Australia Post recently released its Inside Australian Online Shopping eCommerce Update, updated in September 2021.

August 2021 was a massive month for eCommerce across Australia, with NSW recording a 41% share of all online purchases during August 2021.

Nationally, purchases were 24% higher than August 2020 and on par with Christmas 2020.

The ever-increasing demand for online shopping pushed yearly growth to 23.4% in the 12 months to 31 August 2021 and has been the catalyst for a significant increase in parcel processing investment for Australia Post. It forecasts this growth to continue into the next quarter.

Marketplaces and major and discount stores were amongst the winners in the online shopping boom, experiencing a 34% YoY growth.

The number of households shopping online in August surpassed 5.9 million for the first time ever, 1.5% higher than the Christmas rush in 2020.  This has bumped the monthly average to 5.3 million households shopping every single month in 2021. The yearly total now stands at 9.2 million unique Aussie households who’ve shopped online up to 31 August 2021.

Store Closures

Online shoppers are unsurprisingly making more unplanned purchases than 12 months ago. In a recent survey:

• Over 37% of respondents said they’re making either slightly more, or many more unplanned purchases, and restrictions
• Only 9% of respondents are purchasing less.

The main factor driving this shift are shoppers in New South Wales and Victoria. Over 40% of respondents from NSW have increased their unplanned purchases, with 39% of Victorian respondents saying the same.

As expected, ‘not being able to visit physical stores’ is the main reason for unplanned purchasing, with the next most popular reasons being ‘more time on my hands’ and ‘spending more time online during lockdowns’.

Savvy retailers are aware of this with 16% of shoppers indicating they’ve been getting more offers from retailers they’ve previously shopped with, and 12% saying the offers are more targeted to their interests.

State Snapshot.

Every state saw positive year-on-year (YOY) growth in August except for Victoria.

NSW was the fastest growing state for the month, growing 78.2% YOY and accounting for 41% of all online purchases. Considering NSW has 32% of Australia’s population, the state is making 1.3 times more purchases compared with the rest of the country.

The ACT was the next fastest growing state or territory with growth of 52.2% YOY. Victoria continues to see YOY decline and was down 10.9% on August 2020. The state was in full lockdown in August 2020, indicating a decrease in online purchasing despite the same retail restrictions in
place.

Read the full report: Inside Australian Online Shopping eCommerce Update, updated in September 2021.

In response to Australia’s booming online sales, Australia Post has announced an additional $400 million to be invested by mid-2022 in new parcel facilities, fleet and technology.

The latest investment brings the total investment committed to over $1 billion over three years, following the recently opened major parcel processing facilities in Brisbane, Sydney, Melbourne and Adelaide, as well as five new facilities currently underway in Perth (WA), Bayswater (VIC), Western Sydney (NSW), Botany (NSW) and Tullamarine (VIC).

Like most logistics companies, Australia Post has seen a dramatic increase in demand for its services during the pandemic.

This demand has driven the increased investment and will mean improvements in parcel scanning and tracking in the network, plus extra capacity to handle growing parcel processing volumes.

Australia Post Group Chief Executive Officer & Managing Director Paul Graham said “Australia Post has an unrivalled delivery and post office network. We know our customers want their parcel delivered as quickly and efficiently as possible so that’s why we are further increasing capacity with five brand new processing facilities before our peak period in 2022.”

The increase in facilities, including the addition of pop-up facilities, adds 30% extra processing capacity this Christmas, the statement read.

“We are also investing to extend our already extensive last mile delivery network – with a further $31 million committed to the new electric delivery vehicle fleet – which are better for the environment and safer for our people.”

Australia Post has seen online shopping increase by as much as 32 per cent during the pandemic, with the organisation consistently delivering more than 10 million parcels a week across the country.

Over 5.7 million Australian households are now consistently shopping online and it is expected online shopping will continue to grow over the coming years by 9-10 per cent per annum on average over the next decade.

