Delivery charge increases

cariad123

There has been some talk recently about Shopping Delivery Charges being raised to £15. Is this true and does it apply only to certain supermarkets?

dlusman

No-one is doing it yet - but they are thinking about it , as it costs them a lot more to pick and deliver than their current costs

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9549793/Delivery-fee-for-online-groceries-may-rise-to-15-expert-warns.html

I_luv_cats

If I were shopping for a big family then I wouldn't mind spending a tender or so for the convenience.

As I shop for just "Meow n me'" ten pounds (or more) would be uneconomic on the volumes I order.

[Deleted User]

the big 3 make little or no profit on their online operations,and the other one morrisions doesnt even do it(yet)so yes expect some inc. in del charges

pullenuk

I work for On-line at Sainsbury's, I can't give out the figures as that would put me in serious trouble.

But I can tell you this..... last time I was told, over a year on average the profit we make total per customer is well less than you can count on 2 hands, so its anything from £10 downwards (obviously I can't tell you the figure!). That's on the service, not on the products, that goes into the stores profit. I don't know if its gone up or down but it was a while now. We have grown massively over the past year, I can't see if we make any profit with the vans, staff, etc we had to increase.

I_luv_cats

When they give the welcoming first order discount and welcoming back discounts along with free delivery pass trials (and paid for heavy discounted delivery passes) you'd wonder really how they do make any money from this sector.

geordie_joe

I_luv_cats wrote: »

When they give the welcoming first order discount and welcoming back discounts along with free delivery pass trials (and paid for heavy discounted delivery passes) you'd wonder really how they do make any money from this sector.

They don't need to make money from this sector. The online part is only the web site and ordering, and possibly the delivery too. The actual groceries are bought from the store, so are counted in the stores turnover/profit not the online sector.

The online sector is there to increase sales in the stores, and it does that very well. Even if it didn't make any money, it is still increasing the profits in the stores.

And don't forget, supermarkets always have loss leaders to encourage people into the store, and that is exactly what the online ordering does.

Every time someone places an order, someone goes round the store and picks the items. The supermarkets don't care who does the actual picking for you, as long as the groceries leave the store and your money goes into their bank.

As for putting up the delivery price to £15, I doubt they would do that. I can't see asda and tesco putting up the delivery to £15 when some of the competition is offering free delivery. And if one of them did I'm sure they would suffer.

Assume asda and tesco have a £5 delivery charge and tesco increase it to £15. Now imagine the asda adverts, "Asda has twice as many lower prices the tesco, and you save £10 the instant you book your asda delivery slot".

How many people (with a choice) would shop online at tesco knowing they would be a tenner down before they put anything into their basket?

mummyroysof3

i use tesco for mine and use the delivery saver..i would not use it if a delivery cost more than it does now(pre delivery saver normal prices i mean)

[Deleted User]

I wouldn't pay 10 or 15 pounds for delivery!

I wouldn't be able to AFFORD it to be honest , so would probably just pick up a few bits myself if needed & get the rest from markets or Approved Food or Rosspa

Would just have to change my shopping habits but a bit unfair for eg pensioners or those with disabilities who can't get to the shops!!!

Edwardia

Waitrose does free delivery. I used to use them a lot but switched to Ocado which has more Waitrose products than my local Waitrose plus Ocado own brand plus organic brands plus American and Tesco brand matched prices.

Yes I'm paying for a delivery pass though I got it 50% off but I shop carefully and generally make savings of £5-£15 per shop on offers. I reckon I will recover the cost of the pass over the year with offers.

Getting deliveries instead of going to the shops really helps when you don't have a car. I can't see delivery becoming really expensive because it's a green initiative. Also it widens the store's catchment area. I wouldn't go to my local Waitrose every week as it's quite a way away. There are bound to be other people in this situation.

KxMx

They might want to raise delivery prices, but whether it is a viable prospect in today's competitive commercial marketplace is another matter.