The cost of flat rate shipping will increase to $8.50 from 5th June 2026. This is an increase of $2.00.
Why Is the Cost of Freight Increasing?
There are three main factors at play here.
Firstly, and most significantly, are the increased charges imposed on us by New Zealand Post. These increases have been a regular occurrence over the past three years, with the most significant arising due to the Iran War, which has substantially increased the Variable Fuel Rate (VFR).
Secondly, the cost of packaging materials (such as labels, satchels, bubble wrap and tape) has increased.
Thirdly, because of the increased costs noted above, the cost of managing returns and reshipping orders (i.e., lost or incorrectly fulfilled orders) has also increased, and this must be accounted for.
Why a Rise of $2.00?
Since Depot Direct was founded, the shipping fee we charge customers has never been increased, despite regular increases in our own shipping costs.
At this point, we are subsidising every order shipped and are able to make a profit only on the products sold.
We are even losing money on some rural orders, because the cost of rural delivery, even at its lowest rate (for the smallest satchel), is more than $12. Some customers place such small orders that this freight cost is not covered by the value of the products ordered. In such cases it would be more financially prudent to simply throw the products away!
So, it is necessary to raise the flat rate shipping charge by $2.00 to better cover all of the cost increases that have arisen over the past three years.
Why Don’t We Move to a Cheaper Courier?
A cheaper courier, such as Aramex, would allow us to provide a lower flat rate shipping rate. However, New Zealand Post is by far the best courier service operating in NZ (considering speed of delivery, reliability, and their ability to deliver anywhere in New Zealand). So, whilst they are not quite the cheapest, we feel that the standard they offer makes up for the extra dollar or so it costs per order.
