Canada Post 2015 Rates coming soon

[pocomocomputing]

Around this time of year, the new rates for Canada Post Parcel services are announced. I did a Google search and some announcements exist as of Dec 12, 2014. The actual new parcel rates will most likely show up this weekend or Monday. The announcement below has the overall percentage increase of parcel services.

Parcel Services Price and Service Changes effective January 12, 2015

Average price increase Domestic Prices for Domestic Parcel Services will increase by an overall average of 4.2 % for most customers.

USA/International Prices for USA/International Parcel Services will increase by an overall average of 1.8% for most customers.

One interesting announcement is the change to volumetric calculation for Express services. Instead of calculating with 6000 cu cm, they are using 5000 cu cm which is an indirect way of making a rate increase.

Here is a link to the announcement page at Canada Post.

http://www.canadapost.ca/cpo/mc/business/productsservices/rates.jsf

On the above page to the right are new 2015 Lettermail and Letter-post rate sheets.

[pocomocomputing]

PS New rates are effective January 12, 2015.

[pocomocomputing]

Just found the 2015 Parcel Rates. Must be just added to the Canada Post site now.

https://www.canadapost.ca/tools/pg/prices/SBParcels-e.pdf

Light Packet

Not in the document (as usual LP never seems to go smoothly in the early announcements)

Small Packet USA

New 2015 rates (250g/500g/1kg) $8.13/$10.79/$16.23

Old 2014 rates (250g/500g/1kg) $8.03/$10.66/$16.03

Small Packet International Air

These seem to be modest increases also.

For example, Small Packet International Air to Europe

New 2015 rates (250g/500g/1kg) $9.49/$18.98/$37.22

Old 2014 rates (250g/500g/1kg) $9.37/$18.75$36.76

[momcqueen]

Thank you for that.

I was just wondering about a rate increase for 2015 with no small amount of trepidation.

To address the fatal errors of the ebay.ca Shopping Cart experience, I'd already begun the process of changing my listings from flat-rate to calculated so, unless I'm mistaken, the cost increase will automatically roll into calculated postage amounts. I still have some fine-tuning to do with weights but it's easier than having to alter 600+ flat-rate listings for a postage increase although I guess a person could just add a handling fee to all listings to address new, increased postal charges.

Ultimately, I want to see my postage costs DECREASE. Especially since door-to-door service is disappearing. I'd also appreciate better discounts with paypal labels. There must be HUNDREDS of postage labels printed each hour through paypal and thanks to its ebay Canada sellers. I want a better discount and more things discounted. 

Now, I'll go tell the people at my local postal counter all about the upcoming rate increases since they are always the last to know.

[Anonymous]

Canada Post should retire Regular Parcel for domestic (Canada) as it is more expensive than Expedited Mail.

[pocomocomputing]

More searching and another document appears. This must be the correct one. The previous document above is marked confidential and does not have Light Packet but the one below does.

http://www.canadapost.ca/tools/pg/prices/SBprices2015-e.pdf

Please note that the weight breaks for Light Packet have changed dramatically which affects the rates!!!

Light Packet USA rates

New 2015 rates (200g/300g/500g) $5/$7/$11.75

Old 2014 rates (150g/250g/500g) $3.98/$6.37/$10.66

Light Packet International rates also changed because of the new weight breaks.

New 2015 rates (200g/300g/500g) $7.50/$11.50/$21.00

Old 2014 rates (150g/250g/500g) $6.51/$10.46/$19.12

[pocomocomputing]

Light Packet rate increases are a pain as they are $1 increase for lowest weight break. This is a a large increase.

If I understand the $5 rule for GST/HST, the new rate of $5 will be tax free. So in effect PayPal users will no longer pay GST/HST on their use of the new 200 grams rate for Light Packet USA.

From the Canada Post website, the wording for the breakpoint for tax to be applied is

http://www.canadapost.ca/cpo/mc/personal/productsservices/gstcollection.jsf

Mail addressed to foreign destinations requiring total shipping charges of $5.00 or more (single item or a cumulative purchase) and products ordered from and shipped directly by Canada Post to a foreign destination, such as philatelic and retail products, are not subject to the GST.

