News

Postage costs set to increase by 30%

Price increases announced by Australia Post have been slammed by many Australian businesses who say the decision will result in cost increases.

The prices of prepaid Australia Post packages have been raised by up to 30 per cent.

The rises also means the cost of getting a signature of delivery has almost tripled from $1 to $2.95.

Online retailers have attacked the price hikes as a ''direct hit'' on their businesses.

Many say they will have to charge customers more as a result, SMH reported.

Australia Post has defended the increases saying the company is ''operating in a challenging business environment with increasing external costs''.

The company said the price increases were mostly "less than 7 per cent".

Australia Post has faced a social media backlash over the decision, with angry customers taking to Twitter and Facebook to vent their frustration.

Online businesses say the new prices will make it impossible to compete with international sellers.

Bookstore owner Chris Elworthy from Port Macquarie said he would have to pay $11.70 in postage to send an $8 paperback book, Macquarie port news reported.

Booksellers in the UK can send the same book to Australia for around $3.

"They are bleeding us dry," he said. "Why would people buy from Australia when they can buy from overseas?"

"It's really upsetting to a lot of people," online retailer Tabitha Fernando said.

"We are being forced out," she said. "I'm seeing New Zealand postage prices and it's cheaper [for consumers] to buy from there than here."

More than 4000 online retailers have signed a petition over the past week in protest of the changes.

Image: news.com.au

Leave a Reply

Send this to a friend