Shipping costs

[coxengines]

Interesting if you live close to the border:

http://www.theglobeandmail.com/report-on-business/cheapest-shipping-route-across-canada-try-the-us/article1445130/

And, they quote Pierre 🙂

Bernie

[westernstargifts]

And Recped too if I'm not mistaken.

[surplusdealdude]

The reporter had a thread on the Selling board asking for people to comment.

He also sent emails to some people asking for their input.

I got one, but declined.

But the article isn't half bad.

[zarzuella]

Easy for Pierre to call it 'stupid' when he ships lettermail.

[craftycatsattic]

Interesting article.

Zarzuella, lets not forget that reporters are notorious for taking quotes out of context and this is a perfect example of how the media distorts information. Taken into context of course it would be "stupid" to cross the border to mail lettermail back into Canada, but the reporter did not specify so. Pierre probably did.

While the article focused mostly on the cost of sending TO Canada through the USPS rather than through Canada Post, it missed one very important point: Ebay sellers are for the most part, selling to a global market and that's where it's most advantageous to cross over the border and make use of the lower USPS rates.

[pierrelebel]

"taking quotes out of context "

bingo!

[montrealmaps]

This is an enquiry I got today from Italy (concerning a $400 item):

"Another question: I have received, from not too long, from the United States, an old map of Sardinia.
I have paid the shipping to Italy 17 $. Is possible to have the shipping with 20 $? Thanks,"

My answer was "Unfortunately, the cheapest option with tracking number costs here 65 dollars".

In 2004 Canada Post did cancel the possibility to send the small packets as "registered". It killed my business instantly (the shipping costs went from 20 to 60 dol.) I needed several months to recover and change the profile of my business.

Now, I think very seriously about moving to Surrey, BC (on the US border) or even to Seattle. 95% of my customers are Americans. It would be like a dream. No customs, FREE shipping (I can absolutely absorb the 1.80 fee), cheap overseas shipping, cheap tracking number, etc ....

Anybody here thought about such desperate move..? 😉

One of my direct competitors changed the profile of his business and sell only "miniature" maps from 16/17th century. he ships them as "letters', registered as needed. What a luxury business!! Or selling stamps!!!! Can you imagine?? Put 20 orders into your pocket and go to the post office.. and pay 20 dollars? ha!!!!! can you imagine..? 😉

In December I shipped not later than 12 hours after receiving the payment. And what? I got 'slow" shipping DSR. Bye, bye, TRS!
It will be forever like that.

[surplusdealdude]

I'm looking for a property closer to the border. My 3 times every 2 weeks are day-trips right now and I can see the frequency increasing.

Montreal isn't that far from the US, though, if you went straight south. A lot closer than the 75 miles one way that I travel.

But, in the specific case you mentioned, USPS wouldn't help a lot - IF you can use Expres Mail, it's $29.00, but I don't know if you can get a signature with that. The others are $43 and up.

Still cheaper, but in the same area.

[montrealmaps]

Thank you!

I use the express, because it's the only service offered by Canada Post with the tracking number (to Italy). All cheaper item go by small packet (7 dollars). The same packet can be shipped from US to US for 1.80! ;-( recently I sold a 25 dol. item to a guy from Newfoundland. I charged him 7.50, and paid 14 dollars at the counter.. ;-( OF COURSE, he left a low DSR for the shipping cost!!!! ;-( Today, I had TWO costomers wanting to negotiate the shipping fee .......

[dipmicro]

Anybody here thought about such desperate move..? 😉

Not really desperate move. I moved my family to Niagara Falls in June 2009, after 2 years of renting we were able to buy a nice house 20-30min from the falls and yet quiet street.

I go to USPS in Niagara Falls, NY 2-3x per week the difference from CanadaPost is abysmal. I believe every serious Canadian mail-order house will do this sooner or later. I am even considering getting L1 work visa and opening a storage/warehouse in Niagara Falls, NY because the 2k limit per entry (without broker) is annoying and it may be actually cheaper to have stock on other side than keep paying the brokers.

Once a week I bring all my business imports back and clear them myself. US market is much more competitive. If you are looking for blinds for your house, storage for your warehouse, tools for your workshop, shipping supplies etc, US offers better prices and selection. Even guys like like Uline or HomeDepot are ripping Canadians well over exchange rate.

[dipmicro]

Btw. if any one happens to have home business in Niagara Falls, I recommend to open a mailbox with UPS Store #313 in DoubleTree hotel. It costs slightly some $120/6m to have a fully staffed receiving dept. at commercial location. I usually get my DHL and UPS incoming shipments by noon as opposed to by 6pm when we were getting them received in our private address. Makes big difference for us.

[surplusdealdude]

Thank you!

I use the express, because it's the only service offered by Canada Post with the tracking number (to Italy). All cheaper item go by small packet (7 dollars). The same packet can be shipped from US to US for 1.80! ;-( recently I sold a 25 dol. item to a guy from Newfoundland. I charged him 7.50, and paid 14 dollars at the counter.. ;-( OF COURSE, he left a low DSR for the shipping cost!!!! ;-( Today, I had TWO costomers wanting to negotiate the shipping fee .......

