The company says: “A parcel measuring up to 450mm x 350mm x 160 mm in size and up to and including 2kg in weight will be classed as a small parcel.”

They announced the changes would run until January 18th giving a hint the changes are not so much to do with Christmas but a three month price cut to boost their parcel business which is in under pressure. Royal Mail said that customers can send heavier small parcels with a franking machine. For instance customers can send a 1-2kg small parcel by 2nd Class or Royal Mail Signed for 2nd class it will be the same price as a 0-1kg small parcel with franking.

Printers and sign-makers who use Royal Mail for a host of purchases and the delivery of products could see their postage bills slashed as a result”

The cuts mean a standard 1-2kg 2nd class small parcel that was £3.50 will now be £2.50 later this autumn while a signed for 2nd class 1-2kg small parcel that was £4.60 will now be £3.60 from October 20th.

Printers and sign-makers who use Royal Mail for a host of purchases and the delivery of products could see their postage bills slashed as a result. In general terms parcels make up about 50 percent of Royal Mail’s turnover. Sold off in one of the country’s largest privatisations last year the government has come under fire for selling the company at below market price. The profitable outfit is increasingly battling it out for the lucrative parcel business fuelled in part by online shopping. But Amazon who have until now been one of Royal Mail’s best customers is looking to start its own delivery service.

Firms such as UPS, TNT and Yodel have all nibbled away at the delivery giant has meant that with pressure also from shareholders Royal Mail could be seen to have carried out what amounts to an old-fashioned stunt: slash prices to boost sales. A tactic that sign-makers and printing companies won’t be complaining about.

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