Friday, November 07, 2014

Australia Post's Shopmate service announced enabling Australians to ship to a local USA address for companies that won't ship to Australia.

JustLocal is built on the idea of supporting local businesses. Often a product or service created or delivered locally can be done so cost effectively at the same rate as elsewhere and even at a lower cost in some situations. However let's be realistic. People will try to save money when they can just as businesses (including local businesses) will shop overseas to reduce their costs to stay profitable. You won't stay in business long if you're not profitable.

Australia Post have introduced their ShopMate service which appears to provide the ability for Australians to purchase products in the States from companies that won't ship to Australia. Australia Post then forwards the purchase on to the customer in Australia. Some USA companies charge Australians higher prices than they do locally and this is referred to as the Australia Tax. The Australia Tax will probably be more difficult to get around since the USA companies will use the geographical location based on your computer's IP address. To avoid that you'll also need to use a VPN service such as Hola which enables you to appear as though you are in the United States.

You'll then need a form of payment, perhaps a credit card or PayPal, and be mindful of potential legal restrictions and also shipping restrictions. The ShopMate site provides fairly simple guidelines to help the Aussie buyer know what they can't ship. Do keep in mind they mention devices with lithium batteries and that includes many electronic devices, so do check the information provided on the site https://shopmate.auspost.com.au.

Interestingly when I see the words Australia Tax I actually think this service is another form of Australia Tax, but some could say it is simply a mechanism to work around a situation retailers and manufacturers have put into place to unfairly charge Australians higher prices. Ultimately that's up to you to decide.

What I do like is Australia Post has now quantified the cost of such a service and that may enable Australians to work for colleagues based in America where the salaries are typically lower. The base rate of $24.95 is I feel a figure which enables so scope for the opportunity to work together for mutual benefit. I recall a Wi-Fi memory card selling for around $60 in the States and somewhere around 50-100% more expensive in Australia. The funny thing is I ended up getting the card from one of the Australian clearance site for about the same as the American price, but in the end I was disappointed in how it worked. Only half as disappointed though since I'd paid around half the price.

What would also be interesting to know is how the Australia Post prices compare with the American company postage rates. It may be important to know if there's hidden extra cost with higher rates. Also consider insurance, exchange rate and other fees for foreign country purchases. Many people only see the exchange rate but don't realise there is a further rate that is generally not mentioned and that's a hidden reduction in the amount you receive with the credit card companies. I've estimate that could be as much as 6%, so don't just look at the daily rate you see on TV, because that's not the rate you get. Look at what it costs you in Australian dollars. Finally you need to factor in risk and often the inability to make a return. Not because you can't, but because it simply isn't worth the cost. When buying in Australia from an Australian retailer often the risk and the return cost is very low.

Certainly dealing with a well known Australian brand provides a degree of confidence. I do wonder if it takes off whether or not retailers will simply change their terms and conditions to exclude forwarding services which might just stop Australia Post in their tracks.

I wonder how many others think that Australia Post's ShopMate service is a good idea. In the past I've tried to organise similar forwarding services to generate income for an overseas based contact but without a number of Australian customers it really wasn't worth their time. Perhaps Australia Post may legitimise this as an opportunity for some of our fellow home based business operators in the States.

Kelvin Eldridge
www.JustLocal.com.au

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