Sorry, I should have been more specific - I meant the USPS Express.

[surplusdealdude]

. I am even considering getting L1 work visa and opening a storage/warehouse

Be really careful with that - you'll have to run a separate business in the US, pay taxes there ( the IRS is a bear) and I hear that some of the census-type paperwork that small business owners have to submit yearly is extensive and so complicated that you have to get an accountant to do the work ( more $$$$).

[dipmicro]

. I am even considering getting L1 work visa and opening a storage/warehouse

Be really careful with that - you'll have to run a separate business in the US, pay taxes there ( the IRS is a bear) and I hear that some of the census-type paperwork that small business owners have to submit yearly is extensive and so complicated that you have to get an accountant to do the work ( more $$$$).

Thanks. Yes, I read that part on some official website. It will be worth it once we get to certain point, until then I will just keep increasing number of my Informal Entries per week.

Anyway, USPS shipping rocks and I like it. Read my feedback, especially the one from US customers. I just shipped 26lb / $800 shipment yesterday in Medium Box and paid some $10.50 + $6 insurance to Endicia. Fully tracked, insured and gets there in 2-3 days. What's there not to like?

Every week I send 2-3 EMS (International Express Mail) flat rate envelopes, costs $26 online, has international tracking and you can stuff up to 4lb in it. Registered mail is available even for First Class and First Class does not need to be thinner than 20mm. 1oz parcel can be sent internationally for $1.44, CanadaPost will not dispatch a 5mm letter for that price. USPS had a small 3B loss last year @ revenue ~68B. I think they are mostly loosing on domestic lettermail, so their parcel pricing should not be that far from break-even point.

Wonder where all the money we pour into the drain called CanadaPost is going. I hope someone steps in and restructulizes the dinosaur, fires the lazies I see smoking outside my local PO all the time I get in and retrains the clerks who have no clue about services they are selling. "computer system" breaks too many times and don't get me even started on the "guaranteed services" and deliveries made 2-4 days after website has been showing "Delivered". WHen you are filing several claim with CanadaPost, the file number increases by 100 within 2-3 minutes, so that gives you an idea how many people are calling with claims and complaints.

[surplusdealdude]

i agree with a lot of that.

I DO try to keep in mind that Canada Post probably has one of the harder jobs in the world, having to deliver 10% of their deliveries to 90% of out surface area.

But they don't make it easy on themselves, either.

[dipmicro]

i agree with a lot of that.

I DO try to keep in mind that Canada Post probably has one of the harder jobs in the world, having to deliver 10% of their deliveries to 90% of out surface area.

But they don't make it easy on themselves, either.

Surplus, I also thought of that but when you look at the facts, 95% of Canadian population is living in areas with similar densities as in US and some of my customers told me they do not have postal service, because CanadaPost does not come there and they need to keep POBox somewhere else.

[surplusdealdude]

That's true, but Canada Post still has to fly mail in using bush planes for most of the Territories.

Doesn't take too much of that before your profit goes down the tubes.

Lee Valley Tools uses a special company to deliver their stuff to the North Country - I forget the name ( it's in their catalog online, I believe), but it's horribly expensive.

[imbuzzy]

Canada has about the same population as California.
It is around 5000 km from Victoria to St. Johns and over 7000 if you drive.
If you consider that most reside in the southern parts of the country, then think of California being stretched to that same extent (5000km x 200km).
When using this analogy, I can understand why Canada Post's rates are not comparable to the American shipping services.
I'm pretty sure that if the US lost 90% of it's population, USPS would be re-formulating their pricing structure.

[timwestbackgrounds123]

Canada has about the same population as California.
It is around 5000 km from Victoria to St. Johns and over 7000 if you drive.
If you consider that most reside in the southern parts of the country, then think of California being stretched to that same extent (5000km x 200km).
When using this analogy, I can understand why Canada Post's rates are not comparable to the American shipping services.
I'm pretty sure that if the US lost 90% of it's population, USPS would be re-formulating their pricing structure.

BINGO! It's all about the 'economies of scale' that US shipping services are able to take full advantage of. That and it's the shear size of the US market that presents competive opportunities and ultimately drives down prices. This not only holds true for shipping services, but just about everything.

Regarless of what further efficiencies can be brought to bear for Canada Post, their shipping prices with NEVER begin to approach that of the USPS...namely for all of the reasons stated above.

[surplusdealdude]

I agree with you, Tim, but there are other factors.

USPS has been very proactive in using its size to mass-purchases boxes which it GIVES to its customers for Priority shipments.

Their Flat Rate boxes are a stroke of genius - they standardize the size of shipments, which makes their operations more efficient, and give the customer a better deal.

Canada Post just isn't trying as hard, although their new 25% off Expedited is a good start.