There are two types of INR cases with Canada Post Lettermail:
1 - Buyers who are going to see an item isn't tracked, and make a claim to get it free.
2 - Sincere buyers who see the expected delivery date has passed, so they contact you about their item.
You can't do anything about #1 once an item is sent, but luckily #1 seems to be in the minority.
As far as dealing with #2, here is how you get rid of a big chunk of INR cases.
If you are shipping lettermail in Canada, do not set your shipping method to lettermail. Set it to the generic economy shipping method. You can state in your listing "Economy shipping is fulfilled by Canada Post Lettermail". You can also consider extending your handling time to 3 days. If you do both of these, buyers will know to expect their item within 4-18 business days, and also will only be able to open a case after that time frame has passed.
eBay has a major bug, or at least a misconception, about lettermail shipping times. Their lettermail setting is set to 9 business days. While lettermail does sometimes arrive very quickly, it is prone to delays and can sometimes take two weeks regionally, and up to four weeks nationally. This is why the generic economy shipping option will cut down on INR cases. It gives the buyer a more realistic time frame for their order, so they aren't wondering why it hasn't arrived. It also makes it so they cannot open an INR case for roughly 30 days.
It doesn't look like the category you sell in would be a high risk one for INR fraud. So what is probably happening is honest customers see the 5-9 business day shipping time, it doesn't arrive in 5-9 business days, and they contact you to ask where it is, which then automatically opens an INR case.
Then you are in a position where you sent the item, you have to refund the customer, and further you have to arrange for the customer to repay when the item arrives. For both the seller and customer, it is a hassle. eBay could fix this by changing the carrier time in the lettermail setting, but until they do that, your option to avoid this is to use the generic economy shipping setting. It is a no brainer since it provides a better experience for your customer, and also cuts down on time spent dealing with INRs.
As far as US Orders go, I haven't used Small Packet USA in almost a year. It was very reliable before the pandemic. After the pandemic, it became too inconsistent to rely on for business purposes. Tracked Packet is a bit better, but it is very expensive. There doesn't seem to be any reasonable way to ship low cost items to the USA using Canada Post. The reliable services are away too expensive, and in my experienced Small Packet is so inconsistent that the INRs and time spent dealing with them are greater than any additional profits from USA sales.
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