Tag: New Zealand

New parcel services meet booming online demand in New Zealand

Significant growth in parcels due to online trading has sparked new parcel services says New Zealand Post.

Parcels marketing manager Mike Stewart said New Zealand Post’s research found that online traders had particular needs from a parcel service.

These requirements have been incorporated into the new ParcelPostTM range, which starts on 28 March, he said.

“We found there was a real gap in the market for an economic alternative to couriers,” said Mr Stewart.

“E-traders want to know their parcels have been delivered, but they don’t necessarily want to pay a fortune for overnight delivery.

“We’re introducing a tracked parcel service that gives e-traders proof of delivery – but at a cheaper price than courier alternatives.”

A tracked parcel has a barcode on it that’s scanned at various points along its journey. Progress is updated online so that senders will know the time and date when their parcel has been delivered to the door.

The new ParcelPostTM Tracked service takes between 1 and 3 days for delivery with prices starting from $4.00.

Mr Stewart says that easy pricing is another high priority for online traders.
“The ParcelPostTM range has a simple nationwide pricing structure and the pre-paid bags have the pricing printed on them. You know exactly what you’ll pay – and there are no extra charges.”

Mr Stewart said online buyers would also benefit from Post’s new PO Box Priority parcel service, which is delivered overnight for a Standard Post price.

“We’re seen growth in the under 3kg parcels in particular – mainly using FastPost because customers are looking for next-day delivery,” he said.

“The PO Box Priority service also allows you to receive items without revealing your home address, which can be a concern when you’re buying from strangers online.”

Trade Me’s head of commercial Mike O’Donnell said that they were pleased to see the development of new postage solutions for online traders.

“Sending an item to a buyer is often the most time consuming part of an online trade. If the new ParcelPostTM range helps make this easier and more cost efficient for our members, then it has to be a good thing.”

New Zealand’s largest online bookstore, Fishpond, says the new ParcelPostTM Tracked product is exciting for their business.

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Reachmedia – A New Era in Unaddressed Mail

Reachmedia, the new joint venture business between New Zealand Post Limited and Salmat Limited, began operation this week, providing efficient unaddressed mail services throughout New Zealand.

Reachmedia brings together Letterbox Channel and Deltarg Distribution Systems, former subsidiaries of New Zealand Post and Salmat respectively. The two companies are equal shareholders in Reach Media New Zealand Limited, a company formed in late 2007 after the Commerce Commission gave clearance to the joint venture proposal.

Reachmedia Chairman Peter Boyle, of Salmat, says the launch of the new business begins a new era for unaddressed mail services in New Zealand.

“There is huge potential for growth in the use of unaddressed mail for communication with consumers and businesses.” says Mr Boyle. “Reachmedia will work closely with existing clients to improve their return on business goals and objectives. Our experienced staff and the proven expertise in campaign planning inherited by Letterbox Channel and Deltarg will provide the flexibility to ensure the unaddressed mail channel is a simple, and highly effective, tool for our clients.”

Reachmedia Chief Executive Officer Paul Forno says, “We are very excited to launch Reachmedia. We are confident of our ability to grow and we will achieve this by doing things differently to meet evolving market needs. Reachmedia is about constantly challenging the way we operate in the advertising market.”

“Reachmedia’s combined strength and forward-looking approach enables it to offer technology advantages, transport efficiencies and the widest reaching single supplier network in the urban market,” says Mr Forno. “Reachmedia is able to target clients’ sales activity according to consumer preferences, through the company’s leading national and Trans-Tasman consumer research insights.”

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Cost of postal services goes up by 25 pct in Samoa

The prices of domestic and international postal services in Samoa have gone up by 25 pct

Samoa Post’s acting general manager, Tupe Ualolo Nun Yan, says the tariff increase is inevitable and long overdue.

He explains that postal costs have gone up considerably since the postal tariff review for international mail in 2006, and the domestic mail review in 1994.

The increase is to offset the higher postal costs which have been caused by rising overseas and domestic delivery charges, freight, VAGST and inflation.

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New Zealand Post adopts pricing in proportion

New Zealand Post today announced new pricing for domestic letters and parcels which better reflects the cost of delivering these services.

Mail will be priced in direct proportion to its size and weight from 28 March 2008.

“The vast majorities of letters sent are small or medium and will not change in price. A medium letter sent Standard Post will still cost 50 cents,” said New Zealand Post’s Chief Executive Officer Postal Services Peter Fenton.

Mr Fenton says that size makes a difference to the cost of handling mail.

Mr Fenton said New Zealand Post was known internationally as a low-cost postal service and the new ‘pricing in proportion’ approach would not change this.

“A foolscap envelope (E35 sized, less than 20mm thick and weighing under 500gm) would cost NZD 5.97 to send in Australia and NZD 3.81 Second Class in the UK in New Zealand currency, but is still only NZD 2.00 in New Zealand under pricing in proportion.”

International and bulk mail services are not affected by the changes.

Parcel dimensions and corresponding prices will also change under pricing in proportion in line with the new letter prices. Already purchased existing prepaid bags and parcel tickets will remain valid.

Smaller lighter parcels will go down in price as a result.

A new range of parcels called ParcelPost™ is being introduced to replace the current packet and parcel services. The ParcelPost™ range includes new handy pre-paid bags to make sending smaller items more convenient and provides proof of delivery for an extra fee.

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Freightways Delivers With Record Result

New Zealand express group Freightways has announced record results for the half year ended 31 December 2007 despite tough economic conditions and said it expects good growth for the rest of the year.
Freightways reported a 2 pct rise in half-year net profit to NZD 16.8 million (EUR 9.1 million). Operating revenue increased 12 pct to NZD 162 million (EUR 88 million), with earnings before interest and tax (EBIT) of NZD 31 million (EUR 17 million) up by 6 pct over the same period.
The company said its core express package business performed well in the first half-year and it expects this trend to continue in the future although the state of the domestic economy will have some bearing on its performance. Its emerging businesses, including business mail and information management, are expected to continue their growth.
Managing Director Dean Bracewell commented that, despite rising costs and the challenging operating environment, “the half year result reflects another strong period for Freightways that has continued to deliver upon its strategy.”
The majority of Freightways’ revenue and earnings is contributed by the core express package brands of New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60, Security Express and Kiwi Express, where primary focus is to defend and grow the business.
The DX Mail business is seen as an emerging growth business, since its performance during the half year has been outstanding, while its contribution to Freightways’ earnings remains relatively small. Freightways also views the information management market as an emerging growth opportunity, as evidenced by the recent acquisitions it has completed in New Zealand and Australia, with all businesses experiencing strong growth.

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