I’m pleased to report that, as promised, we did launch on the 25th of September. Although we have been quieter than expected, it is a limited launch from a small store in a non-target area. I think it is preferable to be quieter than hoped rather than too busy. So far we’ve delivered everything to the right person at the right place within our guaranteed time period.
As with any new business, we learn something every time we do something. Whether it’s that Australia Post charges $7.60 to lodge an item in a parcel locker, even when the parcel locker is 10 feet from the counter, or whether it is that we need to be more clear with Passers that they only have 5 minutes to reply.
I really want to thank Sree and Megan from Pookipoiga for their patience and support, which included letting me spend a few days in their lounge room so I could literally be on top of things! If you want to check out Pookipoiga, follow the link below to Passerland and enjoy 10% off in addition to free delivery when you choose Passel.
Our next step is that we are in talks with premium organic cotton brand Purebaby for offering 3-hour deliveries to parents from their Chadstone store in the coming weeks with plans to roll out to other Vic stores. We are also in discussions with a handful of other retailers keen to launch Passel prior to the Christmas rush.
I continue to be surprised and flattered by the media attention which seems to come from a whole range of places. A few weeks ago I was interviewed on Jacki Mitchell’s amazing podcast – Taking Care of Business. Jacki was a wonderful host and gave me some very solid media tips. From there it was a print interview with Logistics Magazine.
Last Sunday, Julian and I were interviewed onsite at Pookipoiga by a journalist from Indonesia’s Metro News TV (“the CNN of Indonesia”). And I have just recorded a podcast interview with Ian Kerr and I ought to show up on the Postal Hub Podcast in coming weeks.
And I was just lucky enough to spend some time with Ian Kerr from The Postal Hub Podcast – stay tuned for that one!
Thoughts on Shipster
(not to be confused with ShipsterUSA or being a shipster)
I have been asked a lot about my thoughts on Shipster, and to be honest I’m not that excited about it. I’m not privy to the commercial agreements, but it would seem that:
– It’s nothing new. Plenty of companies already offer subscription services, as do postal companies overseas.
– The service is standard parcels, so it doesn’t fix the fundamental problem in delivery of slow transit times.
– There are very concerning privacy factors. You can read the personal data clause here.
– There is an excessive use policy which seems counter-intuitive. “We generally consider that more than 160 individual transactions in a 12 month period would constitute excessive use”. Consumers will be punished for using the service too much. For a service pitched as an alternative to Amazon Prime, this is astounding.
– It’s limited. Minimum order value $25, maximum normal shipping cost $20. That seems to mean there is limited tolerance in the business model.
– It appears to be destined to reduce shopping cart size for many retailers. Free shipping for small orders reduces the incentive to add more items to a cart to qualify for free shipping. I think retailers will see no increase in overall sales but will see an increase in the number of orders with a corresponding increase in fulfilment costs.
– I can see how it is a big deal for Australia Post. Consumers are forced to sign up for MyPost and pay a monthly fee directly to Auspost. Increased number of shipments is also a bonus.
Time will tell. The real test will be how many people stay signed on after the healthy pre-Christmas discount when they have to start paying $90 a year.
Passerland is the place to shop for Passers! As a Passel Delivery Member, Passers will receive a range of discounts and vouchers. To kick it off, we’ve got 10% off at Pookipoiga and a free meal from Feastively.
As a key part of our mission at Passel is to help the retailers sell more, we intend on Passers having access to a range of discounts that encourage them to shop at Passel Partner Stores. This ought to be a virtuous circle where everyone wins!
You can check out Passerland here. We’ll soon password protect that page to ensure only Passers have access, so if you haven’t signed up, you can do so here!
Thanks for your ongoing support!