WARNING!!!! CANADA POST IS AT IT AGAIN WITH PRICE GOUGING! A MUST READ!

[itsagyp]

Well, Canada Post is starting up the ridiculous rules that they briefly implimented last year but cancelled due to consumer pressure. The lady who ships out my packages for me at the local Shoppers Drug Mart has given me a copy of a notice she received yesterday. Effective July 24th 2006 we can no longer ship any goods via lettermail rates. They have a new service called USA LIGHT PACKET. It is starting at an "Introductory" rate that will increase in January of 2007 most likely to current small packet air prices. Below is a table of the new prices since Canada Post doesn't even have the decency to list it on their site under their "News" column. Oh, they have a heading in the news talking about a ONE CENT increase to domestic mail service http://www.canadapost.ca/personal/corporate/about/newsroom/pr/default-e.asp?prid=1165
but they won't list their 42% INTRODUCTORY price increase that will be a %100 price increase in January of 2007!!!!
USA
0g-100g Letter Post $1.78 LIGHT PACKET $2.55 Small Packet Air $5.95
100g-250g Letter Post $2.99 LIGHT PACKET $4.25 Small Packet Air $5.95
250g-500g Letter Post $5.98 LIGHT PACKET $5.95 Small Packet Air $7.90

The Letter Post is what we've been using and is somewhat in line, if not a bit higher than the USPS equivalent and the LIGHT PACKET "introductory" rate above is substantially higher than the Letter Post that we all use for our small items and it will raise to Small Packet Air pricing come January.

They're trying to wean us onto the higher price and hoping we won't put up a fuss. This HAS to stop. The USPS does nothing of the sort and people can ship for cheaper than our current Letter Post prices let alone the new pricing. Canada Post is a government subsidized orgainzation and they should not be able to gouge like this.

There is ABSOLUTELY NO logical reason for them to charge more for an item that is not made of paper but weighs EXACTLY the SAME and costs them EXACTLY the SAME amount in fuel and handling as does regular paper lettermail.

I know that a lot of us complained last time but I don't think many of us did anything about it (although I sent a letter to John McCallum). I need suggestions as to how we could make the biggest fuss possible as I'm not going to take this sitting down. I ship out about 700 packages a month and their "Introductory" rate is going to cost me about $1000 per month come July 24th and about 2000-3000 per month more come January.

Suggestions, comments, and questions please!! Where is our Canada Post REP?? Help shed some light on this ridiculous, unwarranted and (should be) illegal price gouging.

Aaron McNeil
It's a GYP
Ontario, CANADA
905 830 0062

[jackied2]

I'm curious to know if anyone out there knows what the official Canada Post justification is for creating the new "Light Packet" category. If we knew their official reasoning we could address it more coherently. Have they or will they issue a press release?

Jackie.

[tobyshitzu]

Thye haven't even announced light packet to the public yet despite the fact it is starting in 2.5 weeks. They will explain this is being done to give the customers a deal! They wanted to make all non paper items go at the 250gm small packet rate before. Some of the outlets/CSRs said it was a change by US customs or some other weird things. Response from the president of CP claimed it was always supposed to be paper only in international letterpost and it had been an error in the past to allow other items.

[fenian]

A lady from the CTV Whistleblower program gave me a call, but said she wanted some evidence that Canada Post was misrepresenting the "need" for the new and increased rates ....i.e. if CP was stating that it was a US or Foreign customs requirement that international letterpost must consist of paper content. We know from last year that this was/is a blatant untruth, as USPS and the US Customs and Border Agency advised me they couldn't care less what rate was paid to ship a packet, provided the contents were safe and legal. If CP is now stating that they have been committing an "error"....who (other than CP) decided it is an error, and who (i.e. what country or countries) has been complaining.......and why would they care ? I cannot locate any international requirement that letterpost consist of paper content only. In the US, one can mail anything internationally as letterpost, provided it falls into size and weight letterpost categories. Not a word (what a surprise) from any of the CP brass to whom I sent questioning emails. I should hear from my MP sometime in the next week or two........he was helpful last time. >>>>>>> Michael

[thegreatcanadiannorthernstar]

This certainly sucks, but then again Canada post rates for similiar merchandise has always been higher than prices available to US persons from USPS.

