Canada Post Letter-Mail Rates

For those of us that use CP Letter-Mail for some/most of our shipments, how are you adjusting to the new rates?

 

Revising all your auctions to reflect the incredibly large postage increase?

 

Leaving your ship charge as they were and just adding a few bucks to your BIN item prices?

 

Or.....?

 

 

For those who haven't seen the increase effective today March 31, 2014, here you go.... (haven't shown "within Canada" rates as it only reflects about 5% of my business. These are for the over-sized "manilla envelopes And yes, these are the "retail rates. A bit cheaper for metered, etc usage.)

 

To the US.    50-100 grams   was $2.20    going up to $2.95
                    100-200 grams.   was $3.80    going up to $5.15  
                     200-500 grams   was $7.60    going up to $10.30

International   50-100 grams was $4.36    going up to $5.90
                    100-200 grams    was $7.60    going up to $10.30
                    200-500 grams    was $15.60  going up to $20.60

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Canada Post Letter-Mail Rates

I use mainly Light Packet so I went through a large price increase in Jan 2014.

 

Because of the difference in the weight breaks between Letterpost and Light Packet, there are several holes where Light Packet is cheaper than Lettermail. So a seller can choose between the two services to get a better price.

 

Light Packet USA has

 

0-150 grams $3.79

151-250 grams $6.37

251-500 grams $10.66

 

So between 101-150 grams Light Packet $3.79 is cheaper than Letterpost 100-200 grams $5.15.  And between 201-250 grams Light Packet $6.37 is cheaper than Letterpost 201-500 grams $10.30.

 

For Light Packet International,

 

0-150 grams $6.51

151-250 grams $10.46

251-500 grams $19.12

 

So between 101-150 grams Light Packet $6.51 is cheaper than Letterpost 100-200 grams $10.46.  And between 201-250 grams Light Packet $10.46 is cheaper than Letterpost 201-500 grams $20.60. But you also need to look at Small Packet International 0-250 gram rates as it is cheaper for some zones (Zone 1, 2 and 4).

 

Small Packet 0-250 grams

 

Zone 1 Central America + Caribbean $9.83

Zone 2 Europe West $9.37

Zone 4 Japan Taiwan Korea $10.20

 

Knowing the difference in weight breaks will help minimize the price increase for Letterpost.

 

As for coping with the increase, absorb some of it and pass on some of the cost. Not much else to do.

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Canada Post Letter-Mail Rates

I use light packet most of the time as well so adjusted my prices in January. I did make a few changes for domestic shipping but the majority of my items that I send with letlermail in Canada have free shipping so no adjustments there.

 

 

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Canada Post Letter-Mail Rates

Hey pocomoco.  Many thanks for the heads-up. Your info will come in very handy. Much appreciated.

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Canada Post Letter-Mail Rates


@pocomocomputing wrote:

I use mainly Light Packet so I went through a large price increase in Jan 2014.

 

Because of the difference in the weight breaks between Letterpost and Light Packet, there are several holes where Light Packet is cheaper than Lettermail. So a seller can choose between the two services to get a better price.

 

Light Packet USA has

 

0-150 grams $3.79

151-250 grams $6.37

251-500 grams $10.66

 

So between 101-150 grams Light Packet $3.79 is cheaper than Letterpost 100-200 grams $5.15.  And between 201-250 grams Light Packet $6.37 is cheaper than Letterpost 201-500 grams $10.30.

 

For Light Packet International,

 

0-150 grams $6.51

151-250 grams $10.46

251-500 grams $19.12

 

So between 101-150 grams Light Packet $6.51 is cheaper than Letterpost 100-200 grams $10.46.  And between 201-250 grams Light Packet $10.46 is cheaper than Letterpost 201-500 grams $20.60. But you also need to look at Small Packet International Air 0-250 gram rates as it is cheaper for some zones (Zone 1, 2 and 4).

 

Small Packet 0-250 grams

 

Zone 1 Central America + Caribbean $9.83

Zone 2 Europe West $9.37

Zone 4 Japan Taiwan Korea $10.20

 

Knowing the difference in weight breaks will help minimize the price increase for Letterpost.