Image credit: Priscilla Du Preez Unsplash

Millenials, currently aged between 20 and 36) don’t read direct mail because they’re too busy on their smartphones and tablets?
Wrong, if the research is right.
QG recently found in its survey that 77% actually pay attention to direct mail that marketers deliver in their letterboxes. Millennials, it finds, actually quite like tangible direct mail, they might even share it with friends if they like your messaging enough.
Better still, this demographic – more educated, more connected. More diverse and media savvy than any previous generation – is rapidly emerging as the most influential generation of consumers.
By 2020, Millennial spending power in the US will reach an estimated $1.4 trillion annually – right as they approach key life milestones such as getting married, purchasing a home and becoming parents.
Millennials drive when, where and how to engage with the direct marketing messages they want to receive, the products they want to buy and the brands they support. So what makes them sit up, take notice and make a purchase?
…They value print and when it’s interactive, the millennial customer experience is optimised.

Making Millennial Direct Marketing Work:

Forbes recently published an article “Direct Marketing Is Thriving In Millennial Mailboxes: Here’s How To Make The Most Of It” which we thought was interesting enough to share.

It recommends the following 3 strategies to make your direct marketing to millennials campaigns work effectively.
1. BUILD A GREAT MAILING LIST
We live in a data-rich world where direct marketers can customise to their heart’s content. By leveraging big data, direct marketers can build sophisticated campaigns based upon key criteria such as demographics, behaviour and attitudes, life events and many other options.
2. TEST AND TRACK EVERYTHING
We’ve said this before, test using A/B spilt testing, tweak for optimal performance and track ROI. Consider QR codes to assist with tracking conversion.
3. MULTIPLY YOUR TOUCH POINTS
If at first you don’t succeed, don’t give up! Give your campaign sufficient time and investment and reach your audience at least 3 times before you give up on it..

What This Means For Direct Marketers

With millennials quickly becoming one of the biggest global consumer markets, use this opportunity to reconsider direct mail as a tool to reach them. While you might think direct mail is somewhat old fashioned, research shows that millennials may not agree with you.

Direct Mail Corporation stays abreast of the latest trends of direct mail. Talk to us about how we can help you efficiently manage direct marketing campaign, increase response and give you that much needed competitive edge with millennials.

Direct Mail, a Melbourne expert in eCommerce fulfilment and logistics, has officially opened the doors to its second warehouse in Epping, Melbourne.

The additional 12,000 square metres caters for the surge in demand that Direct Mail has experienced for its popular 3PL and retail fulfilment services – and brings the total storage capacity to 20,000 square metres and 9,000 pallet spaces across two locations.

The new warehouse, located at 24 Jersey Drive, has 66 car parks for client, courier and truck use, and is large enough to support Wholesale EDI.

The company can handle 25,000 picks per day.

Direct Mail has been a Melbourne-based company since it started in 1994 offering bulk mail, printing and letterbox delivery services.

Five years ago, it broadened its service range, investing heavily in technology to enable it to become an order fulfilment and logistics partner of choice for eCommerce and retail businesses.

Today, it works with some of Australia’s best known eCommerce retailers as well as a range of ambitious retail start-ups.

It was just three years ago that the company sublet its former Richmond facilities to relocate to Heidelberg West as its rapid growth in 3PL meant it quickly outgrew its inner-city headquarters. This growth continues unabated, driving the expansion into additional locations.

The 5-year Epping warehouse lease arrangement was facilitated by Gray Johnson’s Matt Hoath, representing Direct Mail Corporation.

For more information, contact Brett Cahir on 0418 397 164.

If you haven’t already heard, we’ve moved to much larger premises in Heidelberg West and, although we loved being part of the Richmond business community for so many years, as anyone who tried to navigate our former home can tell you, we simply outgrew its limited space.

We are now located at 26 Dougharty Road, Heidelberg West VIC 3018 and we can be reached on 1300 337 100. Come visit us, there’s plenty of off-street parking.

Here is what our new space offers our 3PL and bulk mail customers:

• 6500 square meter stand alone facility
• 5000 square meter warehouse
• 1500 square meter X 5 container height roller door with full container unloading area
• Semi trailer unloading dock
• 2500 pallet spaces

Like any complicated move, we’re still unpacking, but we thought we’d share these work-in-progress pictures!