There they have the media rate and can ship heavy packages at half the cost of Canadian rates. A good example is reel to reel tape, which they can ship one reel for 6 bucks but it costs me minimum 15 to 20 to ship one reel of tape!!. Pretty hard to compete, yet Canada post takes the package only to the border, and the USPS takes over from there!!!, So you got to pay 15.00 extra for a max 100 mile delivery most of the time!!

You cant stop this, as Canada Post has no real competitor in this market for cross border traffic, due to most couriers charging there own price gouging, border clearance fees.

[zarzuella]

Can you please provide a source for your quote?

Ann

[lilybean@ebay.com]

Good morning,

Thank you all for your comments. We at eBay appreciate your candid feelings on Canada Post, and I have forwarded them this thread, as well as all the others related to the Light Packet introduction.

Further, in reading thetickletrunk's post this a.m. about the Light Packet Rate Chart being incorrect (http://forums.ebay.ca/thread.jspa?threadID=600009124&tstart=0&mod=1152415526152), I have requested more information with Canada Post, and I promise to offer you 100% clarity around the new Light Packet service early this week, hopefully tomorrow but Tuesday at the latest.

Enjoy your Sunday. If you'll be one of the millions watching the game today, cheer on Italy or France.

Have a great sunny Sunday!

Regards,

lilybean

[itsagyp]

Hello everyone

Well, after some searching I finally found a company that can help some of us out. Some of the smaller sellers may need to band together with each other to meet their minimum requirements and I'm even willing to somehow personally work with sellers to help them get their packages into this system because I want us ALL to succeed.

I don't know how they work for the rest of Canada but this company will take your prepackaged items from Ontario to Fort Erie New York and dump them in the USPS system for you for a charge. You are even able to print USPS labels yourself and have them all ready to go. They only charge for pickup and handling. The price all depends on how many packages you are doing and in what quantity as well as how often you would need pickup.

Here is the website:http://www.frontdist.com/

Call and ask for John Hamilton, the owner. I have not yet started using them but I'm getting set up now and I should be able to bail out of Canada Post's system by their July 24th date. At my business volume, Canada Post justLOST

$2,000 per month in revenue by losing my business!

From my calculations I will actually be SAVING about .25 per package or $150 per month on the rates I'm currently paying, let alone after Canada Post's increase.

I hope Canada Post is happy.

I am also posting this as a new thread in case some of the sellers miss it. Perhaps follow up on the new thread as I'm sure anyone who's going to see this one has already done so.

Regards!

Aaron McNeil

[itsagyp]

I want to touch on something thetickletrunk said. I think that your information is wrong and you will want to get more updated information. Perhaps you read last years update? Anyways, I skimmed through their 34 page report today (monday July 10th) and the changes are definitely going through on July 24th. In addition, I also found out that the "introductory rate" will increase by exactly 15% come January 2007.

Regards

Aaron McNeil

[ksdunitz]

Well its Tuesday and just as expected no reply from canada post to ebay as of yet....or so it seems.

this disscussion is posting towns and locations of really bad post offices
http://forums.ebay.ca/thread.jspa?threadID=600008150

post yours

k

[itsagyp]

Hi Christine

Well, I hope I didn't offend. I find it quite strange that we're getting exactly opposite information both from "reliable" sources. I read the report at a Shoppers Drug Mart in Newmarket, Ontario. Where did you get your information? I'd love to figure this out once and for all. We should not have to deal with this type of drama from Canada Post and it's sad that it's any type of issue at all isn't it?

Regards!

Aaron

[vesivus]

I'll be sending an email to the sources listed above. I've had about enough of Canada Post and their 40% increases to my bottom line over the last two years -- not counting fuel surcharge increases.

