Businesses pay delivery ‘postcode penalty’

A SURVEY by Citizen Advice Scotland (CAS) has gathered further evidence that households and businesses in the northern isles are penalised by high delivery charges.

The report The Postcode Penalty: The Business Burden, published on Tuesday, recommends businesses should use Royal Mail rather than courier services.

The study surveyed 250 businesses in rural Scotland, including 70 in the northern isles.

Of those participating 90 per cent said they were facing extra delivery charges, and 76 per cent feel those charges have a substantial impact on their business.

CAS policy manager Keith Dryburgh said: “The report makes clear that many businesses feel their profit margins are cut significantly by these unfair charges.

“Many have had to change their business, cut wages or lay off staff as a result, all of which has a knock-on effect on their local economy – particularly in rural areas.”

The findings were welcomed by isles MP Alistair Carmichael who has been campaigning against excessive delivery charges for many years.

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“This survey is clear evidence that it is not only consumers who are affected by unfair delivery charges but that local businesses are also hit hard.

“I fully agree with the CAS’s recommendations and welcome their help in combating unfair delivery charges.

“This report adds to the mounting body of compelling evidence that the Northern Isles are being disadvantaged by these unfair charges.

“Very often these charges bear little relation to the costs of getting a package to its destination and are a source of anger to consumers and competitive disadvantage to businesses.”

He added that he would now take the CAS report to Whitehall in the hope that ministers will find a solution to the problem.

The report recommends:

• wherever possible, retailers should offer delivery by Royal Mail;
• if delivery by Royal Mail is not possible, retailers should give customers a clear reason why this is the case;
• sellers and carriers should offer alternative places as delivery options, working in conjunction with the Post Office and local community hubs such as shops to enable this;
• the “statement of principles for parcel deliveries” produced a working group led by Consumer Futures and the Scottish Government should be promoted to retailers as best practice;
• retailers should refer to the statement of principles when considering their policies and practice for delivery to rural, remote and island areas.

The full report can be found here.