Royal Mail cut MailSort 3 tariff

Royal Mail has announced it is to reduce its MailSort 3 service tariff in the UK from October.

Royal Mail has announced it is to reduce its MailSort 3 service tariff in the UK from October.

The service – used for posting direct mail – will be reduced by 3%.

The new rates will see a 500,000-item distribution cost approximately £3,000 less, according to Post-Switch.com

Despite costing Royal Mail an expected £150m in revenue, it will make the MailSort 3 service the cheapest among its direct competitors, TNT and UK Mail, whilst making it harder for them to record a profit whilst still purchasing Royal Mail services at standard wholesale rates.