Cheapest Shipping For Small Business

Running a small business in Canada can be challenging, especially when you’re trying to find the cheapest shipping for small business solutions while ensuring that packages reach customers quickly. 

Most small businesses have a tight budget, so finding cheap shipping options for small business needs is key to staying profitable. And with more people shopping online, fast delivery and cheaper shipping costs have become more important than ever. 

Let’s break down the best ways to find the best shipping options for your small business. We’ll also share some practical tips on adjusting your shipping strategy to save money, enhance profitability, and stay ahead of the competition.

Factors Affecting Shipping Costs

When small businesses ship packages, a few key factors affect how much it costs. Knowing these factors can help you zero in on the cheapest shipping in Canada for small business fulfilment by considering the following:

Package Weight: The heavier your package is, the more it will cost to ship. Shipping carriers charge based on weight, so if a package is heavy, there could be extra fees. Keep the package weight low by using lighter materials or cutting down on extra packaging to save money.

Package Size: It’s not just the weight that matters; the size of your package also affects the cost. Shipping companies use something called Dimensional (DIM) weight pricing, which looks at both the size and weight. They figure it out by multiplying the length, width, and height of your package, then dividing it with a specific number or DIM divisor. So, even if your package is light, you may still pay more if it’s big and takes up a lot of space.

Shipping Distance: The farther your package has to travel, the more it will cost to ship. Shipping within the country often depends on different zones, while international shipping usually comes with extra costs like customs or taxes. To save money, consider offering different shipping options based on proximity to your customer base.

Shipping Method (Ground vs. Air): How you ship your package also affects the cost. Ground shipping is usually cheaper but takes longer, while air shipping is faster but more expensive. Depending on customer expectations, you’ll need to decide whether to prioritize saving money or delivering the package faster to them.

Each carrier has its strengths, whether it’s reliable domestic options within Canada, international shipping from Canada to the UK, or other destinations. Let’s take a closer look at how different carriers compare prices and services to help you choose the best options for your small business.

Comparing Small Business Shipping Carrier Costs in Canada

To get the best value on shipping without breaking your budget, it’s a good idea to compare prices and services from top carriers. In case you’re shipping from cities that are major economic hubs like Toronto to Vancouver, here’s how popular carriers approximately measure up in cheap shipping for small business Canada below:

Carrier	Key Services	Delivery Time	Parcel Cost (2 kg)
ShippingChimp	Regular	4-6 business days	$13 – $15
Canada Post	Regular Parcel	4-7 business days	$18 – $22
Canpar	Ground	5-7 business days	$20 – $24
Purolator	Ground	4-6 business days	$26 – $30
FedEx	Ground	4-5 business days	$28 – $32

Canada Post is one of the cheapest options with their Regular Parcel service delivering packages in 4 to 7 business days. This makes it an ideal choice for e-commerce retailers or local shops to manage their shipping expenses while still making sure customers get their deliveries on time.

Similarly, Canpar is another cost-effective option, offering ground shipping in 5 to 7 business days. This option works great for small businesses shipping low-value items or seasonal products and focusing on reducing costs.

Purolator is a faster yet slightly more expensive option, with ground delivery in 4 to 6 business days. Growing e-commerce businesses prioritizing speed over affordability can use Purolator to meet customer demands for faster shipping while keeping costs manageable.

On the other hand, FedEx gives businesses the fastest delivery time within the above, at 4 to 5 business days, but at a higher price range. Businesses that ship time-sensitive items like electronics or perishable goods will find FedEx delivery times to be a real advantage.

ShippingChimp brings it all together among the shipping options for small businesses, 

whether carriers have slightly higher or lower rates. By comparing rates from many different carriers, you find the cheapest and fastest shipping options. Tools like shipping analytics and real-time tracking also allow for a more efficient and cost-effective shipping process.

Saving up on shipping allows small businesses to cut down on expenses, offer customers better prices, and stay competitive. To drive further savings, let’s explore some practical tips to help lower your shipping expenses.

4. Tips to Lower Shipping Costs for Your Small Business

Shipping costs can quickly add up for small businesses, hurting profitability and customer satisfaction. Fortunately, here are some simple shipping tips to lower shipping costs without sacrificing service quality:

Negotiate Shipping Rates with Carriers: Even if your small business doesn’t ship many packages, you can still ask for discounts from shipping carriers. Many carriers are open to negotiating rates, especially if you ship regularly. Reach out to your preferred carriers, explain how often you ship, and enquire about any discounts or deals they have for small businesses.

Actionable Tip:
First, compare prices from different shipping carriers, then reach out to your most-used carriers and see if they will give you a discount for shipping in bulk. Companies like Canada Post and Purolator have special programs for small businesses that can help reduce shipping costs.

