Are parcel delivery prices on the rise?

parcel deliveryDelivery services have changed a lot over the years thanks to advancements in technologies. Consumers have become used to ordering their goods and having them delivered either the same or the next day. What’s more, they’ve also gotten used to benefitting from free, or low-cost delivery services – something which could soon change.

There has been a gradual shift in parcel delivery charges in recent years. Due to increased demand and pressure placed onto UK couriers, the cost of parcel delivery is starting to increase. Here, we’ll look at what is driving the increase in delivery prices and what businesses can do to save money.

Why are parcel delivery prices on the rise?

Parcel delivery prices have been increasing since 2015. The boom in online retail has placed significant pressure onto both retailers and courier companies. Initially, brands were competing to offer the most affordable delivery rates, with many even offering free delivery. However, this has ultimately led to many companies experiencing profit losses.

Courier companies have also had to increase their prices due to the increase in demand. It was widely reported over the past year, that courier staff were getting paid less than minimum wage and they had to work longer hours to keep up with demand. This led to problems within the industry, with many couriers leaving due to poor pay and increased pressure to deliver. So, courier companies have had to factor in the costs to ensure they can start paying their couriers a reasonable wage.

The rise in international parcel delivery costs

It isn’t just national parcel delivery services which are increasing in price. International deliveries are also becoming slightly more expensive.

Royal Mail increased its tariffs for business customers in January 2017. This was said to be down to the drop in Sterling. While the currency changes led to better trade deals for exporting goods overseas, it also meant delivering parcels and mail abroad became a lot more expensive. In turn, courier companies such as Royal Mail, have been forced to pass these additional charges onto their customers.

Although prices have risen in recent years, there are still a lot of reasonably priced deals available. You can also try out clever tips to save money on your parcel delivery service. For example, a combined parcel collection and delivery service could save you money.

Overall, it’s understandable the rise in online retail and the drop in the Great British Pound has led to an increase in parcel delivery prices. However, thanks to the internet, it’s easy for businesses to find the cheapest delivery deals.

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