Return to sender: check if it will cost you
A short-form article on online shopping and why consumers might want to factor in the cost of sending an item back if they change their mind
Every week the UK spends on average £1 billion online, which accounts for 15.6% of all retail spending. Most people probably don’t consider the cost and convenience of returning parcels when shopping online, but checking the small print about return costs could prove to be time well spent.
If you buy something online and decide once it’s been delivered that it’s not quite right, in most circumstances you can return the item and get your money back, but that can involve a cost (regulation 35(5), Consumer Contracts (Information, Cancellation and Additional Payments) Regulations 2013) (CCRs). If it’s up to you to pay for the return postage and you want to make sure your parcel arrives safely, costs can add up.
Large retailers often offer various ways of returning goods, including return to store options or pre-paid delivery labels. But not all retailers have physical stores or can afford these costs.
By law, retailers have to tell online consumers who is responsible for paying return postage costs. This information must be available to consumers before they buy, so the onus is on the buyer to read and understand this information (regulation 13 CCRs). It’s also worth knowing that, as well as refunding the item being returned, retailers only have to refund basic delivery costs for returned items. So if a consumer chose a next-day delivery service costing £4.50 and the retailer’s basic charge was £2.99 for delivery within three to five days, the delivery charge refund would be £2.99.
When an item is posted back to a retailer, the consumer becomes responsible for the item as it makes its way through the delivery network. This means that parcel delivery services offering features such as tracking, proof of posting and/or delivery and insurance of parcel contents, can be attractive to consumers. The value placed on such factors may vary depending on the value of the item being returned and the consumer’s individual circumstances.
In its capacity as the UK provider of the universal postal service, Royal Mail must provide some specific postal delivery and collection services. These include first and second class services, and registered and insured services. Royal Mail first and second class services are not tracked but include proof of posting when the item is sent from a post office, and, for an additional charge, can extend to include a signature on delivery. The Special Delivery services offer guaranteed delivery speeds, tracking and higher levels of insurance.
Most people simply go to the post office and send their parcel with Royal Mail. Ofcom — the UK postal regulator — discussed this in its most recent review of the regulation of Royal Mail, recognising that Royal Mail has a strong position in the delivery of small, individual parcels. The Ofcom review included a decision to retain a safeguard cap on second class stamp parcel prices up to 2kg, protecting consumers from high prices and making sure vulnerable consumers can access a basic universal service.
Delivery services offered by parcel companies competing with Royal Mail may offer a higher level basic delivery, for example, including tracking as standard and the choice of insuring the parcel. Consumers surveyed for the Ofcom review gave cost as the primary reason consumers for using an alternative parcel company to Royal Mail, but the ability to have the parcel collected, or drop it off at a convenient location, speed of delivery and better tracking, are also deciding factors.
The option of a quick quote is available on the Royal Mail website, parcel delivery company websites and parcel reseller websites. This allows consumers to review and compare services before choosing the right option for their needs.
Consumers and advisers can explore other elements of a parcel’s journey via the Citizens Advice Wales Pass the parcel online game, which takes around 15 minutes to complete and covers things to think about when having an online purchase delivered and the rights available if the parcel doesn’t arrive or there’s a change of mind.
Return post
Consumers paying postage costs to return an item bought online might want to consider the following options:
Top tips
Check the return postage arrangements before you buy.
If you have to pay the return postage costs:
- shop around to compare price and service
- check that the compensation available for the service you choose covers the value of the item, and
- check what evidence will be needed to make a claim.
Kate Hobson is a Consumer Expert in the Expert Advice Team at Citizens Advice.
