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Online retailer speaks out as Royal Mail changes parcel pricing

Online retailer Mobile Fun [IRDX RMFN] has spoken out about changes to the Royal Mail’s [IRDX VRYM] parcel services that come into force today.

This year’s annual price rise comes alongside a 2.5% fuel surcharge on deliveries made under parcel contracts, and changes to parcel bandings that will remove the 0-750g band into which most Mobile Fun postage previously fell.

Instead, the PacketPost band will now cover parcels of up to 1kg. Contract parcel rates have risen today by an average of 5-6%, Royal Mail confirmed today.

“We have introduced a new parcels portfolio to make it simpler for our contract business customers and more accessible to small businesses,” a spokesman said.

“We have thought carefully about our new prices for 2013. Where possible we have limited any increases to below or around the current rate of inflation. For some services the increase is higher than inflation as we need to ensure we more closely align our prices with our costs while remaining competitive.”

But the loss of the 0-750g service will have a major impact on Mobile Fun, says its operations director Ruel Taylor. He says that while the mobile phone accessories pureplay has worked to keep postage costs down through initiatives such as reducing packaging and wants to avoid passing on the price increases to its customers, it will nevertheless become a “daily battle for online retailers to keep costs down without compromising customer service and delivery times.”

He continued: “Many businesses, like ours, simply do not have sufficient margins to continue offering next-day delivery at an affordable low price for our customers. We have no choice now but to begin offering our customers cheaper and therefore slower, delivery services, which is a bitter pill to swallow.”

Taylor predicts that Royal Mail customers will over time be forced to look for alternative services, as annual increases continue. “At Mobile Fun,” he said, “we’re about to trial the introduction of courier delivery to nationwide collection points, allowing customers to collect their parcel at a convenient time.”

He added: “Mobile Fun urges Royal Mail to reconsider its pricing structure and try to accommodate the needs of its business customers. We would like to continue to support Royal Mail but the increasing costs involved mean that we must consider alternatives, to continue offering best value for money to our customers.” 

Commenting on the fuel surcharge, Royal Mail said today: “We are introducing a fuel surcharge for business contract parcel products from today (2nd April 2013). Fuel surcharging is established practice in the parcel delivery market. This will bring Royal Mail in line with other parcel delivery companies. The charge we will apply compares very favourably to fuel surcharges already applied by other UK parcel delivery companies. A fuel surcharge will not apply to non-contract business and consumer parcel services. The rate will be 2.5% from 2nd April 2013. This is considerably lower than the current charges applied by other UK parcel carriers (March 2013) of 7%-10%.

“The price of fuel is a major element of parcel delivery costs. Our fuel costs are at a record high – up more than 40 per cent in the last five years – and volatility in the price of fuel means that we need a more effective method of reflecting this in our price.

“The specific business parcels services affected are: Royal Mail Special Delivery Guaranteed by 9am, Royal Mail Special Delivery Guaranteed by 1pm, Royal Mail Tracked 24, Royal Mail Tracked 48, Royal Mail 24, Royal Mail 48, Special Delivery Guaranteed Returns, Royal Mail Tracked Returns, and Mail Order Returns.”

Are you affected by the Royal Mail’s changes to parcel banding? Let us know what it means for your business in the comments below.

Mentioned in this piece…

Mobile Fun

Mobile Fun

IRDX: RMFN

Mobile Fun is the UK’s leading online mobile accessories retailer — offering the latest mobile phones and exciting accessories. Mobile Fun has been based in Birmingham since we started the company in 2000. (more…)

Royal Mail

Royal Mail

IRDX: VRYM

Royal Mail is the postal service in the United Kingdom of Great Britain and Northern Ireland. Royal Mail Holdings plc owns Royal Mail Group Limited, which in turn operates the brands Royal Mail and Parcelforce Worldwide. (more…)

63 comments on “Online retailer speaks out as Royal Mail changes parcel pricing

  1. dean said:

    We are all out of pocket because of their GREED.
    The new small and medium parcel dimension limits are unrealistic and is costing my business considerably more than ever…a small boxed package which should be classed as a small parcel but is now classed as medium(when it clearly is a small package) now costs £5.65, it should be under £3.00!In fact i’ve seen the standard small packet price more than doubled in recent years.The new prices are poor value for money.
    I look forward to seeing a new alternative postage company to royal mail, its only a matter of time now…

  2. I run a company selling musical instruments and accessories and, amongst other things, we sell hundreds of ukuleles. The cheaper beginners instruments selling at £29 are hugely popular which, until the Royal Mail’s ridiculous price rises, were costing us £2.36 to send by franked mail. This now costs us £4.80 which is more than double. I’ve been a loyal user of Royal Mail for more years than I care to remember and have always recommended them above all other carriers. Now however, I quote the immortal song line, “There’ll be some changes made ! ” I really believe that Royal Mail is trying, for some reason, to price itself out of the market.

