All content ©2022 DSolomon LTD

1st Class Stamp Cost Rises to 95p

From the 4th of April 2022, the price of a 1st Class stamp will increase by 10p to 95p and the price of a 2nd Class stamp will increase by 2p to 68p.

That’s a massive rise in the cost of a 1st Class stamp and would appear to be a clear statement of intent that they’d rather you just settle for 2nd Class or not post letters at all… parcels is where they see their future. Indeed Royal Mail say that they have considered these pricing changes very carefully in light of the long term structural decline in letter usage and rising inflation. Letter volumes have declined by more than 60% since their peak in 2004/5, and around 20% since the start of the pandemic.

Overall, these changes are broadly in line with inflation and are necessary to ensure the one-price-goes-anywhere Universal Service remains sustainable. The Universal Service Obligation (USO) requires Royal Mail to deliver letters to 31 million home and business addresses across the UK six days a week at the same price.

– Royal Mail

What we’d really like to see is if the price of a Stamp is now going to cost 50% more than it did 10 years ago, (In 2012 the price of a 1st Class stamp rose to 60p), whether we’ll get the service to match the price. In their latest Quality of Service report they only achieved 76.8% of 1st Class mail being delivered on time (against a target of 93%).

We understand that many companies and households are finding it hard in the current economic environment, and we will always keep our prices as affordable as possible.

Whilst the number of letters our postmen and women deliver has declined from around 20 billion a year to around 7 billion since 2004/5, the number of addresses they have to deliver to has grown by around 3.5 million in the same period. We need to carefully balance our pricing against declining letter volumes and increasing costs of delivering to a growing number of addresses six days a week.

As customer needs change and we see a greater shift from letters to parcels, it is vital that the Universal Service adapts to stay relevant and sustainable. These price changes are necessary to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for future generations.

– Nick Landon, Chief Commercial Officer at Royal Mail

Royal Mail say that their stamp prices remain among the best value in Europe compared to other postal operators, with their research showing that the European average price for 1st Class letters (0-100g) is £1.36.

Royal Mail Parcel Price Reductions

While the price of a 1st Class Stamp will rise 10p from the 4th of April, many parcel prices will be going down.

With these price reductions, if you normally pack up parcels over the weekend ready for shipment on a Monday then on the weekend starting Friday the 1st of April you would be advised to hold off purchasing your postage for most parcels until Monday the 4th.

New Royal Parcel Prices from 4th April

If you are posting a typical package up to 1kg, here is a sample of the new parcel prices. These prices are all based on you purchasing your postage online – if you buy stamps at the Post Office or have a business contract with Royal Mail then you’ll see different pricing.

Special Delivery by 1pm

Currently the parcel price for a 1kg Special Delivery by 1pm would cost you £8.85, from the 4th of April this drops to £8.45.

Small Parcel Tracked 24

The current cost for Tracked 24 for a small parcel is £5.46, from the 4th of April this drops to £5.45. But the band is expanded to include parcels up to 2kg instead of a limit of 1kg (previously 2kg parcels would cost £7.80 but will be £5.45).

Medium Parcel Tracked 48

The current cost for Tracked 48 for a small parcel is £7.26, from the 4th of April this drops to £6.35 and as with Tracked 24 the weight band covers parcels up to 2kg (as was previously the case for Tracked 24 parcel prices.

UK Standard

The cost for a 1kg small parcel sent 1st Class is currently £3.35. This changes to £3.95 but now includes parcels up to 2kg. A 1-2kg small parcel would previously have cost £5.07 so whilst it’ll cost more to post parcels up to 1kg there will be saving for heavier parcels.

Royal Mail 2022 Price Changes for international business contract customers

There’s good news from the Royal Mail 2022 Price Changes as many customers will notice a drop in the cost of postage this year. However, some prices are rising.

International tracking and signature services (country-priced)

Royal Mail are reducing prices for tracked and signature service. In particular, Tracked parcel prices into France, Canada and Poland will see significant (>10%) reductions

Untracked International Business Products (country-priced)

Royal mail are changing prices to reflect changes in delivery and conveyance costs – see the Price Guides for more detail on these changes

Zonal-priced international services (Tracked, untracked and Response)

Royal Mail will be increasing all zonal product base prices by 4-6%.

