How much does Royal Mail make from undelivered parcels?

Yes it annoys us … all the time, the parcel goes back to the depot because you were out … but what happens if you don’t collect your parcel??

As online shopping booms, have you ever wondered what happens to those valuable items sent in the post which can’t be delivered?

Freedom of information research shows that the Royal Mail is making an increasing sum of money by selling these goods at auction, amounting to nearly £1m last year.

Over the past six years the postal service has more than doubled the income it generates in this way, from £432,000 in 2005/06 to £933,000 in 2010/11.

Financial year Royal Mail income from auctions
2005/06 £432,000
2006/07 £485,000
2007/08 £646,000
2008/09 £798,000
2009/10 £824,000
2010/11 £933,000

The items are undeliverable because the address is inadequate or the recipient has moved, and there is no return address.

Parcel Delivery Box - Don't Miss The Post Again

Valuable goods which cannot be delivered or returned are stored for up to four months. If they are not claimed, they are then sold at auction. The company insists this is always a last resort, where the sender cannot be traced.

Although the sums involved are very small in terms of its annual turnover, the Royal Mail says the proceeds are used to recoup part of the cost of its National Return Letter Centre based in Belfast, which aims to return undeliverable items to the sender wherever possible.

This centre processes a total of around 20 million items a year, mainly business mail, at a cost of over £4m.

While the quantity of letters sent is falling, the number of parcels being mailed is growing due to the rapid spread of online shopping and sites like eBay.

This suggests that the increasing auction income could well be linked to the popularity of online commerce, if more items of higher value are now being sent through the post.

The figures were obtained from the Royal Mail by the BBC through a Freedom of Information request.

Information from the excellent bbc website.

Need to stop missing your parcels?? Try a parcel delivery box.

A Customer Review for the Asgard Mini Parcel Delivery Box

As the number of people switching to online shopping increases in the UK, so does the need for an organised Parcel Delivery Service. But while you choose which Delivery Service you want from online retailers, it all depends on whether you are home to receive them. And if you are not – well this is where the Asgard Mini Delivery Box comes into use.

The Parcel Delivery Box is an easy to use secure mail and parcel delivery box launched by Asgard earlier this year. We spoke with a customer who recently purchased this parcel drop box to see how the unit was to use.

What do you think about your new Parcel Delivery Box?

“We are very, very pleased with our Asgard Parcel Delivery Box.  It is extremely high quality and was very easy to put up.  We have had no problem with deliveries since and it is fantastic knowing that your parcels are locked safely away once they’ve arrived.”

The Parcel Delivery Box from Asgard

The Parcel Delivery Box – A modern day alternative for online shoppers.

How have Parcel and Courier Companies found using the Parcel Box?

“Your additional notices (for location of parcel box and how to lock it once you’ve placed parcels in it) have worked a treat.  I would recommend this unit to any homeowner – gone are the days of traipsing down to Royal Mail to collect parcels – thank goodness!”

“I’d also like to thank you for your excellent customer service –a first class service.”

 ”Many thanks” – Anne Brennan

Do you have an Asgard Parcel Delivery Box?
 
Let us know how you rate the parcel box – simply browse the parcel delivery box range available on the Asgard website.

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