Overcharging postage

fraserm_2

Hi all,

Does anyone know your rights when it comes to companies overcharing on postage?

I ordered an item (nameless, for now!) and the company quoted me £5.79 postage which was paid up front. When it arrived, I noted it was quite light, and had been sent 2nd class - the stamp said £2.16 on it, and the wrapping itself was just standard paper wrapping with no internal packaging needed. Definately not £3.63 to make up the £5.79 I paid!

I queried this with the company, and this was their exact response:

"Delivery prices often vary due to location and size of the package being sent so we have a standard charge which will allow for this."

I am not someone who lives on a remote island somewhere, and I definately didnt order something of a large size!

So why am I having to sub those people that do fall into that category? Are they even allowed to do this?

Thanks,
Fraser

shaun_from_Africa

You paid £5.79 and depending on the turnover of the company, they may have to pay VAT on this (20%, or £1.15)
This leaves £4.64, and the "stamp price" was £2.16, so the seller had £2.48 to pay for packing, handling (payment of staff to carry out the packing, paperwork, delivery to carrier etc).

£2.48 isn't really such a large sum nowadays, and this would soon get eaten into by various costs and expenses.

So why am I having to sub those people that do fall into that category? Are they even allowed to do this?

You do this every single time you send something with Royal mail. They generally charge a fixed price whether they are delivering a package to the next town or to a destination at the other end of the country. They would have calculated the average cost of delivery and this is what everyone pays.

fraserm_2

Hi Shaun,

The delivery charge was actually excluding VAT.

If I post a package using Royal Mail, they weigh it, so the price is more proportional to the size / weight of the package at least, but it is a valid point you make of course about the distance.

Thanks,
Fraser

shaun_from_Africa

Even though the P&P charge may have shown on the invoice as no VAT being charged, the retailer would still have to show the total amount charged when then they do their VAT return (if they are VAT registered).

If you buy postage stamps then there is no VAT added, but if someone buys them for you as part of a service then the whole service including the cost of the stamp is vattable.

fraserm_2

I agree. P&P was listed as (Excluding VAT) as £5.79, and the total price payable obviously included VAT. Anyway, we digress.

I still feel like the postage isn't quite a fair representation of what it actually cost them to send it, and even though it is just a couple of quid, I was interested to know what consumer rights are in these scenarios.

shaun_from_Africa

None I'm afraid, although you could make your feelings known if the company has any sort of customer feedback site, or if you know of another website where you can post reviews of other companies.

glider3560

The company are buying a service (Royal Mail postage) and selling it onto you at a higher price. That is how business works. They buy something for x price and sell it for a higher price.

When I had someone complain about my postage charge of £4.99 on ebay when the postage cost £3, I sent them this breakdown and asked them to make a payment for the extra £6.01:
Postage £3.00
Packaging £0.50
Petrol to Post Office £1.00
1 hour of my time at £6.50 per hour
Total: £11.00
Needless to say, they didn't send any further communication regarding that matter.

easyhost

most online companies use a fixed P&P charge, so some buyer may feel like you overcharged, but some people will be undercharged to the actual postage costs. this is common practice amongst online businesses.
argos is a prime example. with argos the postage charge is £5.95 regardless, so if you order a table lamp you will be charge £5.95. if you order a full set of bedroom furniture you will be charged £5.95, so what should the customer ordering the bedroom furniture do, call argos and tell them they have been undercharged on delivery costs. simple NO because that is what argos state they charge

fraserm_2

Yes, good points. Ok, I guess there isnt much that can be done. My main gripe is that this is a small retailer only sells a few small items so it should have been easier, but I guess the big companies don't have different rules to the smaller companies.

Thanks!