UK government in bid to make delivery “fair” for rural consumers
The UK government has issued new guidance to parcel carriers and the e-commerce industry that aims to make sure consumers are charged a “fair delivery price”. Visiting a customer delivery hub for the department store John Lewis today in Glasgow, consumer affairs minister Jo Swinson said the guidance aims to crack down on “ridiculous” delivery charges faced by people in rural areas like parts of Scotland.
“Delivery charges should be clear upfront,” she said, “so people can decide to shop elsewhere if they feel charges are excessive.”
“Retailers need to get this right for shoppers across the whole of the UK and especially consider how they can best serve their customers in rural and island communities. Better transparency on charges will help businesses keep loyal customers and boost their reputation.”
Guidance
Developed following a summit held by the government on the issue last November, the guidance applies across the UK, and is a voluntary measure although it incorporates the existing legal obligations of retailers and carriers.
The document lays out a series of principles for online retailers, for example that consumers should have “clear, timely and transparent” delivery policies laid out at the earliest stage possible in the buying process.
It suggests that geographic surcharges should be applied only when justified by “actual and unavoidable” costs incurred because of the distance.
The principles also encourage retailers to consider how to increase the chances of first-time delivery, such as through alternative delivery options.
The government’s Department of Business, Innovation and Skills said 1m people in Scotland faced additional surcharges for their e-commerce deliveries in 2012, or were refused delivery altogether.
Consumers in the Highlands are charged an average of £15 extra for delivery, the government said, with those living in the islands facing a 500% mark-up on standard delivery prices.
It said the cost to business of consumers abandoning their purchases, for example because of delivery charges, was estimated at £6bn in 2013.
“Transparent”
Gillian Guy, chief executive of the consumer watchdog Citizens Advice, said: “Consumers should not be paying over the odds for delivery costs just because of where they live. Firms being more transparent about costs and whether they actually deliver should help people avoid any nasty surprises at the checkout and afterwards.”
Tom Ironside, director of business and regulation at the British Retail Consortium, said the new government statement of principles provided “some ideas” for how retailers could provide the best possible service.
But he said: “It is not always possible to provide consumers everywhere with every product, given the need to provide withdrawal rights and guarantee rights for up to 6 years, or the same delivery charge for certain heavy goods.”
