The Fairfax media yesterday ran a report on Australia Post teaming up with international shopping service Tarazz, saying it would be a kick in the guts for local retailers.
Tarazz reportedly offers around 250,000 items from overseas retailers including Walmart. The tie up with Australia Post is a bold move as it is likely to take business from local fashion retailers according to the report.
Several newsagents contacted me yesterday to alert me to the Australia Post move – given my disappointment that the policy makers (politicians) in Australia for the last fifteen years or so have let Australia Post creep way beyond the remit covered in the act under which it operates. Some were surprised that I’m not angry about what Australia Post is doing.
Unless I am missing something, this is a move leveraging the Australia Post delivery infrastructure. It’s what they are there for – more so than taking over the counter retail sales from small family run businesses as they do when they use their government owned corporate stores to specifically target businesses like newsagencies.
Okay, so they are facilitating an international retailer taking retail sales from other retailers and, yes, maybe politicians should have concern about that and the jobs that could be lost and businesses closed. But it’s not as direct a hit against retailers as Australia Post itself doing what it does to newsagents and other family run businesses.
Given that Australia Post is government owned, it has a higher obligation to Australians, a greater importance around social responsibility. Retailers affected could say this is not a socially responsible move. I best postal workers would disagree.
When it comes to small business, politicians on both sides don’t care. Oh, sure, they will say plenty – but they rarely do anything. They don’t see votes in actually supporting small business. I wonder if my view on the Australia Post / Tarazz tie up reflects this cynicism.
I am posting this here for others to comment. What do you think about this move by Australia Post? If you are against it, what are you going to do about it as that’s what it comes down to. Enough voters complaining about something can lead to policy change.
The follow up today in the AFR talks about VANA and Toll working together with Newsagents to offer a delivery service that covers any online purchases – not from one company as A/P is doing. We have signed up for Parcelpoint. It is all about service and to me the opportunity is to provide a better option to a consumer. However if we as Newsagents have many differing options in different states then our offering is diluted and confused. If we have a better option then that is something to really get behind. Customer’s can order from any online supplier and have it delivered to a Newsagency near them who is open far more hours than an A/P outlet. We need to work together to deliver a uniform offering not a fragmented offering that differs from store to store.
We are in Brisbane.
Yes and associations should concentrate on policy and not engaging in commercial activity. Their track record is poor.
Just copied this article and sent it off to our local pollie with a suggestion he follows this blog to see the plight small business is under.
Saying that i love what i do for a living and would not change a thing
It makes sense for AP to do this as, as you’ve pointed out Mark, they really are just leveraging their existing network and locking in the business for themselves rather than letting it go to other carriers. I’m pretty sure it’s only the first of several deals that AP will lock up with other major e-retailers over the coming year. They already do most of the phone companies , have a very high Ebay profile and deliver for several other major e-retailers (strawberrynet, etc.).
Richard, the problem is that many of the online suppliers won’t use Toll as they already have long term contracts with Aus Post and Toll is already struggling with network cost issues as has been noted in their annual reports and has been reflected in their weaker share price. Unless newsagencies are also going to be a lodgement point for parcels then Toll is also at a disadvantage to Aus Post as to where or how the parcels are lodged.
Mark
Your quote ” When it comes to small business, politicians on both sides don’t care. Oh, sure, they will say plenty – but they rarely do anything. They don’t see votes in actually supporting small business.” is so correct, its a injustice that this how the ‘system” works
I understand that they are encouraging online sales therefore bypassing small business in Australia, it stinks, it is a concern particularly as a Government owned utility is squeezing small retailers eventually into a corner or worse. Its about time we here from all retail associations, you say they should not become involved, but the Government will not listen, will not return communication that is sent to them. I would like some hear some ideas as well.
Personally they are making a Rod for their own back, Australia will be the world’s welfare country in the world, soon we will be catching boats to Indonesia.