 

As for coping with the increase, absorb some of it and pass on some of the cost. Not much else to do.


A minor correction above to say I was comparing to Small Packet International Air, not Surface.

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Canada Post Letter-Mail Rates

I've got a bit of a dilemma to deal with.  I used to use letter mail for paper patterns and other paper articles to the US and internationally wherever Light Packet was more expensive.  Now I'll use Light Packet exclusively to the US, as I had already made adjustments when the rates were increased on that service. 

 

However, since the international rates for letter mail and for int'l Light Packet increased very substantially overnight (26%), and are currently more or less on a par (about $20), there isn't much to choose between them.  Unfortunately, the items I regularly shipped internationally fall into a weight range of about 230 to 350 grams, and most are under $20 (sewing patterns). 

 

No one will pay ca. $20 to ship a $15 item, unless they are exceptionally keen to get it and can't find it anywhere else. 

 

If I adjust my listings to show the true shipping cost, my international sales will die off.  Ironically, it's possible that Tracked Packet -- with the eBay seller discount -- may be less expensive than letter mail or Light Packet for these items in this weight and size class.  I'm going to look into that, and see if I can possibly "subsidize" some of that cost for my int'l buyers, in order to keep the products viable for int'l sales.

 

Canada Post keeps chipping such big chunks off the edges of our profit margins that it will soon become almost impossible to continue to absorb or adjust to the increases.  When it gets to the point where the cost of shipping any very lightweight item (say under 300g) anywhere, including the US, becomes more expensive than its sale price, that may be the end of many of us. 

 

It seems as if Canada Post is going to be dragging a lot of small business people down with them, like a ball and chain off the back of an already floundering boat...

Message 6 of 17
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Canada Post Letter-Mail Rates

Zee-Chan has posted a list of 2014 Canada Post letter/light packet prices with a note that over 200gr and shipping internationally a better service might be Small Packet Air.

The post is called 2014 new Canada Post  postage chart.

 

Would offering Free Domestic Shipping help? With your unique patterns (the antique reproductions) raising the cost by $3 to $5 might not make a difference to the customer. Or it might.

Then you can reduce shipping cost to the USA to $2 to $5 (from the actual  $5.15 to $10.33) and international to between $5 and $14.12.

Plus you pay no shipping FVF on the US and International shipping. And get that helpful 5 star DSR for shipping cost.

 

On the modern patterns.... I sell those too and I have no idea who buys and how they choose. I have stopped buying Simplicity, even wedding and formal gowns, but Vogue and Burda are steady, especially the larger sizes.

 

Where is a Magic 8-Ball when we need it?

Message 7 of 17
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Canada Post Letter-Mail Rates

snoopwiz, you are in East York, 17min from ChitChat Markham branch. They may even pickup from you.

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Canada Post Letter-Mail Rates

Thanks dipmicro. Their web-site only tells so much. I will give them a call and see what they can offer me. I will post any pertinent info on the board once I know.

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Canada Post Letter-Mail Rates

Met with Chit Chat today. They certainly can help those who use Canada Post. Logistically, unless you are mailing/shipping a very large amount, you will have to take/ship the items to them. I don't ship enough and would not qualify for free pick up. They may work out a pick up charge for nominal amount of parcels but, that would most likely wipe out your potential savings.

 

If you are semi-close to any of their locations in Ontario (Markham, Mississauga, Pickering) I suggest you do yourself a huge favour and phone them, or drop by one of their outlets. LOTS of money to be saved for U.S. and International envelopes/packages over what you are currently paying to CP. Yes, even with their (more than reasonable) per item charge, and the US/Canadian dollar exchange for the postage charges, I was quite astonished to see just how much I could save.

 

I will check back here in a few weeks to let you know of my initial experiences using their service.

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Canada Post Letter-Mail Rates


@femmefan1946 wrote:

Zee-Chan has posted a list of 2014 Canada Post letter/light packet prices with a note that over 200gr and shipping internationally a better service might be Small Packet Air.

The post is called 2014 new Canada Post  postage chart.

 

Would offering Free Domestic Shipping help? With your unique patterns (the antique reproductions) raising the cost by $3 to $5 might not make a difference to the customer. Or it might.

