Just curious, has eBay.ca ever had a *sit-down* with Canada Post about the shipping costs?
They have to what extent I can't say although at one time they made it sounds like a serious effort.
One major problem....even combining all the business of every Canadian eBay seller it doesn't add up to a major chunk of Canada Post's total volume.
It's certainly enough to get the top level discounts from Canada Post and eBay does get that, they only pass along (via PayPal postage) a small portion, the same portion ANYBODY can get using Venture One and EST, the rest goes in eBay's pocket.
Keep in mind that Canada Post doesn't have the ability to offer much in the way of price reductions, their profits relative to their total revenues is actually quite small.
They have to what extent I can't say although at one time they made it sounds like a serious effort.
One major problem....even combining all the business of every Canadian eBay seller it doesn't add up to a major chunk of Canada Post's total volume.
It's certainly enough to get the top level discounts from Canada Post and eBay does get that, they only pass along (via PayPal postage) a small portion, the same portion ANYBODY can get using Venture One and EST, the rest goes in eBay's pocket.
Keep in mind that Canada Post doesn't have the ability to offer much in the way of price reductions, their profits relative to their total revenues is actually quite small.
Postage is a business expense, always has been.
You can't claim a refund but you can deduct business expenses from business income.
You can't claim a refund but you can deduct business expenses from business income.
I'm no friend of Canada Post and certainly there are areas of their operations that go handle some cost cutting.
Cut down the dealer's commisions for example
I'm on very good terms with my local outlet, he had to let his minimum wage assistant go as he simply couldn't afford it on the percentage Canada Post pays him (it's a moderately busy outlet).
They say they are loosing money on lettermail, but does not the same postman have to deliver the unaddressed admail the same as lettermail?
Carrier costs are only a portion of the cost to deliver mail, if it wasn't for Admail rates would be even higher.
IMHO it would be much cheaper and more effective to send a truck and drop the bag with mail at every postman house instead.
That's pretty much how it's done here in Toronto, carrier goes to the local depot to sort their mail, they take the first load with them while the rest is delivered to lock boxes enroute. Don't know what it's like in your area but there is no way around here that a carrier could carry an entire days mail at one time.
USPS recognized that people who prepare their packages are costing them less money and significantly discounted electronically prepared parcels.
USPS give a 5% discount for online postage, Canada Post gives 3%.
Then the guy comes, he will be filling up the Small Packet form by hand and his ONE parcel will take 3-5 minutes of postal clerk time. The senior citizen comes and likes to talk, they want to mail something but need to ask 20 questions.
The joy of running a CP franchise, commission is based on postage sold, doesn't matter how long it takes to process each customer they get the same percentage.
As for cost cutting, there's still room but they have done an enormous amount over the past 20 - 30 years by outsourcing postal services (franchise outlets, contract drivers etc.).
And what is their incentive to change things? CP is like a monopoly for non-courier postal services
The only monopoly they have is for standard First Class mail, if it was really possible to provide the services for less wouldn't there be private sector companies undercutting them?
Cut down the dealer's commisions for example
I'm on very good terms with my local outlet, he had to let his minimum wage assistant go as he simply couldn't afford it on the percentage Canada Post pays him (it's a moderately busy outlet).
They say they are loosing money on lettermail, but does not the same postman have to deliver the unaddressed admail the same as lettermail?
Carrier costs are only a portion of the cost to deliver mail, if it wasn't for Admail rates would be even higher.
IMHO it would be much cheaper and more effective to send a truck and drop the bag with mail at every postman house instead.
That's pretty much how it's done here in Toronto, carrier goes to the local depot to sort their mail, they take the first load with them while the rest is delivered to lock boxes enroute. Don't know what it's like in your area but there is no way around here that a carrier could carry an entire days mail at one time.
USPS recognized that people who prepare their packages are costing them less money and significantly discounted electronically prepared parcels.
USPS give a 5% discount for online postage, Canada Post gives 3%.
