Postage - what do you use?

[simplyrun]

Hi,

I am interested to know what method of postage you all use for sending out your orders. For example, do you post second class to save money or do you opt for a more expensive method to offer a better and quicker service to your customers?

Next day delivery rates. What are people paying for this? Up until recently we have been using Royal Mail special delivery but found it expensive. We now use a courier but are still paying around £5 for a next day delivery parcel. Is this a decent rate??

thanks in advance

DK

 

[ginnyscards]

I tend to send my items out by either 1st class normal delivery or 1st class recorded delivery, via royal mail. I give my customers the choice at checkout, so they can shoose for themselves, which they want. Generally the items I post are classed as small packets and as 1st class is normally processed within a day and then delivered, from placing your order on my website to getting the item it is generall anywhere between 2 - 4 days, so I have not looked into next day delivery, as of yet!

 

[sysops]

I tend to send my items out by either 1st class normal delivery or 1st class recorded delivery, via royal mail. I give my customers the choice at checkout, so they can shoose for themselves, which they want.

This always puzzles me when I see it. Why do you give this choice?

 

[MH1]

This always puzzles me when I see it. Why do you give this choice?

Guess I agree on this, I only offer a delivery, low weight goes 2nd class recorded, normally 95% delivered in 48hrs, or next day delivery for large bulky heavy items.

Giving a choice seems to confuse a lot of people in my eyes, as long as the orders are sent sameday they are received the delivery speed has never been a problem as of yet.

 

[matt.chatterley]

This always puzzles me when I see it. Why do you give this choice?

There are two arguments here really:

1. Customers like a choice.

2. Customers are confused, slowed down and generally irritated by pointless
(or low importance) choices.

I normally advocate sending everything signed for (since the amount of stuff that tends to get 'eaten' by Royal Mail is amazing - especially if it looks like a DVD/CD once wrapped..).

Sometimes I hear good arguments for the "Express vs Standard" postage argument - normally when the "standard" option is being offered for free.

Personally I tend to pick the cheapest delivery when I am a customer - no point paying a fortune for something to be shipped (though on business purchases, there tends to be more urgency) - and normally won't pay for delivery if 'free' is an option!

 

[Orsenfelt]

I mostly send out boxes in the area of 3/4/5kg. (Computer bits)

Having hunted around, FreightSearch is definetley my number 1 choice. £7.03 to get your package picked up and shipped anywhere mainland UK within 24/48H. They'll do sameday pickups if you order early enough too. Good deal if you don't qualify for a couriers daily pickup or monthly rate type services.

They advertise several different couriers but I've only ever gotten prices from DHL through them, not sure if they are the only ones who operate in my area or if they are the only ones linked up.

Parcel2Go would be my second choice. A bit more established in their field, but a bit more expensive I find.

(Can't post links but a simple Google will take you right to them )

 

[sysops]

I normally advocate sending everything signed for (since the amount of stuff that tends to get 'eaten' by Royal Mail is amazing - especially if it looks like a DVD/CD once wrapped..).

I am constantly amazed by how frequently this misguided, baseless advice gets posted.

Look at those sending out the largest volume of DVD shaped parcels in the UK today - Amazon, Play and Wow. Do they send recorded? Why not? Is it because:

1. They are idiots, and you have figured out something they don't know.

2. They know exactly what the numbers are, and know that even with the % loss they experience, it's still far cheaper to send out non-recorded.

Think about it.

 

[matt.chatterley]

I am constantly amazed by how frequently this misguided, baseless advice gets posted.

Look at those sending out the largest volume of DVD shaped parcels in the UK today - Amazon, Play and Wow. Do they send recorded? Why not? Is it because:

1. They are idiots, and you have figured out something they don't know.

2. They know exactly what the numbers are, and know that even with the % loss they experience, it's still far cheaper to send out non-recorded.

Think about it.

You're missing a few bits out here. Such as - for the small retailer - replacing goods is a significant cost, if they go missing. There are also quite a lot of problems at present with "goods not received" - even when, in all likelihood, they were.

Paying a little bit more for signed for is a good choice to get some protection against items going missing - whatever the cause.

Amazon are slightly bigger than your average small eRetailer, incase you hadn't noticed!

I will admit that it depends on the value (cost price) of the item - e.g. I know someone who was experiencing issues with 'lost' goods, but as they retail designer clothes (Fred Perry, et al) at quite low retail prices - with a tight margin - losing a few orders out of every hundred wasn't a good place to be, and it was deemed preferable to change the type of postage used - rather than raise all the prices.

There /are/ disadvantages with signed for, as well - it has to be signed for (ironically this is also the advantage). Makes it hard for delivery to occur if folks are out at work!

 

[thefashionhut]

Royal Mail Tracked is worth looking into. Tracked from the time they pick up to the time they deliver. Very easy to use and very affordable.

 

[sysops]

You're missing a few bits out here. Such as - for the small retailer - replacing goods is a significant cost, if they go missing. There are also quite a lot of problems at present with "goods not received" - even when, in all likelihood, they were.

