There is no doubt about it, if you have ever shipped a parcel from a Canadian address to a Canadian address and chose the cheapest available rate, you have likely shipped with Canada Post services.
Other carriers such as UPS, FedEx, and DHL are available in Canada, but none offer as competitive rates when it comes to standard shipping in Canada. Canada Post was founded in 1867 so they have had quite the head start in understanding the Canadian landscape and all the challenges that come along with it. This has given them the opportunity to create an infrastructure that is simply unparalleled. And because they only devour parcels within Canada, they are optimized for it. That’s right, although they offer international shipping from Canada, they so working with other international partners such as USPS and Royal Mail and perform hand-offs. This also happens when Americans or British ship from their respective countries. The parcels are handed off to Canada Post for final delivery.
This means you may be able to find more competitive rates from other carriers when you’re shipping from Canada to international destinations, but when you’re shipping from Canada to Canada, it really is no contest. In a country with such an incredibly large landmass, having established infrastructure in place goes a very long way. Sure when it comes to express rates, other carriers may be able to compete, but they have no chance when it comes to standard shipping.
Let’s not forget the number of remote locations in Canada. Shipping to these areas can be an extremely difficult logistical challenge even for a pioneer like Canada Post, but for a carrier with limited infrastructure and experience, it can be even worse. And the proof is in the rates.
In addition to having the vastest experience and know-how shipping within their borders, Canada Post has remained committed to growing and developing along with the marketplace. They have a razor-sharp focus on the eCommerce segment. Earlier this year, Canada Post President and CEO, Doug Ettinger said “At Canada Post, we believe the rapid and sustained shift to online shopping created a tipping point that will have a profound impact on the Canadian economy, especially as we build back from COVID-19.”
This type of mindset will secure Canada Post’s dominance in the Canadian carrier segment for many years to come. Often this comes as a surprise to merchants entering the Canadian marketplace. Many are accustom to their own local shipping companies or international carriers. Ignoring Canada Post as a carrier option can prove extremely costly when serving Canadian consumers. No doubt about it, shipping parcels in Canada is not cheap, but shipping them with the wrong carrier can only exacerbate that fact.
Due to their razor-sharp focus on eCommerce, they have introduced an exciting service called Canada Post Expedited Parcel that offers fast, cost-effective ground shipping within Canada. This shipping method is not available to the general public. In order to ship Expedited Parcel, you must be registered with Canada Post as a small business or 3PL. All items are tracked and have on-time guarantees which makes it an ideal service is ideal for Canadian large volume shipping.
Accessing the Canada Post Expedited Parcel shipping service is another reason to partner with an eCommerce 3PL like InterFulfillment. The InterFulfillment system offers a feature called RateShop. This feature takes the guesswork out of choosing the right carrier and service for your packages. When an order enters the system, the feature automatically shops for the cheapest tracked shipping service available, and it comes as no surprise that Canada Post Expedited Parcel is always the winner for orders shipping within Canada.
Let’s compare two carriers using their online tools. We will be using their online tools to obtain an estimate for 2 identical shipments shipping from Scarborough, Ontario (M1X 1C2) to Moncton, New Brunswick (E1A 2T1). Each package is 10” x 10” x 10” and weighs 5 lbs. Although both FedEx Ground and Canada Post Regular Parcel will arrive on roughly the same day, Canada Post quoted us $24.67 CAD while FedEx quoted us $29.54 CAD. That is a savings of over $5.00 CAD and nearly 15%! Now take those savings and imagine them on each of your shipments. It all adds up and makes a huge impact on your profit margins.
Taking the time to familiarize yourself with Canada Post can really go a long way in saving you time and money when doing eCommerce business in Canada. Unrivaled experience and a commitment to the fast-growing eCommerce segment have positioned Canada Post to continue growing alongside the market. When it comes to shipping within Canada they have established their dominance and with their current mindset that does not appear to be changing any time soon.