Then the guy comes, he will be filling up the Small Packet form by hand and his ONE parcel will take 3-5 minutes of postal clerk time. The senior citizen comes and likes to talk, they want to mail something but need to ask 20 questions.
The joy of running a CP franchise, commission is based on postage sold, doesn't matter how long it takes to process each customer they get the same percentage.
As for cost cutting, there's still room but they have done an enormous amount over the past 20 - 30 years by outsourcing postal services (franchise outlets, contract drivers etc.).
And what is their incentive to change things? CP is like a monopoly for non-courier postal services
The only monopoly they have is for standard First Class mail, if it was really possible to provide the services for less wouldn't there be private sector companies undercutting them?
The "Flat Rate" box sounds like a great initiative
Don't get too excited, I predict if CP comes out with a flat-rate box it will only work for those that have the perfect combination of small size and heavy weight.
Lilybean, has been working with them for a few years now on such massive projects as the eBay/PayPal label printing tool
This massive project resulted in a application that is junk and pretty much does nothing more than further increase the amount of money in eBay's bank account.
Nothing personal to Lillybean or Miriam of course but this is the true result of the PayPal shipping project.
Don't get too excited, I predict if CP comes out with a flat-rate box it will only work for those that have the perfect combination of small size and heavy weight.
Lilybean, has been working with them for a few years now on such massive projects as the eBay/PayPal label printing tool
This massive project resulted in a application that is junk and pretty much does nothing more than further increase the amount of money in eBay's bank account.
Nothing personal to Lillybean or Miriam of course but this is the true result of the PayPal shipping project.
Want to save money on postage?
Serious about it?
Forget "convenient" PayPal and CP online postage.
Buy large lots of postage stamps available at large discount at philatelic public auctions (typically 25% to 30% below face value).
Yes some work is involved (matching lower denominations) and one needs to invest a few dollars (most auction lots with substantial savings sell for $1,000+).
As they say "you need to spend money to make money!" .
Serious about it?
Forget "convenient" PayPal and CP online postage.
Buy large lots of postage stamps available at large discount at philatelic public auctions (typically 25% to 30% below face value).
Yes some work is involved (matching lower denominations) and one needs to invest a few dollars (most auction lots with substantial savings sell for $1,000+).
As they say "you need to spend money to make money!" .
The discount is only better on Expedited-USA (I believe)and that's only an extra 1% over Venture One/EST. The bulk of the discount (another 10 - 20%) goes in eBay's pocket.
I have to admit I've never used PayPal shipping but anything that doesn't provide a proper receipt or log, incorrectly charges tax and creates a separate payment for every transaction just doesn't seem to me to be very well thought out.
I have to admit I've never used PayPal shipping but anything that doesn't provide a proper receipt or log, incorrectly charges tax and creates a separate payment for every transaction just doesn't seem to me to be very well thought out.
"CanadaPOST do not give a dam about helping small business here in Canada be more competitive."
That is correct. It is NOT the mandate of Canada Post to make Canadian retailers competitive with retailers from other countries.
Their job is to move parcels from one point to another, either inside the country or for exports to the USA or overseas. They are generally competitive (not always the cheapest) with other Canadian parcel carriers.
Canada Post expects to make a small profit (approximately 3% of sales on average) to reward its shareholder for the huge investment. This margin of profit is usually much less than its major competitors such as UPS, FedEx, CanPar, Greyhound, etc... .
That is correct. It is NOT the mandate of Canada Post to make Canadian retailers competitive with retailers from other countries.
Their job is to move parcels from one point to another, either inside the country or for exports to the USA or overseas. They are generally competitive (not always the cheapest) with other Canadian parcel carriers.
Canada Post expects to make a small profit (approximately 3% of sales on average) to reward its shareholder for the huge investment. This margin of profit is usually much less than its major competitors such as UPS, FedEx, CanPar, Greyhound, etc... .