    • tim scales said:

      I run a candle business and last year spent 20,000 with royal mail, since lats price rise I have gone to Myhermes and cut my costs by half, with no worry about parcel fitting thro some stupid slot.

      Yes I am giving my business to a german company, but at least it should improve and no more lost parcels at my expense,.

      All this so the goverment can offload 12 billion on their pension scheme to the taxpayer.

      Goodbye royal mail , you have exceeded yourselves

  3. John said:

    I’ve just left the post office feeling low. The price of a first class parcel is a real shocker. Looks like my ebay business may be over 🙁

  4. andy Symonds said:

    I have recently started selling model kits online and had everything just about ticking over makng a minimal profit. I am disgusted that royal mail have brought in this new pricing structure. I makes items i sell now profit losing as the postage is excessive on some items.

    Ths now mean that thanks to ROYAL mail (who have lost numerous items i have sent through them) that my business is now really strugg;lng. So much for them helping get new and small business started. YOU MOroons HAve effectively crippled me and now im left with many items that are just too uneconomical to send through te post.

    In addition if they actually stopped losing so many peoples items maybe the money they pumped into additional compensatin could have been used to reduce prices. SHAME ON YOU ROYAL MAIL, I’ll be going elsewhere for sure if i can.

  5. Marek said:

    Items I used to send standard parcels cost us £5.30 to send now cost £11.96 and not tracked.
    MyHermes same parcel only £3 and tracked. Good bye Post Office you have truly out priced yourself. I don’t think Royal Mail are interested in delivering parcels any more.

    • Just been into the post office to mail my parcels that peole from ebay have decided they want Royal Mail to handle. I’m in every day and very friendly with the owners. They told me they judge a bad Monday if they only have 6 bags of mail which is the lowest they have ever had…. today they have 3 after the introduction of the new parcels rates. I Called at my local Collectplus shop on the way back to drop some more parcels off and they told me they are now have to make 2 collections a day dye to the increase…. I think the Royal Mail have not thought this out at all,

  6. We’re a postage and packaging supplier based in York, and the majority of our online customers are SMEs or eBay sellers, i.e. the people who are going to be most affected by these changes. We’ve been overwhelmed by requests from customers old and new for postage boxes to comply with these new rates.

    Feedback from these customers has suggested that they were not given sufficient notice of the changes. A number of our customers reported turning up to their local Post Office on April 2nd and learning about it for the first time then. Even worse, some reported that the post masters themselves were unaware of the details of the changes. One of our biggest sellers has been the 16x16x16cm small parcel rate exception box, so it came as a shock to us when people called up saying their post master had told them that it didn’t fall within the small parcel rate band. Of course it turns out that the post master just hadn’t been informed properly about the changes.

    • Elaine Owen said:

      Just been to the Post Office with one of our new 80mm deep boxes purchased to comply with the new regulation.

      Guess what. It would not go through the slot in the perspex Post Office size guide . But it went through the official cardboard slot we had been given.

      Turns out that the perspex one is 79mm not 80mm. The post master agreed that the box was 80mm so took it, but there is a risk that it will be rejected at the sorting office.

      It is very difficult to purchase boxes that comply, especially as they are sold giving internal measurements – but we had thought we we OK with this box. Trying to find out who to complain to at the Royal Mail about the innaccurate slot size. Anyone know?

      Thanks

      • Mike said:

        I’ve had this problem too, but I’ve not measured the Royal Mail’s template, assuming it to be correct. My boxes are 8cm; I’ve measured them on a vernier scale, but because they won’t pass freely throught the template, Post Office Counters say they are not acceptable. Royal Mail customer services say they are, and Post office helpline say they are, but not the idiots who advise individual Post Offices..

