A reduction in commission for parcel transactions by PayPoint has sparked criticism from the industry.
In a letter sent to retailers, seen by Convenience Store, the changes in commissions were outlined, including commission for Yodel transactions will be set at 25p per parcel, down from 35p, while commission for store-to-store transactions will be set at 20p per parcel. The change will come into effect on 22 September 2025.
It attributed the changes in commission to InPost’s acquisition of Yodel in April. The statement said that “parcel volumes handled by stores are expected to increase substantially and many of your stores are already seeing this take place”. “This uplift in volume, is expected to oIset much of the impact of the commission changes, helping to protect and enhance overall revenue potential for participating stores.”
The letter also outlined the expansion of the Royal Mail Click & Collect service across the network, and the planned introduction of self-service kiosks to selected locations to “support even greater efficiency, reduce queue times, and give stores more flexibility in how parcel transactions are handled”.
The change in commission was described by one source as “a huge hit with costs already under pressure” and that while “[parcel] volumes will grow, stores don’t have elastic walls”.
Commenting on the change in commissions and the reaction, a PayPoint spokesperson said to Convenience Store: “We have spoken to our Mult retailers ahead of a letter being sent outlining some changes to our network, effective from 22 September. These changes are a result of the harmonisation of the Yodel and InPost businesses into a single unified network. As part of InPost’s harmonisation and expansion of its existing network, a consistent commission structure is being adopted, which aligns the approach already in place across other carrier services with the Collect+ network resulting in commission for Yodel transactions being set at 25p per parcel.
“As we have said to our Mult clients, these commission changes are being introduced at the same time as significant growth opportunities within the expanded InPost network and the uplift in volumes anticipated for these stores is expected to offset much of the impact of the commission changes. We do recognise the cost to serve challenges our retailers face in store and hope the changes we have made as a result of the harmonisation of Yodel and InPost procedures will simply store operations and help stores manage parcel volumes more efficiently.”
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