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

[dipmicro]

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.

If you consider the estimate above that most of Canadian population lives on 5000km x 200km strip, then population density in this strip is approx 30, an average in USA. Considering that southern Ontario has higher population density than most US states, the service and prices in Ontario should be comparable. Which it is not.

So if you compare service within small area in US and small are in Canada with similar specifics, you come to conclusion there is something stinky about CanadaPost.

International shipments are of no delivery effort on the originating country. The agreement between post offices around the world is that everyone delivers each other parcels without payment. Yet CanadaPost international shipments cost 2-3x more than in USA, although sending that parcel to France means same effort in Canada or USA and most of the labour happens in France.

[imbuzzy]

"If you consider the estimate above that most of Canadian population lives on 5000km x 200km strip, then population density in this strip is approx 30, an average in USA."

California's population density is 90 people/km².
They were the only ones invited into my imaginary elongated rectangle.

Continental USA can be thought of as a rectangle that is roughly 4000km x 2000km or 4 units x 2 units.
My Canadian rectangle has dimensions of 50 units x 2 units.

It's a matter of efficiency of space. Logically, it is much easier and cheaper to provide equivalent service to an American box than a Canadian stick.

It reminds me of the honey bee. It is one of the most industrious and efficient creature known to mankind. The colony builds its hive in a honeycomb-like structure that we a call a hive. The honeycomb is made of hexagons, not circles, squares or rectangles. The hexagon is the most efficient geometrical design to facilitate the colony. For all intents and purposes of this conversation, the hexagon more resembles my American rectangle than my Canadian rectangle (or as I like to call it - stick)

I am not a cheerleader for Canada Post, but I do believe that it costs far more to operate comparable levels of service to us few and far between Canadians than it does to our American counterparts.

[pjcdn2005]

If you consider the estimate above that most of Canadian population lives on 5000km x 200km strip, then population density in this strip is approx 30, an average in USA. Considering that southern Ontario has higher population density than most US states, the service and prices in Ontario should be comparable. Which it is not.

If Ontario had its own postal system that might be the case. But Canada Post delivers to all of Canada, not just to the high density areas and any company spreads out their expenses to the whole operation, not just to the areas where it might cost them more. If CP based their charges on population density then places like Saskatchewan might pay 10 times more for mail service than Ontario.
Perhaps they charge more for international mail to make up for the expenses of delivering mail to northern Manitoba or the Yukon...etc..

There probably are feasible ways for them to cut costs and to improve service and I too would love if they had something like USPS first class here. There is definitely room for improvement but I don't think that you can make a reasonable comparison between CP & USPS .

[recped]

If you compare Canada Post rates with the rates in Europe etc. you would find they are mostly quite comparable.

If you compare Canada Post rates for heavier weight packages the difference between them and USPS is not that much.

The single biggest problem with Canada Post for most eBay sellers is the lack of a low cost service for light weight packages.

Another factor is the exchange rates, as the US Dollar sinks USPS rates become cheaper and cheaper in CA$, if the CA$ sank back to 80 cents much of the difference would disappear.

Also keep in mind that for a period of more than 10 years USPS rates hardly changed at all (Congress wouldn't allow it), there have been substantial increases in the past two years with more to come.

I am not a cheerleader for Canada Post

I'm not either but in fairness comparing CP to USPS is close to apples and oranges.

[surplusdealdude]

I agree that CP cannot be fairly compared with USPS because of economies of scale.

If you compare Canada Post rates for heavier weight packages the difference between them and USPS is not that much.

Beg to differ on that - the difference is quite noticeable when using Parcel post and HUGE of you can fir the item into flat rate box. I shipped a 53-lb block of aluminum to California last month for $13.50 online.:-)

And the rates overseas are massively different.

[dipmicro]

The problem is CanadaPost service is not attractive to volume users, not because of the price, but the quality of service.

Google still finds article from 2002, by then CP vice-president claiming that a purchase of a cell-phone for CanadaPost staff required involvement of 18 people. This shows how inefficient this organisation is.

Size of the economy has nothing to do with it, postal coverage scales proportionally. Canadian and US economies are comparable per capita. CanadaPost does not have volumes because they have little to offer to volumers except headaches. They need approx 6-8B/y to survive and due to lack of volume, they milk it on markups.

[dipmicro]

And just to add ... first thing I will do when we reach 20-30 Expedited Parcels per week will be a call to UPS. I get 3-5 parcels by UPS a week from USA and China and 95% everything is great. 5% I can deal with. With CanadaPost, 50% of "Guaranteed" shipments are late.

