Sendle launches flat rate “parcel to anywhere” for local businesses
The new product should help level the e-commerce playing field.
Sendle has announced a "parcel to anywhere" flat rate to help Australian e-commerce businesses compete internationally in the lead up to Christmas. Customers can now send 250g parcels from the five major Australian cities to over 220 countries and territories for a flat rate of $13.45.
While the growing e-commerce market has allowed Australian businesses to reach new markets, expensive international delivery has often limited their ability to cater to overseas customers. Designed as an alternative to Australia Post's complicated tier-based pricing and costly Parcel Post international delivery rates, Sendle's "parcel to anywhere" program aims to help small businesses broaden their customer base and boost their international sales.
According to the Australian Bureau of Statistics, local small businesses account for only 0.5% of total export value. With the Christmas retail period approaching and the Australian dollar also having lost value against the US dollar and other major currencies in 2018, now would be an ideal time for local businesses to target overseas sales.
Potential game changer
James Chin-Moody, CEO and co-founder of Sendle, told finder.com.au that this product could have a big impact on Australian small business. "We believe this could be a game changer for many small businesses who have never actually thought about exporting before. If you look at Australia, we have a very vibrant e-commerce industry and small business is actually the fastest growing part at over 20% per annum.
"But many of those businesses only sell within Australia, so they're limiting themselves to 25 million people as opposed to the entire world. When you ask a lot of them for the reason they're not doing it, logistics comes out near the top, and it's generally because until now logistics have been really expensive."
Giving businesses a choice
He says limited delivery options have crippled the growth of sellers looking to target overseas markets. "For a hundred years, there's been a functional monopoly in place for small business parcel delivery in the form of Australia Post. There's a huge amount of friction that still exists in parcel delivery – lining up at the post office, complicated pricing, lousy customer support.
"Sendle exists to give small businesses a choice. What we do is unlock big business parcel logistics and make it really simple, reliable and affordable to send parcels. This product is really about unlocking Australian businesses and allowing them to compete on the world stage."
Grace Corby, owner of online vintage fashion store Fluff, says expensive international shipping costs can hurt potential sales. "I'll often be contacted by potential buyers who want to know if I can provide cheaper shipping, but my options are quite limited. At the moment I pay different rates for different zones, so it's hard to let customers know up front how much they will be paying in shipping. Having one flat rate would make things easier for me and my customers and I think my sales would definitely increase if I were to implement those rates."