Canadian Seller profitability - high CP rates vs USPS

[omega_collectables423]

Thought I would take a moment to voice a commonly understood issue that Canadian sellers are faced with.

I have found it to be very difficult to increase profitability and penetrate the market since Canadian sellers must rely on using Canada Post's significantly higher transit rates when compared to USPS.

I find it baffling that I can ship a 1 pound box to Texas for less than it would cost me to ship to Saskatchewan. How does that make sense?

As we all know, a large portion of sellers will generate profit via shipping and handling. USPS rates are so economical that Canadian buyers will and often DO purchase from a US seller, as they can offer cheaper shipping and handling than a Canadian seller, AND make more money on the service at the same time.

It would be fantastic if eBay and PayPal would subsidize an exclusive Power Seller shipping rate for small packet items similar to the small packet service available to the US. If eBay is truly invested in improving Canadian seller profitability why not offer an additional discounted rate or exclusive rate for high volume sellers.

The definition of Power Seller in itself needs to be revisited as its solely based on gross sales dollars and not volume of product. I'm a Silver Power Seller with 100% positive feedback and I've had to sell hundreds upon hundreds of items a month in order to achieve and maintain this status as my average item sale price is usually under $10.00.

I can't imagine how much business I'm losing to US counterparts due to the fact that my shipping and handling on a single small item is 2-3 times more expensive.

This has put me in a position to actually lose money on shipping on certain items shipped in Canada. When you incorporate the shipping cost, time and materials, it's almost not worth it.

How does everyone else feel about this? Can you share any suggestions or similar experiences?

[tea_past_times]

As we all know, a large portion of sellers will generate profit via shipping and handling.

Do tell....

[tea_past_times]

Bill?
Zarzuella?

[tobyshitzu]

There is no way ebay is going to subsidize anyones shipping rate (they won't even subsidize the largest sellers' ebay fees beyond the paypal volume discount).

CP used to give us a substantial deal on domestic parcels, which disappeared when ebay got their hands on the paypal deal with CP.


If you are selling hundreds per month you an easily deal directly with CP or couriers for a discount.

[tea_past_times]

Finally an HONEST Powerseller!!

[duujogl]

What in the world is THAT supposed to mean, and what does it have to do with CP and USPS rates?

[zarzuella]

Yes, competing with US sellers IS difficult, and as Monique says in another thread, most of us learn to work around it.

In my situation, for example, an average book weighing .75kg sent to the US via Canada Post costs CAD$12.75/Small Packet Air or $10.30 Small Packet Ground. The same book can be mailed in the US via Media mail for US$2.07 or flat-rate Priority service for US$4.06.

I pay a courier to take my books to Niagara, and then pay an agent to take them across the border and mail them from the US, and still can charge my customers less than half what it would cost to ship from Canada. That is truly unreal when you think about it.

Ann