Thanks to the introduction of the myHermes Small and Medium services, Parcel2Go now boast the UK’s cheapest 2 kg parcel delivery at just £2.19 exc VAT.
The new price on 2 kg Small means that Parcel2Go beats Royal Mail's previously leading price of £2.85 by 22p per parcel. VAT–registered businesses can stand to save even more, at 66p per parcel when VAT is excluded.
With such significant savings available to senders, the change will likely bolster the profits of thousands of online businesses and SMEs as the Christmas peak approaches.
How it came about
The price change comes in the wake of a significant update to the way myHermes parcels are valued. Whereas previously all myHermes prices were calculated on weight brackets, the decision was made to change how parcels weighing up to 2 kg were priced, which led to the introduction of Small and Medium deliveries.
You can read more about the myHermes pricing update here.
Prior to the price change, Parcel2Go offered the UK’s cheapest price on 1 kg parcels but were less competitive at the 2 kg weight bracket.
With the introduction of ‘Small’ deliveries, however, Parcel2Go were able to offer customers the cheapest 2 kg delivery services too. Therefore, myHermes Small deliveries granted senders the opportunity to send 2 kg goods at what is essentially a 1 kg price.
The new 2 kg price comes at a perfect time for many SMEs and online sellers.
Firstly, it affords a better opportunity to profit from the upcoming holiday season, where price hikes elsewhere in the industry are hurting sellers that need to compete during the Christmas period.
For example, it was recently announced that Royal Mail are set to increase the cost of international postage in January, to the dismay of sellers who have gained more international customers following the EU referendum.
This price hike will likely put Parcel2Go’s international services to countries like the USA — the cheapest in the market outside of Royal Mail’s current prices — at a lower price, making both international and domestic services market-leading and likely to convert even more business owners.
Making the switch
The good news for senders that are accustomed to going to the Post Office is that myHermes Small deliveries operate in a very similar way, but with the added benefit of delivery tracking included in the price.
Customers just book their deliveries online, attach a label to their parcel, and take it to a nearby drop-off location. This is normally a local newsagents or convenience store.
And for customers that prefer their parcels collected from home or work, collection is also available on myHermes Small for just 24p extra (excluding VAT).
With familiar options available, customers used to sending with Royal Mail can make to switch to the UK’s cheapest service with minimal fuss.
A brighter future
The introduction of the 2 kg Small service at Parcel2Go affords more businesses the opportunity to get the cheapest price in the industry.
Whether those delivery savings are used to boost profits or used to facilitate a more compelling price point, there’s no question that Parcel2Go are set to benefit.