Is a parcel price war about to break out?

Now that the Royal Mail privatisation is settled, the battle to find supremacy in the parcel arena seems to be hotting up a bit. And the Parcel2go CEO is predicting a price war. January sees a dramatic drop of in the number of parcels being sent, so promotional prices and incentives are on the cards.

Royal Mail lowered some of their parcel prices late last year, but with plenty of choice from various couriers, with £2.60 being their lowest parcel price, there’s lots of scope for undercutting.

Parcel2go point out that their lowest parcel fee is 99p (for a shop to shop service). And Interparcel have just introduced a temporary £1.50 price.

James Greenbury, CEO says: “The parcel sector is evolving more rapidly than ever before and it’s been interesting to watch how different companies are reacting. We’ve long been expecting a price war, and, as we are committed to offering the lowest price, naturally this is something has been a major player in. Don’t be surprised if these initial skirmishes lead to an all-out price war – which would be great news for the consumer!”

The idea of a price war doesn’t really fill me with glee. In the long run, they don’t tend to lead to lower costs for consumers and the disruption they create can be a pain. And price is seldom the only concern when using a courier. Tracking, service and customer support all also count for a great deal to a serious business seller.