Online marketplace and auction website Bidorbuy says last year’s prolonged postal sector strike had a big impact on small business owners, who found it difficult to compete with larger retailers and are concerned that the uncertainty of reliable delivery could mean disaster for their online businesses.
This is a key finding in a shipping survey undertaken by Bidorbuy, which found that the months’-long strike by Post Office workers negatively affected 63% of sellers who use its website.
Of 1 137 sellers who took part in the survey, two-thirds sell regularly on the online marketplace, while the remaining one-third sell from time to time.
Sellers on Bidorbuy range from small one-man businesses through to large retailers. For the majority of regular sellers, trading on Bidorbuy is a source of income they count on, the company says.
Even though most sellers also offer courier as one of their shipping methods, 55% of buyers select to receive their purchases via the Post Office because this option is the cheapest.
For many buyers, an additional R50 or more for a courier delivery is simply too much. Fearing that they would not receive their parcels and unwilling to pay more for a courier, some buyers opted not to buy at all when Post Office workers went on strike, Bidorbuy says.
“Besides the strike, other complaints around the postal service include the risk of theft and damaged goods when using this shipping method. However, surprisingly, many Bidorbuy sellers had good things to say about the postal service, commenting that they have never experienced any issues other than when the strike was on.”
Hardest hit were those who sell small, low-value items that are not economical to send by a courier and sellers operating from outlying areas that are not serviced by couriers, or are serviced at an extra cost, the company says. Also hard hit were the sellers who have their supplies sent from abroad by post.
“A number of Bidorbuy sellers live in smaller towns and find that using a courier is too prohibitive. They maintain that keeping a good relationship with their local Post Office is what keeps their business running smoothly, even throughout the strike.”
The sellers who were affected by last year’s strike estimate their losses at between 20% and 70%, it says.
According to the survey results, online sellers want a Post Office that offers the same service as courier companies do, or courier companies that offer the same prices as the Post Office. — © 2015 NewsCentral Media