Blog
Shipping Fee to Increase From 20th June 2026
The shipping fee increase has been postponed until September.
We are currently deciding whether to stick with a flat rate courier charge, or move to post code based charges - i.e. rural post codes will have a significantly higher cost, whereas urban areas will increase only slightly
If we stick with flat rate: The cost of flat rate shipping will increase to $8.50. This is an increase of $2.00 from the current flat rate model. This is an easier model to implement.
If we move to post code based pricing: The cost of urban freight will increase by $0.50 (to $7.00). The cost of rural freight will increase by $5.50 (to $12.00). This is a fairer model to implement, and we are leaning towards this if it can be implemented without too much trouble.
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 an Increase as Specified Above?
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 either raise the flat rate shipping charge for everyone, or substantially raise the shipping charge just for rural customers.
Why Don’t We Move to a Cheaper Courier?
A cheaper courier, such as Aramex, would allow us to provide lower freight rates. 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.
