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Minimum order value

Save money and improve efficiency


Introduction

The costs incurred by Royal Mail in handling each individual order mean that commercially we need to have a minimum order value - as many businesses do. Introducing this measure will help balance the high cost of processing small and manual paper-based orders.

Customers will still continue to enjoy other benefits including competitive prices and extended credit terms when ordering postal services on their account.


What the minimum order values mean

A minimum order value of £5 came into affect in September 2007 and is applicable to all orders we receive via Online Business Account (OBA). This means that if we receive an OBA order at a value of say £4.10, it is automatically topped-up to £5.

In September 2007, it was also agreed that the minimum order value (MOV) for orders placed by paper posting cheques would be  increased in due course £20 and at the same time a £1 handling charge would be introduced  for every paper posting cheque we receive, regardless of value. Taking into consideration the views of our customers we delayed the deployment of the £20 MOV and £1 charge until now, to give those customers with postings that might be subject to the charges more time to migrate to OBA should they wish to do so. As part of the Tariff 2009 changes, we are now implementing the £20 minimum order value and £1 handling charge for posting cheque customers.

For orders raised electronically in OBA, the MOV will remain at £5 and ordering through OBA can reduce the likelihood of attracting the MOV, as you can place orders with multiple products which are taken into account before they attract the minimum order value top-up. Customers who wish to change from Posting Cheques to ordering via OBA can register their interest at Royalmail.com.


How can I avoid the minimum order value?

On particular days when you don’t have a lot of mail and so the value of your order will be less than the minimum order value, there are four alternative mail payment options you might like to consider. These payment channels can be used instead of a Royal Mail account, or in addition to one:

  1. You can use SmartStamp® to print postage from your computer 24 hours a day, 7 days a week. This is a fast and efficient way to send post. SmartStamp® can be used for all our standard products, just click on the link and find out more information.
  2. You can use a franking machine. Franking attracts discounts on first and second class mail, in line with those offered on a Standard Tariff Letter credit account. Franking machines have the added benefit of being able to include marketing messages on envelopes. Low volume franking machines start from around £20 rental per month, and there are a number of meter manufacturers you can choose from.
  3. Trade with Royal Mail directly, online, by phone or by fax. The online shop has a range of Royal Mail products, including stamps, and offers free delivery for items ordered over £35, using Royal Mail Special Delivery™.
  4. Post Offices carry a full range of standard Royal Mail products as well as offering advice and help on getting the most cost-effective solutions.

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