Royal Mail costs are set to rise from next month, with the increases hitting parcel senders the hardest.
Next month, ecommerce businesses that send packages through a Royal Mail business account could be charged up to £1.40 more to send parcels, after the postage service announced its latest price rises last week.
Costs will rise for customers sending personal items or selling on marketplaces like eBay. But deliveries will also become more expensive for business account holders, which will have a knock-on effect for online shops.
Below, we’ll explore how the planned price increases will affect firms specifically using the tracked Royal Mail 24® and Royal Mail 48® services. Here’s what’s changing.
What’s changing in Royal Mail’s 2025 price update?
Royal Mail regularly ups its prices as the cost of delivering items creeps upwards, with the most recent major increases occurring in April 2025.
From Monday 6th October, costs across the organisation’s portfolio will increase by varying amounts. Notably, the compensation amount for consumer tracked services will be reduced from £150 to £75.
There will also be big price hikes when sending parcels with Royal Mail 24®, a business service from Royal Mail that aims for next-working-day delivery.
| Parcel weight | Royal Mail 24® August 2025 prices (excl VAT) | Royal Mail 24® October 2025 prices (excl VAT) |
|---|---|---|
| 1kg | £4.65 | £5.05 |
| 2kg | £4.85 | £5.25 |
| 10kg | £7.25 | £7.95 |
| 20kg | £13.55 | £14.95 |
Compared to August 2025 prices, firms will pay 40p more to send small parcels weighing 1kg or less through Royal Mail 24® from October 6th. The heaviest parcels weighing 20kg will cost up to £1.40 more per item.
Costs for Royal Mail 48® (which aims to deliver parcels within two working days) have also gone up slightly, though not by as much as the quicker service.
As well, there will be a peak surcharge introduced for business accounts sending items over the Christmas period. This applies to domestic parcels and international products from 17 November 2025 until 9 January 2026.
What does this mean for ecommerce sellers?
For many ecommerce businesses, the latest Royal Mail price increases will put further pressure on already tight profit margins.
Firms using Royal Mail Tracked 24® / Tracked 48® must sell at least 1,000 items a year to qualify for the services. That means account holders sending the smallest, 1kg parcels will spend an extra £400 a year at least from October 6th.
Sellers that offer free shipping as an incentive to customers may find themselves absorbing more of these costs, cutting into profits even further.
How can small sellers adapt to higher delivery costs?
Reviewing shipping policies, such as free shipping thresholds or minimum spend requirements, can help manage additional expenses without alienating your customers.
It doesn’t hurt to compare Royal Mail rates with other courier services or use aggregator platforms, as you may find a cheaper alternative.
Even just making small adjustments to your packaging can reduce costs over time, such as using lighter materials or optimising parcel dimensions.
Looking ahead, delivery costs are likely to continue evolving. By planning ahead, especially for the Peak Surcharge period, you can be better positioned to protect your profit margin and stay competitive during the busy holiday season.
