RM to simplify consumer parcel services from April 2013

[POSTMAN]

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Royal Mail today unveiled plans to simplify its line-up of domestic parcel services for consumers, small businesses and franking customers.

The company said it will cut the current range of 15 weight bands by more than half, to a new system based on seven weight bands.

Two new “broad” parcel categories – small parcels and medium parcels – will be introduced, with the “packet” format phased out. And, customers will be able to send parcels between 1kg and 20kg in weight by Second Class, rather than having to resort to First Class for such items.

The changes are subject to a public consultation beginning today, and are scheduled to take force as of 1st April, 2013.

The streamlined parcels portfolio comes as part of Royal Mail’s efforts to update its services as it faces more demand for shipping parcels, and less demand for delivering letters. Parcels now account for 47% of the Group’s revenue, with volumes growing rapidly, not least because of the popularity of shopping online.

Royal Mail said its non-contract parcel services have remained unchanged for several years, but a review has suggested the need for change.

“We will invest extensively to make it easy for customers to understand our new formats and our revised pricing structure,” the company promised in its consultation, adding that templates would be available in all post offices to help customers, and Post Office staff fully trained in advising customers.

Changes

Consumer research has suggested customers were “often confused” by the current product range, and the 23 different prices available depending on weight and service.

As a result, Royal Mail said its changes should make parcel services easier for consumers to understand, and improve choice.
•The small parcels service will have a maximum weight of 2kg and a maximum size of 450mm by 350mm by 80mm. This is likely to be around 71% of all parcel items handled by Royal Mail.
•The medium parcels service will have a maximum weight of 20kg, and maximum dimensions of 610mm by 460mm by 460mm.
•Both small and medium parcels will be available on either First Class (next day) or Second Class (three-day) services. This means the weight limit on Second Class parcels will increase to 20kg. Weight bands will be simplified from 15 into seven bands.
•The standard parcels service is being withdrawn.
•The proof of delivery option “Recorded Signed For” will be renamed “Royal Mail Signed For”, available on First Class or Second Class.
•The registered and insured option, “Special Delivery Next Day”, will be renamed “Royal Mail Special Delivery Guaranteed by 1pm”, with a maximum weight limit increased from 10kg to 20kg.
•Items larger than the medium parcels limits (except cylindrical or roll-shaped items) will no longer be delivered by Royal Mail, with customers offered the services of the Group’s express parcels business, Parcelforce Worldwide.

Commenting on its move to charge parcels based on size as well as weight, Royal Mail said it would bring its pricing more in line with other postal operators, including those in Germany and Italy.

“As the parcels market grows, we need to ensure we reflect the cost impact that size has in relation to handling and delivering parcels,” it said, “to ensure all Royal Mail’s services make a reasonable amount of return, and so ensure the sustainability of the universal service.”

Royal Mail suggested that it believes changes to the packaging of around 26% of parcels that would currently be Medium Parcels would see them become Small Parcels.

Compensation

Royal Mail’s Recorded Signed For service for parcels will have its liability limit increased, with the company intending to raise the maximum compensation payable for loss of damage of a Recorded Signed For item from £ 46 to £ 50.

However, for untracked First Class and Second Class parcel services, the compensation limit will be lowered from £ 46 to £ 20, encouraging customers to use the premium priced service for higher value packages.

Royal Mail argued that many postal operators in other countries do not offer any compensation for loss or damage of untraced items, including Germany, the Netherlands and the United States.

“The changes will ensure that Royal Mail provides proportionate and reasonable compensation based on the service used and postage paid,” the company said today in a statement.

Royal Mail said it would continue to pay compensation for delayed items, with limits unchanged.

The public consultation on the proposed changes to the parcel services runs until 11th January, 2013.

[POSTMAN]

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Royal Mail is consulting on changes to its parcels range. The proposals apply to consumers, small non-contract business and franking customers. Currently, there are up to 15 weight bands for parcels. Royal Mail’s proposal is to reduce that by more than half to seven weight bands from April 2013
The proposal means Royal Mail’s range of parcel products should be easier for consumers to understand and improve choice. They will have the ability for the first time to send parcels between 1kg and 20kg using Royal Mail’s 2nd Class service, with the added option to receive a signature on delivery
The proposal also includes introducing two broad parcel categories – small parcels and medium parcels. This will bring Royal Mail in line with other major postal operators, for example, in Germany, France and Italy




Royal Mail is consulting on changes to its parcels range. The proposal applies to consumers, small non-contract business and franking customers[1]. Currently, there are up to 15 weight bands for parcels. Royal Mail’s proposal is to reduce that by more than half to seven weight bands from April 2013.

