Change to Lettermail - Canada Post

sew-sisters
Community Member
Canada Post has just announced a major change in policy that will negatively impact our business.

The change in policy is that from September 19th, 2005 onwards lettermail may no longer contain any items which are not documents. Currently, as long as envelopes meet size and weight requirements and do not contain prohibited materials they may be sent as lettermail. Canada Post’s decision to restrict lettermail to documents only is arbitrary and extremely damaging to small business.

By way of example, our best selling item is a packet of fabric squares used to make quilts (it measures 6.75” square when packaged, does not sag in the middle and weighs 47 grams). It sells for US$6.99. In December, 2004 it cost US$0.85 to ship this item. Now, due to fall of the US dollar and increases in Canada Post rates (effective January 17th, 2005), it costs Cdn$1.82. On Sept. 19th this is going to increase to Cdn$5.60 (small packets airmail rate). That is a 560% increase in less than a year. I do not believe that our customers will be willing pay that amount for shipping. Therefore we will lose customers and I am quite worried that if we don't drastically change our business model that we will lose our business.

In the last 18 months we have spent over $7000 at Canada Post. We are a small business, we do things by the book and are profitable. Selling on eBay allows me to stay at home with my children while also contributing financially to our family and in my own small way to the Canadian economy. To maintain my business I need to compete with American sellers. The relative strength of the Canadian dollar and the drastic increases in postage early this year has made it very difficult to make money selling Canadian product to the United States. Additionally, American sellers have the advantage of flat rate priority mailers and media rate packaging as it is - if I lose the letter mail pricing I will lose a significant proportion of my sales. If I lose my business I am no longer earning any money - that hurts everyone.

I beseech you, please join me and countless other small businesses as we demand that we be able to continue to use lettermail for small items. I have written letters to the editor, contacted my MP and MPP and filed a complaint with Canada Post.

Thank you for your time and I apologize for the long post,
Judy

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Change to Lettermail - Canada Post

USPS letter, the up to 4lbs thing, does not directly compare to Canadapost letter. USPS has one product that overlaps both canadapost letterpost and small packet combined.

I have read the Australian online postal guide(has not been updated recently). Australia has serivces and domestic pricing very similar to the way canadapost is set up. The guide clearly says any item meeting the size/weight/2cm slot can go intl letterpost with a customs sticker except some countries prohibit dutiable items from going letter. Their online guide then has hundreds of pages with detailed information for every country - no restriction is mentioned in the USA section. From what I can see, at current excahnge rates I believe it is now cheaper to airmail a dvd to usa from australia then from Canada.

I have not seen anything credible from canada post claiming it is caused by a change in the USA(I don't consider anything from an outlet remotely credible wit some of the bizaree things they have attempted to tell me). WHen Canada Post Kim on CTS answered why, she said "don't know".

Piles of us have wriiten to CP and minister Mccallum, if it was as simple as responding "USA made us do it" one would think that answer would have already come. I understand it also does not say that on the memo sent to outlets on that part on how to respond to customers

On another note, i got a call today from an exec at CP who deals with the corporate parents of the outlets (like shoppers head office etc)to discuss some service issues I had with an outlet...he was not aware there was any change to letterpost or any update to the postal guide.
Message 41 of 57
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Change to Lettermail - Canada Post

fenian
Community Member
Speedy albeit brief response from US Customs:

Basically, my message asked US Customs if it was their requirement that lettermail coming into the US consist of paper material only......if so, where this was stated in their regulations, in order that I might quote the reference....and that Canada Post was stating that this requirement was in response to US Customs and USPS requirements.

Discussion Thread
Response (Leticia) 07/26/2005 02:44 PM
US Customs and Border Protection cannot regulate what a foreign post office states; be assured that CBP is not advising foreign post to go this route. You might want to request the Canadian Post for a directive/regulation regarding this policy.

Thank you
Customer Service Center

I've shown the key phrase in bold.........so at least that part of what CP is telling me is absolute bulltwaddle.

More as it comes in................ Michael
Message 42 of 57
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Change to Lettermail - Canada Post

llee2
Community Member
Bulltwaddle? LOL!

Looks like tobyshitzu got a response from CP...

http://forums.ebay.ca/thread.jspa?threadID=300021794&tstart=0&mod=1122498958382

...and their excuse is now that people are trying to make insurance claims on lost items sent via lettermail. Doesn't make any sense, since all CP would have to say is that lettermail is not insured. I love how CP dances around the issue, offering one baloney explanation after another. C'mon CP, just call like it is - a blatant cash grab!

Lincoln
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Change to Lettermail - Canada Post

llee2
Community Member
fenian,

You may want to start a separate thread with "Canada Post Petition" in the title. Hopefully, the petition will get more signatures that way. CTS may be a good place to start a thread too.

Lincoln
Message 44 of 57
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Change to Lettermail - Canada Post

llee2
Community Member
Oops, sorry that was finells' petition not fenian's. My bad.