Last week, Forbes published the article “An Appreciation For An Old Friend: Direct Mail” by Steve Olenski, CMO Network.

What makes it interesting to us is that the US experience is something we’ve experienced in Australia as well – many companies that have gravitated to virtual reality, digital ads and boosted social posts as advertising tactics are finding they don’t yield the same results as traditional marketing strategies.

The article cites some interesting statistics and a case study, which is worth reading in full (see our link to the original article below).

In the US, the thriving direct mail is a $44.2B industry, due to its effectiveness at customer engagement and conversion, especially when compared to other forms of advertising tactics.

US advertisers spend $167 per person on direct mail to earn $2,095 worth of goods sold – in other words, enjoy a 1300% ROI. The response rate to direct mail pieces is much higher at 3.7% compared to 2% for mobile, 1% for email, 1% for social media and 0.2% for Internet Display.

For brands looking to target millenials (those born between 1980-1995), InfoTrends research shows that US millenials, although glued to their smartphones, prefer direct mail (38%) to email marketing (26%). The US Postal Service found that 47% of millennials check their physical mailbox each day and they spend more time going through the mail they receive, including direct mail marketing material.

The key to a successful direct mail campaign is adding a call to action that prompt the recipient to do something, typically within a limited time frame, says Steve Olenski. Coupons are still a successful tactic in the US, with 93% of shoppers surveyed by Valassis saying they use coupons from the mail during 2018.

Read the original article: An Appreciation For An Old Friend: Direct Mail

Third-party logistics providers are a major catalyst in the success of businesses needing inventory management and storage, processing, transportation, assembly, shipping, and other logistics and management processes.

Take a look at these 5 benefits a third-party logistics provider can offer any e-commerce or brick-n-mortar business looking to grow or gain a competitive edge.

1. Outsourced Third-Party Logistics allows for maximized core competencies

To successfully build a business in a rapidly growing market, it must operate efficiently – and the greatest efficiency can be realized when the business is directing its energy, resources, and finances towards its core competencies.

Assigning non-core responsibilities such as managing inventory, shipping, or warehousing to core personnel swallows their time that could otherwise be invested in business growth. Scattered focus leads to inefficient work places, and it can ultimately affect the business’s bottom line and growth potential. Most businesses don’t have the expertise to successfully manage large volume logistics. Because of this, it’s a wise decision to partner with a reputable third party logistics company like Direct Mail Corporation.

2. Outsourced Third-Party Logistics means low capital commitment

By outsourcing to an experienced third-party logistics provider, a company can run their business with low capital commitment, thus avoiding large investment costs. Third party logistics partners have the proper warehousing infrastructure, equipment, transportation, technology systems, a scalable fulfillment team, and costly insurances. A third-party logistics provider absorbs these operating costs, which allow its clients to operate without have such large fixed overheads.

3. Outsourced Third-Party Logistics leads to overall cost savings

Achieving lower operational costs is one of the primary reasons a business may decide to outsource their logistics to a third party. Partnering with a third party logistics provider often delivers significant savings overall and keeps a business’s financials on track.

Cost savings in the supply chain billing, payroll, hiring, training, and other essential administration required to manage logistics. In addition to paying for warehousing space, utilities, equipment such as forklifts, logistics software can be costly. These costs are borne by the third party logistics provider rather than the business.

Normally a reputable third party logistics partner offers greatly reduced shipping rates due to the volume of parcels distributed.

4. Scalability – Efficiently handle volume peaks and fluctuating demand

An experienced third-party logistics company understands fluctuating demand and has a workforce in place that is ready to step in to manage peaks. Direct Mail Corporation’s casual workforce is experienced in coping with holiday orders, high-sale seasons, as well as last-minute promotional sales. Conversely, when demand is low, our workforce is able to quickly scale back, too.

5. Outsourcing logistics provides a market expansion opportunity

Working with a reputable third-party logistics company can provide the opportunity for a business to expand into new regions. Certain areas may be physically impossible to reach without third party logistics support.

