In a move that has caused small businesses across the UK to audibly groan into their morning cuppa, Royal Mail has once again increased its parcel collection charges. Because clearly, what we all need in 2025 is more pressure on margins.
If you’re a small or medium-sized enterprise (SME) that regularly uses Royal Mail’s collection service, perhaps for the convenience, perhaps for the nostalgia, you’ll have noticed that the costs are beginning to feel like a penalty for success. And no, before you ask, they haven’t started throwing in a free sticker with each pickup, just a higher bill.
For many SMEs, especially those operating from home or small premises without the luxury of a regular courier contract, Royal Mail’s collection service was the holy grail of convenience. Book a pickup, get on with your work, and let the postie do the heavy lifting.
But with charges now eating into already-tight profit margins, that convenience starts to look suspiciously like an expensive habit. For businesses sending out dozens of orders a week, even a modest per-parcel increase adds up quickly. And if you’re shipping low-cost goods with slim margins, you might as well hand your profits to the postman and offer him a chocolate digestive while you’re at it.
So what’s the alternative? Short of popping your parcels into a wheelbarrow and walking them to your nearest depot, not recommended unless you’re going for the rustic look, here are five alternatives SMEs could consider.
1. Courier Comparison Platforms (AKA “The Trivago of Parcels”)
Platforms like Parcel2Go, Shiply, or Interparcel allow you to compare rates from multiple couriers, including Evri, Yodel, DPD, UPS and more. They often offer better rates than going direct, thanks to bulk discounts you’d never get as a solo trader.
Bonus: Many offer pickup options and tracking, and some have integrations with e-commerce platforms like Etsy, eBay and Shopify.
Drawback: Quality can vary. A cheap courier who flings your package over a garden fence isn’t exactly great for customer satisfaction.
2. Local Courier Services (Yes, They Still Exist)
There’s a growing trend of independent or hyper-local courier services springing up across UK cities and towns. These businesses often offer a more personal service and flexible pricing, and you’ll be supporting another SME in the process.
Bonus: Quicker, more human responses if something goes wrong.
Drawback: Coverage is limited, and they may not scale well if your order volume spikes.
3. Parcel Lockers and Drop-Off Networks
Services like InPost or Evri Lockers allow you to drop off parcels 24/7 at local lockers or collection points. This reduces the need for costly pickups and can offer next-day delivery options at reasonable rates.
Bonus: Great for night owls and those who don’t want to see another human before 10am.
Drawback: Requires you to physically drop off items, not ideal for those juggling multiple roles in their business and life.
4. Click & Drop with Royal Mail: DIY, But Cheaper
If you’re still loyal to Royal Mail, or just enjoy the thrill of those red vans, using their Click & Drop service with Post Office or Parcel Postbox drop-offs can significantly reduce costs compared to using the collection service.
Bonus: You still get the Royal Mail network and tracking, minus the collection fee.
Drawback: You’re still tied to their pricing structures, and you’ll need to yomp to a drop point 12 months of the year.
5. Outsourcing Fulfilment (When You’re Done Being Chief Everything Officer)
If your business has outgrown your garden shed, it might be time to consider using a third-party fulfilment centre. Companies like ShipBob, Huboo or Amazon FBA handle storage, packing and shipping for you.
Bonus: Less time packing orders, more time growing your business, or enjoying a hot cuppa for once.
Drawback: It can be expensive, especially for lower volumes or bespoke products. And yes, there’s the minor issue of giving up a bit of control.
Final Thought: Adapt or Be Boxed In
Royal Mail may no longer be the best fit for every SME, especially with collection fees creeping up like a subscription service you forgot to cancel. But the good news? You have options; our national delivery landscape is competitive, chaotic and occasionally comical, but it does offer choice.
So whether you’re embracing lockers, flirting with couriers, or outsourcing the whole lot to someone with a barcode scanner and a warehouse, remember, the goal is to stay nimble, stay profitable, and keep your customers happy, even if the parcel arrives with a bit of character.
I’m beginning to think there is an option for online VAs to add order fulfilment to their admin duties.
Photo by Kutan Ural