        Complain to Moya Greene, CEO of Royal Mail Group at moya.greene@royalmail.com. The more people complain about this ridiculolus anomaly the better. Royal Mail tell me that one complaint isn’t enough to generate an investigation, but multiple complaints will. Bombard Mrs. Greene with emails…..please.

        On another note, did you realise that it is 70p cheaper to send an identical parcel to Vladivostock, 4,500 miles diatant, than it is to send one 4.5 miles away. What goon thought that one up.

  7. Alex said:

    quoted £13.35 for a medium parcel br Royal Mail, second class cover up to £20 compensation, no signature.

    MyHermes, same parcel £100 compensation and signature on delivery….. wait … wait……

    £7.32

    Bye bye royal mail lol

  8. David Murray said:

    Like many others running a small business it gets harder and harder to keep costs down and Royal Mail’s alterations to the ‘parcel’package’ rates have almost doubled our postal cost for certain items. The bean counters at Royal Mail may have forecast a big return from this price hike but we are now using a more price-effective independent courier, so Royal Mail is losing around £2000 p.a. in business from us. Small change for them, but as others are going down the same route this price restructuring will cost them dearly in the long term. Well done Royal Mail!

    • Marek said:

      Hi, I completely agree, last year we spent around £3,000 with Royal Mail and now we have gone completely to an alternative courier as we cannot absorb these price changes. I think Royal Mail have shot themselves in the foot, missed and got their foreheads instead!

    • Perfume King said:

      Dear David,

      Can you pls share the price-effective independent courier? We are all on the same boat, and need to get a new courier fast before our boat drowns :(.

      Thanks,

      Nick

  9. Raj said:

    The post offices are suffering most. Our post office has lost 4 postage customers already as they have used another postage company as it is simply cheaper. That means we have lost potentially £50k. If Royal Mail don’t make it cheaper post offices everywhere will go down. They simply aren’t sustainable with prices like these

  10. Keith said:

    Ugh! Was just about used to the last increases- and trying to do my work as efficiently as possible- The changes are a massive spanner in the works- and I am utterly confused about what delivery services to offer-
    About how to price inexpensive items as well as larger ones- Mistakes can mean you’re out of pocket by several pounds on a small transaction- It means a lot of hard thinking and ways to change- I sell used and collectible items in a range of weights- shapes- sizes- What a head-ache of work to figure out all the scenarios

  11. Gerry Walton said:

    NO JOINED UP THINKING AGAIN
    The new starting postal weight band for small packets into Europe is 0 – 250gms at a franked price of £3.15 (£3.50 for stamps).
    This is a massive uplift on last years franked prices which started at £1.47 for 100gms, rose in 20grm steps (i.e £1.58 for 120grm) up to 300grms; then 100grm steps thereafter.
    Last years 250grm franked price was £2.42 with an average price of £1.98 for the 0 – 260grm steps.
    This £3.15 is a 59% price increase on last years average price of £1.98
    Part of our online business is the sale of small low value items into Europe. Now, with a minimum starting postal price of £3.15 + Vat and packaging we’ve been immediately priced out of the market.
    The implications are that this massive starting price hike will be effecting thousands of Retailers / Exporters in small item sales – the level of lost revenue from fewer Export Sales will be enormous amounting to tens, if not hundreds of millions of pounds when UK business can least afford it.
    I THOUGHT THERE WAS A REGULATOR TO REVIEW ROYAL MAIL ACTIONS AND THE RESULTING IMPLICATIONS. HOW CAN THEY JUSTIFY APPROVAL OF THIS INCREASE WHEN IT WILL COST THE COUNTRY MILLIONS OF POUNDS IN LOST EXPORT REVENUE. – NO JOINED UP THINKING AGAIN.

  12. Adam Buckley said:

    I am seething!!!!

    I’ve just been to post some Ebay items, and noticed the jump in Royal Mail prices.

    A signed for 2nd class packet is now costing £6.25!!!!

    So, I risk putting my prices up, and losing what little business there is, or take the loss on each item.

    I occurs to me that a select few in this country are literally shovelling money into their pockets, while most are finding it tougher to get by.

    I don’t advocate living solely off state benefits – but I can see why people make it a lifestlye choice.

    Humans excel at greed.

  13. Anna Bond said:

    Royal Mail, you are the April Fools! and greedy ones too!

