As online shopping has become the new normal recently, consumers flocked to overseas websites to purchase their favourite products. Consolidated delivery services thus emerged to cater for the shipping need to Hong Kong. Service providers also boasted a reduction in shipping costs by grouping the goods of different customers for delivery. The Consumer Council conducted a survey by engaging the service of 12 delivery service providers to deliver online purchases from Japan to Hong Kong. It was discovered that as these service providers employed different methods of weight measurement, the total costs could vary by nearly 100%. The Council reminds consumers to study the details of calculating shipping costs, e.g. whether by gross weight or volumetric weight. Other factors affecting the final shipping costs may include the minimum charge, the lowest chargeable weight, the charges of warehouses in different regions, as well as the availability of services to consolidate or repackage goods. When choosing delivery services, consumers can save a lot by understanding and comparing the pricing details of various service providers.
Consumers should also pay heed to the efficiency as well as the coverage terms and conditions of delivery service providers. For instance, the time for delivering packages to pick-up centres in Hong Kong varied considerably among service providers, with a range from 5 to 22 days. This might disappoint those who need the packages urgently. Moreover, the compensation for damaged or lost goods and the period of claiming compensation could vary. To avoid possible disputes, consumers should study these differences before subscribing to the services.
The mystery survey was conducted by Council staff posing as general customers. 3 types of products, namely fragile products (Package 1), relatively light but bulky products (Package 2) and relatively long products (Package 3), were purchased from an online marketplace in Japan. These products were then transported from Japan to Hong Kong by 12 delivery service providers to compare their pricing and performance.
Service providers normally have warehouses set up in different regions and charged customers based on the weight of goods and the region of the warehouse. They use different units to measure weight, with some using pound and others using kilogram. Those measuring in kilograms could have the unit weight counted by one kilogram or half a kilogram. In this mystery test of Japan, 8 service providers measured weight in pounds with unit price ranged from $22 to $38, a difference of more than 70%. 3 service providers measured weight in 0.5 kilograms with unit price ranged from $25 to $30 (around $23 to $27 per pound), showing a 20% difference. Only 1 of them measured weight in kilograms and the unit price was $48 (about $22 per pound). Consumers should make careful calculations before confirming order.
The survey results revealed that the final shipping costs varied depending on the weight measurement methods. Measuring weight by gross weight seemed to be a more economical option vis-a-vis by volumetric weight. 7 service providers charged customers based on the gross weight of packages and the total costs of transporting the 3 packages ranged from $176 to $254, averaging to $201. The total costs from the other 5 service providers measured packages by volumetric weight ranged from $264 to $528, averaging to $395. The results showed that the average costs for the 2 different measurement methods could vary by twofold.
Consumers should also check whether there is a minimum charge or minimum chargeable weight in the pricing policies. Take the transportation of a package weighing less than 1 pound as an example. It would be less economical if it ships through the service provider uses kilogram (approximately 2.2 pounds) as its unit of measurement or another service provider charges a minimum of 2 pounds.
Most service providers offer package consolidation services, helping consumers to reduce shipping costs. 5 service providers in this survey were able to reduce 1 pound’s or 0.5 kilograms’ worth of shipping costs after consolidated delivery was used. However, consumers should note that not all service providers allow consumers to group packages from warehouses in different regions. Besides, some service providers claimed that they could help customers save more by offering repackaging services. Depending on the types and packaging of goods, some might trim the outer packaging, or change the packaging to plastic bags or paper bags. Consumers should check whether these incur additional service charges as well as risks of the repackaged goods being damaged during delivery.
Naturally, consumers want to receive their packages as soon as possible. However, the survey revealed that the delivery time for the 3 consolidated packages varied by 17 days, with the fastest one arrived in 5 days but the slowest one took 22 days. Consumers should also be aware of the period for self-collection of the packages. Having the packages delivered to your home, on the other hand, might incur additional costs. The pick-up period usually lasts from 2 to 14 working days. For late pick-ups, service providers might charge customers $10 or $20 per day or per item for storage. The more items in storage, the more storage fees incurred. In general, service providers would dispose of unclaimed packages after 30 days.
Consumers might suffer losses when packages are lost or damaged during transport. This is especially the case when the goods involved are relatively expensive. Therefore, consumers should check the terms related to compensation claims carefully to protect their own interests. Although all service providers in this survey stated that they would reimburse their customers for any packages lost due to negligence, all service providers set an upper limit on compensation claims, with the highest being $1,000 and the lowest being $400. Some service providers even stated that they would not compensate customers for any damaged packages, while some insisted that they would not refund shipping charges. Consumers should also be mindful of the period of claiming compensation to avoid missing the deadline and resulting in further losses.
When choosing consolidated delivery services, consumers should pay heed to the following:
- Enquire about the weight measurement methods carefully and check whether there are minimum charge and handling fees;
- Before purchase check out the list of prohibited goods prevent financial loss in case the goods could not be shipped;
- Record the weight and size of all purchased goods and, where necessary, send enquiries to online shops or sellers about the weight and size including packaging, so that the packages will not exceed the size restrictions and hence be rejected by warehouses;
- Before settling the payment, double-check whether the service provider’s charged weight is accurate and clarify ambiguities immediately;
- Before purchasing goods that are fragile or can be easily damaged due to bending, contact the online shop or the seller to learn about how the goods will be packaged. Ensure that the packaging is durable and sturdy to reduce the risk of damaging.
The Consumer Council reserves all its right (including copyright) in respect of CHOICE magazine and Online CHOICE.