Raised Prices by Canadapost for parcels to USA

[waterships]

Is it just me or is anyone else absolutely incensed at the 100% increase in sending small parcels to the USA from Canada? The so-called *new* parcel service is going to cost a whole lot more than the small parcel used to cost. For me it used to run about $8.00 and now it is going to be around $15-$20! My customers are quite simply not going to pay that. and of course I now have no other option. I guess Canadapost cottoned on to this little money making scheme and want their cut.

eBay shame on you for using the wrong comparisons. This new service is replacing the small parcel service so you CANNOT compare it with Expedited which is a totally different service - that is just so wrong on so many levels.

I for one want to keep the existing service at a price my customers can afford. canadapost and eBay you have just priced me and my customers out of business. Thanks a bunch.

[recped]

I'm just as furious as you. Half my customers are in the USA and overseas. Or should I say were in the USA and overseas. I sell toy cars. Under the current arrangement with Canada Post Small Packets Airmail, it costs my buyers $8 to $9 USD in postage to ship a single diecast. With the new Tracked Packet, that doubles and quadruples, depending on location. No buyer in their right mind will pay $35 CAD to ship a $15 toy from Canada to the UK. That's ludicrous. 

The big deal here to me is that sellers are still allowed to offer and utilize Canada Post Small Packet Airmail... except now there is no insurance when it goes missing. I called Canada Post today about this and was told they won't be offering any insurance to sellers as an extra buy-in option, either.

5% Loss Rate? That's very high, even if Canada Post kept the insurance it wouldn't be long before they start denying the claims.

If you really want to buy insurance....

U-Pic.com

Shipsurance.com

Or self insure....

5% loss rate

Average selling price plus shipping $25

Expected losses $125/100 packages

Add $1.25 "handling" to each package.

[momcqueen]

I know five per cent of shipments being lost is high! That's the whole reason I'm furious. If it never happened, I wouldn't care, now would I?

I cannot add any handling to my shipments. Straight postage is already double that what US sellers of the same product can offer. You sell music: I assume you use Light Packets or Lettermail as opposed to Small Packets or Expedited or Xpresspost? 

Do the dotcoms you mentioned provide insurance to Canadians? Have you used them? 

[cumos55]

Every seller has to make a decision....  go with something new or not...

Small Packet USA is gone.

This seller has made a choice.... and looking toward the future.

Insurance is an absolute necessity  ... and with tracking... all the better.

Within years    we may have tracking on ... everything... including lettermail

US buyers  are tuned into tracking.... an eBay reality....

Things we must remember ---

(1) USPS went airmail only for international shipping

(2) Canada Post made adjustments to Expedited Parcel USA not too long ago.

Now we have Canada Post making adjustments  to international shipping that begin to look like a mirror of USPS international rates....

Buyers will adjust

[toff3]

Mjwl,

Sorry, but I have to conclude that something is seriously amiss with your business practices.

A 5% loss rate for Small Packets?! This is completely unacceptable and no way can you blame either Canada Post or the USPS for that. In more than 12 years of trading on eBay I have never lost a single packet/parcel to USA. In that time period, two International Small Packets (both Surface) disappeared without trace (one to Italy, one to France).

That's why Canada Post's withdrawal of the "free" $100 insurance coverage doesn't bother me at all. What bothers me is that CP, to compensate, should have reduced the rates significantly or at the very least not raised them.

Either you are doing something wrong or you have more than your share of dishonest customers (who fraudulently claim INR) or both. Please forgive the accusation but I see no alternative.

As for Surface vs Air Small Packets to USA, in my experience there's not that much difference in delivery times.

Good luck with your business in 2013!

Tom 

[toff3]

Small Packet USA is gone.

Insurance is an absolute necessity  ... and with tracking... all the better.

Now we have Canada Post making adjustments  to international shipping that begin to look like a mirror of USPS international rates

Total nonsense.

Happy New Year, Cumos!

Tom

[pocomocomputing]

I know five per cent of shipments being lost is high! That's the whole reason I'm furious. If it never happened, I wouldn't care, now would I?

I cannot add any handling to my shipments. Straight postage is already double that what US sellers of the same product can offer. You sell music: I assume you use Light Packets or Lettermail as opposed to Small Packets or Expedited or Xpresspost? 

Do the dotcoms you mentioned provide insurance to Canadians? Have you used them? 

shipsurance offers insurance on Light/Small Packet USA and International.

