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Royal Mail to Increase Postage Prices

Stamp prices to rise as much as 39 percent.

In its largest price hike since 1975, Royal Mail will increase postage costs by the end of April, with prices for first-class stamps rising 30 percent, and second-class stamps going up 39 percent.

Starting April 30, first-class stamps for letters weighing up to 100 grams will increase from 46 pence to 60 pence, and second-class stamps will rise from 36 pence to 50 pence.

The rising postage is a reflection of today’s economic conditions. In 2002, a first-class stamp cost 27 pence and the second-class stamp cost 19 pence, but mail volume has declined 25 percent since 2006.

Ofcom—Royal Mail’s regulator—says it put much thought into the change before implementing the increase, but found the new prices to be necessary.

“Royal Mail made a loss of almost 1 billion pounds over the last four financial years because we were unable to charge the price the service truly costs to deliver,” Royal Mail reports.

Business contract customers will also see prices rise about 15 percent. These customers can expect their first-class postage to rise from 39 pence to 46 pence, and their second-class postage from 28 pence to 33 pence.

The scheduled postage changes are published on the Royal Mail website.

About the author

Sarah Brown
Sarah Brown is a freelance writer who writes about e-commerce and small businesses. She recently graduated from Chico State with a journalism degree and is also a budding online entrepreneur, having launched two Web businesses and her own line of handmade products. Opinions expressed here may not be shared by The Online Seller and/or its principals.

  • Kay10

    Royal Mail say their volume of letters has decreased due to more people using email instead of written post. Many of the emails are used by shoppers who now shop online, therefore massively increasing parcel post – take eBay alone! The increased prices are just greed.

  • Guest

    Some overseas delivery prices through Royal Mail have gone up by a staggering 80%!

    So sending a DVD or video game to Ireland has gone up from £1.61 to £2.91!

    This is totally unjustifyable! 

  • Angry_Mark_Grrr!

    Franked 1st class 100g Packet has risen from £1.36 to £2.36 – 15%?

    So a fluffy toy that costs 25p wholesale, now selling for £2.99 on FeeBay. Sell one and FeeBay and their Pal take 65p, post £1.36 and 10p for a jiffy bag = 63p profit (21% POR) – not good and worse since post rise last April

    From April 30th, a fluffy toy that costs 25p wholesale, now selling for £2.99 on FeeBay. Sell one and FeeBay and their Pal take 65p, post £2.36 and 10p for a jiffy bag = 37p loss 

    At a stroke I can no longer sell these.

    I don’t understand why such rises, if necessary, can’t be phased in over 3 or 4 years (not as if they didn’t have above inflation rises for the last few years, anyway). As it is, I have one month’s notice that 30 of my product lines are no longer viable.

    Thanks!



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