Online retailers are bracing themselves for higher delivery
costs as the Post Office faces a series of nationwide
strikes.
Major retailers, including
John Lewis and
Amazon, are putting plans in place to switch to other delivery
services if the strikes go ahead.
But they face significantly higher costs. A package that costs
£1.90 to post through Royal Mail would cost £4.80 by Parcel Force,
a 153% increase, according to a study by the
Centre for Economics and Business
Research.
A postal strike lasting five to ten days will cost online
retailers an estimated £220m, the study commissioned by price
comparison site Kelkoo
reveals.
Online outdoor equipment supplier
Webtogs said it planned to
switch delivery to Parcel Force or
FedExif the
strike goes ahead.
"This is going to seriously impact our bottom line," said Gareth
Jones, customer services manager at Webtogs. "But our primary
concern is not to let our customers down. We are going to bite the
bullet by sourcing to other suppliers."
John Lewis said it has contingency plans to use
other deliver services if the strike goes ahead. "We move parcels
around our carrier network to use the most appropriate carrier
based on service, available capacity and price. If Royal Mail is
striking, we will not put any parcels through them," said a
spokesperson.
The company said it also offers a next-day "deliver to store for
collection" service using John Lewis's fleet of vehicles.
The Interactive Media in Retail Group (IMRG),
which represents online retailers, said the strike was undermining
the work of Royal Mail to engage with digital
retailers.
"With mail volumes diminishing, you might expect he postal union
to appreciate the huge opportunity that the e-retail industry is
trying to give Royal Mail - large volumes of new business," said
IMRG CEO Jim Roper.
Bruce Fair, managing director of Kelkoo, said, "The timing of
the strike beggars belief. In one fell swoop it threatens to bring
the postal network to a standstill, spoil the beginnings of the
retail sector's financial recovery, increase prices for
cash-strapped consumers and cause a further backlog."
IMRG is advising internet shoppers to look for the IDIS
(Internet Delivery is Safe) Trustmark on retail websites.