Royal Mail Increase Small Parcel Sizes Due to Price Competition
Royal Mail didn't increase letter rates in 2013 (after the huge increases of 2012) but introduced significant changes to their packets qualification with 1st class and 2nd class small packet costs being increased to that of 1st and 2nd class small and medium sized parcels. This was aimed squarely at cashing in on the only growth area Royal Mail has been able to enjoy in the digital era, the so called eBay market. Online shopping generates a huge amount of small packets and parcels and private competition to Royal Mail for this business has been increasing in recent years.
In April this year small parcels were limited in size to exclude the traditional "shoebox size". This effectively doubled the cost of parcels that now fell in to the medium sized bracket and private competitors were very quick to spot the opportunity to take the lucrative eBay type business away from Royal Mail.
Now Royal Mail has fought back by increasing the qualifying cubic dimensions of a small parcel to 16x25x35cm for a cost of £2.60 2nd Class and £3.00 First Class and weighing up to 1kg (2.2 Lbs). This crucially accomodates the all important "shoebox".
It's nice to report some good news for hard pressed consumers for a change. Now if only the private parcel companies could generate electricity....
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