Update to the Supply of Services Agreement

Updates starting on 1st September 2023

Dear Parcelly Business Partner,

New developments and a proposal for increasing the revenues of eligible partners

We are writing because we have exciting new developments to tell you about and a related business proposal for which you may become eligible.  We believe these developments and our proposal will lead to significant increases in revenue for many of our partners and we would love to have you onboard.

Major international delivery companies want to use the Parcelly network

The outstanding performance of both the Parcelly network and our simple and reliable technological solution has attracted the attention of the major international delivery companies.  Some of these companies have asked us if they may use our network but this will involve handling larger numbers of parcels than we presently do.

These major international delivery companies have already begun comparing the geographic spread of their deliveries with the locations of Parcelly’s network partners.  If one of those companies tells us that it wants to work with a network partner in a certain area, then we will let that partner know that they are now eligible to handle parcels for those companies.

Changes to our financial model are required in order to work for those companies

Because these major international delivery companies handle large volumes of parcels, they can be highly successful working with a smaller profit margin for each individual parcel delivered.  So that they can maintain their financial model whilst using the Parcelly network, we have agreed that they can pay a lower fee for each parcel delivery.  The results of our modeling and pilot testing suggest that, despite receiving a lower fee for each parcel delivered, total revenues will be substantially higher for lots of Parcelly network partners that agree to handle parcels for these delivery companies.

The proposal for network partners wishing to work for those companies

If a Parcelly network partner agrees to handle parcels for the major international delivery companies then the standard fee payable will be £0.36 (including VAT) per delivery.  The special fee payable for 14-day parcel storage will remain £0.99 (including VAT) per delivery.

If you will be handling parcels for these companies, then we will need to update the Supply of Services Agreement that we originally signed with you.  The update can be viewed here.

For a short transitional period after you start handling parcels for these companies, we may pay you for some parcel deliveries at the previous rates and for some parcel deliveries at the rates shown above.  Eventually, all your parcel deliveries will move to the standard and special fees shown above.

Example of potential effects on revenues

A Parcelly network partner presently handling 20 parcels per month would earn £12.20 (including VAT) per month.

The same Parcelly network partner agreeing also to handle parcels for the major international delivery companies could realistically expect to handle more than 60 parcels per month and so earn at least £21.60 (including VAT) per month.  That equates to a 77% increase in revenue for the network partner.

Think about how you want to work with Parcelly

The first step will be for you to think about how you would like to work with Parcelly in the future and particularly whether you have the capacity to handle significantly higher numbers of parcels.

If you are not interested in working for the major international delivery companies then please let us know so that we do not provide them with your details unnecessarily.  If you tell us subsequently that you have changed your mind then that is perfectly okay; we will still be happy to forward your details to the companies for consideration.

Parcelly’s team will contact you if you are eligible

Our team will contact you if you are eligible to handle parcels for one of the major international delivery companies.  They will discuss any questions that you may have and try to help you decide if the proposal is right for you.

If you are eligible, either accept or reject our proposal

If you have been told by our team that you are eligible to handle parcels for the major international delivery companies then, after you have given our proposal some thought, please tell us if you would like to accept or reject it.

We would prefer to receive your decision in an email sent by the person that signed the Supply of Services Agreement or (if different) by the contact you named in clause 25.  The email should clearly state their name at the bottom because we will treat this as their binding signature.

No changes if you reject our proposal

If you reject our proposal, then your relationship with Parcelly will remain the same as it is today.  We will also enquire whether you wish to remain a Parcelly network partner and give you the option of terminating the Supply of Services Agreement after thirty days.

We will presume that you accept our proposal if you do not reject it within 14 days

If you fail to let us know of your decision within fourteen days of our team telling you that you are eligible then, for the time being, we will presume that you accept our proposal and are happy to handle parcels for the major international delivery companies under the updated terms. 

You are still free to reject our proposal after that date.  If you do, our technology solution will automatically hide your details from the major international delivery companies and the original terms of the Supply of Services Agreement will be reinstated once all of their parcels have been collected from your premises.  We will also enquire whether you wish to remain a Parcelly network partner and give you the option of terminating the Supply of Services Agreement after thirty days.

Personal thanks

I want to take this opportunity to thank you personally for all your support.  These exciting new developments would not have arisen without the professionalism and hard work of our network partners.

I very much hope that you decide to accept our proposal and benefit from the opportunities to earn higher revenues offered by our new customers.  However, whether you accept it or not, the principles on which we do business with you will remain unchanged; there is nothing for you to pay to operate our Parcelly service in your store and you will still be able to use the Parcelly app to process parcels, manage the number of parcel deliveries you receive and maintain control over your opening times.

As ever, you can reply to us by email businesspartners@parcelly.com  or call us directly on 0203 813 7863

Yours,

Sebastian Steinhauser

CEO


Update to the Supply of Services Agreement

From either: (a) the date you accepted our proposal regarding handling parcels for the major international delivery companies; or (b) fourteen days after our team told you that you were eligible to handle parcels for the major international delivery companies if you did not communicate a decision about our proposal; the following changes will apply to the Supply of Services Agreement (but, if you did not communicate a decision about our proposal, these changes will only apply until such time as you reject our proposal and all of those companies’ parcels have been collected from your premises):

1. In Schedule 2 (Pricing) of the Supply of Services Agreement the prices in Part 1 for 7 day storage and 14 day storage are deleted and replaced with the following:

“For each parcel or Postal Item that is delivered to the Delivery Point and handled by the Delivery Point according to the terms of this agreement, the Delivery Point shall be entitled to receive from Parcelly a fee of:

  • £0.36 inclusive of VAT for parcels or Postal Items held at the Delivery Point for less than 14 days; or

  • £0.99 inclusive of VAT for parcels or Postal Items held at the Delivery Point for 14 days or more.”

2. The following words are added to the end of clause 5.2 of the Supply of Services Agreement:

“From time to time Parcelly may propose a change to these terms and conditions on giving the Delivery Point at least thirty days’ notice in writing.  If the Delivery Point does not wish to consent to the proposed change, then the Delivery Point may, within fourteen days of being notified of the proposed change, terminate this agreement on written notice to Parcelly, such termination to occur on the date that the proposed change would otherwise have come into effect. If the Delivery Point does not terminate the agreement under this clause 5.2 then this will constitute the Delivery Point’s consent to the proposed change.  Changes proposed by the Delivery Point shall only take effect if Parcelly provides express written consent for them.”

3. Clause 25.7 of the Supply of Services Agreement is deleted and replaced with the following:

“Parcelly may propose changes to these terms and conditions under clause 5.2 by sending an email to an email address provided by the Delivery Point, marked for the attention of the person that signed this agreement or (if different) the person whose contact details were supplied in clause 25.2.  Any other notice given under or in connection with this agreement is not valid if sent by e-mail.”