Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

This post includes several years of experience, may seem long, but if you are struggling with your shipping costs, it's worth it to read till end.

 

Btw. ChinaPost lately increased prices by 40% (November) and USPS jacked-up Canada rates incredibly beginning 2013. Ebay's response in form of GSP is actually not bad for purchases in value of several $hundred, but fails miserably on trinket purchases in value under $50. And yes, you can create 6 digit revenue per year by selling trinkets online from Canada.

 

CanadaPost Oversized Lettermail

 

Use CanadaPost oversized lettermail for small thin trinkets whenever possible. Do not be afraid to send items without tracking, most shoppers are honest and appreciate good service and CanadaPost rarely looses a letter, because unlike parcel, it can be stuffed into mailbox and does not need to be picked up at PO. 1 lost out of 1000 sent would be too high. There is going to be some losses, do not sweat it, take it as business expense.

 

Eshipper.com

 

Canadian discounter for UPS, Purolator, DHL and others. Basically they aggregate the volume from their customers to achieve very good contract rates. They have been around for many years, solid billing, reachable customer support in case of rare issue. 

 

Example rates

 

  • Canada, L2E2L5 to USA, 93933 (4,500km) ... UPS Standard, 2 days ... $15.20
  • Canada, L2E2L5 to USA, 93933 ... UPS Express Saver, 1 day ... $27.06

 

For $27 we can reach almost entire continental USA within 1 business day! This is better than most US small sellers have, just make sure to talk to your local driver to find out cut-off for express shipments so they can get on plane same day.

 

  • Canada, L2E2L5 to 89173, Germany ... DHL Express Worldwide, 1 day ... $34.66
  • Canada, L2E2L5 to 5127, Australia ... Aramex Express, 4 days ... $30.26

 

Aramex is often the cheapest, but they are awful, if there is anything within 10-20% of their price, I choose the other. DHL is awesomely fast and often not that much more expensive. Cannot go wrong with UPS or Fedex, UPS is #1, Fedex may be little sluggish at times, but also a solid professional attitude and service.

 

CanadaPost Parcel Services

 

I am not saying CanadaPost is bad, but they seem to be stuck in 1990. They provide solid, though sluggish and overpriced, service and seem to be ever increasing prices and decreasing service levels. They are in shipping what Rogers or Bell are in telco industry - many people just use them because of inertia and then they act surprised how much less can they pay for almost similar service when they discover smaller and/or younger competitor.

 

I was senind a 1.5kg parcel to Slovakia to my family, and did some comparison

 

  • CanadaPost, 6-10 business days ... $109.56 or $93 via PayPal ShipNow
  • DHL Express, 1 day ... $60.71
  • ended up sending by ChitChats' Express for approx $19, came in 2wks and on time before Xmas

CanadaPost is often, but not always, the best game in town for domestic, but never directly. Either use PayPal ShipNow or other resellers, like ChitChat's Express (below).

 

Examples:

 

  • Canada, L2E2L5 to N2E3R1 ... 1lb ... CanadaPost Expedited Parcel, 1-2 days ... paid $8.55 incl tax via PayPal
  • Canada, L2E2L5 to N2E3R1 ... 1lb ... Purolator Express, 1 day ... $7.46 incl tax

As you can see, I myself am guilty of inertia as currently all of our small trackable domestic mail goes to CanadaPost and I could have saved a dollar and trip to PO by using Purolator (free pickup even for single parcel). Currently my routine small mailings go all through CanadaPost and only my larger heavier shipments go via courier, for example this one:

 

  • Canada, L2E2L5 to H4P1A1 ... 27lb ... CanadaPost Expedited Parcel, 3 business days ... $34.23 incl tax and $675 insurance
  • Canada, L2E2L5 to H4P1A1 ... 27lb ... UPS Standard, 1 day ... $17.46 incl tax and $675 insurance

 

ChitChat's Express

 

There is more cross-border couriers, we chose ChitChat because they are awesome and reliable. It's a small family run business located in Toronto and we have been with them for 2.5yrs. Billing is mohtly and they do not have sophisticated system like big couriers, so I know only estimate for the shipments, but my estimated monthly total is usually within 5% of the billed amount, so I attribute that to scale tolerances and whatever. For the value we are getting, one would be fool to harass them with $10 difference on $800/m invoice. They are quite busy and they are somewhat picky about their clientele.

 

They offer 4 services we use - US forwarding, CanadaPost Expedited Parcel, International Economy and UK Tracking

 

US forwarding is basically a drop at USPS or UPS in Niagara Falls, NY. They drive daily, so if you give them a mailpiece before cut-off and it gets on the manifest, it's in the USPS hands next morning.  The cost is $0.65 for First Class Mail (under 13oz) or $1/5lbs on larger mailings.

