Australia Post rolls out parcel-only post offices

New format, cheaper pricing for smallest packages cater to growing base of e-commerce participants

Australia Post Parcels is a new concept aimed at improving convenience for parcel customers. (Photo: Australia Post)

Australia Post has introduced a modernized post office format designed to make sending, collecting and returning parcels faster and more convenient, as well as its cheapest delivery option in the parcel category. 

The new stores, called Australia Post Parcels, are dedicated to parcels and facilitating quick customer exchanges with added flexibility through 24/7 self-serve options and secure 24/7 parcel lockers, the national mail system announced last month.

Australia Post has already opened two of the next-generation post offices, with two more locations scheduled to open soon.

“The number one reason a customer visits the post office is to collect a parcel, so we’re making it easier and quicker to collect and send parcels at a time that suits them. With Aussies shopping more online than ever before, we’re evolving our network to keep pace with how our customers are using postal services,” said Josh Bannister, executive general manager retail, brand and marketing, in a news release.

More than 9.8 million households in Australia shopped online last year, according to Australia Post research. Postal services are expanding e-commerce services in response to the rise in direct-to-consumer digital sales. Parcel business fueled a 2.1% rise in revenues last year for global postal operators, the International Post Corp. reported Thursday.

Australia Post Parcels combines in-person assistance with self-service options such as parcel lockers. Many locations will also feature a special 24/7 self-service zone, accessible via a one-time entry code generated in the Australia Post app. The option allows customers to enter the space outside normal business hours and send parcels when it suits them. 

Customers can collect or return online purchases around-the-clock. Trial sites also feature 24/7 accessible vending machines stocked with packaging, stamps and other mailing essentials.

The next-generation format is designed to be flexible and scalable, with some featuring a smaller physical footprint along with an efficient back office arrangement to manage increased parcel volume.

Australia Post said it conducted extensive customer surveys and behavioral research to ensure the new format meets customer needs, while also providing capacity for future network growth. 

Australia Post’s new parcel post offices are equipped with parcel lockers, giving customers more flexibility in picking up or dropping off packages. (Photo: Australia Post)

Pilot locations were carefully selected based on parcel data, local sending and receiving patterns, as well as proximity to other nearby post offices, where full-service offerings remain available.

Meanwhile, Australia Post last week began offering its lowest price delivery option for parcels – the Extra Small parcel – aimed at helping small businesses cut costs and compete more effectively in a hyper competitive e-commerce market.

Available online and in post offices across the country, the Extra Small parcel caters to lightweight items like accessories and cosmetics. Pricing starts at $3.82 for business accounts and goes up to $6.37 for regular service and $8.33 for express delivery.

Australia Post said it is responding to customer demand for more affordable shipping options, especially from micro sellers.

Protections from dog attacks

In related news, mail carriers are applauding new legislation passed by the government of South Australia that significantly increases penalties for dog owners whose pets cause serious injury or public harm. Under the new law, dog owners could face fines of up to $32,800 if their dog attacks a person after being labeled a dangerous dog. Australia Post said that more than 44 mail carriers – posties in the local lingo – are subjected to dog-related attacks and harassment per week. The growing frequency of parcel deliveries has led to almost 40% of dog encounters taking place on a customer’s property.

To help reduce the risk to mail carriers, Australia Post said it is providing citronella spray to all delivery personnel by the end of July. The water-based, non-harmful spray will serve as a last-resort safety tool in the event of an imminent dog attack. The deterrent temporarily distracts the dog, giving the mail carrier extra time to move to safety and call the owner for help.


Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

RELATED READING:

Parcels drive 2% global revenue gain for postal operators

Polish parcel powerhouse InPost buys Spanish delivery provider 

US ranks low among international postal services on financial flexibility

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com