Sending parcels: alternatives to the Royal Mail

Royal Mail isn't your only option if you need to send parcels. We run the rule over the alternatives.

The Communication Workers Union (CWU) has now cancelled the planned 24-hour strike which was to halt all non-managerial functions at Royal Mail and Parcelforce, and was due to take place on 4th November.

However, it has raised the issue of what options do you have if you need to send a parcel but can't - or don't want to - use Royal Mail? Can the alternatives work out cheaper?

Using a broker

Companies such as Parcel Monkey, Parcel Hero, MyParcelDelivery.com, and P4D are all brokers.

That means they don’t actually deliver the parcel themselves, but they re-sell other companies’ services.

It works like this: brokers have accounts with the main parcel and courier companies and they negotiate bulk deals and discounts. They then re-sell the service to consumers, charging them a cheaper rate than if they went direct to the parcel company.

Parcel brokers all offer various options, such as picking up parcels at your home, work or at a depot, same day or next day delivery, etc.

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Saving money

You can save a lot of money using a broker. Make sure you shop around and compare what the different brokers offer.

Let's take an example. I want to send a 15kg package from South-East London to Manchester, picked up one day and delivered the next. Using broker P4D, this delivery can cost just £8.95 with City Link, £11.99 with Parcelforce or £14.99 with Yodel. VAT is charged on top.

As a comparison, going direct to Parcelforce for the same service will cost £22.05 plus VAT.

Going via P4D, TNT Express would cost £24.89, but going direct to TNT would set you back a massive £60.24.

How much money you can save depends on where you’re sending a parcel to and from, its weight, dimensions, how quickly you want it to arrive, and whether you’ll drop it off at a depot or have it picked up from your home or work.

Parcel companies and courier firms can undercut Royal Mail’s parcel service as they don’t have to stick to the same terms and conditions.

The Royal Mail is what’s called the Designated Universal Service Provider (DUSP). This means it has to stick to rules laid down by Ofcom, the regulator. These include delivering to every UK address six days week, at affordable and uniform prices.

Other companies don’t have to adhere to these rules, which mean they can offer cheaper services. On the downside, they are completely unregulated.

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Do your homework first

Parcel brokers might be cheap, but things can get complicated and frustrating when things go wrong.

A third party’s involvement can make finding a lost parcel a complete nightmare.

Parcel Monkey in particular doesn’t seem very popular with its customers. A quick visit to its Facebook page shows numerous customers questioning where their parcel has got to.

A key issue is that Parcel Monkey does not have a telephone number; customers have to send a message via its website instead.

Receiving a parcel

If you shop online you’ll have little choice about who delivers your parcel – the retailer chooses.

Most retailers don’t even tell you who’s delivering the parcel when listing delivery options. Instead you find out when the parcel turns up or a card arrives through your door.

Some firms have much better reputations than others. Yodel is regularly slated by customers who report parcels not turning up, being left in inappropriate places or being thrown over garden fences.

If you have a complaint about a delivery you should complain to the retailer as they are the ones with the relationship with the courier or parcel company. It’s also the seller’s responsibility to ensure the goods arrive in an acceptable condition.

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