Australia Post is set to slam customers with undelivered parcel fees ranging from $3 to $9, and will now hold packages for a maximum time period of 30 days.

The charges, which will be enforced from August 1, were introduced to allow customers ‘more time’ to pick up parcels, according to an Aus Post spokesperson.

The charges follow a suite of price hikes for this year including a change in stamp and ordinary letter fees, and slowed delivery rates.

The postal giant says customers want extra time to pick up undelivered goods, and believe most will happy to pay the excess charges. Parcels are currently held free of charge for 10 days before being returned to the sender.

[Related: Slow mail hurting businesses]

“Most customers pick up their parcel quickly, with 92 per cent of parcels collected within five days. We believe this service will help the small amount of customers who can’t collect their parcel straight away,” says an Australia Post spokesperson.

“We have conducted extensive market research, speaking with more than 1500 customers on the proposed changes. They have told us they want to avoid parcels being returned to sender and they would go out of their way to pick it up sooner to avoid the fee,” the company adds.

However some backlash following the changes is expected and according to Aus Post the parcel holding service may be dropped if consumer responses are negative.

It is understood price restructures were set in place to offset a slump in traditional letter volumes and to bounce back from the mailing firm’s $221.7m loss last year. The majority of the fees however will be paid to Post Office licensees.

The charges closely follow Aus Post’s attempts to combat sluggish delivery through technological investment in drones and a partnership with courier service Shippit. The company also recently enlisted a convoy of six extra Qantas planes for its air-freighter network.

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