Parcel delivery prices on the rise
The price growth in logistics services which began late in 2017 has continued and is expected to continue throughout this year. Consumers have felt little impact from this until now, but the situation may change, says a report in daily Népszava.
In the last six months, logistics companies have raised their prices by between 5% and 10%, and in some cases even 40%. Because of fierce competition between web stores, the increase has not yet been passed on to customers, but this situation may not last long, Norbert Madar, department head at online market researcher GKI Digital, told Népszava.
It is still unclear how much more buyers will have to pay for home deliveries, notes the report, adding that so far it is likely they will be charged only for extra services such as deliveries within a specific time frame, card payment on delivery or package tracking. Until now, buyers were not charged for these extra services, but logistics companies have massively invested in the related technologies.
Last year Hungarian customers placed 33 million orders online, 70% of which were delivered by third-party logistics companies, free of charge for customers. Widespread labor shortages have also hit the logistics sector, however, raising salaries for employees. All these factors will likely lead to increased delivery costs for customers, Népszava concludes.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.