Shipsurance rates are here

http://www.shipsurance.com/pop_order_online_shipping_insurance_rates.asp?

Basically $1.25 per $100 to the USA and $1.50 to rest of world.

The above rates are for one time purchase.

Insurepost is a new division of shipsurance. Basically the same as one time shipsurance but you open an account that remembers who you are so as to fill in details faster.

One thing to know is that shipsurance restricts countries covered for insurance and has a list of items they do not cover.

Contact them for a monthly plan to get lower rates

As mentioned above, you need to check into self insurance, that is, accepting some losses and build it into your item price. Better in the item price than in the shipping handling cost as that raises shipping costs visible to the buyer.

[cumos55]

There is no way I will be shipping something worthover 25 and up to  $95 using Small packet Air to the US... without insurance...

I will be using Tracked Packet  .. insurance is an absolute requirement based on what I sell...

and

How close can I get to 90 % tracking.....  and maybe even TRS plus on eBay.com.....

As Canada Post brings in more tracking...  Canadian sellers may have to have 90 % tracking to qualify as a TRS... and maybe even that TRS plus level on eBay.com....

When might this occur?

Next year ... most likely not.

But within 5 years years?????

[tobyshitzu]

if CP added optional insurance, that i could still use my own stamps with and didn't have to go to a post office for, at a nickel I'd consider paying the extra nickel

no one on ebay could possibly have a loss rate where "tracked packet" insurance of $100 or less for that price premium would ever make sense.  Ebay would cease to function if that much was being lost.  Of course no package insurer is ever going to offer a rate that didn't ensure they took in many times what they pay out.   

[brandeentertainment]

Canada post had states mid December that less then 1% off parcels go MIA ...

I have learnt overtime there are many places you should just not ship not matter what the method ..As mentioned earlier Italy and France are 2 Major ones you should not ship too ......

The Only thing I don't like it the fre insurance being taken away...

Shipping Surface for the most part other then to the US or Domestic is just a Horrible Idea so good by to small packet surface glad to see you leave ..

I have had my fair amount of dishonest customers in 2 years I have blocked about 60-70 buyers .. I always confirm with another seller by checking buyers feedback if they had filed a case and if so I block them..

I think the Changes to CP this year will affect very little for most because even with tracking and Delivery confirmation you can still lose a paypal dispute trust me I lost 1 about a year ago for $90 item but CP Paid me for it .. Even Thought it showed Delivered with the Customers Signature Paypal still sided with buyer..

CP I think added a service that will rarely get used and is pretty useless but other then that any changes made were kind of expected .. It's not like well Everything else gets expensive they are going to drop there prices or something..

[asyahijab]

Cummos wrote:

As Canada Post brings in more tracking...  Canadian sellers may have to have 90 % tracking to qualify as a TRS... and maybe even that TRS plus level on eBay.com....

Hi bit out of topic but still related.

I just want to share my experience about TRS Plus.

I am small seller with low volume sales each month.

I sent all my items mostly using light package/small package printed with paypal in stated my handling time.Out of my suprise I got badge TRS Plus on dot com. So the new tracked service don't really needed to be TRS Plus on dot com. As long as you purchase your postage through paypal, you can achieve 90% requirement for TRS Plus.

[toff3]

Brandeentertainment,

Please do not twist my words and read what I wrote.

I wrote that in 12+ years of trading on eBay, two International packages I sent (allegedly) disappeared. (I say allegedly because I have to take the word of the two addressees that they did not receive their purchases). It happened that the two destinations involved were Italy and France.

I have sent, mostly by surface mail, a number of packages to France and many to Italy, all of which were delivered.

Please refrain from making ridiculous recommendations such as not to ship to Italy and France. If you're having problems with these two countries you'd better review your business practices, as Mjwl2006 in Post #18 should do.

If you think the $100 insurance coverage on Small Packets was free, you probably also believe in the tooth fairy. Don't you worry, there was a charge for that, built into the postage rate. Why do you think Canada Post removed it? To save themselves money, as they sure wouldn't pass the savings on to their customers.

Because Canada Post refunded you for a shipment that was delivery confirmed yet was alleged to be INR by your buyer, your opinion of CP may be higher than mine. I do not agree that the new service changes made by CP were to be expected. I see no good reason why Small Packet Surface service to USA and the included $100 coverage on all Small Packets are to be removed. On top of that, CP increased most of the rates, some of them by significant amounts.

