January 2020 Canada Post price increases

[ypdc_dennis]

Packet and Parcel rate increases are still to be announced.

Canada Post Lettermail/Letterpost Rates effective 13 January 2020
https://www.canadapost.ca/web/en/kb/details.page?article=service_and_price_ch

Stamp rates for Canada for 2019 and 2020

Max of 5mm thick
001-030g .. 0.90 .. 0.92 (buy 1 stamp at counter, 15 cents extra)
031-050g .. 1.27 .. 1.30

Max of 2cm thick
001-100g .. 1.90 .. 1.94
101-200g .. 3.12 .. 3.19
201-300g .. 4.34 .. 4.44
301-400g .. 4.98 .. 5.09
401-500g .. 5.35 .. 5.47

Stamp rates to USA for 2019 and 2020

Max of 5mm thick
001-030g .. 1.27 .. 1.30
031-050g .. 1.90 .. 1.94

Max of 2cm thick
001-100g .. 3.12 .. 3.19
101-200g .. 5.45 .. 5.57
201-500g .. 10.90 .. 11.14

International stamp rates for 2019 and 2020

Max of 5mm thick
000-030g .. 2.65 .. 2.71
031-050g .. 3.80 .. 3.88

Max of 2 cm thick
000-100g .. 6.25 .. 6.39
101-200g .. 10.90 .. 11.14
201-500g .. 21.80 .. 22.28

Nibbling away at profit margins...

Last year's discussion/complaining: https://community.ebay.ca/t5/Seller-Central/January-2019-Canada-Post-price-increases/m-p/415284

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[pjcdn2005]

 I know where you get the info from but I was just pointing out that the figures about the 40%  discount are skewed. There is no 1 lb retail rate for first class....you can check on USPs.com.  They are comparing Priority and first class.  We already know that USPS rates are much less than CP, no point in  letting people think that there is a 40% across the board discount for first class when there isn’t.  

[lucitabby]

@zee-chan-jpn-books 

Hello zee-chan - I know I bug you every year to send out your new sheet of postal rates.  It is very concise and I use it all the time.  Please, if you have time, do it for 2020.  Thanks.

[ypdc_dennis]

Sent an Expedited Parcel out yesterday (and was comparing costs):

If I bought the shipping label online (Solutions for Small Business level 1): $14.96 + tax

Over the counter cost (using my SfSB card): $15.58 + tax

So a bit better discount for Expedited when you do your labels online.

But since I plastered the box with discounted stamps, my cost was around:  $11 (tax included).

This postage stamp shipping method is not for everyone as it takes more time (putting the stamps on the package, making sure they stay on the package, adding them up to make sure you don't put too many on the package, plus time spent hunting down mint unused stamps that have a good discount and keeping them all organized).  I collected stamps as a kid, so I can still have the collecting fun, using this catch-and-release method). 

[lotzofuniquegoodies]

The point that may be getting missed in this is the multitude of possible options for shipping on eBay Dot com with access to  USPS, UPS & Fedex Calculators along with those discounts provided by eBay to US sellers. US sellers as an alternative could qualify for discounts being volume shippers with USPS. There are  the other numerous services such as stamps, easyship, shipstation and easypost to name a few for other sorts of discounts. As Canadian Sellers we have Canadapost in Canada - Regular/Expedited/Xpresspost/Priority, USA - SmallPktAir/Tracked/Xpeditied/Xpresspost. Intl only gives us access to Intl Sm. Pkt Air, and Tracked realistically.

The only discounts we qualify for are based on our small business account.  ChitChats will only work for a limited few in specific locations when convenience allows. Buying discounted stamps up front ties up funds for an extended period of time.

On 50 transactions in the past 90 days I've had slightly over 700.00 in postage. Do the math on FVF's/Paypal Fees. 95% created in Shippo. Handling fees can only be so high.

-Lotz

PS. As a side note we now can pay fees on taxes based on what is considered combined business(across eBay to the assorted US states) as a singular seller yet we have no bargaining power when it comes to all the eBay sellers combined in Canada for postage. Hmmm?

[teenytrinkets]

Thanks for sharing the differences in postal rates for small biz online vs. Small biz counter.