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  15. John said:

    Unfortunately due to the amount of packaging required to safely send hard disk drives to customers after data recovery services means that the standard box that we use is normally 9 to 10 cm thick. Consequently just about everything we send out, regardless of its weight is in the ‘medium’ category. We’ve worked out that for us the cost of posting what were our ‘small packets’ has risen from between approximately 33 – 50% depending on the weight. It is hard to support the Royal Mail on this, and it just seems to be making the use of the Post Office even more of a challenge. I still find the ‘large letter’ classification grating to this day. Unfortunately I expect that for our company it will result in the use of other carriers. It’s a shame as we have found the Post Office / Royal Mail a convenient and useful service for the business.

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  17. Connor said:

    We are a small business on Ebay and these new Royal Mail price increases are extortionate and would be damaging to us. I am being forced to look elsewhere and turning my attention to comparison website like Parcel2Go as mentioned above. http://link2.fm/5P1ZCV

  18. CPMike said:

    I sent a package to Italy just under 100 g measuring 180 x 90 x 90 by airmail for £2 less than sending the identical sized box to the Isle of Wight 2nd class!

    MyHermes, here I come!

  19. Cathrine said:

    forgot to add funny sales pitch by post office counter staff when we were discussing me no longer using them.

    Have you considered that RM are one of the 2 oldest businesses in the UK so you should continue to support them because of this.

    I asked what the other business was and he replied ‘prostitution’

    Im not sure whether he was joking, being serious or i have to read between the line here.

    ( the chap who said this is a lovely guy who is also the local mosque imman so i was abit taken aback by the conversation LOL)

  20. Cathrine said:

    i am an online retailer and have used my local post office for 10 years. In that time i have processed 50 – 200 parcels per week throught this little shop. My parcel sizes come in 3 sizes and have not changed in 10 years yet 4 years ago my parcels cost just £2.50 to send. In the last years they have cost £3.65 to send and this has now risen to £6.75 per item. I appreciate Royal Mail need to make a profit and reduce Government subsidies but i dont understand why their sales team have now offered me a guaranteed price for confirmed delivery of £3.81 per parcel which includes fuel surcharge, comp, tracking, signature and vat and office collection. Therefore taking the business away from the Post Office (i know its a seperate co) who have to charge me £6.75. This is ridiculous and will kill off local post offices who cannot offer other courier collection services like collect plus. I have changed already to a courier and so far so good. I wont be taking the sales rep up on their offer.

    I havent increased my product prices and have been transaparent in my business pages about the cost of the postage. This is usually one of my busiest weeks due to the Grand National Race but i havent sold anything since yesterday.. unheard of in 10 years online. I even sell on Christmas day! i am convinced it is due to the price hike in postage, but im also convinced that eventually the sales will come back as customers realise that all online retailers are int he same boat.

  21. Annette said:

    Royal Mail 24™ and 48™ is advertised as “A cost-effective, easy to use service with large volume discounts if sending at least 1,000 parcels a year”. You can also “Use Royal Mail Signed For® in conjunction with Royal Mail 24™ and Royal Mail 48™ for added peace of mind.”

    WARNING:
    This service has a surcharge of 2p for large letter and 6p for parcels. Making the large letter price the same as standard 1st and 2nd class. There is also an extra surcharge for “Royal Mail Signed For®”, making Royal Mail 24™ and 48™ MORE expensive than standard 1st and 2nd class.

    For Example: 1st Class Large Letter – Weight 250g

    Royal Mail 24™ = 2p Surcharge – 99p Nett Postage – 20p VAT – Total £1.19

    Royal Mail Standard 1st Class = No surcharge – £1.00 Nett Postage – 20p VAT – Total £1.20

    Royal Mail Standard 1st Class Signed For® = No surcharge – £2.10 Nett Postage – 42p VAT – Total £2.52

    Royal Mail 24™ Signed For® = 5p Surcharge – £2.12 Nett Postage – 42p VAT – Total £2.54

  22. fred said:

    Oh dear What a Joke .. last week a Board game cost me 2.20 to post today i was informed that it is 5.20 because it is over 8cm thick !!=/ thats over 100 percent increase in cost .

    I will be using My heremes from now .

