 – some 7.6 million Australian households.
“Australians are getting online more and more, and changing the face of shopping. With it, they are also expecting faster service and delivery – with next day deliveries growing by 31.7 per cent, with more than 62 per cent of these fashion-related purchases.”
Mr Franzi also said the way Australians are shopping online is also changing, with smartphones increasingly being the medium of choice.
“Use of the smartphone to make online purchases increased 28 per cent for the year – to now make up more than 26 per cent of all purchases. It now sits comfortably alongside the laptop (32.8 per cent) and desktop (27.3 per cent), both of which fell for the year.”
Fashion continues to be the leading category, accounting for more than a third (35 per cent) of all purchases, with more than 20 per cent growth year on year. Variety stores, health and beauty and homewares and appliances also attracted lots of online shoppers.
Marketplaces such as eBay and Etsy, together with newcomers Amazon, Catch Group, Kogan and Myer, continue to be popular.
“Australians appreciate the convenience that comes with being able to access goods from a variety of sellers in one place – it is quite literally a market, replicated online and providing an abundance of choice for consumers.”
The convenience of Buy Now, Pay Later (BNPL) options such as AfterPay has also sparked joy for consumers, especially amongst millennials – those born after 1981 – who have become the fastest adopters. Unlike a credit card there is no service fee for customers who pay on time.
When it comes to overall volumes, the November/December period was the busiest time of the year – as Australians sought to snag a bargain ahead of Christmas.
“The five weeks from 11 November to 15 December accounted for almost 15 per cent of all online purchases. The peak for this period was the Black Friday / Cyber Monday sales, which accounted for the biggest online shopping week in Australia’s history, recording growth of over 28 per cent, year-on-year.”
Cross-border e-commerce is also booming with New Zealand (29 per cent), China (15 per cent) and India (11 per cent) the leading purchasers of Australian goods online. Fashion is the leading category, followed by health & beauty and baby products which are in demand, due to Australia’s great reputation for producing clean safe and premium-quality products.
The number one online buying location was once again Point Cook in Melbourne’s western suburbs, which topped the list for the fourth year in a row. The top twelve locations are again dominated by suburbs that have an influx of young families.
Top twelve online shopping locations by postcode:
- Point Cook VIC
- Toowoomba QLD
- Mackay QLD
- Liverpool NSW
- Cranbourne VIC
- Gosford NSW
- Hoppers Crossing VIC
- Campbelltown NSW
- Bundaberg QLD
- Wyong NSW
- Rouse Hill NSW
- Cairns QLD
Australia Post has announced a four-year partnership with the Australian Trucking Association (ATA) with a focus on truck safety on the roads. Read more
Australia Post has announced a four-year partnership with the Australian Trucking Association (ATA) with a focus on safety on the roads.
The announcement coincides with National Road Safety Week, and includes a $200,000 sponsorship pledge for the rebranded Volvo ATA Safety Truck.
According to Australia Post, the partnership will have a focus on educating drivers on how to share the road safely with heavy vehicles through hands-on informative, small group presentations and virtual reality technology.
Australia Post Group Chief Operating Officer Bob Black said the new arrangement showcases Australia Post’s focus on road safety education, especially among younger drivers.
“We are always looking for ways to keep our people and communities safe. Every year over 1,200 people are killed and 35,000 seriously injured on our roads,” Bob said.
“Last year we experienced 768 road injuries across our workforce nationally. That means every workday three posties are injured in motor vehicle accidents – that is three posties too many.
“This is an important partnership to help end road incidents and trauma – especially involving heavy vehicles which are a big part of our network.”
Australian Trucking Association CEO Ben Maguire said the ATA was thrilled to have Australia Post’s support for this educational and behavioural change campaign, with the new truck set to be on the roads in October 2019.
“Official estimates show that about 80 per cent of fatal multi-vehicle crashes involving trucks are not the fault of the truck driver. 25 per cent of occupants involved in a casualty crash with a truck are aged 26 years or younger, however this age group only represents only 10 to 15 per cent of the driver population,” Mr Maguire said.
“Australia Post’s support for this project demonstrates a commitment to road safety and a shared vision of zero fatal or serious injury crashes on our roads.”
Australian shoppers will be just as likely to open their wallets for online shopping as they will in-store in a decade’s time, with new research by Australia Post revealing that by 2030, it is expected that one-in-two purchases will be made digitally.
