Canada Post, supermailboxes and Global Shipping Program

[reallynicestamps]

Here's a depressing thought.

With  a focus on package delivery, will Canada Post be changing its de facto policy of ignoring small and low value imports in favour of collecting those $10 'service fees'?

Unless and until the Harper Government decides to raise the postal import allowance from $20 ($60 for gifts), there is a large revenue stream being overlooked.

And with less residential delivery, will eBay buyers now be picking up parcels at the Postal Outlet, making the collection of these fees and duties easier?

[recped]

will Canada Post be changing its de facto policy of ignoring small and low value imports

Collecting duty/tax on imports (or not) has nothing to do with Canada Post. Canada Customs & Border Services are the ones who make the decision to collect taxes or not.

[marnotom!]

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@reallynicestamps wrote:

And with less residential delivery, will eBay buyers now be picking up parcels at the Postal Outlet, making the collection of these fees and duties easier?

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Now?  When my wife first started buying on eBay in the late 1990's, we had to do just that.  It was a big surprise for us the day that a mail carrier came to our door to collect taxes at the same time she delivered our package.

[mr.elmwood]

Interestingly, only 33% of addresses have door to door delivery, so, the system has long been implemented of picking up parcels. Heck, I was not even getting parcels with door to door, all I was getting was the pickup notice.

We can bite the bullet now, or bite it later. Home delivery had been on life support for quite a while.

[pjcdn2005]

And with less residential delivery, will eBay buyers now be picking up parcels at the Postal Outlet, making the collection of these fees and duties easier?

The super boxes usually have a couple of bigger compartment for parcels. My parcels are often left in one of those compartments (with the key in my mailbox) unless there are fees due, a signature is needed or if the box is too big.

[anguscoinshop]

the question now is will canada post survive, they have given even more incentive to use other carriers, they are slowly closing the price gap between themselves are there competitors.

thing don't always go as planned

[ricarmic]

A long time ago, they did the same thing, the "old timers" will remember when the 1st class rate went from 17c to 30c..... there was a big rigamarole back then too......

[recped]

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@angus_coin_shop wrote:

the question now is will canada post survive, they have given even more incentive to use other carriers, they are slowly closing the price gap between themselves are there competitors.

thing don't always go as planned

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There are no competitors for Lettermail now and there won't be in the future, Lettermail is pretty much dead in the water, certainly there is no money to be made even at $1 a letter.

[zee-chan]

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@pjcdn2005 wrote:

And with less residential delivery, will eBay buyers now be picking up parcels at the Postal Outlet, making the collection of these fees and duties easier?

The super boxes usually have a couple of bigger compartment for parcels. My parcels are often left in one of those compartments (with the key in my mailbox) unless there are fees due, a signature is needed or if the box is too big.

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Yeah my parcels are often left in those bigger compartments. Sometimes they are left outside my door instead (some will ring the door bell then leave, some don't even ring the door bell) when I assume they have a trackable parcel in the compartment instead. I buy from Japan often (1-5 times monthly) and I never buy tracking (unless required by the retailer) since my shopping is usually around $10-50...

What I dislike is, when I buy something expensive like a digital camera from local retailer with expedited shipping, they are only left on those compartments... and occasionally the locks aren't applied properly. Luckily me or my dad usually get to the mailbox pretty early so I haven't sustained any loss yet, but still...

[fundy_picker]

I think this could be good news ....In Canada it should cost 10.00 for a stamp the way things stand now...letter mail is subsidized by parcel mail....On Line shopping is the wave of the future and big business wants carriers that are competitive,,,Canada Post wants to be competitive. I can see it benefiting us Ebay sellers  as well...I predict that the days of ridiculous shipping charges in Canada will soon be over...The American Ebay sellers will envy our cheaper more efficient mail service...

[rosscd57]

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@fundy_picker wrote:

"I predict that the days of ridiculous shipping charges in Canada will soon be over...The American Ebay sellers will envy our cheaper more efficient mail service..."

I don't think I will hold my breath to long on that prediction.

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[katlover1952]

My big concern with Canada Post announcement is how it will affect our shipping prices on our packages. If letter mail is taking a more than 50% hit how will our parcel rates be affected. It automatically goes up each year in February I think anyway. Will our shipping rates to US become so expensive that our buyers won't want to pay them?? Shipping parcels across Canada is already quite expensive today but at least to the US there has been the small packet rates which while they have gone up each year are still affordable for small items.

[Anonymous]

What does "Global Shipping Program" has to do with this Canada Post announcement?

[pocomocomputing]

One issue with super boxes is that they have a small slot for depositing mail to be picked up. It is a 2 cm slot and angled so only smaller flexible mail can be put in it. Usually there are no corner red mailboxes in the areas served by super boxes so no quick 5 minute walk to drop in your packages. The big red boxes are concentrated at small shopping centres or corner stores.

I would expect that Canada post would eliminate many of the corner boxes in old door to door delivery areas to further cut costs. Make the customer with mail do the driving to drop off mail for pickup.

[pierrelebel · Accepted solution]

"will our parcel rates be affected. "

NO.

