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.

[skippy527]

I too am incensed and temporarily out of business because of the changes to the Canada Post's airmail small packet policies (no insurance means essentially a licence to steal as they are denying accountability for any parcel's arrival and there is simply no other way to ship small affordable items, the bulk of my business). Waterships, I am seriously considering a class action lawsuit - it was NOT OK for Canada Post to suddenly yank their insurance off airmail small packets with no warning and without offering us a viable alternative. Although my understanding is that it will be eventually reinstated (with a price hike, of course), this leaves us with a one month period where we basically cannot ship or sell smaller items - a loss in business that Canada Post should compensate us for.

[pjcdn2005]

Skippy, what is your rate of "lost" packages? If it really high, you could buy third party insurance from a company such as Shipsurance and use small packet air.

[froogal_electronic_parts_and_overstock]

Small packet did not go up 100%, you grossly exaggerate.

$7.61  --->  $7.80

$10.10 ---> $10.35

Average of 4.5%

You forget to include, er exclude the $100 insurance that IF you were able to add back on would cost approx $2 more. In order to get back that $100 insurance you must go to a trackable package which costs 2-4x as much for US and international. At the least you are talking about a 25% increase minimum if you have a way to insure these packages from another company.

Welcome to 1984! 

[toff3]

Froogal,

If you're a smart seller, you don't insure with the post office.

Tom

[mommandadd]

I've been on e-Bay over 10 years - have made a couple thousand of transactions over that time - and have had about 20 or so damage claims but only 6 lost parcels using Canada Post. And sometimes I wonder if the Post Office lost the parcel or if the addressee just says it was lost. 

Perhaps the postage increases depend on where you reside in Canada. Horribly I find it cheaper to mail a small parcel to any place in the US than to most parts of Canada (that aren't in my province). Postagewise, for small parcels, it is actually cheaper for me to drive to the US and then mail the parcel back into Canada.

For me the rate increases on small packet went like this:

.225 gram or less jumped from $6.75 to $7.80

.226 to .499 jumped from $8.52 to $10.35

above .500 went from $12.66 to $15.56

 With the rate increases came a decrease in service - no insurance. 

As well, the oversize lettermail almost doubled for some weight classes.

I knew the jumps were coming so I cleaned house and planned to quit e-Bay this month.

I figured that buyers are going to be bidding less for items to cover increased postage costs but e-Bay fees would stay level or increase because e-Bay takes a cut of postage charges. As well Paypal gets a cut as well. i.e. bidder bids a couple dollars less to cover the increased postage but e-bay fees remain about the same or increase because of the postage increases. This is my take only.

If I do stay on e-Bay the only way I can continue is to cross the border into the US to mail parcels.

[pocomocomputing]

As well, the oversize lettermail almost doubled for some weight classes.

I do not see that Lettermail Oversize doubled. It went up 5 cent for the 100 gram class and 10 cents on each 100 gram service for Lettermail Oversize within Canada.

Please show which Lettermail class doubled in price.

Lettermail Oversize 100 g 200 g 300 g 400 g 500 g

2012 $1.29 $2.10 $2.95 $3.40 $3.65

2013 $1.34 $2.20 $3.05 $3.50 $3.75

[pocomocomputing]

For me the rate increases on small packet went like this:

.225 gram or less jumped from $6.75 to $7.80

.226 to .499 jumped from $8.52 to $10.35

above .500 went from $12.66 to $15.56

 With the rate increases came a decrease in service - no insurance. 

I am not trying to be rude, but your numbers above are wrong.

You are comparing Small Packet Surface 2012 to Small Packet Air 2013.

Under 250 gram (not 225) SP Surface $5.97 (not 6.75) to SP Air $7.80

251 grams to 500 grams SP Surface $8.82 to SP Air $10.35

501 to 1,000 grams SP Surface $12.66 to SP Air $15.56

[mommandadd]

Hi, you're not being rude and you are correct.

The thing is, surface mail small packet to the US was discontinued. There is only air small packet. So I compared by the cheapest price on Jan 11, 2013 (last day of the old system)  to the cheapest rate today.

If Canada Post had not discontinued the ground service then mailing rates would not have jumped so severely. 

