Australia Post acquires 25 per cent stake in Melbourne logistics platform Shiperoo

In a move to make the returns process more efficient for customers, Melbourne-based logistics startup Shiperoo has struck a deal to give Australia Post a 25 per cent stake in the company.

Founded in 2023 by Nishan Wijemanne and Rizan Mawzoon, Shiperoo is a fully automated multichannel retail fulfillment and returns model that offers next-day shipping in its three facilities across Melbourne and Sydney.

The company’s technology covers AI, advanced storing systems, vision systems, automation and a returns management system.

“Returns are a retail pain point on a number of fronts. Difficult returns are a clear barrier to purchase for modern consumers, who often need to access a selection of similar items before deciding what will suit their needs,” Wijemanne said.

“Shiperoo was born from the desire to turn the pipe dream of efficient, cost-effective returns management into a reality, utilising automated multi-channel fulfilment facilities that are powered by market-leading robotic technology and AI.

“This includes rapid fulfilment execution for same-day shipping readiness, seamless returns for consumers through Australia Post’s network, efficient returns processing for retailers, and the integration of managed returns into the circular economy through re-commerce opportunities.”

According to the 2024 Australia Post Inside Australian Online Shopping eCommerce Industry Report, consumers made online purchases worth $63.6 billion in the 2023 calendar year. Across all retail, the average rate for returns was 17 per cent, but for fashion/apparel online purchases – which Australians spent $9.6 billion on in 2023 – the returns rate rose to 30 per cent.

To tackle rising supply chain costs, 43 per cent of Australian retailers raised their free shipping thresholds in 2023. The shift saw growth in retail spending decelerate, with year-on-year growth dropping from 9.3 per cent to 2 per cent.

However, the report also found interest rate adjustments, moderating inflation, predicted income growth and stage three tax cuts are expected to ease economic challenges and enhance consumer spending power by an estimated $50 billion in FY25.

Australia Post executive general manager, parcel, post and e-commerce services Gary Starr said the investment is part of Australia Post’s focus on being part of each step of the retail journey.

“We recognise the importance of supporting state-of-the-art, contemporary fulfilment services to meet the changing needs of customers,” he said.

“We’re also deeply passionate about sustainability. Our partnership will aim to help reduce waste caused by pre-owned goods ending up in landfill through their returns and reCommerce expertise and ambition.

“Re-commerce and the circular economy are surging internationally, transforming the retail landscape. Shiperoo is well placed to help Australian businesses embrace these sustainable practices and the economic advantages of buying and selling pre-loved items."

The news of this partnership comes six months since Shiperoo brought catch.com.au co-founders Gabby and Hezi Leibovich on board to advise on a new ‘re-commerce’ segment for the business, which is designed to help consumers access savings on a wide range of products and prevent excess inventory from going into landfill.