How Canada Post made the online retail revolution possible

[kitschnvintage]

https://www.canadapost.ca/magazine/en/unlikely-game-changer/

I don't know if the above link will work, but I just noticed the above article on the CP website ~ boy I never realized how great Canada Post was 🙂

Here's an excerpt:

"The meteoric rise in online shopping has utterly transformed the retail landscape in Canada. It’s defined now by virtual stores, mobile commerce and new heights of customer conveniences. It’s populated by entrepreneurial stars who are grabbing hold of a channel still in its infancy and showing off its vast disruptive possibilities.

It’s true, Canadians were a little late to the game. Shoppers and retailers in the US and the UK embraced e-commerce much faster. But we’re catching up. Today, eight out of 10 Canadians shop online.

So, what does all this have to do with Canada Post?

Would you be surprised if I said that without Canada Post the scale of the retail transformation wouldn’t have been possible? That our role in building the digital economy of the future is crucial?"

[hazels09]

Shoppers in the US and UK embraced e commerce much quicker probably because their postal costs were reasonable. 

Now if Canada Post would quit blowing their own horn and do something about the cost of postage, speed of delivery, loosing parcels, etc., the scale of retail transformation would be even greater. imo

[momcqueen]

Thank you for posting the link.

The House of Commons' task force on Canada Post Corporation published that report Canada Post in the Digital Age which I have cited on other threads, and it goes into deep detail about the manner in which online shopping supports postal operations, and vice versa. 

I think, from what I read, that we are stuck with postage prices as they are until some fairly major changes take place. Economies of scale is one thing that would result in better prices for users. Another thing is an aspect I cannot even mention without the result being that the thread is hijacked by labour debate, so  I'm not even going to go there. 

I think Canadians are late to the online shopping game simply because: (a) we don't have those economies of scale for postage prices to be as low as USPS and we do have a giant geography that simply cannot be compared to Great Britain. I mean, really, the whole UK fits into the Province of Manitoba with plenty of room to spare yet their population is almost twice that of ours. Clearly, they cannot face the same geographical challenges as Canada does with long-distance postal delivery. We pay $1 to mail a letter from Newfoundland to Yukon. Can you imagine what it actually costs Canada Post to deliver it? The other reason Canadians haven't embraced online shopping as quickly as some other developed countries is the major international retailers simply haven't been that quick to make it happen. Shoppers don't have access to the same products from Canadian versions of those giant retailers as do our American counterparts. Unfortunately, I cannot cite examples because that would violate the Discussion Board off-ebay policy. 

A good read nonetheless. 

[cumos55]

Perhaps......We should add the following...

How Canadian sellers on eBay made the online retail revolution possible.

There is a lot to think about... a lot to understand.

We each start as individuals, as individual sellers on eBay.....  then together Canadian sellers on eBay have become a part of the online retail revolution..

Initially we contributed as individuals..... Today... we function as a significant group in Canada.

and then add in all of the other internet sites  that are also a part of the online retail revolution.....

and in total we carry a "big stick".

[kitschnvintage]

Hi... I have been trying to read through all of the threads on the House of Commons task force ... you did a great job representing ebay in my opinion by the way ...

I shared the link because it just struck me as "funny" , I'm not in the habit of cruisin' the CP website to read their blogs or announcements..... I was online trying to figure out shipping costs to the US for a small packet that needs extra insurance ... I don't understand why I can send a 1kg box for $20.39 tracked packet $100 coverage  but when I need extra insurance I have to bump the shipping method to expedited parcel post and the cost jumps up to $46.67 ( to California ) ... anyway this Magazine article was a big banner at the top of the page I was on and the part that jumped out at me was the title ... like implying Canada Post invented online shopping and how slow Canadians are to join the party .... and I'm like really ?? I've been trying to embrace online shopping since 1999 but CP rates made it too expensive to buy anything within Canada ... I think back then and even up to around 2010 it was $2.80US to mail a small package first class  up from the Sates compared to the $15 that same item would cost coming from within Canada (mind you I could get 1kg sent for that cost ... too bad my item only weighed 130g)

[momcqueen]

That's right, First Class International saw a hike sometime in the last few years that only now is starting to make postage from a fellow Canadian look better. That and the USD CAD conversion.

Why not use Tracked Packet but buy extra insurance for a few bucks from a third-party like u-pic? It won't double your cost in the end.