I'm one of 2 gold powersellers in Alberta. Maybe it will resonate a little.

John

[itsagyp]

Are we going to get any information from ebay Canada? Tuesday has come and gone and I'm not trying to be rude, but this is a huge deal and we're only 12 days away from Canada Post's deadline. If Canada Post is not cooperating with eBay then we know it's bad news. Throw us a bone here! 😃

In anticipation

Aaron McNeil

[cartoonsinabox]

I've read the same news at my local post office.

[lilybean@ebay.com]

Hello all,

First off, for those of you who don't know me, my name is Ira Grossman and I manage shipping at eBay Canada.

I realize it is Wednesday morning and you have yet to hear from me re news from Canada Post. I was hoping to post news re Light Packet yesterday, but alas, nothing yet. At this point, all I can ask of you is your continued patience, as I too am eagerly awaiting their announcement so I can relay to the eBay community.

Regards,

lilybean

[fenian]

I've still heard nothing from Goldhawk, my MP, the 3 senior officials in Canada Post, CBC or Global. I guess the news isn't exciting enough for them. Again, if anyone has any evidence that this is being "blamed" by Canada Post on US postal, border protection or customs requirements (rather than as an unjustified excuse to raise rates), please let me know, as CTV will then run with it. I doubt that the average person is aware of these changes, as there's been no publicity. It may come as a shock to many who mail little calendars down south at Christmas to find they have to ship small packet. "Yes, ma'am, those little calendars have staples in them at the edge, so gosh darn it, because your shipment is metal, our hands are tied and we have to charge you a whole lot more right now, and even more next month, and have a great holiday". I'm going to bounce that scenario off our local (nice folks) CP outlet today, to see if their response is along the lines of.."well, it's mostly paper", so letterpost is OK". That would make for some interesting discussion, because then it would be a subjective issue - i.e. what percentage of contents must be paper in order for the packet to be categorized as letterpost. Perhaps we'll have highly paid Letterpost Police who will be returning mail to the sender stamped "Verbotten - we have detected a paper clip inside your envelope". No breakfast yet, so excuse the rant. Looking forward to seeing what, if anything, Ira receives from CP. >>>>> Michael

[itsagyp]

Hi tickletrunk

I just got the same information you did. I believe I posted it elsewhere as well. My apoligies for doubting you 😃 Hopefully we will get confirmation from at least one other source but so far at my postal outlet, it's looking like everything is back to normal. So far.....

Aaron

[youreinthebook]

"The price for the New Light Packet service is equivalent to the current corresponding Letter-post rate."

Does this smell fishy to any of you? If it's the same price why make a distinction? I can only think of one reason, and it involves the yearly rate hikes. By setting the items defined as Light Packet apart from items defined as Letterpost they are opening up different percentage of rate hikes for each class. IE: 5% hike in Letterpost rates but a 15% hike in Light Packet rate.

Folks, this really reeks of a typical corporate game of 3-card monte. I know this is just speculation on my part, but in the absence of the information vacuum that is Canada Post we are left to our own devices.

Canada Post has a MAJOR communications problem internally as well as externally. It's like dealing with Sybil.

[weedsellit4u]

Sounds like its time to move closer to the border and drive my packages directely to USPS and let Canada Post know exactly how we feel about this. I wonder if the USPS would open a depot in Canada? That might be easier than complaining.

[cartoonsinabox]

I wonder if the USPS would open a depot in Canada? That might be easier than complaining.

Unfortunately, Canada Post has a monopoly on mail service inside Canada. But if they where to open market I think it would be the end of Canada Post with there bad service.

[llee2]

Hey folks, I'm inclined to agree with wonderlandartifacts on this. CP seems hell-bent on pushing this through. In my opinion they are trying to push this through with minimal bad PR and exposure. The attempt they made last year was thwarted by eBayers and their persistence. In any case, here's the CP memo for those of you who haven't seen it. I'm just nervous about when they're going to try to slide it in.

Lincoln