EXCLUSIVE: UPS Access Point changes drop additional costs on partnered stores

 Retailers have expressed concern over changes to UPS’ Access Point click & collect service that they claim will increase the cost and complexity of providing the service. 

The firm has told store owners that it plans to switch off its current 3G-based parcel booking devices this year without issuing a replacement. Partnered retailers claimed UPS is requiring they must provide their own smartphone to continue offering the parcel service via a newly launched app. 

The requirement sets UPS apart from other firms operating a retailer parcel network such as Wish, PayPoint and MyHermes, which all provide the required equipment. 

Mita Patel, of Sarwal’s News in Knaphill, Surrey, said: “They should provide the devices, the commission isn’t that much so it will take a very long time to recoup the cost of the device. We get an average of between six and 10 customers per day, but it’s been very quiet recently.” 

NFRN west midlands district president and owner of Bywater News in Dudley Julia Bywater told RN it was impractical for staff to use their own devices and uneconomical to purchase a device just to operate the service. 

In a letter sent to UPS chairman David Abney, Bywater wrote: “As a retailer for nearly 30 years, and one of the original pilot Access Points, I was totally dismayed with your company’s total disregard for the needs of your convenience sector for your customers, when you have announced that we, the retailer, are to foot the bill of your essential equipment for use in our stores.” 

However, some stores praised the changes. Nick Lewis, of Bargain Booze in Porthcawl, told RN: “The new UPS app is much better, much quicker to deal with than the old system. It’s more convenient, straightforward and easy to check.” 

A source within UPS told RN the company was aiming for retailers to be migrated to the app by the end of September. Challenged on why UPS is requiring stores to buy the devices, the source responded: “After the initial cost of the phone, retailers stand to make more money working with us due to our higher commission level.” 

RN understands that UPS offers double the commission offered by some other parcel networks. Stores also told RN that UPS had launched a new affiliate commission scheme that pays retailers for each parcel-send service bought online. Under the scheme, retailers are given a unique code granting customers up to £3 off a standard £10 parcel fee when used online. The retailer then receives a 5% cut, which rises to 15% for international-send purchases. 

An official spokesperson for the parcel firm commented: “To support our convenient drop-off and collection service offering across the UPS Access Point™ network, we have introduced a new app for retailers to use their own mobile devices for greater flexibility and ease of use when serving their customers. The UPS Access Point mobile app is highly flexible and is well suited to support retailers and their customers in store with drop-offs and collections as well as management of onsite package inventory.

“At UPS, we are responsive to the feedback we receive from our customers and retailer partners, and we will continue to use this feedback to enhance future innovations and to improve the overall customer experience.”