Australia Post is fixing the most annoying thing about parcel delivery

IT’S a major frustration for shoppers, but Australia Post looks set to solve it after making one simple, but important change to its delivery business.

24/7 parcel lockers are popping up all over Australia, and they’re changing everything.

AUSTRALIA Post has unveiled a bumper annual profit, but there’s one result that matters more to many of its customers.

Missed delivery slips, those dreaded pieces of cardboard that send every online shopper into a fit of frustration, are on the decline as the national carrier embraces alternatives.

“Carding rates” — the proportion of packages that cannot be delivered, because the recipient is deemed not to be at home — have dropped by 4.5 per cent in the past financial year to just over one in ten deliveries within Australia, AusPost revealed during its annual results presentation on Friday.

It is not known how much of the improvement can be attributed to a crackdown on the practice of some delivery drivers feigning an attempt at delivery.

False deliveries is a major bugbear for news.com.au readers, the issue first highlighted when a lazy postie was caught on camera popping a “failed to deliver” slip under a recipient’s door without even knocking.

The viral video prompted a deluge of complaints from Australians who claimed to have had similar experiences, and subcontractors employed to deliver AusPost parcels have spoken out about delivery illegal quotas that encourage drivers to cut corners.

“Failed to deliver” slips were issued in 10.7 per cent of parcel deliveries in the past financial year, down from 15.2 per cent in the previous year.

Australia Post’s acting chief executive Christine Corbett credited new initiatives like parcel lockers and in-transit parcel redirection with the improved carding rates, which contributed to a 95.6 per cent service performance score in its parcels division.

“In the past 12 months we have focused on providing customers with greater access, convenience and choice in the way they receive their parcel deliveries,” Ms Corbett said.

AusPost acting chief executive Christine Corbett says parcel lockers are helping reduce carding rates.

“We’ve introduced a range of new initiatives including day before notifications so customers can choose to have their parcel left in a safe location on their property, or have it redirected in flight to another address if they know they’re not going to be home,” she said.

“Customers are also taking advantage of our other delivery choices – having their parcel sent directly to one of our free 24/7 parcel lockers now in over 265 locations, or directly to one of over 3,600 Post Offices so they receive their parcel first time.”

Six million customers are now registered with a MyPost account, with its extra delivery options now offered for 27 per cent of deliveries, up from five per cent in 2016.

Parcels are emerging as the lifeblood of the postal business and were up 5.6 per cent, while AusPost suffered ongoing heavy losses on its letters division as Australians continue to turn their backs on snail mail.

The volume of letters posted last year was down 11.8 per cent, costing the government-owned company $180.2 million before tax. This brings the total decline in letters to 45 per cent since the mail service was at its peak.

Stamps have gone up from 70 cents to $1, and if you want your letter to arrive within a day or two you’ll have to fork out $6.10 for an Express Post envelope.

AUSPOST BACK IN THE BLACK

Australia Post nearly trebled its full-year profit to $95 million in the last financial year, with its pre-tax profit up 4.8 per cent to $299.7 million.

Ms Corbett said the national carrier’s move to becoming a major player in delivering goods bought online was paying off.

She said the success of the parcels business, which was the cornerstone of the turnaround from a $222 million full-year loss in 2015, was allowing Australia Post to reinvest in other parts of its business.

“Last Christmas, we had our largest ever parcel delivery day, with more than two million parcels delivered in a single day, and we’ve continued to experience strong growth throughout what is traditionally a quieter second half,” Ms Corbett said.

Strong parcels growth is expected to continue in the 2018 financial year but further declines in letter volumes will put pressure on Australia Post’s bottom line, Ms Corbett said.

“The letters business still presents a significant challenge, with our largest ever 12-month volume decline experienced this year,” she said.

“We need to continue to ensure this business is sustainable, while managing the declining foot traffic in post offices, and we are speaking with the community on how they may use the letters service in the future.”

Former Blackmores chief executive Christine Holgate will no doubt have this at the forefront of her mind as she prepares to take the helm at Australia Post, replacing Ahmed Fahour who resigned earlier this year.

[e-mail]