Changing our parcel products

The proposals should be easier for consumers to understand and improve choice. They will have the ability for the first time to send parcels between 1kg and 20kg using Royal Mail’s 2nd Class service, with the added option to receive a signature on delivery.

Currently, for items weighing up to 20kg, signature on delivery is only available through 1stClass. We believe the increase in the 2ndClass weight limit to 20kg is a very meaningful addition to customer choice. As a result of this improvement, our Standard Parcels product will be withdrawn.

In addition, Royal Mail’s proposal is to introduce two broad parcel categories – small parcels and medium parcels. This will bring Royal Mail in line with other major postal operators, for example, in Germany, France and Italy. Parcels are priced by weight but the size of a parcel has an impact on the cost of collecting, transporting, sorting and delivering an item.

Changes to compensation levels for untracked and Recorded Signed For items

Royal Mail intends to change its compensation arrangements to bring them more in line with other postal companies. It is our intention to increase the maximum compensation payable for loss or damage of Recorded Signed For items from £46 to £50. These are items for which a signature is collected on delivery and a proof of posting receipt is provided.

Alongside this, it is our intention to reduce compensation for loss or damage of items sent using our untracked 1stand 2ndClass stamped mail and parcels from £46 to £20. Many countries do not offer any compensation for loss or damage of untracked items, including Germany, the Netherlands and the United States.

We will continue to pay compensation for delayed items and the limit will be unchanged. The changes will ensure that Royal Mail provides proportionate and reasonable compensation based on the service used and postage paid.

For further information contact:

James Eadie
Director of Products and Services PR
Royal Mail Group
Tel: 020 7250 2826
Mobile: 07850 757271
Email: james.r.eadie@royalmail.com

Notes to editors:

Small parcels will be items that weigh up to 2kg and are no larger than 450mm x 350mm x 80mm in size.

Medium parcels will be items that have dimensions larger than the small parcels size but no bigger than 610mm x 460mm x 460mm, and up to 20kg in weight.

Under the proposals, items larger than the medium parcel size (610mm x 460mm x 460mm) or over 20kg in weight will no longer be delivered through the Royal Mail network. Instead, customers will have the option of using Royal Mail Group’s express parcels business Parcelforce Worldwide, who offer a full range of parcels services through Post Office Ltd

[eric the viking]

Oh joy, more parcels through Parcelforce then. One of the worst kept secrets of the last few months. This has been planned for ages why not let the workers of both parts of the business know whats going on in a coherant and unified way?

[oypostie]

Oh joy, more parcels through Parcelforce then

So no need for the vans now then. Bring back the bikes !! Sounds like another one of Baldricks cunning plans

[fishtank]

To be honest looking at the sizes i think the impact will be minimal.
Medium packets will be anything up to 2 foot by a foot and a half wide and a foot and a half thick plus anything cylindrical or roll-shaped.
That doesn't actually leave much but the odd strange shaped packet.
It certainly covers the vast majority of Amazon packets even if they do use oversized boxes.
What you may find is that companies and individual customers start using more suitable packaging to get inside the size restriction.

[hubbahubba]

It will mean less jobs in MC's,as mine gets maybe 40-120 yorks of "standard parcels/large packets" per day,depending on the day/time of year.
That's 40-120 yorks less to process per day...

[fishtank]

It will mean less jobs in MC's,as mine gets maybe 40-120 yorks of "standard parcels/large packets" per day,depending on the day/time of year.
That's 40-120 yorks less to process per day...

How many are larger than the medium parcel size?

[hubbahubba]

It will mean less jobs in MC's,as mine gets maybe 40-120 yorks of "standard parcels/large packets" per day,depending on the day/time of year.
That's 40-120 yorks less to process per day...

How many are larger than the medium parcel size?

Well over half.3 men are in that area on my shift,and in its own bullring as they are too bulkly to be dispatched in the sleeves with the smaller packets "parcels"