We’re getting deluged with emails asking what retailers should do about Royal Mail price and format changes which came into effect yesterday on the 2nd April 2013. Here are you main options:
Royal Mail Account
If you ship more than 1000 items per year check out Royal Mail account options. We covered Royal Mail account services in some more detail on an earlier post and whilst they may attract VAT and Fuel Surcharge there are savings to be made. There’s also more flexibility on parcel sizes with some contracts and alternatives to 1st/2nd class such as Royal Mail Tracked.
Don’t forget as well as the 1st/2nd class changes, Royal Mail Standard Parcels no longer exists.
myHermes
myHermes offer services starting from £3.00 inc VAT if you drop your items off at a ParcelShop. Prices for collection start at £3.30 (inc VAT). Full details are on the myHermes website. Our suggestion would be to offer customers a choice between a slower service such as myHermes and a faster Royal Mail service and let your buyers vote with their feet.
Full details on the myHermes website and myHermes are an option in the eBay drop down list of delivery services when you list items for sale and you can bulk ship your eBay shipping.
Collect Plus
Collect Plus have a service starting from £3.99 for their jiffy bag service (up to 2kg) and you can also purchase postage through eBay. Collect Plus are also in the eBay drop down list of delivery services as well as being on the Amazon list of shipping options.
You’ll need to drop your parcel off at your nearest Collect Plus shop and you can pay through eBay postage, with PayPal or by debit card.
Third party fulfillment
This is an option you may not have thought about, but was highlighted by Scott from Dalepak in a comment on Tamebay today. Whilst fulfillment costs money, it also saves you money in packaging, storage, and labour costs. Many fulfillment companies have access to rates far better than a small or medium sized trader can access and so can offer significant savings on the rates you can access yourself.
If you would like to find out more about Dalepak or other fulfillment companies you’ll find a selection on the Tamebay Guide in the fulfillment section.
If you have other options or tips on the best Royal Mail contracts, alternative couriers or third party fulfillment services feel free to add them in comments below.
8 Responses
Yes some Royal Mail prices have increased, but others have fallen.
Posted a second class recorded small parcel today, cost £3.70, the cost last week would have been £5.25. As always, swings and roundabouts!
I have had my RM Tracked prices re-profiled – you can do this once a year. This resulted in a drop in price by around £1.50 per parcel. I did this by switching more business to RM
Had an email today from collect+. They have removed their size restrictions for upto 2kg, no longer does it have to be a jiffy bag, max size now 50x30x30. Myhermmes is cheaper than the prices you quote above, starts from £2.50+vat drop off and £2.75+vat for collection.
I really welcome the size restriction change by Collect+ on the up to 2kg package – I think that will help a lot of people, myself included.
Craig, the prices quoted in the article for MyHermes were VAT inclusive, so actually exactly the same as you quoted.
Julie
I just spoke to my MyHermes courier who is also the wifes Next courier so I see him quite a lot !! He was saying that this week its gone mental with them so much so that they are struggling, more the fool the post office i say