Paying a little bit more for signed for is a good choice to get some protection against items going missing - whatever the cause.

Amazon are slightly bigger than your average small eRetailer, incase you hadn't noticed!

Complete nonsense. It either adds up or it doesn't add up - the size of the operation makes no difference.

Option 1: You send out 1000 parcels 1st Class Packet Post, at a cost of £1.84 each (up to 500g).

Total cost = 1000 x £1.84 = £1840

Their value to you is £20 each. You lose 1% (very high indeed), which equals 10 parcels, value to you £200. Total cost £2040.


Option 2: You send out 1000 parcels 1st Class Packet Post Recorded, at a cost of £1.84 each (up to 500g) + 72p for Recorded = £2.56.

Total cost = 1000 x £1.56 = £2560.

Their value to you is £20 each. You lose 0% (never happen). Total cost £2560.

The 1000 parcels could have been sent out in 1 day or over a year - makes no difference to the financial equation.

 

[matt.chatterley]

Complete nonsense. It either adds up or it doesn't add up - the size of the operation makes no difference.

I get the feeling that we are going to have to agree to disagree - however, ignoring the fact that in my specific example I was suggesting that 'a few out of a hundred' have been known to vanish (e.g. 3-4%, not 1%, which tips the scale somewhat) - there are undoubtedly other factors which people should consider when forming their own opinion on this issue.

Maybe we should open up some discussion on these, rather than just squabbling between our two very different views

For example:

Assuming that packages which fail to arrive are lost in the post (and not fraudulently reported asuch by the customer) - could it be potentially damaging to your reputation? Do people see this as YOUR failure to deliver, or do they understand, and blame Royal Mail?

What other issues are raised by this?

 

[sysops]

I get the feeling that we are going to have to agree to disagree - however, ignoring the fact that in my specific example I was suggesting that 'a few out of a hundred' have been known to vanish (e.g. 3-4%, not 1%, which tips the scale somewhat) - there are undoubtedly other factors which people should consider when forming their own opinion on this issue.

My 'opinion' is based on running an operation which sends out over 2000 parcels a week. What is yours based on?

 

[MH1]

Complete nonsense. It either adds up or it doesn't add up - the size of the operation makes no difference.

Option 1: You send out 1000 parcels 1st Class Packet Post, at a cost of £1.84 each (up to 500g).

Total cost = 1000 x £1.84 = £1840

Their value to you is £20 each. You lose 1% (very high indeed), which equals 10 parcels, value to you £200. Total cost £2040.


Option 2: You send out 1000 parcels 1st Class Packet Post Recorded, at a cost of £1.84 each (up to 500g) + 72p for Recorded = £2.56.

Total cost = 1000 x £1.56 = £2560.

Their value to you is £20 each. You lose 0% (never happen). Total cost £2560.

The 1000 parcels could have been sent out in 1 day or over a year - makes no difference to the financial equation.

These two figures I won't argue with, however, whilst the losses are a cost to the retailler, the cost of postage is a cost too the client.

The real figure you have to choose between is whether you feel any extra business gained by a lower postage rate will offset any losses to yourself, personally I prefer recorded delivery in my line, I use it as a main selling point too the clients, who appreciate the level of perceived service and insurance.

I only send 3000 a year, and much larger heavier amounts than your example, but have tested both unrecorded, recorded, free postage options extensively, for myself it makes no real difference, except too the amount of claims.

I have only had two parcels claimed to be non delivered in the last year, one was at the post office awaiting collection. Without recorded delivery I suffered a higher weekly figure than my annual figure, over 52x increase.

Each too their own.

 

[sysops]

These two figures I won't argue with, however, whilst the losses are a cost to the retailler, the cost of postage is a cost too the client.

It isn't really - any more than your warehouse heating bills or staff costs are. You set a P&P charge, but this doesn't necessarily have to equal your actual P&P costs (and in most cases it doesn't).

 

[simplyrun]

I don't understand the significance of sending things by recorded post. It sounds like people are saying this provides more cover against losses??

Recorded delivery offers the same 'protection' as plain old normal post (£30 compensation), the only thing that differs is that you can get proof of postage.

As far as I know the only way of getting additonal compensation is by sending by special (expensive) delivery?

DK

 

[Steve2507]

We run two different types of business which have completely different set ups for customers.

For the sex toy and lingerie part we charge £2.99 for orders under £30. Over this it is free. They can upgrade delivery to Special Delivery for a cost of £3.00 extra. So if the order is £35 and they want special delivery we charge £3.00, if the order was £25 we would charge £5.99 for special delivery.

For the gluten free food we charge based on a weighted system with the maximum being £6.50 (2Kg+).

On our side we use Royal Mail recorded and Royal Mail special delivery. Plus we have just started to use Interlink.

You send out 1000 parcels 1st Class Packet Post Recorded, at a cost of £1.84 each (up to 500g) + 72p for Recorded = £2.56.

If you have an account the cost is £2.40 but we wont quibble.

Recorded delivery offers the same 'protection' as plain old normal post (£30 compensation), the only thing that differs is that you can get proof of postage.
DK

you also get proof of delivery, which can be important if you have a non delivery dispute with a customer.

