Royal Mail slashes parcel prices

Royal Mail is trying to rebuild its share of the parcel market by doubling the maximum size of its small parcel format – used predominantly by small businesses and consumers – and slashing the cost of some services in the run-up to Christmas.
The change means the maximum size for small parcel has been increase to 45cm x 35cm x 16cm. Meanwhile all stamped second class small parcels weighing up to 2kg will cost the same, at £2.80, a saving of £1 on heavier packages.
The move is designed to benefit customers sending Christmas presents, marketplace sellers and smaller businesses selling gifts online over the festive period and during the New Year sales.
With letters declining at about 8% a year, online parcel deliveries are proving to be a lifeline; parcels make up almost half of Royal Mail’s £9.15bn revenues. However, parcels revenue fell 1% in the three months to June, and Royal Mail said revenue for the year could miss expectations.
The price cuts are one of a number of measures designed to address the issue; last month it implemented a new system aimed at giving customers greater access to its parcels tracking service. Meanwhile the company is also trialling Sunday deliveries.
Royal Mail Parcels managing director Nick Landon said: “We are pleased to further simplify our stamped parcels portfolio to provide great value and support consumers and small businesses.”

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