PiP packaging, also known as Pricing in Proportion, is a packaging model used by businesses and online retailers in order to offer customers more cost-effective services when they send packages. This packaging model began to be used in the late 1990s as parcel delivery companies started to recognise the potential of this type of pricing model. It has since been adopted by numerous companies offering shipping solutions and is now widely used for domestic and international deliveries.
This concept works by weighing the items being sent and charging the customer only for what is actually being shipped. This can be beneficial for customers who need to ship items of varying sizes, as it allows them to save money on postage costs that would otherwise have been significantly higher
Under the PiP Packaging structure, all mail will be split into 4 different categories, these are:
- Small or medium letters
- Large letters
- Small, medium and large parcels
- Tubes
The prices are then calculated according to each of their size, weight and thickness to ensure customers are only paying for exactly what they are sending.
Unsure which of the PiP Packaging solutions you will need? You can use this Packaging guide.
What are the advantages of using Shipping Solutions like Royal Mail PiP Packaging?
More cost-effective options for customers when sending packages.
Royal Mail began using Pricing in Proportion (PiP) in order to provide customers with more cost-effective shipping solutions when sending packages. By weighing the items being shipped and charging the customer based on the actual weight of what is being sent, customers are able to save money compared to if each item was priced individually.
Reductions in overall shipping costs for bulk orders.
Companies can make use of this packaging model for bulk shipping orders, which can help reduce overall shipping costs. The type of pricing model that PiP Packaging provides also helps businesses by streamlining the process and eliminating any discrepancies that may arise from having multiple pricing structures for different types of goods and services.
Streamlined process and fewer discrepancies from different pricing structures.
The PiP Packaging structure ensures fewer discrepancies by making it easier for businesses to accurately calculate their shipping costs and the total price of all items shipped. This is because, rather than determining separate prices for each item, the PiP model only requires businesses to set a single price per unit of weight. This means customers are charged a single rate regardless of the number or weight of items they order, removing any potential discrepancy from different pricing structures.
Direct, offering end-to-end sustainable packaging solutions, supply a variety of easy-fold postal boxes that adhere to the Royal Mail PiP packaging criteria, perfect for sending CDs, Books and Gifts, all while remaining cost-effective and environmentally friendly!