[tacticalmountain]

Math aside. I can't compete with the new Rates - I think they have gone up a lot.  I think that Canada Post is in fact "losing" parcels shipped within Canada and have solid proof and they do not take it seriously - they do little or no investigation on the stolen products.  Frankly I am a few months away from giving up on Ebay and Canada Post all together.  They are the only ones making a profit.  

[toff3]

I am a few months away from giving up on Ebay and Canada Post all together.  They are the only ones making a profit

Tactical,

You're right about the first one (eBay) but not the second (Canada Post). They keep charging more yet they're still losing money - that's the problem.

Have a nice weekend.

Tom

[around_again_records]

You're right about the first one (eBay) but not the second (Canada Post). They keep charging more yet they're still losing money - that's the problem.

Have a nice weekend.

Tom

Canada Post might be losing money, but I'll bet someone is making off with a lot of it in wages and I'm not talking about the carriers that do the work. They are well paid, but boy would I like to see what top management makes. 😮

[mommandadd]

After 16 years of consecutive profits, the crown corporation posted a $327 million loss in 2011, and the losses have continued in the first two quarters of fiscal 2012.

Since the year 2000 Canada Post has made about $1.5 billion in profits.

Over the past couple years Canada Post has invested $2 billion in upgrading mail sorting facilities.  

http://www.thestar.com/business/article/1292120--why-canada-post-loves-parcel-delivery-olive

I think much of Canada Posts profit (in the past) has been based on volume. Now they're spending money on upgrades for a volume that may not be there. Partly because of hefty postage increases and partly because letter mail is decreasing. 

[surrealgirl1]

"Why should I pay the price for the postal system's inadequacies when they fail to deliver my buyer's parcel? I have to refund that money to the buyer, as is fair to them, but I lose out entirely? How is that fair or just?"

It's interesting to me how as the Seller we have to guarantee an items delivery and if not we have to compensate buyer normally, BUT our courier now does not have to guarantee that service they offer and are paid for? I agree with All services should have tracking and insurance (option) if it can't than it should be gone! Why do we pay for a "maybe get there" service? That service should be dirt cheap or free if thats the case. Canada post has way too much control over our small businesses being successful here. Having to think outside of the box does seem inevitable but all that seems to end up coming out of Sellers profit margin, eat some of the shipping costs to keep same buyers and remain coompetitive with US and China markets, offer larger discounts on buying more than one item to save shipping$ etc...

The other side seems to be Buyers don't know of these changes and are freaking out seeing shipping increases and then blaming sellers for being greedy not understanding that moving towards using trackable and insured means more $. There still is no equality there worldwide, I can buy a cheap ring from hongkong for .98 cents free shipping with tracking and signature required? So buyers assume we should be offering the same service for nothing from Canada as well. Half my listing pages may have to start to be about explaining shipping from Canada..how boring....  😮 🐵

[toff3]

Surrealgirl,

What ever do you mean by a "maybe get there" service?

The postal system worldwide works extremely well. Less than 1% of mail is irretrievably lost. Most of the mail that is not delivered is returned to the sender. On these boards you only hear of mail that disappears, never of mail that is successfully delivered or returned to sender. I am convinced that much of the "lost" mail is due to fraudulent INR claims by dishonest buyers.

Of course the shipper (seller) must ultimately be held responsible for delivery of his sale into the hands of the buyer. In certain cases, the shipper can claim compensation from the carrier.

You seem to imply that using the mails is akin to playing Russian roulette. Ninety per cent (or more) of the time we don't need fancy tracking, delivery confirmation, insurance coverage, etc. Forget the types like Cumos who says he won't ship internationally without insurance. If he wants to throw away his money on high-priced insurance, that's his business. As far as I'm concerned, anyone who uses Canada Post's new Tracked Packet service needs his head examined.

What bothers me is the way Canada Post keeps increasing the cost of mailing by withdrawing basic services and overcharging on others. Why did they force their customers to use an enhanced service (Expedited Parcel) for all parcels to USA weighing more than 1 kg? Why did they remove Small Packet Surface service to USA? Why should the rates for Small Packets Air to International destinations be double (and more) those for Surface?