Then you can reduce shipping cost to the USA to $2 to $5 (from the actual  $5.15 to $10.33) and international to between $5 and $14.12.

Plus you pay no shipping FVF on the US and International shipping. And get that helpful 5 star DSR for shipping cost.

 


Yes, I did see 'zee-chan's' chart, but unfortunately the difference between lettermail and Lt Pkt int'l is only about $1.00, and both are around $20, which is a stratospheric shipping price to put on a ca. $15-25 item. 

 

I do run regular 'free shipping' promos to Canada on my patterns (primarily to get the FVF reductions on my US sales, since I sell very little to Canada).  I've already got the usual domestic lettermail shipping on those down well below current rates (same with my US rates -- I've left most as they were in 2012 or 2011, frozen in time). 

 

Since 95% of my buyers are in the US, I try to appeal primarily to them.  I generally give anyone who buys more than one pattern free shipping on the 2nd item.  I offer free shipping in Canada and the US on a purchase of 5 items or more.  I regularly provide additional discounts or free upgrades on my buyers' shipping costs (you're Ms. Cookie Jar Insurance; I'm Ms. Surprise Shipping Upgrade Woman Happy). 

 

The bottom line is that I've scraped just about everything I can down to the bone to make shipping work.  My only other option is to try offering free shipping to the US and hope that volume offsets the shipping losses. 

 

Raising prices to absorb shipping costs is risky in my area -- I have very few competitors in my antique pattern category, but they're all in the US.  I'm sure we all keep track of each other, so I have to keep up with that pack.  And holding the lid on prices also gets me a lot of repeat business.

 

My antique patterns aren't the regular Vogue-style tissue patterns in a paper envelope.  Because they must be printed on 24lb bond paper (for technical reasons too boring to go into here), many of them are large and heavy.  I have always insisted on providing top quality packaging in my antique patterns, so each one goes out in a lovely reusable and expandable plastic pouch, i.e. a permanent storage envelope that's wear-and-tear proof.  My buyers love them, but they are large and heavy.  Some of them I just barely squeeze into a #5 envelope and through my 2.0cm slot (in fact my husband has standing instructions to press the thicker ones flat before he hands them over the P.O. counter!).  As you can imagine, these have become expensive to ship to Europe, and, with Canada Post's most recent 26% rate hike internationally, whether by lettermail or Lt/Small Packet makes very little difference.

 

Digital downloads would be the ideal solution for Europe, but of course eBay has restricted those to the point where they're useless.  I'm tackling the problem in another way though - by making things smaller.  I've decided to launch a line of my antique patterns on CD this year that should be at least somewhat affordable to ship outside Canada and the US.  This of course is in the naïve and vain hope that Canada Post won't price me out of that market too!  Doesn't eBay have some sort of shipping ceiling on CDs? 

 

As for "regular", modern patterns, you're right that Simplicity/McCalls/Butterick are hard to sell, unless you have really older vintage.  Vogue/Burda are much better, but eBay has been swamped with vintage sewing patterns and none of them sell the way they used to. 

 

Yes, a crystal ball -- can I get one on eBay do you think???

 

 

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Canada Post Letter-Mail Rates

Doesn't eBay have some sort of shipping ceiling on CDs?

 

If you are listing on dotCOM, there is a shipping cap on Media which includes CDs. US sellers can get around it by using Calculated Shipping, but we Canadians are stuck with Flat Rate and the highest Flat Rate is $4. including insurance.

brandee could tell you more about it, since that is his area of expertise: my method of dealing with it was to move all my books to dotCA.

 

 

 

 

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Canada Post Letter-Mail Rates

Keep in mind CD's have to go light packet which I am sure you already know ...

 

Sense the price hike I have turn my customer base from 25% US to about 75%

 

The Canadian Price hike gave me the chance to offer US buyers a better rate ... Messed up right but thats what is happening...