  23. Hi

    The new costs from the Royal Mail have put another nail in their coffin! For me my cost of an item to a customer from the Royal Mail, 2nd Class was £2.20, with the new system it has to go as a medium packet, thus the cost has gone up by 137% yes 137%. How can we as a business offer great value to our customers when the government are happy to let the Royal Mail up their price by 137%! This has to be a DTI review or something as it is just outrageous. Also on small packet they put the 1st by 30p, but they have the cheek to put the 2nd up by 40p! Who the hell is running the Royal Mail and making these daft costs?

    Do not be surprised to see jobs going within 12 months ladies and gents. Because we have switched to myhermes and for less money than the royal mail we get the tracked as well! So for medium items it is bye bye Royal Mail and hello MyHermes.

  24. Noble said:

    I think Royal mail’s new prices are simply ridiculous .I run an eBay business I normally send parcels weighing between 1-2kg which I used to send via standard parcel costing £5.30.Under the new price structure it now costs £8 to send .I have since opted for collect plus.Royal mail simply do not have a clue and at this rate they would soon be out of business

  25. Mike said:
  26. paul said:

    I sell coats on ebay, as they are over 2kg the post cost with royal mail has gone from £8.60 to £13, I spend £6000 a year on post, I will be going to another carrier today. Dont they understand that if the beer is too expensive the pub will close, they must know what they are doing but to me it is just bad management and pure greed

  27. MARTIN HILLS said:

    As a full time e bay seller I find it hard to swallow the latest RM price rise for parcels. Barmy ! I think they have committed financial suicide by doing this. Although only a sole trader working from home I have been spending £20,000 pa with the PO. No more. Goodbye PO……. Hello Courier service, whoever you may be…………

  28. Rachel said:

    Is there an alternative courier out there that we could use. Our boxes are 750mmx375mmx250mm
    weight 720g Pre 2/4/13 1st class Royal Mail £2.70 today £5.65. any suggestions as the increase is excessive

  29. terry livesey said:

    Bad move by royal mail. I have been selling small lights on ebay. Postage was £2.20 now £5.30.
    R. I. P. royal mail.

  30. James said:

    I really hope Royal Mail goes under. So greedy, I had to write off some of my parcels today. £8 for second class small package because my parcel (measured and under their 8cm guideline) didn’t fit through their template “easily”. Greedy, just greedy.

  31. Will said:

    Well what can I say, horrendous, just had my most expensive visit ever to the post office, normally £45, today cost me £77.

    We sell from our own store and send out a mix of postal tubes and small packets. A tube which previously cost £3.70 1st class recorded cost £6.30 second class today. Now vinylcutgraphics.com is going to send all it’s parcels via a courier – hope you enjoy losing my business RM!

  32. bill spears said:

    My fear is that the increased workload that will now be put upon ‘other’ couriers will cause quality of service to go down

  33. Mark said:

    I usually pay £3.85 for sending my parcels out 1st class recorded yesterday it was over £6.00. I even went to another post office in utter shock and denial.. only to be quoted the same. I have already found a courier that will do it for £3 or £4 (Hermes) depending on whether I need a signature at the other end. Been with Royal Mail since I began selling online 5 years ago yesterday was my last order with them… Good Luck for the future RM is all I can say!!

  34. LJ said:

    It must be about time that eBay created their own mailing system for smaller parcels. Royal Mail’s excessive greed means they will lose quite possibly the majority of their trade through private and business eBay sellers. I genuinely hope Royal Mail goes under soon.

    • Jenny Reader said:

      I am affected by it as price increase means E-bay is a lost outlet for my surplus goods. Made a huge loss on items posted today but never mind. Next time give them to charity.

      Apart from that, it is morally wrong, inflation busting and will cause job losses all round.

      Think again somebody with a brain, please.

    • Vance Gledhill said:

      Royal Mail deserves to go bankrupt. They got so much business from mail order firms, online sellers and E-bay etc, now they are biting the hand that feeds them. Pathetic management, stupid ill-thought out price structures, with dimensions and weight restrictions, I doubt a group of chimpanzees could have made a worse cock-up of a once great company. God help the long suffering British public, especially postal related businesses. Rip-off Britain is still going strong with Royal Mail in its vanguard.