[rose-dee]

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@themodernowl wrote:

I was online trying to figure out shipping costs to the US for a small packet that needs extra insurance ... I don't understand why I can send a 1kg box for $20.39 tracked packet $100 coverage  but when I need extra insurance I have to bump the shipping method to expedited parcel post and the cost jumps up to $46.67 ( to California ) ...

---

Next time you're in this situation, you can purchase third party (non-Canada Post) additional insurance coverage for very little money, usually for just a few dollars more (unless you're sending a parcel worth thousands).  Shipsurance is one that many sellers use: http://www.shipsurance.com/.  

I personally use a listing management site (Auctiva), which has its own excess insurance coverage available up to 72 hours after shipping, so that I can even insure a parcel after the fact.  The last time I did this, if I recall correctly it cost me less than $3.00 US to insure an item worth about $400.00.  I'm sure other 3rd party insurers like Shipsurance will be comparable. 

[rose-dee]

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@themodernowl wrote:

Here's an excerpt:

"The meteoric rise in online shopping has utterly transformed the retail landscape in Canada. [...]

So, what does all this have to do with Canada Post?

Would you be surprised if I said that without Canada Post the scale of the retail transformation wouldn’t have been possible? That our role in building the digital economy of the future is crucial?"

---

Good grief, I had to laugh out loud at this excerpt.  I haven't had the time to read the entire report, and now I doubt I ever will if this is an example of the level of corporate awareness and thinking at CPC.  OMG.  

Um, someone should tell Canada Post that that this self-congratulation only serves to reveal how badly out of touch Canada Post is with reality.  They are just remarking on this state of affairs now?  I'd say CPC is about 10 years behind the times -- the revolution started years ago, and apparently they didn't notice.  It's no wonder they can't make their business function in step with the real, current needs of their users.

Sorry, this is utter hogwash.  I agree completely with 'cumos'  that CPC cannot retrospectively take the credit for the rise of online retail sales.  For the most part, those of us selling online have succeeded despite  stupid decisions made by Canada Post and exorbitant price hikes, not because of CPC's creative support of online businesses.  I think we need to accept collective kudos for our resourcefulness, ingenuity, determination, and yes, stubbornness, in succeeding against such odds.  

[sylviebee]

But IMO it's high time that eBay and our Canadian PO made some moves in tandem and independently to encourage Canadians to buy on line.

I know that sellers were/are upset that eBay.ca changed to $C only but perhaps doing that will make them feel a little more connected to a Canadian branch of eBay.

Now, how about bringing eBay bucks back for Canadians?

I've always felt the silence from Canadian buyers and don't understand it.

I sell to antique purse collectors and there are a lot of Canadian buyers.  I know that because my colleagues in the States tell me they ship here regularly.  So why not buy more from me?

[pocomocomputing]

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@rose-dee wrote:

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@themodernowl wrote:

I was online trying to figure out shipping costs to the US for a small packet that needs extra insurance ... I don't understand why I can send a 1kg box for $20.39 tracked packet $100 coverage  but when I need extra insurance I have to bump the shipping method to expedited parcel post and the cost jumps up to $46.67 ( to California ) ...

---

Next time you're in this situation, you can purchase third party (non-Canada Post) additional insurance coverage for very little money, usually for just a few dollars more (unless you're sending a parcel worth thousands).  Shipsurance is one that many sellers use: http://www.shipsurance.com/.  

I personally use a listing management site (Auctiva), which has its own excess insurance coverage available up to 72 hours after shipping, so that I can even insure a parcel after the fact.  The last time I did this, if I recall correctly it cost me less than $3.00 US to insure an item worth about $400.00.  I'm sure other 3rd party insurers like Shipsurance will be comparable. 

---

Some additional information on Shipsurance.

Shipsurance has a sister company to handle occasional shipping insurance needs called InsurePost that was set up by InsurePost in the past 3 years. I believe Shipsurance can not longer be used for occasional shipping needs.

Here is a little more information on InsurePost.

http://www.insurepost.com/default.asp

Be careful how you use InsurePost. There are restrictions on what items can be insured and which countries are covered by InsurePost.