 

[Steve2507]

Royal Mail Tracked is worth looking into. Tracked from the time they pick up to the time they deliver. Very easy to use and very affordable.

Have you used the tracked service? We are considering it, but I want more info and want to hear what others think about it from experience.

 

[thefashionhut]

On our side we use Royal Mail recorded and Royal Mail special delivery. Plus we have just started to use Interlink.

DHL charge £7.50 for parcels under 10kg. They are quite reliable but wondered if Interlink are any cheaper?

 

[thefashionhut]

Have you used the tracked service? We are considering it, but I want more info and want to hear what others think about it from experience.

Yes we have been using the tracked service for the past 2 months now.

You basically speak with a member of the Royal Mail sales team to establish your average parcel weight. You can then negiotiate a fixed price for 12 months. They may say 95% of your goods are under 1kg, and 5% between 1kg and 2kg. At the end of the 12 month term they will take a look at your account to see if you are sticking to the agreed weights, if not then possibly you may have to re-negiotiate the fixed price, but I think they are quite flexible.

There is no minimum send so that is very handy. Definitely worth looking into.

 

[Steve2507]

These two figures I won't argue with, however, whilst the losses are a cost to the retailler, the cost of postage is a cost too the client.

I can see your point, but it depends on what you are selling.

For the food side of our business customers are generally happy to pay the postage we charge which is proportionate to the weight of the items they have purchased. However if we did the same system on the toy side we would probably see a reduction in sales of approx 75%. I know this figure as I did some market research into it.

The total income generated from postal charges does not pay for the total postage. so as sysops has said we treat it as a business expense in the same way we think of our electric bills etc.

 

[Steve2507]

Yes we have been using the tracked service for the past 2 months now.

You basically speak with a member of the Royal Mail sales team to establish your average parcel weight. You can then negiotiate a fixed price for 12 months. They may say 95% of your goods are under 1kg, and 5% between 1kg and 2kg. At the end of the 12 month term they will take a look at your account to see if you are sticking to the agreed weights, if not then possibly you may have to re-negiotiate the fixed price, but I think they are quite flexible.

There is no minimum send so that is very handy. Definitely worth looking into.

That's interesting to hear as I thought there was a minimum send per day. I shall have to look into it further after Christmas.

DHL charge £7.50 for parcels under 10kg. They are quite reliable but wondered if Interlink are any cheaper?

I think it depends if you have an account or not. We are charged £6.50 for <10Kg, they also have 1Kg and 5Kg bags which are cheaper.

 

[davidjgoss87]

Good points about giving customers choice of speed/cost etc.

My solution for this has been to only provide one option and make it the
most attractive - free delivery on all orders. It can help win over customers in the first place, because if all stockists are selling at the same or similar price, you plump for the free delivery one because it makes it cheaper.

For things like 2 pairs of socks I use a jiffy bag and post 2nd class signed for - costs around £1 to £1.50. For the bigger items of clothing and shoes, we use Parcelforce, and they have been very good, unlike their predecessor Business Post, whose ineptitude was breathtaking. However, it costs just over £7 per package. I'd love to know who charges you £5. Are you sure that's the price, no admin costs or fuel surcharges? Do you get standard loss/damage cover and online booking?

 

[KidsBeeHappy]

Business post are not particularly keen on b2c market, they prefer b2b where they know that because it's a busines, they can be pretty much guaranteed that there will be someone at every address between 9 and 5 each day.

 

[cycloneuk]

All our orders are now sent via Royal Mail Packet Post, i send orders with a value of £45+ via recorded.

 

[MH1]

I don't understand the significance of sending things by recorded post. It sounds like people are saying this provides more cover against losses??

Recorded delivery offers the same 'protection' as plain old normal post (£30 compensation), the only thing that differs is that you can get proof of postage.

No extra cover, but with DSR in mind the clients perception of a signed for delivery does seem to reduce claims for non deliveries, my main benefit as the supplier is lack of time chasing up missing orders and arranging replacements.

You can obtain a certificate of posting with std mail, you do not need to send by RD for this.

 

[gibby]

We send a lot of stuff up to 25k with parcelforce @ about £5 a go, we have just been quoted down to £4.50 all in with business post

I have been shopping about for a way to do smaller parcels and sadly PF have promised several times to sort something but they never get back to us.

Ive just had Royal Mail in today offering to shave 20 -25% off the price of the post office rates for smaller orders, all done on the pc with tracking etc & we just hand them over the counter. Better rates for international too.

Im hoping its better than the current business service online as there is a catch, it shows a really nice price etc but often wont allow you to book it.

Fingers crossed it will live upto the promises.

I was also shocked to hear the repl tell me not to bother looking at a franking machine & the high costs. We keep getting pestered for this but it dosent seem worthwhile.

Finally, when we use royal mail we always use recorded as the % of loss is much much lower but I can see the logic of the argument.

G

 

[Kernelpower_Ltd]

we send all orders 1st class or courier . some orders we make a loss on the postage but always make a profit so it all works out in the end.