  35. Becky said:

    Yesterday I got a nasty shock to say the least. I took my bag of 15 parcels to my local post office, I send using 1st class and my bill usually comes to £40.50, sometimes I send a couple of items recorded an this adds a couple of quid. Yesterday I was informed that my bill would be £84.75. I told the staff that I would no longer be using the Post Office, I’m going to give My Hermes a go. This is a very sad day indeed, my local Post Office handles 100s of parcels for online retailers every day, many of whom will not be able to absorb this exhorbitant price hike. How does Royal Mail expect the Post Office to survive?

    • Jac said:

      I run a small business through ebay. For the 2nd week I’ve had to segregate parcels into two groups – post office & Myhermes. At the Post office this morning – 4 parcels that I measured at 8cm thick or under wouldn’t move freely through the ‘slot’ so were rejected. This is a little sub post office in a village that needs all the trade it can get!
      I now need to rearrange delivery through Myhermes – not my choice but the only economically viable option.
      The 8cm slot is a joke!

  36. Farm Boutique said:

    I have been selling online since 1999 (several different product lines) and this is the biggest game changer in online retailing.

    It is going to affect consumers’ behaviour when purchasing online and the way merchants sell online.

    CONSUMERS

    They will now be looking at the overall cost of their purchases, instead of the cost of the item and then a few pound for postage.

    Many like the Amazon, because of its simple postage. Amazon can achieve this due to volume of parcels and negotiated rates with Royal Mail.

    If a person wants delivery tomorrow, they will now have to expect to pay a premium.

    They will start to shift away from having parcels delivered to their home address. The likes of services of Click Plus will be expected to be offered by merchants. Such services allow parcels to be collected when it is convenient to the customer (on way home from work) not the courier.

    MERCHANTS

    Now have to be up front about postage costs.

    Shouldn’t be afraid to offer a premium for next day delivery.

    Explore the different delivery options available. Remember services like ClickPlus – allow you to drop off parcels when it suits you.

    Look for a local courier in your county – they might offer cheaper rates for “local” delivery.

    THE ROYAL MAIL

    The truth is The Royal Mail don’t want your business parcels. Their logistics system is designed to handle letters not parcels (that is what Parcel Force is for – hence why parcel force is now cheaper for a number of options).

    I personally think they have underestimated the impact on their business. If the “drop off” at your local shop type of services gain popularity, then Royal Mail will lose the domestic parcel market as well. People will be able to drop off parcels when the post office is closed.

    THE FUTURE

    – Consumers will expect to see a variety of delivery options.
    – Merchants need to look for a wider selection of delivery options.
    – Cheaper local delivery services may start to appear as some online retailers target their local market customers more.
    – Certain products lines will start to disappear from online outlets, especially ebay.

  37. cbict said:

    Restricting the depth of small parcel to 8 cm by Royal Mail was a serious slap on my face. Most of my packet size items’ depths are larger than 8 cm and affective price change is almost %100 increase – overnight! Last year it was similar too. Minimum packet price was around £1.5 and it suddenly jumped to £2.5 last year. Airmail prices was no different. Last year’s increase already put UK sellers out of competition and this year’s increase just seals the coffin. American and Chinese sellers spend much less to post items to UK then UK sellers posting from UK to UK.

  38. Syed said:

    I agree with Malcolm that this increase has come at the wrong time and it appears higher than ought to be. We are also small ebay seller and the increase in price we will have to absorb as our customers will not pay, therefore we too have no choice but to look for a cheaper alternative.

  39. Gill said:

    It’s greed! Pure and simple and we will no longer use Royal Mail as a result, I spend £75 per day at the post office, today’s bill was £135!!

  40. George said:

    I am a small business selling Mitsubishi car parts online. I keep my prices as low as possible as competition is fierce with International sellers selling inferior products. I need to pass on these yearly Royal Mail Increases which aren’t just simple percentage increases but new weight and size bands which take so much time and effort to work into the way we charge and package and offer next day delivery which a customer with a broken down vehicle need.
    It is unbelievable that Royal Mail can bring in without warning and never mentioned in the news media. How is this not as bad as any other tax increase welfare cut or spare room tax. It will cripple a lot of small online sellers business

  41. We are an online toy etailer who mainly use Riyal Mail for parcel services, more frequently we have started to use Yodel through the Collect Plus parcel points delivery for an item weighing Upto 2KG is £3.99. The delivery is made within 48hrs.

