PUDO store owners see commission cut from DHL Parcel UK

Convenience store owners have complained at a big drop in commissions after DHL Parcel UK revealed it was moving its pickup/drop-off (PUDO) convenience store network from Pass My Parcel to PayPoint.

In addition, in order to continue their click & collect services with DHL Parcel UK, shop owners will now have to sign up to PayPoint at a cost of a minimum of £10.25 a week.

This could lose DHL Parcel a number of PUDO outlets in its network as under Pass My Parcel they had far more generous commissions.

Journalists approached DHL Parcel UK over the issue but were told that the deal was ‘commercially confidential’ and it refused to speak on the matter. The company did say that the commissions are ‘competitive’.

DHL Parcel’s commission rate of 25p per parcel is in line with the deals that PayPoint agreed with Amazon and eBay. CollectPlus packages offered 35p per package.

When asked to comment on the reduced rates, a PayPoint spokesperson said: “Our standard commission rates for parcels are set competitively and remain the same as paid to over 7,000 of our retail partners across the UK who process over 21m parcels a year.”

Better Retailing reports that Graeme Pentland, owner of Ashburton Village Store in Newcastle-upon-Tyne said: “I was earning 45p per parcel with PMP, so I’m certainly not working for PayPoint’s 25p – it has nearly halved. It’s absolutely disgraceful and I will be unplugging my DHL terminal straight away.”

Pentland added that despite DHL promising to drive parcel volumes back for retailers, he had seen no increase.  “The volume I take in is pathetic, despite promises of improvement,” he added. “I’ve had no communication with DHL since it took over PMP, it’s an absolute joke.”

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