As you can see, there are many benefits to partnering with a reputable third party logistics provider. Overall, it allows a business to effectively meet their market demands, as well as customer needs. In addition to this, it greatly benefits their ability to operate cost-effectively, allocate resources where needed, and grow their business successfully.

Find out more about Direct Mail Corporation’s third party logistics services.

Savvy business owners know that keeping on top of the future trends of direct mail is not only wise, but a competitive necessity. Direct mail trends have been constantly evolving to adapt to new market demands, making today’s direct mail campaigns more engaging and effective.

Direct mail providers predict a growth in volume over the next few years, especially since consumers are tuning out of overwhelming numbers of emails. Knowledge is power – in this instance, the power to keep your marketing competitive.

Trend 1: Programmatic Mail – Data leads to better audience profiling

Imagine being able to directly pinpoint your customer’s interests and needs, and create direct mail based on those findings? Direct marketers are excited about the emerging programmatic mail technology, a data-driven method for fine-tuning and personalizing your direct mail campaign.

Programmatic mail allows businesses to create accurate customer profiles to determine how to create appeal and interest by individuals. This is accomplished by monitoring real-time shopper interests such as keyword searches, page visits, product searches, cart activity, and so on. This data allows a business to tailor their direct mail to match their customer’s interests.

Trend 2: Think creatively or you’ll waste your direct mail opportunity

Marketers have been stepping up their game over the years when it comes to their direct mail campaigns, creating an extremely competitive market where plain and simple marketing pieces fail to capture consumer interest.

A powerfully-designed direct mail piece leaves a lasting impression on its recipient. For example, a World Water Day campaign in Belgium distributed a direct mail piece with a message that could only be read when placed underwater. It was a one-of-kind creative design that was infinitely shareable.

Even if your business doesn’t have the means to create expensive water pieces, experiment with texture, bold and bright colors, interesting designs and shapes to create visual impact.

Trend 3: Integrated Marketing keeps your customer engaged

Modern marketing trends focus on integrated marketing, in other words, the cross-pollination of creative across multiple media as one campaign execution. Integrated marketing channels include print, direct mail, video, mobile, radio, TV, online and outdoor.

You can integrate direct mail into other channels through adding a URL or QR code to a direct mail piece that takes your customer to a campaign landing page to leverage promotional discounts.

Trend 4: Emerging technology is a direct mail game changer

It goes without saying that the hottest marketing trends are tech related. This is why top businesses and agencies are incorporating innovative technology into their direct mail pieces. Technology mixed with direct mail print pieces can produce a dynamic marketing tool that will enhance the recipient’s experience. Two tech trends that are at the top of the list are augmented reality and video mailers.

Augmented Reality: AR technology can turn a simple mailer into a premium direct mail piece. It offers a new and exciting experience for the end user by allowing them to interact with digital elements.

Toy giant, Toys “R” Us cleverly implemented AR into their paper catalogs through enticing kids to find the hidden giraffe via their AR app. Children were excited to look through every single page of the catalog, more than a few times. They are not the only retailers embracing the AR technology trend, as these other examples of AR show.

Video direct mail: Consumers have an insatiable appetite for video, as YouTube proves. No you can add life to your direct mail piece, increase engagement, and secure new customers by embedding video in printed materials. A video mailer is normally constructed of a card-stock base that contains a small LCD screen that can store up to 2 hours of video. This type of direct mail piece is truly a step into the future and will be memorable to receive.

Direct Mail Corporation stays abreast of the latest trends of direct mail. Talk to us about how we can help you efficiently manage direct marketing campaign, increase response and give you that much needed competitive edge.

The 3PL provider you choose will make or break your company’s logistics. 3PL partners have a direct impact on customer satisfaction and repeat purchases, as well as your bottom line. Think of 3PL as an extension to your business and you will want to be certain all the pieces of the puzzle fit. Here is a handy guide you to help you choose the 3PL provider to best fit your needs.

