Australia Post is reportedly winding down its subscription-based online shipping service ‘Shipster’, used by over seventy retailers including; Harvey Norman, Myer and Target.
Published to the company’s website, the service failed to gain critical momentum – enough to be self sustaining – and is closing July 31, 2019.
“Whilst Shipster is popular with the participating subscribers and merchants, it is now clear that it will not reach the critical mass required for it to be self-sustaining,” the website reads.
“For this reason we have taken the decision to close Shipster over the coming months.”
Existing users can use Shipster until it closes, with annual subscribers receiving a pro-rata refund for remaining months.
The service was launched in October 2017 and was said to take on Amazon’s Prime subscription service.
[Shipster website]
Retailers paid the cost of delivery, however, received a rebate on their share of the subscription fee.
The news comes as retailers further ramp up their delivery options, with ‘Click & Collect’ growing in popularity around the nation.
Analysts claim the subscription fee was not sufficient to cover fulfilment costs, with Australia Post and retailers often subsiding the service.
Australia’s retail industry has continued to wrestle with sluggish performance, alongside mounting price competition from overseas e-sellers.
Further information is available on Shipster’s website here.
