11-15-2013 06:03 AM
Hello Everyone,
I have been in Asia for some time now and have no recent experience with shipping in Canada, but can anyone tell me what seems to be working these days as for shipping products within Canada. The last I remember it was quite cost prohibitive to sell anything when often the shipping charges with Canada Post can be the same or more than the cost of the item itself. A definite discouragement to potential buyers.
Are Fedex, UPS or DHL making it any easier for small businesses to ship these days? Are they offering any discount programs?
I just did a sample calculation to get an idea where Canada Post's pricing is structured and it seems to be no different the last I remember. In fact it might quite possible be more expensive than before.
Any insight would be greatly appreciated. I should be returning to Canada early next year and would like to get some ideas on how to ship small items cost effectively or whether to main distribution in Asia.
Thanks Everyone!!
11-15-2013 10:26 AM - edited 11-15-2013 10:26 AM
"In fact it might quite possible be more expensive than before."
That is correct. Postage rates within Canada have increased every year and all indications are that will be be increasing for years to com. The next round of postal rate increases is stated for mid-January 2014.
11-15-2013 12:58 PM
It may seem expensive here compared to some countries. The USA was under priced for a long time and they got hit with some hefty increases this year. There are indications they are up for another hefty increase in January.
Canada Post shows yearly increases tied to increasing costs. I have not changed my flat rates in tree years as the increases have been moderate.
Shipping within Canada is dependent upon where to where, regional VS national, Western Canada VS Eastern Canada. The more times the parcel needs to be handled, the higher the price.
For smaller cheaper parcels it is cost prohibitive. The more expensive and-or the larger, the more economical it gets.
Belleville to Vancouver is a decent price. If I have a parcel going to Victoria, price goes up because the parcel has to be re-sorted to Victoria. Up the island? Price goes up again because it has to be re-sorted in Victoria. Each re-sort tends to add 15-20%.
11-17-2013 12:12 PM
Naipaul,
You don't say how long it's been since you last lived in Canada. Postal prices have risen considerably over the years, particularly for international (outside Canada and USA) mail. In general Canadian postal rates are high, exceptions being lettermail and parcels weighing a couple of kilos and up.
Add to this a pricing structure that is not only cumbersome but downright unfair in many cases. Any mail piece (even an envelope) weighing more than 500 g sent within Canada is considered a Parcel by Canada Post. A few grams over 500 g means a doubling or tripling of the rate for a 500 g piece. For small packages outside Canada, Canada Post offers a Small Packet service, which has a weight limit of 2 kg except to USA, where the limit inexplicably is only 1 kg and the package has to go Expedited, which is very fast and has delivery confirmation but, of course, is expensive. Rates for Small Packets to the rest of the world are very high, even for surface transmission. Air rates for International parcels heavier than 2 kg are to all intents and purposes unaffordable. International surface mail takes forever to reach its destination and is hardly cheap but may be the only practical alternative.
Then there's the infamous Light Packet. This is an oversize (max thickness 2 cm, max weight 500 g) lettermail piece to USA and rest of the world that contains merchandise. Except for content, an LP may be identical to an O/S Letter (which is not supposed to conatin a good) and, like a letter, is transmitted by air. Canada Post has different - generally higher - prices for LP vs O/S Letter except for a mail piece weighing between 200 and 250 g, when it's 31% cheaper to send it to USA as an LP and 34% cheaper to send it to the rest of the world as an LP.
You're probably aware of the fuel surcharge on all Parcels (introduced by Canada Post in April 2003), which is added to the base rate and changes monthly. AFAIK this is unique among the world's postal systems.
Lastly, be advised that Mr Elmwood has his own theories on Canada Post's pricing and operations, some of which are incorrect. The rate for a parcel from Belleville, ON to Victoria, BC is the same as that to Vancouver. The rate for a mail piece does not necessarily depend on how many gateways (sorting centres) it passes. Generally the rate depends on the distance between origin and destination. So a parcel from Belleville to Port McNeill at the north end of Vancouver Island cost more than it does to Victoria. However, a parcel from Belleville to Eureka, NU (Canada's most northerly postal code) costs the same as it does to Resolute, NU, which is 620 km to the south but through which the parcel passes). But that's getting way too picky.
In conclusion, think long and hard before you throw yourself at the mercy of Canada Post, even though it's still the cheapest game in town.
Tom
11-17-2013 01:32 PM
23 x 20 x 1o .750 Xpresspost published rates
Belleville to Winnipeg $18.92
Belleville to Dauphin $21.87
Belleville to Churchill $28.05
Belleville to Saskatoon $18.92
Belleville to Calgary $20.85
Belleville to Emerson $27.22
Belleville to Virden $27.22
You can drive from Winnipeg, through Dauphin, then several hours on to Saskatoon. Why is cheaper to send the parcel farther unless it is being re-sorted to a smaller center. Churchill is closer to Belleville than Calgary is, why is it $10 more? Re-sorted.
Emerson is one hour south of Winnipeg on the mid continent corridor. Why is it $7 more than Calgary which is 13 hours further away? Re-sorted.
The post office truck drives through Virden from Winnipeg to Calgary. Drives right through the town, 12 hours further on to Calgary, yet it costs $7 more. Why? Re-sorted in Winnipeg.
Every single case, the parcel has to be re-sorted. Distance has nothing to do with that aspect.
11-17-2013 04:50 PM
Winnipeg to Regina $13.91
Winnipeg to Indian Head SK $18.33
The truck leaves the Winnipeg depot, drives through Virden, drives through Indian Head, to Regina. Indian Head is an hour east of Regina on Hwy #1. Parcel from Winnipeg to Indian Head goes to Regina to be re-sorted and sent BACK an hour. It costs $4 extra to go less linear distance.
Belleville to Winnipeg $18.92
Belleville to Kenora $27.87
Belleville to Red lake On $37.38
Red Lake is the same distance from Belleville as Winnipeg. The truck goes down the only rd, drives through Kenora, on to Winnipeg, parcels are re-sorted and sent back.
11-18-2013 03:06 PM
Mr E,
Fascinating. D'you have any more examples of mail routings you can regale us with?
Tom
11-20-2013 03:01 PM
Received an ebay item via www.dicomexpress.com (ON and QC only) . Picked up and delivered overnight for less then CP parcel/expedited retail (or a lot less with volume), Driver came around back when i didnt here the door