1. Select a 3PL Provider that has Excellent Industry References

You cannot underestimate the importance of a proven track record. Slick marketing materials are no substitute for industry references. How many long-standing relationships do they have? This indicates if they are on top of their game in terms of client satisfaction. How long have they been operating? A new start-up 3PL does not have the depth of experience that a 20-year logistics veteran, such as Direct Mail Corporation, delivers.

2. Can They Effectively Scale as Your Business Experiences Growth?

If a 3PL provider can’t scale to meet your growth, forget them. Confirm that your potential 3PL provider is capable of quickly adjusting to spikes in demand or in response to volume fluctuation. A sudden growth significantly impacts your supply chain. Without the right 3PL in place, it could adversely affect your customer satisfaction and future sales.

A facility tour may indicate a 3PL provider has warehouse space for additional inventory. Capacity, though, is not the only concern in regard to growth. Staff must be able to effectively handle fluctuations in demand efficiently and accurately. Your 3PL logistics partner should be willing to work with you closely to understand your current growth pattern, manage product inventory and help with forecasting.

Direct Mail Corporation delivers scale through its casual workforce, which can be brought in to manage peaks in demand.

3. A 3PL Provider Must Invest in the latest Technology

If your potential 3PL provider doesn’t have technology to integrate with major e-commerce platforms, such as Shopify and WooCommerce, take them off your list. You need to keep logistics visible to you; ask for a dashboard so you see exactly what the 3PL provider sees.

Technology delivers efficiencies in time, cost and accuracy. If a potential 3PL provider uses subpar or old technology, you’ll end up paying more than needed. Direct Mail Corporation has the latest in 3PL technology – technology is a priority investment for our business.

4. Are They Able to Leverage Deep Postal and Courier Discounts?

A key reason business engages a 3PL provider is to maximise postal and courier discounts. Because of volume, 3PL providers can often negotiate much cheaper freight rates than if a business was to handle its logistics in-house.

Direct Mail Corporation passes discounts back to businesses, but some 3PL providers may not. So make sure you check.

5. Will Effective 3PL Account Management Be Provided?

Sometimes, if you’re a little fish in a big pond, you don’t get the attention you deserve. 3PL account management, especially when you’re first starting out, is critical. Without end-to-end 3PL support, your logistics cannot run efficiently. No matter your size, you need someone in your 3PL managing product inventory, returns, and suggesting opportunities to improve your overall efficiency.

Direct Mail Corporation offers full account management to all its clients, from the largest brands through to the entrepreneur starting out in their growing business.

As you can see, there are many factors to consider when choosing a 3PL provider. Do your research. You are bringing a logistics partner into the heart of your business.

Learn more about Direct Mail Corporation’s 3PL services.

DMC has installed the latest Xerox Color Press 1000 digital laser printing equipment on site to compliment our two Xerox Nuvera 144 black and white machines.

We are able to reproduce incredible lifelike color on single cut sheet up to SRA3 (oversize A3 STOCK) max 350gsm.

This equipment delivers outstanding results for postcards, letters and leaflets all personalised at the same time if required. (Also laying out and printing 4,6 or 8 up on a sheet saves on paper and print costs. DMC can trim and guillotine to size ready to mail.)

We can access any stock type you require.

Feel free to drop in and see this machine (and any of our equipment and facilities) in action.

• The Colour 1000 Press doesn’t use or generate alcohols, chlorinated solvents, acids or flammable materials. Emissions such as ozone, dust and volatile organic compounds are strictly controlled and well below regulatory levels.
• Dry inks used in the press are non toxic and have closed containers with a transfer efficiency rate of over 85%, meaning less dry ink waste is generated.
• Prints produced on the Colour 1000 Press offers good deinkability and are easily recycled.
• Components within the Colour 1000 Press and its consumables have been designed to be recycled or remanufactured in line with Fuji Xerox Australia’s goal of zero landfill policy.
• The Colour 1000 Press has been engineered with improved energy efficiency in mind, being the first press utilising EA Dry Ink and features an innovating cooling unit module.

Direct Mail Corporation is a full service mail house and 3PL service. To learn more about our industry-leading technology,please get in touch.