[surplusdealdude]

Size of the economy has nothing to do with it, postal coverage scales proportionally.

A rough rule of thumb from my 25 years of experience in the courier business - if you double the deliveries in an area, you add 20% of the time to the run.

Economies of scale matter.

With CanadaPost, 50% of "Guaranteed" shipments are late.

Then you should be claiming on the guarantee. Getting half of your shipping costs refunded wouldn't be a bad thing.

[dipmicro]

Then you should be claiming on the guarantee. Getting half of your shipping costs refunded wouldn't be a bad thing.

I prefer reliability, consistency and satisfied customers before refunds.

[surplusdealdude]

So do I.

But you're using Canada Post and evidently you're not getting any of those.

So get the money back as the fourth choice.;-)

[montrealmaps]

Some notice. I sell, but I am also buying a lot.
The sellers from UK pay for a small packet (a tube, 0.150kg) exactly 1.68 pounds = 2.68 CAD. To resend this small packet to UK costs 8.40 CAD. The delivery time is almost the same. Compare more: the same UK small packet with the tracking number added costs 5 pounds = 8 dollars (5 days delivery!!!!!). ATTENTION NOW! This packet re-sent to UK will cost you .... 60 dollars! (the CHEAPEST option with the tracking number, also 5 days delivery). I shipped yesterday a 0.230 kg tube to Australia, with NO VALUE declared - and paid 69 dollars (not 6.90! I paid 69.00 dollars!). They use probably the same carriers, the same planes! Should we continue the comparison...?

[surplusdealdude]

I sold a pile of my keypunch card printing plates this week.

Kitchener to Windsor, Ontario (180 miles) - Canada Post $7.70.

Buffalo, NY to Southern California WITH tracking (2.569 miles) - $2.49.

Less than 1/3 the price.

Incredible.

[imbuzzy]

When I first started selling, I thought about selling large style vintage magazine advertisements and shipping them by tubes.

That venture stopped once I saw the shipping cost. I was told by Canada Post that it was because they are difficult to transport and roll around everywhere! I didn't believe that excuse since they have the triangular ones also.

And yes, I agree, it certainly does not explain for the huge discrepancy from what other postal services charge.

Too bad, because I'm sitting on a ton of these advertisements and can't sell them competitively.

[surplusdealdude]

Why not put them between sheets of cardboard and ship them in a mailer?

You could probably go with oversized letter rate for them.

[imbuzzy]

Oversized letter rate is a no-can-do.

These ads are 16" x 11" which equates to 406mm x 289mm.

According to Canada Post, maximum dimensions for oversized USA and international lettermail is 380mm x 270mm

[montrealmaps]

haha......... tubes rolling everywhere around ........ unbelievable!
Only Canada Post people can give such idiotic explanation ..;-)

I have several thousands of cheap maps of US states. They are not sellable because of the shipping cost. How charge 7 dol for the shipping of 6 dol. map..?

The solution proposed: open an account at Endicia.com, print the USPS stamps, find a company near you able to bring the packages to nearest USPS office. They are many in Toronto, Montreal .....
I just contacted companies like that - they offer real solution to our problems!!

[dipmicro]

The solution proposed: open an account at Endicia.com, print the USPS stamps, find a company near you able to bring the packages to nearest USPS office. They are many in Toronto, Montreal .....
I just contacted companies like that - they offer real solution to our problems!!

Montrealmaps, how do you find these companies? I would not mind if someone else was running through the border.

[surplusdealdude]

Might not work for you, since you're so close to the border anyway.

But look up Star Couriers in Hamilton, if they're still around - they used to do cross border stuff.

There is also an ebay company in Toronto that does it - books-to-the-border likely has his name, they have worked together on some stuff.

[craftycatsattic]

The solution proposed: open an account at Endicia.com, print the USPS stamps, find a company near you able to bring the packages to nearest USPS office. They are many in Toronto, Montreal .....
I just contacted companies like that - they offer real solution to our problems!!

Hmmm...care to name one? I am in the Montreal area too. I have already found a company in NY to ship my items to and will soon start crossing the border to do pick-ups but I do not do enough volume $ wise to start crossing into the US 3 times a week just to ship what will mainly be lettermail.

[surplusdealdude]

Try the local couriers - some of them should have set up US runs by now.