I have just completed a survey for Post Haste Couriers who I use for local deliveries.

One question was especially interesting:
14. Please tell us at least one thing Post Haste could do better or differently for you and your organisation?

My Reply: A cost effective overseas package export service or interface to other.. NZ lacks the ability to competitively export small items.

Why:

Here in NZ we buy just about everything from overseas; importing. I’m not thinking big items, but small stuff like computer and hobby bits. Items that are individually small and of relatively low value but there are lots of them. Often we can order bits from China or somewhere in Europe and pay fixed-rate $5 to $6 for simple post and have it in 2 weeks. A lot of web sites in China are now offering parts at low prices and free shipping.

We can make some of this stuff here. A lot of small tech items that are a bit specialized and not currently mass produced in china. The market for selling these is the rest of the world. But for small, low value but high volume items shipping makes us less competitive.

Example (NZ-Post 15-Aug-2012):

• 100g, 10cm x 6cm x 4cm from NZ to USA
• International Air  5-10 day: $11.50
• International Economy, 10-25 days: $10.35

This seems to be the price up to 250g then the price starts going up.

The Chinese sites offering free shipping are building the shipping into the price. You can find another site offering the same item cheaper where you pay extra for shipping. The other benefit to the seller must come when you buy 2 or more and get a smaller discount than the shipping component.

Overall free or fixed rate shipping makes it easier for the buyer and the seller. But the seller needs to be able to offer a good price and know that the shipping is not going to cost more than what they make on the sale. With internet buying it’s easier for a buyer to jump sellers and countries than think about the shipping.

NZPost is a State owned enterprise which the government has said must run as a profitable business. The way they do this makes it difficult for small businesses to export to the end user; which is what other countries are now doing.

I’m not suggesting that NZPost should make a loss, but how do the other countries manage it? economies of scale and lower operating costs probably.

Is it worth it? For the moment I think it is. The internet can present a product world wide.