Ofcom: Consumers report a drop in value for money for postal services as prices rise

Comparing courier companies

Consumers continue to use online retail services driving up parcel volumes and we are seeing growing competition in the UK parcel delivery market. Measured parcels across the UK increased by 8.3% to 3.9 billion items in 2023-24, close to the 4.0 billion pandemic peak in 2020-21.

If someone buys something online and their parcel is damaged or does not arrive, the most common way to seek redress is from the online retailer under consumer law. The sender may then seek redress from the parcel firm, and sometimes a recipient may need to contact the parcel operator.

When comparing individual parcel companies’ performance in handling contacts and complaints from parcel recipients, Amazon (56%) and DHL (55%) secure the highest levels of satisfaction with this process this year. FedEx has slipped to third place, with its proportion of satisfied parcel recipients falling from 58% in 2023 to 52% in 2024.

Yodel performs below average on some aspects of its customer contact processes, contributing to a satisfaction score of 38%, Evri, once again, has the lowest levels of satisfaction. The company has, however, improved on its 2023 performance, closing the gap at the bottom of the table with its satisfaction score increasing from 26% to 32% during the last year.

Early signs of improvement under new regulations

There are also other signs of improvement from parcels companies in some areas of their customer experience.

Customers’ satisfaction with the process of contacting the parcel company to discuss an issue or complaint increased from 41% in 2023 to 44% in 2024. Customers also had less cause to complain about a delayed parcel (19% in 2024 vs 23% in 2023) or a parcel not being delivered (16% in 2024 vs 20% in 2023) than they did a year ago.[1]

Ofcom has strengthened regulations to make sure people are treated fairly by parcel companies, and we are speaking to companies to understand how they are improving their service.

Parcel operators have made a number of improvements to complaints handling, including better information on their websites; improvements to phone lines and live chat; and introducing options for customers to request an email or call back.

We expect further, sustained and continued improvement. We remain particularly concerned that disabled consumers and those with limiting conditions are still more likely to encounter difficulties with the delivery process (71%) compared to other people (63%).

Royal Mail and the universal service

Today’s report also looks at Royal Mail’s financial and efficiency performance as the universal service provider.

Last year, Royal Mail won back some of the parcel volumes and revenues it lost the previous year because of industrial action. However, the company continues to make a loss; and, while it has made productivity improvements, these are behind expectations.

We continue to have concerns about the longer-term sustainability of the universal service, and we are progressing work on the future of the service, as well as an investigation into Royal Mail’s delivery performance.