Majority of temporary air carrier supplements removed

For the majority of destinations, Royal Mail have removed temporary air carrier supplements. They have done this because air capacity costs are currently forecast to become more stable in 2022. This allows Royal Mail to account for air costs (alongside other operational costs), in ou business contract prices, which is part of the normal review of costs and pricing. Royal Mail have however retained separate air carrier supplements for four destinations, where the forecast costs for air capacity are still not sufficiently predictable to accommodate them in normal pricing.

The air carrier supplement will still apply to Tracked, Tracked & Signed, Signed and Untracked services to: China; Russia; Iceland; Israel.

International Surcharge reduced

Royal Mail introduced an International surcharge to help them respond to the impact of the volatile currency market on key cost areas for our business; fuel, conveyancing and International delivery charges. They say that an flexible International surcharge enables them to keep prices as low as possible while enabling them to react to future currency and fuel related cost changes. Following favourable movements in Sterling exchange rates, Royal Mail will be reducing this surcharge from 6.5% to 4%.

Royal Mail 2022 Price Changes for online postage

If you don’t have a business account with Royal Mail, you can check out their 2022 prices for buying postage online here

What is a good drop shipping strategy? Bundling

https://vimeo.com/530683117…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

What is drop shipping? Fundamentals

https://vimeo.com/527273151…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

Should you get tracked delivery?

https://vimeo.com/507910127…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

Which carrier should you use?

https://vimeo.com/507734397…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

How to ship your first order

https://vimeo.com/663022718…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

Shipstation

https://vimeo.com/651937624…

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

Mule

a carrier broker that integrates with Shopify and more.

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.

Hermes and Tesco partner to expand Parcelshop network

Hermes and Tesco, the UK’s top consumer delivery company and major supermarket retailer, have announced their collaboration which will see Hermes Parcelshop services provided in Tesco’s convenience stores across the nation. From the 6th of September, Parcelshop services will launch in the first few stores and over the months following, a continuous roll-out will be set in motion. 

With Lockdown restrictions easing, Out of Home parcel delivery services such as Parcelshops and lockers, have seen an increase in popularity. Hermes has taken this opportunity to scale up it’s network, which will provide consumers with even easier options for sending, receiving and returning parcels. 

Currently, the Hermes Parcelshop legacy consists of more than 6,000 independent retailers, retail groups and lockers. By 2022, Hermes has predicted that 80% of the UK’s population will be able to access their closest Parcelshop or locker within a 10 minute walk. They have also forecasted that, through their Out of Home network, they will handle more than 80 million parcels this year.

“We’re really excited to announce our new partnership with Tesco, which will make Hermes ParcelShop services even more accessible to people across the UK, at a time when we know people are looking for maximum convenience and options for sending, receiving and returning their parcels. The last 18 months have demonstrated the importance of being able to meet ever-changing consumer demands when it comes to both online shopping and customer-to-customer sending, so we continue to invest in our infrastructure, technology and services to support the nation.”

– Kath Gill, Head of ParcelShop Services at Hermes

Hermes pledges £200k to support SMEs

Hermes, one of the UK’s leading consumer delivery companies, has pledged over £200k of its apprenticeship levy funds to help support SMEs – the maximum amount it can in a year, under the government scheme.  This will enable other companies to take on new apprentices or upskill existing ones, providing a valuable post pandemic boost for their businesses.

To help identify suitable companies and ensure the funds are being spent efficiently, helping those that will benefit most, Hermes is working closely with Leeds City Council, West Midlands Combined Authority and Total People, one of the largest providers of apprenticeships and work-based learning in the North-West of England.

In addition, businesses can see any pledges on a public website and apply for funding to pay for 100% of their apprenticeship training and assessment costs (up to the funding band maximum).

Martijn de Lange, CEO at Hermes UK, said: “At Hermes, we are fortunate to already have strong apprenticeship and training schemes in place, so we have taken the decision to gift some of our levy to SMEs that will benefit from it. This year has presented many challenges for all businesses, but particularly SMEs, so we’re proud to be able to support them in training their future workforces and providing their employees with increased lifelong earning potential.”

Smart Consign

The goal is to make the shipping process as easy as it can be.

Access All Areas at TEC

The Ecommerce Club is designed to mentor members and enable collaboration between all parties. Not just help on your ecommerce journey but help on your business journey.