Lincoln
Message 45 of 57
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Change to Lettermail - Canada Post

Online petitions are worth what they cost to set up. Everyone knows its easy enough to fill out piles of names yourself, and even legit names only reflect people who were willing to make the virtually no effort to click a link and put their name.

It would be far, far better to make a modest effort and spend a few mintues to send a signed/addresses letter to a few people - local MP, Minister Mccallum, opposition member, CP President...
Message 46 of 57
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Change to Lettermail - Canada Post

fenian
Community Member
A response from USPS -- (difficult to get an answer as most of their service reps are ESL):

----- Original Message -----
From: "Support@USPS"
To:
Sent: Wednesday, July 27, 2005 1:26 PM
Subject: According to Canada Post, USPS (for "customs and security" reasons"
will now ... [Incident: 050726-000663]


Recently you requested personal assistance from the United States
Postal Service. Please see below for our response.


Thank you for allowing us to be of service to you.

Subject
---------------------------------------------------------------
According to Canada Post, USPS (for "customs and security" reasons" will now
...


Discussion Thread
---------------------------------------------------------------
Response (Pam B.) - 07/27/2005 02:26 PM
Michael,

Thank you for visiting our web site. I understand your concerns regarding
mail coming into the United States Postal Service. I regret that we have no
information regarding this restriction. You would need to contact the
United States Customs Department for further assistance. They handle all
mail coming into the United States before it is given to the United States Postal Service.

I am sorry that I have no number for the United States
Customs Department.

If you need any assistance in the future, please don't hesitate to contact
us. Thank you for using the United States Postal Service.

Pam

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

So...........USPS has no such restriction regarding contents of incoming lettermail........and as noted in an earlier post.......US Customs and Border Protection (who USPS advise are responsible for all incoming mail) have no such restriction either.

The overpaid boffins in Canada Post who have spent most of their working hours lately whacking each other on the back in anticipation of huge "productivity" bonuses stemming from this outrageous rate-change increase must now be running out of canned mistruths to pass along to the Canadian public.

There's a substantial package of info soon going to the media, government officials, Goldhawk, Warren on the Weekend and whoever else I can think might be interested.

>>>>>>>>>. Michael
Message 47 of 57
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Change to Lettermail - Canada Post

belldandyrose
Community Member
Can someone PLEASE post an official announcement? I won't believe until I see something more tangile than just by word of mouth.
Message 48 of 57
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Change to Lettermail - Canada Post

deztinationz
Community Member
You might find something here, but yes it is confirmed for sure. I saw the official documentation at CP yesterday.

http://canadagazette.gc.ca/index-e.html
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Change to Lettermail - Canada Post

deztinationz
Community Member
hohohhohhhhoh....check this out...Jan 16, 2006 more hikes coming....

http://canadagazette.gc.ca/partI/2005/20050628-x7/html/extra-e.html
Message 50 of 57
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Change to Lettermail - Canada Post

rd1000
Community Member
It is frustrating. They keep trying to blame the incresaes on the US charges, but it is interesting to note that in the 2 years that I have been going to the US to deliver pacages, I have not seen a rate increase.

All you can do is keep looking for other alternatives.
Message 51 of 57
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Change to Lettermail - Canada Post

llee2
Community Member
You can bet small packets will be increasing Jan 16 as well. Every increase over the last 5 years in small packet prices have been tied to the lettermail rate increase. Add this onto the strong Canadian dollar, the Paypal increase going into effect in a few weeks (well, for most of us anyways) and the probable ebay fee increases coming in January.

Lincoln
Message 52 of 57
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Change to Lettermail - Canada Post

We can always blame Marc Emery - he was probably using lettermail to send those dastardly seeds into the US ]:)

Message 53 of 57
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Change to Lettermail - Canada Post

There's a PayPal increase coming?
Message 54 of 57
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Change to Lettermail - Canada Post

sew-sisters
Community Member
I just came back from vacation and my MP, John Godfrey has written a letter to McCallum on my behalf asking him to "

Please give consideration to other options to lessen the burden on businesses such as Ms. Baldwin's."

and attaching my letter to it.

Will it help???? Who knows????

Judy
Message 55 of 57
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Change to Lettermail - Canada Post

sew-sisters
Community Member
Can we put together some sort of plan to contact the media and the MPs and Canada Post in an organized fashion?

I sent a registered letter to the Pres. of Canada Post and as yet have received no response. Can You imagine paying $6.75 to mail a letter to Canada Post??????

At any rate I have heard 4 different explanations for the change in policy from CP employees so I am eager for the truth. I think i will start calling the CEO and demanding a phone meeting about this. If she refuses me maybe my MP will help. This is absurd beyond belief.

I know parliament isn't in session right now but boy am I ever beyond mad at Canada Post. I looked at the fee increases which aren't insignificant for International and I didn't see any for US but I assume they are coming.
Message 56 of 57
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Change to Lettermail - Canada Post

llee2
Community Member
javax,

The Paypal change for merchant accounts goes into effect sometime this month (was announced this time last year). If you were receiving the 2.2% merchant account, there are new thresholds to meet. Unless you're pulling in an awful lot through Paypal, chances are your rate in going up.

Lincoln
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