 

Example for how I am working it and still not done revisions but I am on it and it is doing wonder for my US Sales

 

I deal in mostly movie that have a weight of 80-150 grams

 

100-200 grams Canada $2.95

0-150 grams US $4.28

 

I offer Free Canadian shipping which avoids fees on US shipping then I deduct the $2.95 Canadian shipping I have worked into the buy now price from the US rates Making it appear that my US buyers are only Paying anywhere from $1.30-$2.77  for shipping when in fact they are paying the full pop just part is in the pricing ..

 

This also allows me to avoid the overcharged shipping warning for my listings from the US shipping Price charge....

 

I Also have converted to discount stamps which could enable me to drop the price another 25% but I keep that difference as my new way of self insurance....

 

It's all about the visual appeal to the buyers and the world like Free to Very cheap shipping cost.. (Walmart is now joining the Free shipping congo line of the retail world)

 

On .ca there is NO cap you can charge 1 million for shipping and there is not warning no cap nothing just alot of NEG and DSR beatings waiting for you LOL ...

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Canada Post Letter-Mail Rates


@brandeentertainment wrote:

 

I offer Free Canadian shipping which avoids fees on US shipping then I deduct the $2.95 Canadian shipping I have worked into the buy now price from the US rates Making it appear that my US buyers are only Paying anywhere from $1.30-$2.77  for shipping when in fact they are paying the full pop just part is in the pricing ..

 

... For some reason stupid Lithium just deleted my whole post -- it's late, I'll re-do later. 

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Canada Post Letter-Mail Rates

OK, I'm going to try again today: Smiley Happy


@brandeentertainment wrote:

 

I offer Free Canadian shipping which avoids fees on US shipping then I deduct the $2.95 Canadian shipping I have worked into the buy now price from the US rates Making it appear that my US buyers are only Paying anywhere from $1.30-$2.77  for shipping when in fact they are paying the full pop just part is in the pricing ..


Thanks so much for all your input, 'brande'.  This is my first try at selling items in CD format, so I really appreciate the advice.

The point you make above is precisely what I was considering too -- offering free shipping on all CDs to Canada (because most of my buyers are in the US).  That will eliminate the shipping FVFs on all my sales, and -- who knows -- may help to increase my Canadian sales too.  On the other point, I've never been fully comfortable with the idea of rolling shipping into item prices.  I may try rolling a portion of it in, and see how that goes. 

 

Since I have a somewhat limited buyer market (in comparison to movie CDs!) and mostly U.S. competitors, I have to be very careful about pricing.  I'm probably in the "volume-over-higher-price" camp -- I think I'd rather have 10 sales at $10 each than have all but a couple of buyers turn away at a $15 or $20 price.  At any rate, I'm going to experiment a little and see what happens.  Since I hold copyright to the content, my input costs for my CD patterns will be virtually $0 (only the cost of the CD itself and of printing the CD label), so I'm planning to offer these patterns at a discount from the paper versions anyway. 

 

One question, if you don't mind me picking your brains a little further!  I'm planning to use slim jewel cases and ship in CD bubble mailers.  Have you had any trouble with jewel cases cracking or breaking in transit, or the CDs being damaged as a result?  I'm wondering how well they generally make it through the mail in bubble envelopes, and whether I should expect any issues from buyers in that regard.  So far I've never had to be concerned about damage or breakage (with paper sewing patterns). 

 

Thanks in advance!

 

 

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Canada Post Letter-Mail Rates

"offering free shipping on all CDs to Canada (because most of my buyers are in the US).  That will eliminate the shipping FVFs on all my sales,"

 

This will work for you as long as you list on eBay.ca

 

It would not work when listing on eBay.com because USA becomes "domestic" by default (that cannot be changed).  To save FVF charged on shipping, the first "domestic" shipping charge must be "free".

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Canada Post Letter-Mail Rates

Thanks Pierre - I was aware that this will only work on eBay.ca, which is where I plan to list (with "free" as my 1st domestic shipping).  I've actually been taking advantage of this little benefit for some time, since I frequently run free Cdn shipping promos in order to reduce my FVFs on the US shipping.

 

I haven't been listing on .com since the vast majority of my sales are to the U.S. -- which means I can still charge for shipping to the U.S. but not get "dinged" for FVFs on those shipping amounts.  My volume isn't usually so big that I need to make use of the available free .com store listings every month in any case.

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