The survey of almost one thousand small and mid-size Australian businesses across retail, manufacturing, logistics, financial services, education, health and utilities found that almost half (49 per cent) expect online retail to reach parity with bricks and mortar retail sales in 2030.
The findings come as online shoppers are invited to celebrate their favourite online retailer by voting in the Australia Post ORIAS People’s Choice Award. Voters have the chance to win the ultimate online shopping spree, an opportunity to spend $10,000 in 60 seconds on a range of products across travel, technology, fashion, homewares and leisure.
Australia Post general manager of segment development & marketing Rebecca Burrows said consumer habits have changed significantly over the past few years, with retailers evolving to find new ways that encourage people to buy.
“People want an in-store experience but in the comfort of their own living room – they want to see, touch and try. Trends such as Augmented Reality (AR) are bridging the gap between online and in-store shopping, and AI-driven personalisation and biometric payments are all shaping the way we shop. Leading retailers are also embracing mobile commerce and voice-activated shopping. It is those in tune with customers and willing to embrace the latest online technology trends who will have the winning strategy.”
One company doing this is fashion-tech company GlamCorner, a contender for this year’s Australia Post ORIAS People’s Choice Award.
Co-founder & CEO Dean Jones said GlamCorner’s vision is to revolutionise the way Australian women think about their wardrobes by providing a smarter and more sustainable alternative that is better for the community and the environment.
“One of the most important initiatives we’ve implemented over the past 12 months has been in direct response to customer feedback. We’ve introduced a monthly subscription box service, which gives our customers near-unlimited access to three pieces of designer clothing each month for formal occasions, workwear or everyday wear,” he said.
“The service is growing at an exponential rate, contributing significantly to the 30 tonnes of clothing we process each month. As a result, our customers are telling us their wardrobes are shrinking, while they still have a fresh new look every day.”
Voting for the Australia Post ORIAS People’s Choice Award for 2019 runs from 1-31 May via www.auspost.com.au/shoppingspree.
Retailers who move quickly to invest in next-generation customer service technology are more likely to lead the battle for sales in a tightening economic environment, according to two of Australia’s most innovative online retailers.
The insights come as the search for Australia’s favourite online retailer kicks off, with the Australia Post ORIAS People’s Choice Award providing online retailers with a platform to elevate their brand, gain industry recognition, build trust, and grow customer loyalty.
One of last year’s winners Koh, credited the updating of its customer service software – ahead of many of its competitors – with helping it double revenue over the past 12 months.
Founder Adam Lindsay, who recently launched the eco-friendly cleaning products company into the UK, said the focus was on giving both existing and new customers what they want.
“If you don’t service existing customers properly, you’ll have to deal with a leaky bucket – and therefore spend more time and money on acquiring new customers,” Mr Lindsay said.
Kogan.com, which took out the 2018 Award for best large online retailer, reiterated its commitment to embracing data-driven insights to improve its customer service capability.
Director of customer care Daniel Beahan said Kogan.com considered itself a statistics business masquerading as an e-commerce company.
“Data is key to unlocking our customer expectations and it is our mission to understand the wants and needs of our customers better than any other online retailer,” Mr Beahan said.
“Company growth relies on us delighting our active customer base time and time again, and our mission remains to make the most in-demand products and services more affordable for all Australians.”
Last year’s winners highlighted a customer-first focus, an ability to change and be nimble, the importance of personalisation to create a tailored customer service experience, the continued embrace of social media platforms like Facebook and Instagram to drive awareness and advocacy, and the harnessing of data and analytics as all being key to online retailers.
The launch coincides with an Australia Post report that found the number of purchases online has grown by more than 20 per cent for the year, with online shopping now making up 9 per cent share of traditional retail spend in 2018.
Australia Post general manager of enterprise Andrew Chamberlain said Koh and Kogan.com exemplified e-commerce-savvy businesses that embraced innovation to enhance online experience, ultimately driving customer loyalty and sales.
“In considering potential winners of the Australia Post ORIAS People’s Choice Award, one of the key things consumers look at is a personalised experience that supports ease of purchase – an area in which both Koh and Kogan.com are excelling,” Mr Chamberlain said.
Registrations for the Australia Post ORIAS People’s Choice Award for 2019 are open now, with applications to close 31 May. Voting takes place from 1 May-31 May.