Here is a FAQ page (Frequently Asked Questions) with those questions. Read carefully.

http://www.insurepost.com/questions.asp

Coverage is available for Canada Post services. Rate chart is here. Prices in USD.

http://www.insurepost.com/rates.asp

Lettermail/Letterpost is not covered. Too bad since Lettermail within Canada would have been very useful insurance.

Please note that you must provide proof of acceptance by Canada Post for InsurePost coverage to be valid. Purchasing Canad Post shipping options online with PayPal is proof of purchase, not proof of acceptance of the package by Canada Post. If you use a tracked service like Expedited Parcel or Tracked Packet, InsurePost coverage is not valid until there is a scan of acceptance or some tracking point along the way or delivered. A seller should go to the Post Office and have the packages scanned for proof of acceptance by Canada Post.

For non-tracked services like Small Packet or Light Packet, you cannot show any acceptance scan. So if using PayPal shipping you must bring the package to the post office and get a receipt or print a copy of the PayPal receipt and have it stamped by Canada Post for proof of acceptance.

PS rose-dee, do you have to have proof of acceptance by Canada Post for Auctiva insurance.

[kitschnvintage]

I was thinking about 3rd party insurers but it would be a lot easier just to not ship to the USA ... or raise my asking price high enough to justify a potential $46.67 shipping charge ... arrrgh 

And I was thinking about not inuring at all, after all I know I'm only trying to protect myself with insurance but I'm having issues with a declared value of $300.00 vs an insured value of $100 .... I don't know, that just screams steal me for some reason ....

Since per the article Canada Post can track ALL packages , why can't they adjust their rates to - small packet has tracking/delivery confirmation but no insurance. Tracked packet USA offers tracking/delivery confirmation + $100 base coverage ... and then the ability to purchase more insurance at their going rate of $2.25/$100  or whatever it is. I really don't understand the need to switch shipping services when the weight of the package hasn't changed , just the value .... except that now they are really charging me an extra $26 for the first $100 insured value as opposed to the $8 difference between small packet rates and tracked packet rates ... the horror of it all 

I know someone else said this in another thread .... I pay Canada Post to do a job .... why do I have to pay extra to make sure they do it right ? 

[momcqueen]

I don't buy third-party insurance that often, to be honest. If the value of a tracked parcel exceeds $100 I usually assume it will arrive just fine since it's not normally the 'tracked' items that come back as Items Not Received for me. Those had all been Small Packets: delayed, misplaced or stolen. 

[tobyshitzu]

"I know someone else said this in another thread .... I pay Canada Post to do a job .... why do I have to pay extra to make sure they do it right ? "

Because they need every cent they can get being their business isn't viable as it stands. People that voluntaily pay extra for the premium services are slightly helping the rest of us who don't.

[tobyshitzu]

usps just announced rate increases as high as 15% for some weight breaks of domestic first class (their cheap option).  Get ready for big increases here and stop dreaming that anything will ever be made better as long as a public service union has to be paid

[rose-dee]

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@themodernowl wrote:

I was thinking about 3rd party insurers but it would be a lot easier just to not ship to the USA ... or raise my asking price high enough to justify a potential $46.67 shipping charge ... arrrgh 

And I was thinking about not inuring at all, after all I know I'm only trying to protect myself with insurance but I'm having issues with a declared value of $300.00 vs an insured value of $100 .... I don't know, that just screams steal me for some reason ....

---

Well, in your original post you were pointing out how upset you were about having to pay such a high price for the next service level in order to get full insurance, and we were just attempting to provide you with a far less expensive, and easy-to-use option.  That extra $200 in insurance coverage, if purchased through a 3rd party insurer, would not have cost more than a couple of dollars.  Certainly far, far less than the difference between Canada Post services you mentioned.  Well worth the savings for the few minutes it takes to set it up. 

Of course, it's up to you to decide whether to ship to the U.S. or not.  But shipping options and rates to the U.S. are much better than to destinations in Canada for the same weight and size, and for most sellers the U.S. is where their largest market is and best chance for sales.  

Not insuring (or not insuring the full value) is of course your choice as well, since insurance is for the seller's protection.  I insure valuable items (anything over about $250) so that I can sleep peacefully once I ship.  I feel the extra $3 to $5 is worth it on an expensive transaction.  Should the parcel be lost, damaged, or stolen en route, I can refund the buyer, knowing that the transaction won't be a total loss from my end.  

