5 Cheapest Small Business Shipping Options in Canada: 2025 Guide + Real Pricing

Canadian eCommerce businesses are losing their profit margins to high shipping costs. It’s getting increasingly difficult to start an online business in Canada, maintain that business and still do free shipping or low-cost shipping. 

It costs $15.77 to ship one single shirt from NWT to Yukon via the Canada Post Expedited Mail and $54 via UPS. So, if you’ve ever paused at a Canada Post counter wondering if free shipping is eating your profits, you’re not alone. It happens to the best of us. One tip is to find the right shipping carriers for Canadian eCommerce shipping that will help you keep your profits and optimize the best shipping strategy for you. 

This blog will compare top 5 cheap Canadian shipping carriers with practical data and tips to help you save money and ship smarter in 2025.

Why is Canadian eCommerce shipping expensive? 

Canada’s vast geography drives up shipping costs, especially to remote zones, and fluctuating fuel surcharges can make invoices feel unpredictable. 

Big sellers like Amazon dominate the market because they can absorb shipping costs with massive infrastructure and multi-layered logistics strategies. Small businesses can’t compete on free shipping alone but they can win with personalized service and smart shipping choices. Shipping options for small businesses in Canada remain a tough choice. Focus on a mix of cost-saving carriers, strategic free shipping, and customer experience to stay competitive.

The core causes why shipping is expensive in Canada are:

1. Vast Geography
2. Remote area surcharges
3. Fuel surcharges
4. Residential delivery fees
5. Long distances between cities

Key Factors to Compare in Canadian eCommerce shipping

In this blog post, we compare shipping carriers Canada, based on several factors which include:

1. Base price per package
2. Delivery speed
3. Tracking
4. Pickup vs. drop-off
5. Remote area coverage

These factors determine which carriers fall in the category of cheap Canadian shipping for small business.

Carrier	Cost (2 lbs Toronto → Montreal)	Delivery Speed	Tracking	Pickup Option	Rural Coverage
Canada Post	$19.87	3 days	yes	Paid	yes
ShippingChimp	$5.88	2 days	yes	Free	yes
UPS	45.42 CAD	2-4 days	yes	Paid	Limited
FedEx	$32.75	2 days	yes	Paid	Limited
Canpar	$43.64	3-5 days	yes	Paid	Limited

Top 7 Cheapest Shipping Options for Small Businesses in Canada

1. Canada Post  – Cheapest for rural deliveries

Canada Post is ideal for lightweight rural shipping with broad national coverage.

• Why it’s popular: nationwide coverage & discounted small business program.
• Cheapest for letters, small parcels, rural delivery. Canada Post delivery prices are cheaper in general. Use Canada Post small business solutions to get the best rates.

Pros

• Discounts for SMBs
• Strong rural coverage
  

Cons

• Slower than private carriers
• Limited weekend delivery

2. ShippingChimp  – Best for Canadian eCommerce shipping

ShippingChimp offers the lowest rates for eCommerce parcels with free pickups/dropoffs and real-time tracking.

• Known for providing the cheapest rates for eCommerce shipping in Canada.
• Best for lightweight shipment within Canada and free pickups and dropoffs.

Pros

• Cheapest domestic shipping
• 100% real-time tracking
  

Cons

• No custom packaging

3. UPS (UPS Small Business Program)  – Best for medium-weight volume shipping

Use UPS if shipping in large volumes. UPS offers volume-based discounts, ideal for frequent shippers with medium-weight parcels.

• Known for volume-based discounts and express options. Sign up for UPS small business program Canada for the best quotes.
• Best for medium-weight domestic packages.

Pros

• Faster than Canada Post
• Strong volume discounts
  

Cons

• Many surcharges
• Brokerage fees for cross-border

4. FedEx (Ground Economy) – Best for heavy or fragile parcels

FedEx handles fragile and heavy shipments the best.

• Great for consistent tracking & slightly faster than Canada Post for urban areas. If shipping to US from Canada small business, FedEx is not the cheapest option.
• Pro tip: Combine with a 3PL for better rates and to even cheaper, choose FedEx Ground Economy Canada.
  

Pros

• Great for fragile and heavy items
• Reliable tracking
  

Cons

• Higher rural fees
• Expensive without volume

5. Canpar – Good for non-urgent shipping

Canpar shipping rates are good for non-urgent parcel shipping in Ontario.