Can anyone explain why Snap Ship got a bigger discount than the counter?

Sometimes the difference in price is merely the 5% discount offset by the 13%+ HST in ON and Maratimes, vs. just paying 5% GST if you're in BC, AB, SK or MB...in other words, it's slightly cheaper for me to ship regular Parcel without my small biz discount from BC to ON because I only have to pay GST. Perhaps shipping expedited online doesn't charge HST like they do at the counter?

I'd be curious to see more online vs. counter Expedited Parcel rate comparisons from GST only to HST provinces...

[pjcdn2005]

Typically the online rate is less than the counter rate even when the discount is used.  I imagine that is because when  you have printed a label online it takes less time for the postal worker to process the parcel when you bring It  in.

[teenytrinkets]

Shouldn't the discount amount be documented somewhere? As far as I have seen, 5% is the discount across the board.

I'm going to start some research to see if Snap Ship is any cheaper. I'm convinced the difference in price is the HST vs just GST, but I'll soon find out...

[cumos55]

Insurance at $100 must be purchased ... for $2.25 ... with the use of Regular Parcel.

Insurance at $100 is included with Expedited Parcel... no extra charge of $2.25

[lotzofuniquegoodies]

FYI regarding Insurance. Covers only the following as per Canadapost guidelines.

Canada Post's liability coverage applies to loss or damage to mailed items,
except when the contents are of a fragile or perishable nature, in which case
the liability covers loss only.

In the event the item is not adequately packaged with supporting reinforcements,
and it comes off/gets caught along the conveyor belt, and/or if another
package follows behind it and lands on top of it, it becomes susceptible to
damage. Canada Post cannot control a parcel being dropped, jarred and/or
shuttered through movement during regular operational processing.

C) Canada Post shall have no liability for damage of shipments containing
Fragile Items.
D) Canada Post shall have no liability for damage of shipments containing
Electronic Goods that are shipped in any packaging other than:
the manufacturer#s original packaging, which is undamaged and has retained its
intended shape and strength;
packaging that abides by Canada Post#s packaging guidelines; or
Canada Post#s packaging for the shipment of electronics, including, but not
limited to tablets and smartphones.
8.3.1 Definitions
1.11 #Fragile Items# means items of an inherently fragile nature such as,
***but not limited to***, glass, framed glass, mirrors, crystal, ceramics,
pottery, porcelain, china, perishable items or items requiring refrigeration or
temperature-controlled transport.
Canada Post's liability coverage applies to loss or damage to mailed items,
except when the contents are of a fragile or perishable nature, in which case
the liability covers loss only.

https://www.canadapost.ca/tools/pg/Amalgamated/parcel_services_guide-e.pdf

Pages 63  & 67

-Lotz

PS. Has anyone had any success with processing a claim using Shippo's  or similar additional insurance coverage? Are items covered/not covered by the insurance similarly to the Canadapost rules?

[pjcdn2005]

I really don’t think that online vs counter purchases vary as far as what kind of taxes are charged.  As far as expedited and regular parcel taxes go...I’m not positive but I think that because expedited is for businesses the tax that is charged is based on the receivers address so if you are sending a parcel to Ontario, you will be charged hst.    If you are using regular parcel you will be charged the tax amount in your own province.  So if just gst is charged on postage in BC,  regular parcel will be less.

[ypdc_dennis]

The Solutions for Small Business membership is good around 5% for purchase of some supplies over the counter.

Purchases online get higher discounts. Discounts vary by service used.

International (no sales tax involved)

For SfSB level 1 (to Australia) I see 2.5% for Small Packet Air, 7% for Xpresspost and 21% for Tracked Packet when buying online.

Domestic

Expedited at the counter is only available when you use your card. Sales tax is added based on the destination address.  I see a 4.9% discount at the counter versus a 7.7% discount if bought online.

One thing that can produce a higher cost than Regular is the dimensional/volumetric modifier. One of my usual boxes is 22x17x12cm, regular parcel dimensional weight is 748g versus 898g for expedited. 

According to the Canada Post calculator (Ontario to BC) that box with an actual weight of 300g would be $17.72 for Regular and $19.07 for Expedited (sales tax on both was 5%). Cost difference of $1.35 purely because of dimensional weight. Size can be very important.

