PARCEL delivery firm Yodel is raising its prices for retail customers and clients in a move which could lead to increases across much of the UK eCommerce sector, it has been reported.
The firm, which holds contracts with major supermarkets such as Tesco and Asda, says it needs to put up prices in order to make its operations “sustainable and profitable”, according to the Post and Parcel news site.
Alongside the price increases the company will switch to a six-day week service rather than seven, except for during the Christmas period.
The company is also preparing to scrap premium charges for weekend deliveries.
Yodel, which is the UK’s second largest parcel delivery firm, has said the explosive growth of internet shopping has been hard for it to cope with.
The changes to its service come after a period of review and listening to customers, its chief executive officer told Post and Parcel.
“Inevitably these changes will come at a price and we must pass on our reasonable costs. We believe that all parties, once they recognise the benefits that this will provide, will accept the changes as a necessary shift for all involved,” said Jonathan Smith CEO of Yodel.
“We currently have a model that isn’t profitable and we must pass on our reasonable costs,” he added.
Smith says that the changes will be discussed with individual retailers, however he also said that retailers would receive a better service as a result of the changes.
Yodel’s staff would receive better training also the company would start its Christmas recruitment much earlier in order to ensure the service levels were strong.