Tom

[momcqueen]

I really have to question the value of a forum like this. All that I am learning from it is that there are a lot of ebay users who are under the impression know a whole lot more about a number of things than than they actually do. 

Thanks for your time.

Bye bye now. 

[momcqueen]

Thank you pocomocomputing. Your response was very informed. I'll look into it. 

[pocomocomputing]

Thank you pocomocomputing. Your response was very informed. I'll look into it. 

Check into it and look whether proof of mailing is needed for PayPal labels for Light Packet and Small Packet.  All you get is proof of purchase for a PayPal label. There cannot be proof of mailing since it is not scanned.

Read this topic about this issue. It is in a PowerSeller forum so you need PowerSeller status to read.

InsurePost 3rd party insurance in bad faith?

I have an email with Insurepost questioning proof of mailing requirement but the holidays are slowing down an answer.

[tobyshitzu]

If you ever make enough claims to start coming out ahead buying that insurance they'll just cut you off as a customer.  If you aren't coming out ahead, you'd be better off to self insure.    if you are insuring $25 items at their rate for up to $100, you are paying 400% higher premium then the guy buying it for $100 items.

[toff3]

There's a regular contributor to the eBay USA International Trading discussion forum who calls herself Sam9876. She's known for the brevity of her posts. A favourite post of hers reads:

Smart sellers don't buy insurance.

She's right.

Tom

[Anonymous]

Wonder if we should complain on Facebook about those horrible hefty increases?  Just wonder because I noticed when there is an issue arise, it put on facebook and get huge responses.

Remember with Betty White, she got the part to be on Saturday Night Live because of huge requests for her to be on that sow on Facebook.

The governments now look at Facebook and Twitter, so it may help.  Will anyone of you do that?  I sure would like to see it happening and it may force Canada Post to re-think about those horrible hefty increases.

I wish Canada Post wouldn't remove those services like Surface and Airmail Small Packets with insurance, they should be left alone and Tracked Pak as the other option for us to choose not forcing them to us and at the same time run us out of our businesses which I am sure that many of us are not able to afford.  It is insane for some small businesses who sell sports cards, small photos, etc.  Thakns.

[bb_cool_stuff]

.... because of huge rquests for her to be on that "sow" on Facebook.

I know you meant show but that really made me laugh.

Yes, I imagine its going to be tough for some sellers. Maybe some of the small sellers would have to sell their items in lots.

Not sure i can markup my items any higher than they are as it ultra competitive in my category but i will keep a keen eye on sales & margins from the middle of January til the end of February.

One positive thing, we are a resilient bunch & we always seem to find a way to make it work.

[e8group2007a]

"Under the terms of the Universal Postal Union, all member postal services handle the mail from other services. At the end of their fiscal year they settle up."

Originally there was not "settling"; each country set their rates and kept all the money. Big differences in mail volumes going each way between some countries led to compensation agreements but the compensation is low and is based not on individual items but on tonnage excess.

That is why I can pay $8 for an item from some places and have it arrive here with scanning and a signature.

[toff3]

Collectors,

What "horrible hefty increases"? I don't see any. What I do see is same old, same old. Canada Post just being its usual sneaky self in raising the cost of mailing by withdrawing services and features and introducing high-priced new ones, as well as implementing the usual annual increases to the services that are retained.

The Tracked Packet service is either superfluous or absurdly expensive and of limited use. Tracked Packet USA is hardly different from Expedited Parcel USA, so why even offer it? The ridiculously-priced Tracked Packet International service is available to only a limited number of destinations (though thank God Canada Post included those two major trading hubs, Malta and Croatia). CP has published rates for Zone 6 yet lists no destination in that zone. At least, using Tracked Packet is optional. I could tell CP where they can shove it.

No, those "horrible, hefty" increases are mostly the usual Canada Post nickel-and-dime stuff. Take away the $100 insurance coverage from all Small Packets without lowering rates to compensate. Withdraw Small Packet USA Surface and force everyone to use Air. All for no good reason. Tack on the annual increases that we all knew were coming...and Bob's your uncle. SNAFU.

As for going on Facebook and Twitter, are you serious? Do you think the vast majority of Canadians give a flying fig for what Canada Post does? Except as to the cost of a domestic stamp, they don't know and they don't care. Have you checked the "Letters to the Editor" (CP's replies to inquiries and complaints published in newspapers across Canada) on the CP website lately? The last one is dated July 9, 2010.

Tom