Navigating The Residential Surcharge

It can sometimes be a little confusing to receive a residential surcharge when booking a delivery service, but at ParcelHero® we like our customers to remain highly informed and in control; here is a quick and useful guide explaining what, how and why a residential surcharge is applied to a home delivery.

What is a residential surcharge?
A residential surcharge is an additional small fee, charged by our partners for deliveries to all residential addresses. This charge is applied due to the higher cost involved in delivering to a home address, than for example to a business park, which allows for multiple deliveries to a single location. In short, a residential delivery costs more.

Is this fee charged by ParcelHero®?
No. This fee is charged by our courier partners, who actually charge ParcelHero® a higher fee. We swallow as much as the cost we can to keep our customers costs as low as possible. We do, however, automatically apply it to your final price once you have completed our Instant Quote booking form. This is normally £1.20 for UK and EU deliveries, unless you live in a remote area. Here’s a list of remote areas charges on the ParcelHero website.

Where did the residential surcharge come from?
The majority of professional courier services were originally tailored for business address deliveries. Since the introduction of residential or domestic deliveries, the additional delivery cost is now involved. Residential surcharges were introduced to cover the rise in costs.

Why is it charged?
To understand why it is charged, it is best to describe the process: A delivery van can only hold so many parcels during any given trip. The space inside of the van has to hold as many parcels as it can for the trip to be as cost-effective as possible for the courier. Home deliveries normally involve multiple attempted deliveries, which means the same parcel has to remain in the van over an extended amount of time, without a new parcel replacing it or without any extra charge.

Why don’t they just charge my retailer higher prices for delivery?
On occasion the courier group will charge the retailer a higher price for home delivery, but the cost of this is often passed onto the consumer through delivery costs or higher product prices. One way or another, the extra fee is placed with you, the consumer.

What if I’m a small business owner with a residential address?
Our courier partners will deliver to any business address and not charge the additional residential surcharge. However, according the terms and conditions of most courier groups, a small business operating from a residential address that does not have a second entrance specifically for that business is not a commercial property and is still considered a residential property. This then means that you will be charged the residential surcharge, regardless if your business is registered there.

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