Thursday 7 September 2023

More competition for Royal Mail's parcel market, while business account customers look at more surcharges on their costs.

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Post Office adds DPD to list of parcel companies it deals with.

According to The Telegraph, Royal Mail's retail partner, Post Office Ltd, has now reached agreement with French-owned courier company DPD for the acceptance of inland and international parcels at PO branches.

DPD Driver & Van (image: DPD)

 

DPD, which is owned by La Poste, has signed an agreement that will allow customers to select and pay for UK and international parcel services online before dropping them off at a Post Office branch.

Customers can choose to print the label at home or ask a member of staff in the branch to do it for them.

DPD provides delivery services for dozens of retailers in the UK, including Asos, John Lewis, Marks & Spencer and Ikea.

The deal extends the courier’s relationship with the Post Office following the launch of a click and collect service in 2021.

That partnership, which marked the Post Office’s first deal with an external courier firm in its 360-year history, enables people to pick up their DPD parcels from Post Office branches.

The online parcel service will also offer deliveries through Evri, the German courier that rebranded from Hermes last year.

It comes as a further blow to Royal Mail, which previously held an exclusive deal with the Post Office.

In a note to staff, Post Office deputy chief executive Owen Woodley said the company was at risk of continuing to lose customers because of its lack of online offering.

He said: “This is an incredibly competitive market, which is compounded by the fast rise of alternative PUDO [pick-up drop-off] providers, such as lockers. And we all know, the long-term decline of stamps will inevitably continue.

“We regard Parcels Online as being crucial to securing long term sustainable growth for our Postmasters through a multi-carrier and multi-channel Post Office.”

At launch, 3,600 Post Office branches will be available for the online DPD service, increasing to 4,000 next month.

 


Fuel, Green and Peak Surcharge extras for Royal Mail's Business Contract Customers.

ChannelX ("the leading provider of intelligence & news for all businesses and business people who ply their trade on online marketplaces)" reports on new fuel and green surcharges being applied by Royal Mail to business users' costs.

 

"Consumers (anyone that pays online or at the Post Office) won’t be impacted. But if you have a business account this is going to hit you hard.

"Put simply, this Christmas you’ll be paying a new 2p Green Surcharge, plus a new 10p Peak Surcharge, plus an additional 8% Fuel Surcharge for every parcel you send.

Fuel Surcharge

"We’ve become used to the Royal Mail Fuel Surcharge, which is applied on the product price after any discounts or commissions, and before VAT. They aim to keep this surcharge lower than other delivery companies. 

"Currently a fuel surcharge of 8.0% is applied to:

  • Royal Mail Special Delivery Guaranteed® by 9am, 1pm and end of the day Sunday
  • Royal Mail Tracked 24® and Royal Mail Tracked 48®
  • Royal Mail 24® and Royal Mail 48®
  • Special Delivery Guaranteed Returns
  • Royal Mail Tracked Returns® and Mail Order Return
Green Surcharge

"The Green Surcharge applies to some products for Royal Mail account customers – you are basically being co-opted into making contributions towards funding decarbonisation measures in the Royal Mail network at a rate of 2p per item. The Green Surcharge will be introduced on or after the 6th of November 2023.

"You might be forgiven in questioning why this is being levied as a surcharge instead of just jacking up prices by 2p per item. It’s worth noting that as a surcharge Royal Mail can hike the rate any time they like with 30 days notice.

"The Green Surcharge is applied on the product price after any discounts or commissions or other surcharges, and before VAT for:

  • Royal Mail Special Delivery Guaranteed® by 9am, 1pm and end of the day Sunday
  • Royal Mail Tracked 24® and Royal Mail Tracked 48®
  • Royal Mail 24® and Royal Mail 48®
  • Special Delivery Guaranteed Returns
  • Royal Mail Tracked Returns®
Peak Surcharge
 
"The Peak Surcharge is effective across Royal Mail’s busiest time of year when they scale-up their network at additional cost. In previous years, Royal Mail have always swallowed these costs… after all the more parcels you send the more money they make, but from this year onwards they appear to want penalise you for being busy over the Black Friday and Christmas period!

"The Peak Surcharge is applied on the product price after any discounts or commissions or other surcharges, and before VAT and will start to be charged from the 20th of November 2023 and be effective through to the 7th of January 2024.

For more details see the ChannelX report.




1 comment:

  1. I for one will not be using either the DPD or Evri service.
    One left a birthday present (box of chocolates) on the doorstep in the sunshine and the other dropped a package containing a bottle of wine over a 7ft wall. The chocolates were only recovered because I forgot something and returned home shortly after leaving for a day out. A parcel was also left on the doorstep and was recovered by a neighbour when somebody tried to make off with it. It turned out to be right number, wrong street, wrong town. At least royal mail leaves a card with a place to collect.

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