Free delivery - This is what the term means for your delivery

You want to buy a suitable floor for your new open-plan office and the online mail order company offers you free "free house". Free shipping sounds good, but what does "free house" mean? In the following, you will find out what is behind the term "free delivery".

Definition of "free house" deliveries

If an online mail order business advertises "free house", this regulates the distribution of transport costs between the sender and recipient of the goods. This is a franking.

The word "free" assures the recipient that the goods will be delivered free of charge, while "house" determines where the goods will be deposited. Conversely, with the shipping addition "freight collect", the recipient is responsible for the delivery costs. For the opposite mode of transport, there is also the so-called "free house" collection, where the person collecting the goods bears the costs.

"Free house" shipping thus describes a fast, inexpensive and uncomplicated transport solution. However, important rights and obligations also go hand in hand with the agreement of a "free house" delivery. The question now arises: Can a legal basis be used?

Which legal regulation applies?

The term is not specifically defined in any legal text. However, it can be classified as a so-called trade custom according to §346 HGB. This paragraph ensures that merchants adhere to moral trade conventions when doing business with each other. If you buy your flooring as a private person for your new living room, the trader will not use the term. The shipping supplement only applies in business transactions between commercial enterprises.

Good to know: It is advisable for buyers to carefully check contract and delivery conditions. These can usually be found in the underlying general terms and conditions. In the past, there have been repeated discussions about the correct place of delivery in the case of "free house". Especially in the case of apartment buildings, there was a need for clarification. Is the floor delivered to the front door of the house or to the front door of the flat? A legitimate question if your offices are on the third floor without a lift. This ambiguity was finally settled in court. According to the current consensus, delivery companies only have to deliver the goods to the front door. 

Exception: If additional costs suddenly arise during the "free house" of the floor, which were not marked in the product advertisement or on the website, these are inadmissible. Additional costs can be, for example, packaging costs or surcharges for small quantities. However, if these are related to special requests of the customer, they may be charged. This is due to a court ruling by the Higher Regional Court of Hamm. 

Who assumes the risks?

Goods can be damaged during transport. What happens now if your tiles are not packed securely for transport and break during transport? Who bears the responsibility in case of damage? 

Sellers bear the costs in the case of "free house", but buyers bear the risk in the case of possible damage or loss during transport. The transfer of risk takes place when the goods are handed over from the seller to the supplier. If your tiles are already in the hands of the transport company, the trader bears no responsibility for the tiles breaking.

Caution: 
 In case of damage, buyers can at most turn to the respective transport company, which may pay for it. However, there is a liability gap, as suppliers usually set a capped compensation amount to protect themselves from high claims. If negligence can be proven, other rules apply, of course.

Depending on the price and material of your flooring, it is important to check whether a delivery makes sense or involves too much risk. Experience shows that buyers are quickly at a disadvantage when it comes to goods that are difficult to replace, of high quality and fragile. In addition, it naturally involves effort, expense and costs to enforce compensation for damages.

It is therefore advisable for traders to choose sturdy and protective printed packaging for "free house" deliveries in order to reduce the buyer's risk and make the buying experience more attractive. Secondary packaging can be protective in this respect. You now decide to purchase the floor from an Asian design tile retailer. What expression for "free delivery" should you then expect? At this point, all the dictionaries can stay on the shelf, as the following system is used in global trade: 

Incoterms: In the international transport business, companies make use of so-called Incoterms. In addition to the distribution of costs and risks for transport, the place of storage and insurance, they also regulate processing costs and other detailed formalities. They can be found as abbreviations on purchase and delivery contracts. 

Incoterms are an advantageous instrument because the situation is clarified in advance with mutual agreement, thus preventing disputes. However, their use always requires up-to-date and extensive background knowledge, which is why this system is only used in an international context.

"Free house” as an attractive middle ground

Depending on the type of goods, it may be attractive for transport companies to ship in the form of the alternative "free curbside" franking. This option is particularly attractive for forwarders, as it only requires the goods to be unloaded from the transport vehicle, and all further journeys have to be taken over by the recipient. This variant is a convenient solution for suppliers, but can be very inconvenient for recipients. There should be enough helping hands to carry your tiles. However, it would be ideal if the deliverers would carry the tiles to the kitchen, so that the laying can start there directly.

This possibility exists with a dispatch "free place of use". In this case, the greater convenience is on the recipient's side. This may determine in the apron the exact place of deposit of the commodity. While each of the alternative frankings leaves something to be desired, a "free house" delivery can be a successful compromise to satisfy both sides.