 

You need to be able to print your own USPS/UPS labels and ChitChat will charge you $0.65 per small mailpiece. We use Endicia at $15/m + postage for all USPS and Eshipper for UPS.

 

CanadaPost Expedited Parcel

 

This is just discounted CanadaPost Expedited Parcel. They do not offer any label, but you need to bring it or they pick-up with your other mail, for us there is 1-2 days extra delay, but the price to some domestic destinations beats PayPal by far.

 

Cost is $7.90 + $1.54 * weight_in_kg. Canada-wide flat rate

 

Example: 2kg parcel will cost $7.90 + 1.54*2 = $10.98 anywhere in Canada

 

International Economy

 

Cost is $0.50 + $12.15 * weight_in_kg, min $1.70, World-wide flat rate

 

Example: 0.45kg parcel will cost $0.50 + $12.15*0.45 = $5.96

 

Service is decent to most EU countries. Australia/NZ are on the slow side - 4-6wks. I do not have recent experience with Asia nor South America, but last time I remember most of South America is a black hole for mail.

 

UK Tracking

 

Cost is $13.26 for 0.5kg, up to $23.26 for 2kg, then $17.96 + $2.50/0.5kg

 

Example: 4kg tracked parcel will cost $37.96

 

Includes $70 coverage or add coverage at $12/$700 ($24/$1400, etc)

 

Delivered by Parcelforce, usually very fast too.

 

 

Happy Holidays and All the Success in the New Year 2014 !

Message 1 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

There are always deals to be had on mint Canadian postage stamps available well below original face value.

 

For example, here is a public auction from last month in Toronto:

http://www.mareschstamps.com/500/auction.php?Start-Lot=846&InLine=Yes

 

Take a good look at the prices realized and compare them to the face value of the lots. Even after adding the buyer's premium, taxes and shipping (if you cannot attend in person) the savings are very substantial.

 

Smaller deals are available on eBay all the times.

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

"CanadaPost Expedited Parcel

 

This is just discounted CanadaPost Expedited Parcel. They do not offer any label, but you need to bring it or they pick-up with your other mail, for us there is 1-2 days extra delay, but the price to some domestic destinations beats PayPal by far.

 

Cost is $7.90 + $1.54 * weight_in_kg. Canada-wide flat rate

 

Example: 2kg parcel will cost $7.90 + 1.54*2 = $10.98 anywhere in Canada"

 

 

  Dipmicro

 

We just negotiated a new contract with Canada post  and with that hope to change the Canada post option we offer and get rid of the delay at the same time,

 

We think we can hold the prices more or less the same next year.and are toying with a three tier rate instead of the one Canada rate we presently offer..

 

One rate will be for the GTA, one regional. (Ontario and QC) and one national.

 

We are doing trial costs for the next week or so. Today was the first one. If today's  parcels are what we see through the whole trial, we feel no cost increase will be needed next year.

 

We will also introduce a discounted Canada post international rate within a month.  I think we can give fairly substantial savings with tracking to most countries.

 

 

 

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Thanks for this post guys.  This is great help for a new seller such as myself.  

Most of my hesitation in selling on Ebay until now is the confusion in how to ship items once they sell. And I can see here  that many sellers are indeed having a tough time figuring out the proper balance in pricing and shipping items.

I live in a rural area west of Montreal so ChitChat isn't an option for me.  Guess I'm kinda stuck with CanadaPost, Fedex or alternative such as DHL.  The thing I'm most mindful of is figuring out how much to charge up front and still make a profit. Right now, I do not see the justification in packing an item, going out of my way to stand in line at the post office and get my item to a buyer for a $5 profit.  My time is worth more than that.  Since I'm on the ground floor in my Ebay selling business, I still need to figure out a lot.  

I know there are many systems and tools out there, but do any of you have a recommendation for a good (up to date) learning resource about how to get started properly selling profitably?

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Right now, I do not see the justification in packing an item, going out of my way to stand in line at the post office and get my item to a buyer for a $5 profit.

 

 

Many sellers do not ever go to the post office or at least rarely go. Unless you're using lettermail, print your label through Paypal, attach it to the package and mail it in a corner post office box. I will go into the postal outlet if I am sending an expensive item and want to make sure it gets scanned but otherwise, I avoid it.

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Pierre - how do I search out lots of unused mint canadian stamps - any denominations - to find ones that are selling cheaply (you've stated other places at 50% of face value) on ebay - thanks
Photobucket


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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Take a look at the link in post #23

 

In general terms you will find some dealers offering postage (mint, with original gum) on eBay in smaller lots.  Most sell directly to buyers in larger lots and do not use eBay because of the high fees (typically 10% to sell and 3% to collect through PayPal).

