Royal Mail Reduces Prices For Many UK Businesses in 2022
Starting from today (4th January 2022) Royal Mail has announced a flurry of price changes across the board which is set to reduce shipping costs for most businesses that utilize their services.
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To see the full list of prices for Royal Mail in 2022 you can see their full breakdown here. Below we have highlighted the changes most likely to impact your business in 2022.
Royal Mail International Business Contract
International tracking and signature services (country-priced): Royal Mail will be reducing their prices for tracked and signature services. In particular, Tracked parcel prices into France, Canada, and Poland will see significant (>10%) reductions
Removing the majority of temporary air carrier supplements: For the majority of destinations, they have removed the temporary air carrier supplements. As air capacity costs are currently forecast to become more stable in 2022 this has allowed Royal Mail to account for air costs (alongside other operational costs), in the business contract prices. Four destinations have retained separate air carrier supplements, 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 the following four countries:
- China
- Russia
- Iceland
- Israel
International Surcharge: Royal Mail introduced an International surcharge to help them respond to the impact of the volatile currency market on key cost areas for the business; fuel, conveyancing and International delivery charges. A flexible International surcharge enabled them to keep prices as low as possible while still able to react to future currency and fuel related cost changes.
Following favourable movements in Sterling exchange rates, we will be reducing this surcharge from 6.5% to 4%.
All considered this should result in a reduction in costs for most businesses as many of the covid related surcharges are being removed.
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Dave Furness
Dave is a Co-Founder of eSeller365. For over 10 years he has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant, he built an education platform called UnderstandingE that showed the world how to utilize Magento as the “Third Generation of Multi-Channel software”.
Dave has also created a YouTube channel dedicated to entrepreneurship and eCommerce as well as a podcast dedicated to mental health awareness. When Dave isn’t working his main interests include learning and playing Chess, researching the Crypto and NFT space, and trying to find the nearest beach.