Australia Post's recent announcement of a price hike in delivery costs has resulted in a social media backlash for the national post service.

Poor deliverables

The price increases, which come into effect this month, see customers able to choose the speed of delivery – from same day, next day or regular. Customers can also choose for additional coverage such as cash on delivery.

Online retailers will now have to pay for these services, many of which were formerly free using registered post. According to The Sydney Morning Herald, the changes will increase costs for online merchants of up to 40 per cent.

For example, under the new price structure a book costing $8.00 would now incur a delivery fee of $11.70, while the same book could be shipped to Australia from a UK retailer for $3.00.

Wait a minute, Mr Postman

Australia Post claims the increases are predominantly less than seven per cent across the board. This has done little to assuage worry and anger among local online retailers.

As news of the new costs spread business owners took to Facebook, Twitter and the Australia Post website to make their displeasure known.

“Is trying to put honest hard working Australian sellers out of business an acceptable “collateral damage” to boost your profit margin a few million more?” Ross Gage wrote on Australia Post's Facebook page.

Pass the parcel

However,  it appears unlikely the outcry will change Australia Post's decision. The national post service nets more revenue from parcels than letters, with online shopping accounting for 70 per cent of prepaid packages sent nationally.

What this means for Australian retailers' ability to compete online may only become clearer in time.

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