It doesn’t look like they are entirely bypassing small business in Australia Derek. there is mention in the article that toward the missdle of next year there will be the ability for local businesses to use Tarazz to supply their good to overseas markets which seems like a potentially good deal nad a big opportunity for local businesses to gain access to a much larger customer base.
There’s another reality here. If this online shopping is successful, it will certainly increase parcel flow thru the LPOs. LPOs are already subject to abusive treatment by Australia Post in regard to parcels. We are paid a pittance in terms of the role we actually play in the process. The whole weight of the receiving customers’ expectation is upon us. It is our space , our shelves, our peoplet that get clogged up and bogged down when parcel traffic is at a peak.
Policy makers cannot say to us that we need to give up an exclusivity in the name of competition and then refuse to apply the same rules to the business they own.
Paul – We must consider all potential foot traffic opportunities. Foot traffic = sales.
I could not agree more Mark, Small business owners should be banging on about this. Hindsight sucks sometimes we have to start using foresight now, it is dissappointing and it future years show just how incompetant Small Business has been ill treated by Goverments. Now is the time to dedicate time to Black & White Policy where now it is nearly all Grey.
Deregulate the unfair monopoly regarding postage revenue.
Revisit the Retail Tenancy Act ( I have a 94 page lease)
Small Business’s with a turnover of under 2 Million pay only 50% of their GST and no Carbon Tax but must invest back into your business.
If you buy 100% Australian Vechicles & Equipment via Capital small business should have the option for full writeoff when they want to for the next 5 years.
Eliminate Penalty Rates for Sunday work in Retail.
I am sure there are 100’s more opportunities to make the rock solid foundation that will be required for Small Business’s in a few years.
Why do I need a Certificate when I need to clean a toilet and a Politician does not need any qualifications to make decisions that affect all Australians?
We need a competant & communicative Small Business Minister and a Team that has foresight- Its the Key to continue our economic foundation when the mining boom slows and have to reduce cost per ton to its customers.
Sorry Derek, I should point out that I’m an inconjunction LPO so the extra traffic does or will potentially benefit me. I’m also about to launch two online retail businesses so find the idea behind Tarazzs cross border retailing quite appealing.
There is no point in complaining about online retailing as it is the way of the future as more and more bricks and mortar stores become untenable and uncompetitive unless ideas such as you’ve noted noted are implemented. The question is whether any government would do so ? Unfortunately I’m not going to hold my breath waiting to find out.
Derek,
from where I sit in Country NSW the Mining Boom cost me Higher Interest Rates when as a result of their expenditure inflating the economy the RBA put up Interest Rates. Neither of the big 2 Political Parties (note Libs and Nats Considered as one) could agree on anything let alone something that specifically deflated the miners like an immediate Tax on them only. So the RBA used the only weapon it had and upped Interest rates. I also look at Australia Post and EFTPOS decisions and IR where either party puts in place laws that suit what they see as their major constituency Big Business or Unions. I for one no often no longer employee people with purely my business needs in mind rather have to employee to suit labour law which is not always what my Business needs or demands, A good example of this is the 3 hour Minimum for school students as casuals and run drivers.
Peter, I think the 3 hour minimum for schoolies was overturned recently, its now a 90 minute minimum.
i can honstly say that IR laws have cost my employees hours, have had to make substantial cuts in hours to offset wage increases and increased weekend penalty rates
Nice posts
I am aware my post was a bit of a rant however it is due to my frustration on a few fronts .
Unfair treatment / little support / unclear and unfair Policy, IR Laws and Acts on small business’s.
Online business although inevitable will affect Bricks & Mortar as you indicated. My conscience worries for the future of all our Children, Family & Grandchildren. As previously posted above, their is no plan for social responsibility, six years ago Mark indicated the Newsagency Channel Small Business’s must start changing then to enable to continue operating in the environment of what is happenning today. Now that is a plan!
No Plan for Social responsibility for tommorrow from our Governments = Welfare country of the world.
Life, Live it Now not in the future our kids will do better then all of us. Well thats my Call.