• Why it’s popular: Affordable rates for medium‑weight parcels in Ontario.
• Good for sellers who don’t need express shipping.

Pros

• Affordable local ground shipping
• Good for non-urgent B2B
  

Cons

• Limited western/northern coverage
• Slower cross-country

Return Shipping via cheap Canadian shipping carriers

Returns can silently drain your profits. Choosing a carrier with affordable and easy return options can save both money and customer loyalty. Canada Post is the cheapest for returns as they have very low return shipping fees as compared to private carriers. People often wonder about return shipping Canada Post vs UPS, but the real cost-savers are private players. ShippingChimp, Canada Post, UPS and FedEx have drop-off points as well. 

• Canada Post is best for domestic and rural returns.
• UPS & FedEx are reliable for urban and heavier returns, but often costlier.

Hidden shipping fees to watch out for:

Shipping invoices are complex and there is a reason for that. If you are wondering how to reduce shipping costs in Canada, start with hidden fees. Hidden fees can quietly turn a $15 shipment into a $25 one. Here are the most common fees Canadian eCommerce sellers should anticipate.

• Fuel surcharges
• Residential delivery fees
• Remote area surcharges (esp. for northern Canada)
• Pickup vs. drop-off fees

Eg. Hidden Fee Impact on $15 Package (this will be added to the base cost):

• Fuel surcharges – $1.5 to $3
• Residential delivery fees – $3 to $5
• Remote area surcharges (esp. for northern Canada) – $8 to $15
• Pickup vs. drop-off fees – $3 to $6

Pro tip – If you ship frequently to rural/residential addresses, factor in hidden fees before offering free shipping. Dropping off packages can cost extra. Choose a carrier which offers free drop offs.

Speed vs reliability matrix

Tips to Save More on shipping with best shipping carriers for small businesses Canada

• Consolidate orders to reduce cost per package.
• Offer local pickup or flat-rate shipping.
• Leverage free packaging from carriers.
• Use multi-carrier shipping software.
  

Check out our Shipping Automation Tools for Canadian eCommerce blog.

Cheapest Shipping Options in Canada

Carrier	Cheapest for	Best use case
Canada Post	Rural/Domestic	Lightweight
ShippingChimp	eCommerce businesses	Lightweight Domestic
UPS	Medium-weight domestic	Cheap domestic returns
FedEx	Urban domestic	Heavy parcels
Canpar	Non-urgent parcels	Small sellers local delivery

Which Shipping Carrier is cheapest for Canadian small businesses?

Find out how to decide which shipping carrier is the best for your business.

Your Priority	Best Carrier	Why
Cheapest rural delivery	Canada Post	Broadest network
Cheapest local delivery for eCom	ShippingChimp	Low costs for eCommerce
Cheapest cross-border shipping Canada to US	ShippingChimp	Best for ecom
Heavy domestic shipping	UPS	Volume discounts
Fast + heavy	FedEx	Experts in fragile and heavy shipping

Small tweaks to your shipping strategy can save you hundreds of dollars each month. Platforms like ShippingChimp can help automate multi-carrier shipping, reduce errors, and negotiate better rates for small Canadian businesses. With ShippingChimp, you get shipping software Canada eCommerce that helps keep track of all your shipping in one place. 

Watch how Great Sox uses ShippingChimp to get the best rates in Canada and get your Free Trial here. 

FAQs

1. What is the cheapest shipping option for small businesses in Canada?

ShippingChimp remains the top choice for small businesses in Canada.

2. Which carrier is best for shipping to the US from Canada?

ShippingChimp works well in cross-border shipping from Canada to the US.

3. How can I reduce shipping costs for my Canadian eCommerce store?

Factor in hidden charges on top of base charges and use a carrier that does free pickups/dropoffs.

4. What are common hidden shipping fees in Canada?

Fuel surcharges, residential delivery fees, remote area charges, and pickup fees.

5. Which carrier is best for return shipping in Canada?

Canada Post is the best for return shipping as they have a wide network coverage. 

6. Does Canada Post or UPS offer better rural delivery rates?

Canada Post offers the best rural delivery options.

7. How can I get volume discounts on shipping as a small business?

Try to make use of the small business programmes offered by carriers.

8. Which shipping software can help me compare rates in Canada?

You can use ShippingChimp’s shipping calculator to get an estimate.