So for sellers in HST provinces, they in effect get a 13% (Ontario) or 15% (Nova Scotia) price break to offset the $1 increase. Other provinces will save the 5% GST.

The new larger weight breaks will allow some sellers to save a little on Light Packet for items in the 150 to 200 gram range and in the 250 to 300 gram range.

PS Just looking for some positive effects of the changes. No need to be all doom and gloom with the Light Packet changes.

[pocomocomputing]

My last comment is about the programmers at PayPal shipping. Hopefully they will implement the changes correctly for Light Packet since it is more than a simple rate change. It is a rate change, a weight break change and a Sales Tax application change. Based on their past performance in making programming changes, which one (or more??) of the three changes will they mess up, LOL?

[dutchman48]

If you sell a lot of items under 150 grams, you just got the shaft from CP form the 2nd year in a row. Please do not make generalizations to justify their greed.

[pocomocomputing]

As I said, there are some positives in the rate changes for Light Packet. Since there is no way around the increases, then a seller must analyze the changes and looks for what few positives there are in the changes. Knowing how to spot them and use them to a sellers advantage is important.

It seems that Canada Post is trying to get the minimum charge for Light Packet up high enough to cover costs. The old 100 gram weight break and the 150 gram weight break probably had prices too low to justify processing costs. So they planned to phase in rate changes each year to make them not lose money on the Light Packet service.

My opinions. I have no proof that they are trying to up the minimum for light packet for these reasons. But it appears to be why the weight breaks are being changed. I would not be surprised if it is just 250 and 500 grams next year for Light Packet.

[dutchman48]

It is more than a 25% increase again for under 150 grams.;

[dutchman48]

They want to get rid of it so everyone will have to send as a parcel so the greedy CP can shaft people even more.

[pjcdn2005]

Poco thanks for the info. I haven't looked at the parcel rates yet as I would rather not think about it right now.

The up to 150 gr light packet rate worked well for me but this change only costs me more money, not less. It's a 25% increase and that is ridiculous. I don't know how much of the 25% I will be able to pass on to my buyers and still be competitive.

It seems that Canada Post is trying to get the minimum charge for Light Packet up high enough to cover costs. The old 100 gram weight break and the 150 gram weight break probably had prices too low to justify processing costs.

They handle oversize mail exactly the same way that they do light packet yet that price is not going up so perhaps they are just being greedy.

[dutchman48]

Maybe if they ran their business more efficiently and got rid of you know what, they would not have to shaft the consumers for the you know what.

As you can tell, this is a real sore spot with me. CP has basically killed a large part of my business but as long as you know what is protected, they could care less.

I put them on the same level as ebay

[pjcdn2005]

---

@Anonymous wrote:

Canada Post should retire Regular Parcel for domestic (Canada) as it is more expensive than Expedited Mail.

---

They should take if off of the ebay calculator as some people have both prices which is silly. But Canada Post is not going to eliminate it as not everyone can use expedited. When average Joe consumer goes to the counter to buy postage for a parcel, they are not offered or able to buy expedited. It is more for business customers.

[dutchman48]

I could not even pass last years ridiculous increase to my buyers, most left at that time.

Also, don't forget the extra Ebay and Paypal will take as a % of the higher shipping costs.

[pjcdn2005]

One interesting announcement is the change to volumetric calculation for Express services. Instead of calculating with 6000 cu cm, they are using 5000 cu cm which is an indirect way of making a rate increase.

I thought I read a while ago that within the next year or so CP would be going away from dimensional pricing. I wonder if that is for other services or perhaps I misunderstood the article??

[tobyshitzu]

wow thought we'd be spared absurd rate increases this year with their results a little better and plumetting oil.  Just brutal for light packet users

[pierrelebel]

"...about the programmers at PayPal shipping. Hopefully they will implement the changes correctly..."

The program is administered by Pitney Bowes on behalf of eBay and PayPal

[dutchman48]

Not going to help Ebay either as a lot of stuff will go to sites that don't charge a % of shipping which is becoming a bigger and bigger expense with the CP greed.