    I think Royal Mail are either brave or very stupid as it makes no sense. As revenue and profit will most likely reduce as the changes from today take affect.

    • Jenny Reader said:

      I quite agree. Somebody, probably an expensive consultant has led the stupid management into this suicidal action. Who will win, I wonder. Shareholders eventually and if they don’t they can always sue the management – RBS as an example.

      Price increase with mean job losses all round particularly when we just need more to be created. Absolute madness.

      Second class does arrive sometime the next day so Royal Mail workers beware as you are obviously overstaffed.

  42. Shaun said:

    Last week I sent a 1100gram parcel via 1st class recorded mail and it was £5.25, today I sent the same size and weight parcel but through 2nd class recorded mail and it was…..£9.10!!

    This is going to have a massive impact on eBay and Amazon sellers and business suicide to Royal Mail!

  43. The royal mail increases have been more than a 25% for my business today. It is a cost that I simply cannot pass on to my customers. It is a vital service and should remain affordable. If not it should be subsidised by the government. However no business can justify a 25% increase. I wouldn’t mind as much if it was an efficient service- however it is not!

  44. We are a wine wholesaler and retailer, with an internet shop. We have always been fair with our customers, charging just £4.99 for any retail order up to £100 – thus we have been subsidising all orders from as little as 80p for a single bottle of wine or 4 bottles of beer. The new Royal Mail prices mean that the UK postage charge for 4x330ml bottles of beer has risen from £5.80 to £13.35!!! (Slightly above inflation I believe). We are now seriously considering sending all orders – no matter what size, via a national parcel company with a local depot. The thought that Dick Turpin has switched sides and now works for Royal Mail is too much to even think about. I hope they realise just what they’re doing to both our business – and more importantly, their own.

  45. Marc K. said:

    The increase in postage from the royal mail hit us hard today.We sell from our online shop karooequine.com, Ebay shop and also sell to wholesale distribution. Some of our larger items which are sent via 1st class recorded next day moved up from £7.22 to just over £10.00 which is ridiculous.
    It is now cheaper for us to use APC, Despatch Bay or UPC for all items over 1Kg as we pay a flat rate with these of £6.02 + Vat (£7.23 inc VAT) for up to 30kg next day signed for.
    I think the Royal Mail have really shot themselves in the foot here and I will now have no option but to move all of our shipping/courier business to one of our other couriers – which by the way also collect from our premises.
    We like one of the previous businesses who left a comment also try and offer Free Delivery on our products but this is getting much harder. I would prefer to support our local post office but this is now no longer viable especially with the amount of competition that exists in the retail sector.

  46. danavenell said:

    I was sending out tubes 61mm long, containing a poster. Under the old rules, this cost me £2-20. Today I am informed this is now a ‘large parcel’ and would have to be delivered by ParcelForce at a cost of nearly £6. I refused to pay of course, and will no longer be using Royal Mail. I can find an alternative, cheaper method of delivery but many businesses and ebay sellers will be hit hard, probably too hard to make it worthwhile. Disgusting.

    • Nick said:

      Alot of the stuff i send has gone up from 3.15 to 6.10 nearly double . Im trialling my hermes and i can print off and get tracking info saving queuing in post office i hope lots of people go this way . The main reason for the increases is the intent to make it ready for privatisation, well i hope most people move away from it

  47. Malcolm said:

    We run a small business on EBay and, on average, our spend on postal charges, (which have always been through Royal Mail), is around £10,000 per year, (around £200.00 per week). Their new price and weight banding have killed off any chane of of using Royal Mail’s services as our customers will not use us if the cost of postage is almost the cost of the item we’re sending. We can see most price inreases because of bandings are 29% and a few are in excess of 100%!
    I am sure that we won’t even cause a ripple in their profit and loss accounts, however if a hundred business’s like us turn to cheaper companies, that million pound loss of business will cause problems.
    I must point out that we agonised over moving from Royal mail as they offer by far the best service, however, they seem on destroying one of the best services in the country

    • Sunny said:

      If small businesses stop using Royal mail, what are their options? Which other companies can send out small/medium packets are a better price?

    • Chris said:

      The cost for me to send a parcel last week was £2.20 today to send the same parcel was £5.35 there are a lot of Internet businesses are going to go out of business and I dought Royal Mail care as long as they keep filling there pockets its disgracefull they are allowed to do this

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