 

Posting rules do not allow me to advertise my products and I will not.  In the "good old days", prior to my semi-retirement, I would sell directly large (mixed denominations) lots $3,000 to $10,000 face value (mint, full original gum) at about 35% below face value.  I had several regular customers coming back every two months for large lots (profit margins were small but the turnover was great).

 

For buyers requiring high values only ($1 up), the price would be about 15% below face value.

 

For buyers willing to accept low denominations (5c or 6c) it was possible to offer as low as 50% below face value.

 

Most established Canadian dealers offer similar lots at competitive prices, depending on their current inventory.  From time to time you will find great bargains on eBay.

 

Two things to watch for:

 

1) check carefully if price is net net net or should the buyer add tax(es), shipping, buyer's fee (in case of public auction)

2) make sure the stamps are mint with original gum (not large bulk lots of unused (actually uncancelled) stamps - soaked off envelopes - which should not be reused.

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

I think this thread could get a bump:

 

12 x 9 x 6in 5lb to France by 2-day UPS Expedited $64 includes signature in. Aramex was slightly less, but we avoid them, DHL 1-day was $66, but I prefer UPS and there is a weekend, so 1 or 2 days is moot.

 

CanadaPost retails for same including signature $97.41, may be slightly less with PayPal but not a whole lot, because PayPal probably only discounts base price, not options and surcharges. But CanadaPost notoriously breaks their shipping guarantees, so perhaps there is a room for further "discount" by claiming them.

 

Eshipper UPS label has no guarantee, due to deep discounts they suspend guarantees except in case of extreme negligence by carrier and yes, we had that happen once, lo and behold - by Aramex, and yes, we got full refund including our undelivered parcel that was not even attempted to ship out about 1.5 week later, while Aramex was promising 4 days to Australia. If it's supposed to be in Australia in 4 days, why does it take a week sitting in Mississauga warehouse to get back to us about an issue, which is not actually issue but internal Aramex "policy" or whatnot, my crystal ball was in the service that day we shipped it out so I could not ask it about potential Aramex internal policies. Never use Aramex unles you like torture and frustration, in that case, go right ahead and enjoy.

 

Message 27 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

How about Burlington or Hamilton area?  Please.

Message 28 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

how about hamilton area?

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive


@dipmicro wrote:

12 x 9 x 6in 5lb to France by 2-day UPS Expedited $64 includes signature in. Aramex was slightly less, but we avoid them, DHL 1-day was $66, but I prefer UPS and there is a weekend, so 1 or 2 days is moot.

 

CanadaPost retails for same including signature $97.41, may be slightly less with PayPal but not a whole lot, because PayPal probably only discounts base price, not options and surcharges. But CanadaPost notoriously breaks their shipping guarantees, so perhaps there is a room for further "discount" by claiming them.

 

 


 

Plugging your numbers into paypal shipping I get: $89.02 for Xpresspost - International

 

 

Message 30 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Anything for hamilton? Bump

 

Message 31 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

still looking for something in London
Photobucket


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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Anonymous
Not applicable

I would love to see a new store opening in Manitoba.  I have lots of parcels/packages that I would love to use you to ship them for me cheaper. 

 

As for Ontario, you are lucky if they are going to open more stores!  I would say 1 or 2 in Ontario would be sufficient but I am seeing that many of you wanting more.  I envy you!!

 

I used to drive down to Grand Forks, North Dakota about 1 1/2 hours every month but not any more due to my health conditions the last 5 years.  I would love to see a new store in Manitoba.  I also would love to see reasonable prices for mailing supplies.   Pretty please???  Thanks.

 

 

Message 33 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Anyone find new alternatives now with this CP strike/spike coming up?

Message 34 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

"with this CP strike/spike coming up?"

 

I guess you missed the news.  Canada Post and CUPW have agreed to a new two year deal last week.  No strike coming up.

Message 35 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Holy Smokes!

 

I just spent 10 minutes reading the OP's post only to see:

 

Happy Holidays and All the Success in the New Year 2014.

 

How do these old threads get resurrected?  I'm surprised they're still available.

 

Message 36 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

I think that someone did a search and then brought this one live, looks like a newby.  

 

I would like to see threads that are over 1 year old with no comments, locked.  With something like "This thread locked as there has been no activity for 1 year"   

 

I would still like to be able to refer to these threads, but just not be resurrected from the dead.  

Message 37 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

Hope you come to Ottawa soon!
Message 38 of 40
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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

ZOMBIE thread from 2013 that someone at eBay needs to close/lock

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Re: Best Shipping Rates Around or How to Beat CanadaPost Price Hikes and Stay Competitive

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