EXCLUSIVE: Evri UK slashes parcel commission paid to stores by 37.5%

Independent retailers have slammed Evri UK for announcing a new “simplified payment structure” which is set to see them lose thousands of pounds in commission every year.

In a letter sent to stores today, seen by Better Retailing, the firm claimed its previous payment structure was “too difficult to follow, with many different payments for different parcel types”.

As a result, from 16 April, a “new simplified payment structure which now includes an additional weekly volume bonus” will be implemented. However, the changes will now see retailers earn 20p per parcel processed, instead of 32p, equating to a 37.5% drop in terms.

One retailer, who processes 1,550 parcels a month expects to lose £131 a month under the new structure, totalling £1,656 a year.

The weekly volume bonus will be issued to stores on a tiered basis, dependent on the number of parcels processed. However, retailers are still expected to lose out overall, due to the flat commission rate being cut.

Atul Sodha, owner of Londis Harefield told Better Retailing: “This is shocking. It already feels like we are being shafted at a time when costs are going up. These companies are just trying to find ways to squeeze retailers even more. We don’t have a choice.”

The commission paid for handling a packet will also drop from 27p to 25p. Elsewhere, Evri confirms it has “continued to see an increase in volume as more people continue to choose to shop online and the expectations to be able to shop 24/7 is on the increase with customers choosing to use accessible locations to send, collect or return parcels, with our sector continuing to grow”.

It stated the increased demand delivered an increase of over 30m parcels being handled across its ParcelShop network, who were able to benefit from “additional customer footfall”.