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AusPost powers $2.4B e-commerce boom

  • Posted on Friday 10th, July 2020.

Postal service company, Australia Post, facilitated an additional $2.4 billion in e-commerce during the three months to May 2020 compared to the same period last year.

Australia Post Group Chief Executive Officer and Managing Director, Christine Holgate, said while this was a credit to the direct workforce of 36,000 people, it was very encouraging to see an additional 25,000 Full-time equivalent local jobs were supported each month during the pandemic.

“It’s very clear Australia Post has played a critical role in keeping the country running during the Covid-19 pandemic," said Holgate.

"Not only have we supported business to trade online, for every three workers employed by Australia Post, another two jobs in other businesses and industries have been supported, many in small and medium businesses.

“I’m so proud of the way we have stepped up and kept many Australian businesses alive. Australia Post really has become the ‘BusinessKeeper’ of the national economy.

"This new analysis underlines the fundamental role Australia Post plays in connecting communities and businesses across Australia," she said.

Minister for Communications, Cyber Safety and the Arts, Paul Fletcher, said these Deloitte report findings underline the vital role that Australia Post plays during the pandemic "in serving the increased parcel delivery needs of Australians and their small businesses as people moved their economic activity online, particularly those in rural and regional locations".

Fletcher added: “It further highlights why the Government agreed to grant temporary regulatory relief to Australia Post so it could meet the increasing parcel volumes by redeploying around 2000 posties to work in the growing part of the business delivering parcels instead of letters, which are sharply declining during the pandemic".

The analysis also found:

  • The number of parcel deliveries increased by 26 million on the 2019 figures, with activity in regional Australia increasing at a faster rate than metropolitan areas.
  • Food, liquor, homewares and appliances stood out as the top categories for growth in Australia Post parcel deliveries in the COVID lockdown, while variety stores and fashion retailers gained sales momentum during the three-month period.
  • Australia Post contributed more than $1 billion directly but importantly generated an additional $747 million in flow-on economic activity in other sectors.

Deloitte Access Economics partner, John O’Mahony, noted with more than 80 per cent of Australia's e-commerce economy facilitated by Australia Post, regional Australia was increasingly reliant on the parcel delivery service, particularly as lockdowns and restrictions on physical shopping drove consumers to online retailing.

“Consumer behaviour has changed as a result of this health and economic crisis," he said.

"Businesses and individuals have had to adapt drastically to a changing climate. With many stores closed or having limited physical operations, consumers have shifted to online purchases, resulting in changes to delivery networks.

“The limited availability of alternatives for the fast and reliable delivery of parcels between regional and remote areas means that for many businesses operating outside of metropolitan cities, Australia Post’s delivery infrastructure is essential for maintaining a high-quality experience for customers residing in other regional communities.”

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