Australia Post shifts to eServices to combat biggest challenge in 200 years

Australia Post is shifting to digital eServices as mail volumes continue to decline and post offices close.

In the aftermath of closed post offices and reduced services throughout the country, Australia Post, managing director, Ahmed Fahour concedes the organisation is facing its biggest challenge in 200 years.

Fahour (pictured) told a Senate estimates hearing last Tuesday that the shift from mail to internet services in a digital world is crucial for the organisation to remain relevant and economically viable. He identified internet shopping delivery as a potential growth opportunity.

“While we are in a solid position compared to our international peers, Australia Post is currently facing its biggest challenge in 200 years. The generational change in the global communication market means the way the community uses our services is changing and is changing very rapidly,” said Fahour.

Australia Post spokesperson, Sarah Gordon said that letters will always be an important part of the business, but the organisation cannot rely on it being the power-base of its revenue as in the past.

“The effect of falling mail volumes has been felt around the world. It was partly due to the Global Financial Crisis, which not only dulled economy activity but accelerated the switch to cheaper digital communication options, such as email,” she said.

Australia Post announced a new business structure around four key areas – Post Services; Distribution & Express Services; Retail Services and eServices as part of a strategy to expand its online services.

“The eServices business unit will be vital to the future of Australia Post, enabling us to do everything we do physically, digitally,” said Fahour.

In a bid to take advantage of the rise in online shopping, Australia Post has partnered with eBay to provide a Click and Send service. The digital service allows eBay customers to process domestic and international parcels online, including payments and shipment details. Australia Post has also formed a partnership with BIG W online, to provide transport and logistics via its delivery network.

In December, Australia Post announced the purchase of payment gateway company, SecurePay as part of its strategy to expand its online services. SecurePay offers commercial organisations, utilities, local government and e-merchants secure payment services via the internet, phone, or custom software applications.

Other online services include an iPhone app with functions to pay bills, track parcels and find a one of the fewer surviving post office in your location. Up to 60,000 downloads occurred in the first two weeks.

This article originally appeared in DIRECT.