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Deloitte report defines Australia Posts value

Government organisation seen as strong support for e-commerce growth

 

Australia Post has released a Deloitte Access Economics (DAE) report it commissioned into the value of its business to the nation.

Titled Economic and social value of Australia Post and covering its place in the economic, business, consumer and social spheres, the report highlights the government-owned firm’s position in supporting e-commerce — an area it is in strong competition with local and international rivals.

It notes the importance of its retail space nationally to this burgeoning, parcels-focused business.

“Contrary to perceptions of a declining value in the digital age, our report finds that Australia Post is supporting our transition to the economy of the future, by facilitating e-commerce, exports of small and medium-sized businesses, electronic payments, and digital identity solutions,” According to DAE partner John O’Mahony, an author of the report.


Read how Australia Post has created a technical academy here


Australia Post was found to be particularly important for the one million households that did not have internet access, and for Australians in regional and remote areas, which were very likely to rely on post office services.

“Post offices are used by Australians for a large range of delivery, financial and other services, and consumers place significant value on these services. Consumer value exceeded the price paid for services by more than $2 billion last year,” O’Mahony says.

The Deloitte report finds:

  • for every $1 that Australia Post contributes to national GDP last year, another 86 cents in economic activity was generated in other industries.
  • with a direct economic contribution of $3.2 billion, this means Australia Post created a further $2.8 billion through flow-on economic activity, generating a combined total of about $6 billion.
  • Australia Post’s national delivery network is particularly important so that small businesses can access new customers in the booming e-commerce market, forecast to grow to $22 billion by 2022
  • it facilitates about 82 per cent of Australia’s $14 billion e-commerce sector.
  • Australia Post’s total economic contribution was more than other significant industries, such as broadcasting and electricity generation, which contributed $5.8 billion and $5.1 billion respectively
  • its activities deliver social benefits worth $185 million a year.

The full report can be found here.

 

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