Blog
Shipping Fee to Increase From September 2026
The shipping fee increase has been implemented as of 11.09.2026.
We decided upon an increase of $0.40 for non rural customers (from $6.50 to $6.90) and an increase of $5.40 for rural customers (from $6.50 to $11.90).
We greatly appreciate the support from our rural customers. Unfortunately, we are receiving too many low value rural orders leading to losses. Not just a reduction in profit, but actual losses with some rural orders.
Simply raising the flat rate fee was considered, but this would mean that non rural customers would be subsidizing rural customers.
We do not make any money on shipping charges. It goes entirely towards the courier charges and the packaging materials. You can see what NZ Post charges us in this screenshot below (shows some previous shipments).
For the smallest satchel (DLE) we are charged $5.62 if non rural or $11.73 if rural. These NZ Post charges DO NOT include packaging materials (boxes, bubble wrap, mailing satchels or labels) so we are in fact still losing some money on the shipping portion of every rural order, but it's minimal now.
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 most orders shipped and are able to make a profit only on the products sold (sometimes not even then!).
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.
How Do I Know if I Am Rural or Non Rural?
You can check your address against the NZ Post database here: https://www.nzpost.co.nz/tools/address-postcode-finder
We are provided with a list of rural and non rural post codes by NZ Post. We use these to determine the freight cost. You can find the excel spreadsheet here: https://depotdirect.co.nz/wp-content/uploads/2026/09/PostCodes_Excel-170420-2.xlsx
Updated excel spreadsheet: https://depotdirect.co.nz/wp-content/uploads/2026/09/Rural-TownCity-Mailtown-Postcode-Nov-2024-2.xlsx
If you believe there are post code mistakes in the file please let us know. NZ Post does update their zoning from time-to-time.
How Exactly Will I Be Charged Rural or Non Rural Delivery Fees?
When you input your address at checkout your post code will be matched against a list of rural post codes. If your postcode is on the rural list the freight charge will update to a rural one. Otherwise, it will default to the non rural charge.
Please do not attempt to bypass this mechanism by inputting a false post code. When your order is being prepared your address is inputted into the freight management software and it automatically shows a notice if an address is rural, so we will quite obviously know. Discrepancies will lead to your order being delayed or cancelled.
