I have often been asked, why is the shipping cost to Australia always expensive. If we’ve learned anything about the nature of businesses and government over the last few decades, it’s that bigger isn’t always better. This maxim is certainly accurate when discussing the U.S.’s four largest shipping businesses. These companies are banking on their name recognition to get you to use their services, and to a great extend this strategy works. It’s important to remember, however, that between operational costs, shareholder demands, employee salaries, and million dollar ad campaigns, the big 4 have no room for competitive pricing.
In the United States, four organizations tend to dominate international shipping: UPS, FedEx, DHL, and the United States Postal Service. While these businesses have significant name recognition, none of them are able to give you a low shipping cost from USA to Australia, or any other country for that matter. This article will look at each of the big four in turn, and will explain exactly why they fall short when providing you with overseas shipping.
There is also the reciprocal postage company relationships to deal with. These are generally the operating agreements between the postal departments of two or more countries where they tend to influence the price of postage ensuring that both make money even though the flow or volume of parcels is weighted one way. For example Australia has a population of 23 million as opposed to the US’s 314 million.
Our recommendation is that you do your homework and find a smaller but effective logistics providers that isn’t mired in overhead expenses. Some of these companies can offer up to 50% savings. No matter who you choose – make sure you always get online tracking and insurance. In today’s world of increasingly thin profit margins and rising consumer expectations of fast shipping, you simply cannot afford to pay inflated costs.