Tom

Tom 

[reallynicestamps]

 I am convinced that much of the "lost" mail is due to fraudulent INR claims by dishonest buyers.

I agree.

For over 30 years our family has been shipping small, valuable items by mail around the globe.  In that time, I think we have "lost" perhaps a dozen package, probably fewer. We even had an auction lot that was meant to go to Moscow Idaho returned from Moscow USSR intact and undamaged. (Our American customer thought it was a hoot. Value was in the low thousands of dollars.)

But once we move to eBay selling, the picture changes. Although we are in a very low fraud category, we carry third party insurance against INR claims. Between our several IDs we get about one claim a month. Still a very low percentage, and usually on untracked lower value items, but the difference between the customers for various venues is remarkable. 

[almond_t]

While I certainly can't boast of 'thousands' of purchases, I do have quite a few 'hundreds' of online purchases under my belt to date.  Mostly Ebay.   So they have come from far and wide, domestically and internationally.  

I have never  had a single package go missing, nor have I ever opted for insurance if I had the choice.  My pkgs have ranged in price from very cheap to very expensive ( relative, I know) and I don't think that I've ever had reason to complain about too long a shipping time.

Of course, that 100% success rate is attributed to sellers who actually did mail my parcels, and not the 2 deadbeats who absconded with my $$ without shipping.

That was back in the day when Ebay's  only response was 'we're just a venue'.

[surrealgirl1]

Tom...If I have to refund even One Buyer for Not receiving there parcel through Canadapost why should I not be compensated by Canadapost If I paid them. You still say "of course you refund buyer and guarantee 100% service" Well I expect the same from my courier I Pay $10.35 to the USA for 100% service everytime or I should get my money back since the service wasn't provided. These ways of us having to make up a loss are ridiculous. I've never stated I have many Items disappear but I don't double my profits or over charge in shipping to be able to eat ANY Canadapost losses from item not received and I shouldn't have to. You pay to take a taxi do they drop you off near your destination or where you paid them to take you? 🐵 I haven't had Any parcel returned to me yet from the US either, if buyer claims not received. If Canadapost won't guarantee 100% delivery success for Every package than we should still be offered Insurance period. We are taking the risk as the Seller using cheaper uninsured services. There has already been inside Canadapost stealing exposed this "small packet Air" now has very little consequence if it disappears. Yanking the Insurance on a service I now pay $10.35 for is wrong.

[surrealgirl1]

Regarding the INR claims we have no way of knowing as the Seller. You accuse Buyer of lying you get retaliatory Negative feedback left and they open a not received claim... You have to trust your Buyer is being truthful, what else can you do? I use the Small packet Air alot and I havent had to file any claim until this mth.January. So now of course I'm abit nervous with no coverage on this service on one hoodie I'm out average of $65. I just don't see how Canadapost can justify increasing a cost at all for a service they are taking Insurance away from. I hate filing claims but it was nice to know atleast it was there if I ever did need it 🐵 Either way Happy Tuesday All!

[toff3]

S'girl,

Why do you keep obsessing about the occasional loss in the mail? Because that's all you get, as far as losses by the post office are concerned: the odd mail piece disappears. If you can't absorb this occasional loss, then you shouldn't be in the business of selling by mail order.

However, I fully agree with your last post. Canada Post had no business removing the insurance coverage from Small Packets and then raising the price.

Tom 

[t.w.mooner]

I am just wondering after listening to the many posts on different sites If in fact the Postal system will see any benifit to their price increases.I sell on three sites and everyone has been expressing their concerns about this.I am seeing countless sellers who are trying to adjust their shipping problems but are concluding that the ship rate far exceeds the acceptable rate a buyer will spend for their products.Many have discontinued overseas sales and many are just givng up.This will affect all venues including the postal systems.as when sellers leave and buyers can;t justify paying the rates required for a product.and oversea buyers can't find international sellers.the big stores will dominate the internet sale sites and many smaller sellers will be squeezed out.Parcel volume will dramatically drop and there goes a lot of speculated profit the postal systems hoped to receive from their increase I do not see anybody actually coming out a winner