Performance highlights for the six months to 31 December 2018:
- Group revenue was flat against last year at $3.6 billion, masking significant changes.
- Group parcels contributed $1.9 billion, up 9 per cent, adding $25 million in profit.
- Group letters at $1.1 billion, down 10 per cent, reducing profit by $102 million.
- Group expenses contained at 2 per cent growth, including $121 million in productivity gains.
- Reported profit before tax at $154 million, down 36 per cent, included positive one-offs. Profit after tax $118 million, down 45 per cent.
- Australia Post is expected to make a modest full-year profit in FY19 given the continued impact of letter decline, economic headwinds and seasonality.
Australia Post has announced a profit before tax for the first half of $154 million, down 36 per cent year-on-year. This included $30 million of one offs. Underlying profit before tax was $124 million, down 38 per cent. Group revenue was flat at $3.6 billion.
The largest business segment, domestic parcels, performed strongly with revenue growing by 10 per cent, up $147 million, well ahead of the general retail market, which grew 2.9 per cent in the period. Group parcels profit grew by $25 million to $127 million. In December, Australia Post delivered a record 40 million parcels, up 12 per cent.
All Community Service Obligations were met or exceeded and customer service standards remained high for letters and parcels, including through extreme weather conditions across the country during the Christmas peak.
Group chief executive officer and managing director Christine Holgate said she was pleased with the continued strong performance of the parcels business, however, significant challenges remain for Australia Post with letters revenue now declining at the fastest rate in its history.
“Although we delivered 10 per cent growth in domestic parcels, well in excess of the growth rates of the economy and in a period of very strong competition, this could not make up for the profit decline in the letters business,” Ms Holgate said.
“Letter revenues are down 10 per cent or $125 million, which reduced profit by $102 million in the half. This is after saving an estimated $50 million in delivery costs as posties carried 40 per cent of our parcels.
“Since the last increase in the Basic Postage Rate in January 2016, more than three years ago, our costs to deliver letters are up 10 per cent. The number of new delivery addresses has increased by 500,000, yet letter volumes have declined by 800 million.
“Australia Post will deliver more than two billion letters to almost 12 million homes and businesses this year. Although it is shrinking, letters is still viewed as a critical service by the overwhelming majority of Australians.”
Australia Post is an entirely self-funding business. Last financial year, Australia Post incurred an estimated cost of $404 million in delivering the letters service in accordance with its legislated community service obligations.
Group expenses were held at two per cent growth in the first half, underpinned by total productivity savings of $121 million. Independent research shows that Australia Post has improved its Total Factor Productivity at twice the rate of the overall economy and reserved letters at three times the rate.
Ms Holgate said the business was also making good progress on delivering on its strategic initiatives including:
- Securing the historic Bank@Post agreement with CBA, Westpac and NAB, protecting critical banking services in Community Post Offices, particularly in regional and rural Australia. A further seven financial institutions have already committed to new Bank@Post terms: Suncorp, Resimac, Auswide Bank, AMP Bank, Maitland Mutual, Transport Mutual and ME Bank.
- The first new major agreement with its important licensee partners in 26 years, providing technology and aligning payments to parcels and other growing services.
- $64 million of investment in the operational network, including new processing equipment in Sydney, Melbourne and Brisbane enabling automated sorting of an additional 100 million parcels.
- The fastest growing parcel product, Express, expanded in a trial to a further 500 postcodes.
- Acquisition of remaining 60 per cent stake in Aramex Global Solutions, which provides end-to-end cross-border logistics and eCommerce solutions, supporting the international growth strategy.
“We have invested in both capability and capacity, without which our teams could not have delivered the Christmas Peak. Our people were exceptional as they delivered through the most challenging weather conditions, including floods, bush fires and hail storms,” Ms Holgate said.
“Our Net Promoter Score with our customers is at a record high and complaints on Australia Post entities to the Postal Industry Ombudsman were down 31 per cent, although we recognise we still have much more work to do.
“The progress we have made against our strategic initiatives, coupled with the unwavering commitment of our extended workforce to serve the community, means we remain confident that Australia Post will play an important role for many years to come.
“Australia Post is on track to deliver a modest profit for the full year, in the face of ongoing market pressures in the traditionally quieter second half. Australia Post will release its full results in August.”