The Impact of Royal Mail Postage Increases on Small Businesses

For many small businesses, Royal Mail has long been a reliable and affordable shipping solution, helping them reach customers across the UK and internationally. However, the steady increase in Royal Mail postage rates has posed significant challenges for us here at Cookies On The Edge. As costs rise, all small businesses are being forced to reconsider their shipping strategies, pricing, and overall operations to stay competitive in an increasingly tough marketplace.

For us here at Cookies On The Edge, the impact of Royal Mail's rising postage costs is profound. Unlike larger companies which have the financial resources and volume to negotiate better rates or absorb price increases, small businesses like us face unique challenges and some examples are below:

1. Increased shipping Costs for Customers

   One of the immediate consequences of higher postage rates is that small businesses must either absorb the additional cost or pass it on to their customers (which is something we try and avoid) and neither option is ideal. If we raise shipping costs, our customers, who are the lifeblood of our business, may be deterred by the higher cost. Alternatively, if we absorb the cost, it eats in to the already slime profit margins.

2. Competitive Disadvantage

   Small Business like us are not only competing with each other, but also with larger retailers which can often offer free or low-cost shipping options. As postage rates rise, small businesses struggle to match these offerings. While our customers may be willing to pay a premium for a high quality product, they may be less inclined to do so if shipping costs are significantly higher than what they can get elsewhere.

Here at Cookies On The Edge, we have made the decision NOT to increase our postage costs when they rise again in October. We offer a Tracked postage option only, which offers a delivery 24 hours after dispatch, so whilst the delivery cost may seem high for some, I can promise you, this is only what we are being charged by Royal Mail for the Tracked24 service they offer. Each box of 8 cookies weighs over 1kg and we feel this is the best postage option, so you receive your cookies fresh.

As always, if you have any questions, please contact us at enquiries@cookiesontheedge.co.uk or find us on Facebook or Instagram.