MyHermes has announced plans to cut retailer commission on sent and returned parcels by 12.5% from July.

Despite rates paid by consumers for sending parcels through partnered stores rising on 1 April, a letter sent to partnered stores last week said the fee paid to retailers for handling parcels will fall from 40p to 35p. 

The news comes a month after the parcel service removed ParcelShop Experience Payment bonuses paid to retailers. 

At the time the company said: “The standard commission that ParcelShops receive for processing parcels is completely unaffected.”

One retailer told RN they were considering exiting their contract with the company over the move: “They stopped rewards last month and now they are dropping the commission as well.

“Considering the amount of space the machine and the parcels take up, we’re considering whether it’s all worth it.”

MyHermes told RN that collection commissions were unchanged and added that the number of parcels being sent through its ParcelShops had increased 400% since 2013, and that it had invested £14m in new services such as in-store label printing, QR codes and its van network. 

 “As a result, it is necessary to implement these commission changes to ensure that our ParcelShop network remains sustainable in a highly competitive market,” said a company spokesperson.

More recent news: Local focus makes Sainsbury’s convenience stores the best-selling in the UK