Reduce Package Size and Weight: Shipping carriers often charge based on the actual weight or dimensional weight (DIM weight) of a package. To avoid higher fees, consider reducing the size and weight of your packages. Use lighter, more compact materials, and cut down on extra fillers like bubble wrap or foam that add unnecessary weight and take up more space.

Actionable Tip: For smaller items, switch to lighter packaging, like padded mailers, instead of boxes. Additionally, train your staff on how to pack efficiently to avoid wasted space in boxes, which can lead to higher DIM weight charges.

Leverage Flat-Rate Shipping Option: Carriers like Canada Post and FedEx offer flat-rate shipping options, where you pay a set price no matter how much the package weighs or how far it’s going (as long as it fits into specific size limits). This option is great for small but heavy items that usually cost a lot to ship.

Actionable Tip: Check if the products you ship most often can fit into the flat-rate boxes provided by your preferred carrier. This approach lets you know exactly how much shipping will cost and helps you avoid any unexpected charges.

Consolidating Shipments: If you’re sending multiple packages to the same destination, try consolidating them into one large shipment. Sending multiple packages one by one can add up quickly with individual shipping fees for each box. By consolidating items, you can secure better deals and minimize packaging material costs.

Actionable Tip: Whenever possible, group orders, especially if a customer places more than one order within a short timeframe.  This approach reduces the number of packages you send and helps lower your overall shipping costs.

Consider Using Third-Party Logistics (3PL) Providers: An effective way on  to get cheap shipping for small businesses is by partnering with Third-party logistics (3PL) companies. These providers handle everything from warehousing your packages to shipping them, often at a lower cost than if you were managing the process all by yourself. Partnering with a 3PL can save money by shipping in bulk and providing cheap shipping for small business needs.

Actionable tip: Consider partnering with a 3PL, especially if you have high shipping volumes or send products internationally.  By leveraging their warehousing, inventory management, and shipping expertise, these providers can help you save on costs and simplify complex customs and shipping logistics.

Use Zone Skipping: Zone skipping is a logistics strategy where businesses consolidate large batches of goods, transport them closer to their final destination, and hand them off to a local delivery service. This process can bypass high cross-country rates and use cheaper local shipping for the last leg when shipping within Canada. 

For example, if you’re shipping from British Columbia to addresses in Eastern Canada, send all the packages in bulk to a central hub in Ontario. From there, a local delivery service manages the final distribution, ensuring faster and cheaper delivery across the region.

Actionable tip: Consider using zone skipping for national shipments, especially long-distance deliveries. Consolidating shipments to regional hubs before passing them to local carriers can reduce shipping costs and improve delivery efficiency.

Whether it’s negotiating rates, using shipping software, or exploring strategies like zone skipping and consolidating shipments, there are many ways that small businesses can take charge of their shipping costs without cutting corners on quality. Let’s quickly sum up the shipping guide for small business requirements and some key takeaways.

5. Conclusion 

By understanding what affects shipping costs, such as package weight, size, distance, and shipping method, you can make smarter choices to minimize spending. Lighter, more compact packages cost less; strategies like bundling shipments together or leveraging zone skipping effectively lower costs without sacrificing delivery times.  

Shipping can go from being a significant expense to getting the best shipping rates for small businesses if you approach it strategically. Platforms like ShippingChimp make it even easier by helping you compare rates and streamlining your small business shipping process to stay competitive and profitable.

Take charge of your shipping costs and start saving now. Sign up today to streamline your small business shipping process and discover the best rates for your business.

6. FAQs

What is the cheapest way to ship for small businesses in Canada?

ShippingChimp is the best shipping carrier for small businesses. Our prices start at $5.11.

The cheapest way for small businesses in Canada to ship a package depends on its size, weight, and destination. Canada Post is another great option, especially with services like Regular Parcel and Expedited Parcel. 

How can small businesses reduce their shipping costs?

Small businesses can save money on shipping by using smaller, lighter packaging to avoid extra charges based on DIM weight. They can also use flat-rate shipping options to keep costs low or offer local delivery and in-store pickup to reduce shipping costs for local customers.

Is it cheaper to ship with Canada Post or a local courier for small businesses?

For small, local shipments, Canada Post is usually the cheaper option. However, carriers like ShippingChimp offer up to 53% savings compared to National carriers. Make sure you compare rates based on the package size, weight, and destination to find the cheapest option.

How does package weight and size impact shipping costs?

Shipping costs depend heavily on the weight and size of a package. Carriers use dimensional (DIM) weight pricing, charging based on how much space the package takes up. So, even if a package is light, it may cost more due to the space it occupies rather than its actual weight. Use smaller, lighter packaging whenever possible to avoid extra DIM weight charges.

Is there a way to get discounted shipping rates as a small business?

Yes, many carriers offer special programs with discounted rates for small businesses that ship regularly. For example, Solutions for Small Business by Canada Post and Small Business Solutions by UPS offer cheaper shipping rates, online tools, and additional support services to help save money on shipping.