That was covered in the Canada Post announcement.

http://www.canadapost.ca/cpo/mc/assets/pdf/aboutus/5_en.pdf

Bottom of page 8 : "Prices for parcels and for addressed and unaddressed advertising mail are not

affected by the Lettermail increase."

[reallynicestamps]

What does "Global Shipping Program" has to do with this Canada Post announcement?

Nothing whatsoever.

The GSP is a commercial program set up by eBay and PitneyBowes to facilitate international shipping for American sellers.

PitneyBowes, like many other shipping companies, is authorized  by the Canadian Border Services Agency to collect applicable duty and sales taxes and remit them to the Canadian Government.

Canada Post is only involved marginally, in that CP is one of the shippers PB sub-contracts to complete delivery.

[rose-dee]

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@pierrelebel wrote:

"will our parcel rates be affected. "

NO.

That was covered in the Canada Post announcement.

http://www.canadapost.ca/cpo/mc/assets/pdf/aboutus/5_en.pdf

Bottom of page 8 : "Prices for parcels and for addressed and unaddressed advertising mail are not

affected by the Lettermail increase."

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Yes, but to be clear, there has been an announcement that parcel rates will increase -- US & international by about 3.1% -- in 2014.  Not earth-shattering, but not as comforting as CP's statement (wishful thinking?) in its Action Plan. 

In fact, the above CP statement that you've highlighted in bold is what I would classify as corporate double-speak: no, the specific increases affecting lettermail will not apply to parcels, but oh wait, there will be a different set of increases on parcels, as well as some new service charges.  Here is the page outlining the 2014 parcel rate changes:

https://www.canadapost.ca/cpo/mc/assets/pdf/business/parcels_changes_2014_en.pdf

and the details (which I think have been discussed on other threads) - the highlighted "service area adjustment" is the one that most concerns me (more double-speak for "surcharge" -- why can't they just call a spade a spade?):

"Average parcel services price increase
Domestic
Prices for Domestic Parcel Services will increase by an overall average of 3.2% for most
customers.

Weights greater than 3 kg will have lower price increases, making Canada Post’s Domestic
Parcel Services even more competitive.

USA/International
Prices for USA/International Parcel Services will increase by an overall average of
3.1% for most customers.

Service options and surcharge changes

Service-area adjustment
A service-area adjustment of $5.00 will be applied to parcels shipped to areas Canada Post
has identified as having a particularly high cost to serve (i.e.: Fort McMurray, Alberta).

Domestic Liability Coverage (insurance)
The price will increase from $1.95 to $2.05 per $100 declared value (an increase of 5.1%).

USA/International Liability Coverage
The price will increase from $2.00 to $2.05 per $100 declared value (an increase of 2.5%).

[rose-dee]

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@reallynicestamps wrote:

Unless and until the Harper Government decides to raise the postal import allowance from $20 ($60 for gifts), there is a large revenue stream being overlooked.

___________________________________________________________________________________________

This is true, but I think if we dig deeper, we might find that Canada Border Services can't afford to pay people (my guess) $25 to $40 an hour, plus benefits, plus pensions, etc. etc., to catch all the little fish.  There must be thousands of such items over $20 in value but under $100 that go through every week.  If it takes one person 15 minutes to process a $50 parcel, including possibly examining the contents, paperwork required, computer entries to be done, etc., then they've probably already lost money on the collection. 

I find for my own purchases from the US that there seems to be a shifting mark -- some items at ca. $125 have gone through free, while others at around $80 or less have been 'dinged'.  Perhaps it depends on who is busy on what days and how much volume is going across the border at the time my parcel comes through.  I do notice that around Christmastime things seem to get pretty lax.  

The GSP must be a bit of a windfall for Canada Border Services (or more precisely, the federal government), since every penny does get collected, and on somebody else's dime no less (that would be yours and mine, the buyers who pay Pitney-Bowes their fees).  Not only that, but I imagine it's reducing the amount of fiddly little parcels that have to be handled by CBS at the Canadian border, thus also saving our government money.  

So as long as the GSP continues, I think CBS will probably just continue their usual practices.  I wouldn't even be surprised if the feds would love to find some way to ensure the GSP does well, since they're saving on both ends. Maybe help out eBay in its advertising of the GSP to Canadians?  Sorry, I shouldn't give them ideas...

[westernstargifts]

I received a small box from the U.S. last week, valued at $400, delivered to my door...no duty, tax or handling fee.  Doesn't happen every time but sure is nice when it does!

[pjcdn2005]

So as long as the GSP continues, I think CBS will probably just continue their usual practices.  I wouldn't even be surprised if the feds would love to find some way to ensure the GSP does well, since they're saving on both ends. Maybe help out eBay in its advertising of the GSP to Canadians?

I have no idea how many parcels that cross the border from the U.S. to Canada were bought on ebay but I suspect the number is a very small percentage of the total number of packages that do cross the border. There are a number of U.S. sites that collect taxes at the time of purchase and it is getting more difficult to find a U.S. site that doesn't do that. Although ebay is a big factor in our day to day lives, I have a feeling that for the CBSA, we're pretty small. But, that's just my

opinion. 🙂