Postal service firm’s decision called a ‘kick in the teeth’
THE Federation of Independent Retailers (The Fed) has slammed Evri’s decision to cut commission rates for retailers.
From 5 April, parcels that are classified as ‘shop-to-shop’ will see the commission made by retailers drop from 20p per parcel down to 15p per parcel. There will also be a reduction in the ‘shop-to-shop’ collections by store customers for shopkeepers, down from 25p to 20p.
Shop-to-shop drop-offs are parcels that have been delivered to one store before they are collected by Evri drivers to be taken to another store.
The Fed has labelled the parcel delivery firm’s decision as a “kick in the teeth” for retailers across the UK and said it will be another blow for smaller retailers who are struggling enough as it is.
Craig Etchells, national deputy vice-president at The Fed, said: “At the moment, we do not know how many of our dropped-off parcels are classed as shop to shop because it is not broken down on our invoice.
“The decision by Evri to cut the commission on these sorts of parcels could mean a significant reduction in earnings for retailers.
“There is just as much work to do for the retailer as with any other dropped-off parcel, whether it is a customer to customer or return parcel, while it takes even longer to process collections.
“Such a big reduction in commission is yet another kick in the teeth for smaller retailers like me and many of our members.”
But Evri argued that ParcelShop volumes increased by 15% in the last year, and continue to positively impact footfall and earning potential.
It promised that, following the changes, ParcelShops will receive transparent invoicing providing a breakdown of shop-to-shop payments.
Evri recently rolled out its brand-new state-of-the-art label printers across the entire ParcelShop network following a £7 million investment.
It claimed further investment is planned this year, including £3.5million to replace handheld devices, as well as ongoing software upgrades to improve in‑store journeys and introduce new products.
An Evri spokesperson said: “Our 10,000 ParcelShops play a vital role in our business and, following recent investment including the rollout of new printing devices, continue to provide an essential service in their communities.
“Over the past year, we’ve seen strong double-digit growth in parcel volumes across our shop network, boosting footfall and creating increased earning opportunities for retail partners. As volumes continue rising, and with further investment planned, we see significant long‑term potential for ParcelShops.
“Providing customers with choice remains a priority, reflected by strong growth in our ‘Shop to Shop’ service, which is why it’s important that we’re able to remain the most cost-effective parcel company and we’re committed to offering the best-possible rates in a changing market.”