Some sellers are more optimistic in this regard than I am, or more willing or able to take a calculated risk.  However, if you really can't afford to lose a $300 item, plus -- don't forget -- the $300 and the shipping cost you would have to refund the buyer for an item that didn't arrive (so potentially a ca. $650 loss), then insurance for a couple of dollars isn't a bad bet.  If you're dealing in anything that is breakable, delicate, or inherently attractive to thieves, then insurance is an even better idea.  

Insurance always seems pointless of course, until you need it. 

[rose-dee]

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@sylviebee wrote:

I've always felt the silence from Canadian buyers and don't understand it.

I sell to antique purse collectors and there are a lot of Canadian buyers.  I know that because my colleagues in the States tell me they ship here regularly.  So why not buy more from me? 

---

This is a phenomenon that no one has been able to explain or resolve, and frankly I think eBay Canada hasn't done much pro-actively over the years to change.  

In more than 10 years of selling on eBay, I've never broken the 5% Canadian buyer ceiling.  The same can be said of other sites I sell on.  Perhaps part of the answer is that Americans are more sophisticated and experienced online shoppers, better at searching out what they want.  I have to wonder how many Canadian eBay buyers for example even know there is a filter available for "Canada only"?

[rose-dee]

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@pocomocomputing wrote:

PS rose-dee, do you have to have proof of acceptance by Canada Post for Auctiva insurance.

---

I've been trying to recall whether I had to provide a proof of acceptance or just a tracking number last time, and I'm afraid I really can't confirm.  But I do know it was one or the other.  

[ricarmic]

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@rose-dee wrote:

---

@sylviebee wrote:

I've always felt the silence from Canadian buyers and don't understand it.

I sell to antique purse collectors and there are a lot of Canadian buyers.  I know that because my colleagues in the States tell me they ship here regularly.  So why not buy more from me? 

---

This is a phenomenon that no one has been able to explain or resolve, and frankly I think eBay Canada hasn't done much pro-actively over the years to change.  

In more than 10 years of selling on eBay, I've never broken the 5% Canadian buyer ceiling.  The same can be said of other sites I sell on.  Perhaps part of the answer is that Americans are more sophisticated and experienced online shoppers, better at searching out what they want.  I have to wonder how many Canadian eBay buyers for example even know there is a filter available for "Canada only"?

---

There are two good reasons buyers avoid buying "local" - they're called HST and GST......

At least in my world, that's the reason buyers will tend to buy from non HST provinces, or the US or elsewhere, it avoids (or increases the likelihood they'll avoid) the taxes.

Its also the reason in my world most of us sellers eat the taxes......

[momcqueen]

Very true. The day I am 'successful' enough to warrant tax registration is the day I must find another way to lure buyers to my store. Paying postage plus taxes is a turn-off.

[rose-dee]

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ricarmic wrote:

There are two good reasons buyers avoid buying "local" - they're called HST and GST......

At least in my world, that's the reason buyers will tend to buy from non HST provinces, or the US or elsewhere, it avoids (or increases the likelihood they'll avoid) the taxes.

Its also the reason in my world most of us sellers eat the taxes......

---

Forgive me if I proffer some "yabut" replies.. 

1) It doesn't explain why sellers like me who stay under the $30K tax registration radar still can't seem to entice Canadians to buy from us. 

2) Any Canadian buying from U.S. eBay sellers these days is as likely as not going to run into the GSP, which forces them to pay tax they might not have to pay if they found the same item from a small Canadian seller.  This is a real head-scratcher to me, i.e. that Canadian buyers have been complaining vociferously about the GSP, yet haven't been driven en masse to the obvious alternative -- buy from your compatriots. 

3) A Canadian buyer who purchases more than about $75 worth of goods from a U.S. eBay seller is probably going to get "dinged" by CBSA anyway, not only for the GST/HST, but for that dastardly $9.95 Canada Post charges to collect the GST/HST.  

4) Canadians will generally find they'll get their purchases faster from Canadian sellers than from the U.S., especially if the stuff has to go through Customs.  I'd like faster if I were a customer. 

So, I don't know.  I still don't get it.  Maybe the GST/HST explanation makes sense in the stamp world, but it's never made sense in mine. 

Or -- maybe Canadians just believe, without checking, that they will always get better prices, better products and wider selection in the U.S.?