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2020 price increases for Royal Mail business customers

By Chris Dawson November 26, 2019 - 11:00 am

The 2020 price increases for Royal Mail business customers have been announced. They come into effect on the first day back in the New Year – the 2nd of January.

Prices are going up by over 5% on many services in a move that won’t be welcomed by online retailers. At a time of uncertainty due to Brexit, a General Election and a potential strike by Postal Workers, an increase of this magnitude will only increase the likelihood of retailers looking at alternatives for posting their mail.

Whilst many online retailers are slightly reluctant to use postal services by third party providers such as Whistl, due to the slower transit time (generally a 2nd Class service), the same doesn’t hold true for International Mail where there is already an acceptance that delivery will take days, or in same cases weeks. International customers are generally more tolerant of slower deliveries and so Royal Mail’s price increase may tempt some to seek alternative delivery options.

  • Royal Mail Business Mail® will increase on average by 5.2%
  • International Tracked and Signed services will increase on average by 3.4%
  • International Letters will increase on average by 5.9%
  • International Large Letters will increase on average by 5.8%
  • International Parcels will increase on average by 5.6%

The exact prices you pay will be dependant on your contract and volumes. Don’t forget that on top of the base prices you will also be charged the fuel surcharge. You can find more information online and we recommend speaking to your Royal Mail account manager to discuss exactly how the price increases will impact you.

You can find more information on the 2020 price increases for Royal Mail business customers on the Royal Mail website, but for comparison we list the 1st Class Large Letter Standard unsorted options price changes below to give you a flavour of the price increases. The table shows the current price and the new price as of the 2nd of January 2020.

2020 price increases for Royal Mail business customers – Large Letters 1st Class

Delivery Speed

Option

Product Code

Weight up to and including

1 – 249

250 – 749

750 – 1,999

2,000 – 4,999

5,000+

1st Class Standard STL 100g 96.2p
104.0p
94.7p
102.4p
93.2p
100.8p
91.2p
98.6p
89.3p
96.5p
250g 133.0p
143.0p
130.9p
140.8p
128.9p
138.6p
126.2p
135.6p
123.4p
132.7p
500g 169.0p
180.0p
166.4p
177.2 p
163.8p
174.4p
160.3p
170.7p
156.8p
167.0p
750g 237.0p
250.0p
233.3p
246.1p
229.7p
242.3p
224.8p
237.1p
219.9p
232.0p
Account UNA 100g 94.0p
99.0p
92.5p
97.5p
91.1p
95.9p
89.2p
93.9p
87.2p
91.9 p
250g 130.0p
138.0p
128.0p
135.9p
126.0p
133.7p
123.3p
130.9p
120.6p
128.1p
500g 165.0p
175.0p
162.4p
172.3p
159.9p
169.6p
156.5p
166.0p
153.1p
162.4p
750g 233.0p
245.0p
229.4p
241.2p
225.8p
237.4p
221.0p
232.4p
216.2p
227.4p

 
It’s worth noting that these price increases only apply to Royal Mail Business customers. The cost to consumers buying stamps or at the Post Office won’t change until later in 2020.

“We know how challenging it is for many companies in the current economic environment, so we have thought long and hard about our price changes. We are committed to keeping prices as competetive as possible against the ongoing structural decline in letter volumes and increases in overseas postal delivery charges / costs.

We understand that no one wants to pay more, but these price changes will help us continue to deliver the high level of service that is expected by you.”
– Royal Mail

  • ifellow
    2 weeks ago

    The more Chinese mail that comes in the higher domestic rates have to go, as someone has to pay for it and it’s not the Chinese seller or the customers at the point of delivery. Many many websites, as well as marketplaces, are dominated by Chinese sellers taking advantage of this, someone has to cover all these deliveries and it’s us. This will lead to more false ‘item damaged’ claims for free returns on Amazon but seeing as these are already near 90% no need to worry there. Amazon might as well make returns free at this point. But guess if they make 3rd parties do it, so will they.

    Higher domestic rates will only make Chinese sellers, shipping from China seem even more attractive, so domestic sellers can look forward to the problem only getting worse.

  • NorthCrystal
    2 weeks ago

    RM is really a monolith from the 80’s…

    We’ve been business user for only few months but sometimes wonder if it was worth it.

    Few major issues for us
    1) no idea how much I pay for delivery service before doing manifest
    The average weighting price is based on service, class and weight.
    2) they seem to love short meaningless codes USO, TPR, TRN, TPS, TPN, CRL etc
    3) No claims or compensation available on for business users for CRL services
    4) CRL48 average delivery is 4-5 working days and not 2 working days as claimed
    5) pricing for tracked large letters is a joke. It’s almost same price as parcel
    6) cannot onboard new customers. I was given new account – no idea what with what. Ok their CS called me few days latter to ask if “i’m okay”.
    Okay rant’s over 😉

    They really need to get their shhtt together or it’s going to be too late.

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