Australian startup Sendle offers guaranteed lower price for national parcel sending

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Melbourne CBD
The central business district (CBD) of Melbourne can be seen from the area located along the Yarra River called Southbank located in Melbourne, Australia, July 27, 2016. Reuters/David Gray

Australian parcel delivery and logistics startup Sendle is offering a guaranteed lower price for national parcel sending for small businesses. It now guarantees shipping 500g to 25kg parcels around the country for up to 70 cheaper compared to rates offered by Australia Post’s parcel post service.

The price guarantee covers all 500g, 2kg, 5kg, 10kg and 25kg parcels sent within the courier service’s same-city and national parcel network, which is said to cover about 95 percent of all Aussie households. Founder and chief executive of Sendle James Chin Moody said all SMEs will save 15 percent on average.

He reportedly believes this is the first time a company has offered a price guarantee against Australia Post. “Are the big guys paying $45 to send that package? I don’t think so, and that’s why we want to make the price what it should be,” StartupSmart reported Moody as saying.

Sendle has recorded 30 straight months of 20 percent month-on-month growth. Moody said it has been quite a journey.

He shared that what they are seeing is that when a business learns there is a competitor, they will give their company a try even with only one parcel. They have great conversion as 99 percent of parcels come from customers who have sent things more than five times. Moody added that they have facilitated more than $100 million of SME e-commerce through Sendle.

Recently, Australia Post has launched a new campaign that’s focused on supporting small businesses across the country. It showcases four small business stories, each one uses Australia Post’s services to help earn their livelihood.

"This campaign creatively signals that this movement continues, by bolstering our small business offering through new products, services and partnerships that are relevant and valuable for Australian small business to be successful,” Australia Post GM of business Rebecca Burrows said. Australian Post undertook a review of its marketing processes last year.

While Moody admitted it was a tough gig, it is one he believes to be very rewarding thanks to the difference the company sees itself making.  As a startup, he thinks the best thing to do is to find a big monopoly provider in an industry everyone knows and understands, and disrupt it.

Moody said despite Australia Post being a dominant provider in the market, they are not intimidated. He also said the reason they exist is because Australians deserve to have a choice.