-..-

[teenytrinkets]

Thanks for this info... very helpful. However, I'm confused by this statement:

"According to the Canada Post calculator (Ontario to BC) that box with an actual weight of 300g would be $17.72 for Regular and $19.07 for Expedited (sales tax on both was 5%). Cost difference of $1.35 purely because of dimensional weight. Size can be very important."

How is the sales tax only 5% on the regular Parcel calculation, when the taxes collected on regular parcel should be based on the originators address (so in Ontario, that should be 13% HST)?

[teenytrinkets]

Has ANYONE ever had a successful damage claim? It's so easy for them to deny ALL of those citing inadequate packaging, no?

Insurance is really just for loss, at the end of the day. And that's quite rare...

[mrdutch1001]

many years ago put in claim and collected from Canada Post for a couple of lost packages, but have never bothered with trying to claim for damaged items. In 18 years of online selling have had only 2 or 3 items damaged in transit.

[ypdc_dennis]

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@teenytrinkets wrote:
... How is the sales tax only 5% on the regular Parcel calculation, when the taxes collected on regular parcel should be based on the originators address (so in Ontario, that should be 13% HST)?

---

As I understand it, if you are using the SfSB card, you are considered to be a business, with sales tax based on the destination. 

But I could be wrong, since I rarely ship Regular parcel and never without using the card. The delivery time guarantee or shipping cost refunded included with Expedited parcel has been of value to me over the years.

[teenytrinkets]

Ahhhh, that's your rate after scanning your small biz card... gotcha. It's definitely cheaper for you to use your card all the time (except to the Maratimes, which have higher HST).

For me in BC, it's not always cheaper to use the card because the increased taxes of 8% HST offsets the 5% discount - even with the slightly higher fuel surcharge!

[zee-chan-jpn-books]

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@lucitabby wrote:

@zee-chan-jpn-books 

Hello zee-chan - I know I bug you every year to send out your new sheet of postal rates.  It is very concise and I use it all the time.  Please, if you have time, do it for 2020.  Thanks.

---

The chart is quite boring and tedious to make, and it's also very time consuming (almost 2 hours) to double check to make sure the numbers are correct. This will likely be the last year I'm making this chart. My sale volume is really low now, and I haven't had any Australian sale in two years. I also rarely sell packages over 500g, so I'm putting those info in the chart only for the sellers here, not for myself anymore. It's hard to justify the time and effort making this. Even if I do make a 2021 chart, the content will be significantly cut down - no more Australian info and no more info for over 500g. I actually wasn't even going to make one this year since I barely looked at the 2019 chart myself.

[zee-chan-jpn-books]

Attached is an image version of the 2020 postage chart I made. Please feel free to use / print it out if you find this useful.

$1.07 is stamp rate if you're only purchasing one stamp over the counter.

These are all OVER THE COUNTER rates, so if you have Solution for Small Business account (or if you print via Shippo or Paypal) you will get cheaper rates for the parcels. Definitely use Shippo/Paypal/CPC online for Tracked Packet since the saving is quite significant (at least 10% cheaper). Fuel surcharge fluctuations apply to Tracked Packet. 

For Small Packet rate, I used United Kingdom and Australia as reference since that's what I use often. As you can see, for the <250g and <500g weight bracket, depending on your international destination, it might be cheaper to use small packet air instead of letter-mail.

I did not include rates for expedited parcel, xpresspost, priority etc in the chart because the price varies greatly depending on both sender and receiver location.

[teenytrinkets]

Has anyone noticed that when shipping lettermail at the counter, the plastic "slot" measurers are physically smaller in size than the specified maximum dimensions of an envelope?

My counter gal at Shoppers is always making it smaller for me by folding and taping it (bless her!) But I think she's going through that for nothing!

[msmaggie060]

Do you mean the slot is smaller than 2 cm? I have a plastic Canada Post template and it is the exact same as the one the post office uses. The slot measures exactly 2 cm wide. Or are you talking about the overall envelope size for Lettermail? The largest it can be is 38 x 27 x 2 cm, I believe that is a #4 envelope.