A Complete Guide to Domestic Shipping in Canada

If you have an eCommerce store up and running in Canada, and want to reach customers spread across the vast geography, you will need a fast and affordable domestic shipping service.

Domestic shipping is shipping packages via a carrier within a country’s borders. This type of shipping in Canada for online retail businesses may seem complex at the beginning. From routing, and packaging to delivering orders to your customer’s destinations.

Domestic package shipping is, however, affordable, and there are various carrier options to select from, including regional carriers. 

In this guide, you will learn the steps to developing a domestic shipping strategy that’s fast, reliable, and affordable.

Understanding Shipping Options and Services

There are several shipping options and services available to transport packages from seller to customer. Canada Post domestic shipping is one of them.

Some of the common shipping options are ground, air, and sea, as well as various speeds. The shipping method involves the final leg of the delivery process and includes options like delivery at the doorstep or to a secure locker. 

Choosing the right shipping option is crucial for your business because it directly affects customer loyalty and satisfaction. 

Besides, offering your customers a delivery option will provide them with a higher level of flexibility than your competitors.

Various Types of Shipping Methods

Understanding different types of shipping methods is equally important to understand the process. 

Here are the most common types of shipping methods: 

Ground shipping: Ground shipping is the most basic type of shipping that uses trucks to transport shipments. This is the simplest and most affordable shipping method. However, transit time through this shipping takes longer. 

Same-day Shipping: As the name of the shipping method indicates, it guarantees to deliver the order on the same day when the order is submitted. However, it is one of the most expensive shipping methods. This type of shipping is particularly helpful for sending urgent shipments. 

Free Shipping: Ecommerce businesses often offer free shipping to attract more customers and encourage them to order more. Although it may lower the profit margins, it can boost total sales.

Two-Day Shipping: Two-day shipping is another popular choice after same-day shipping. This shipping method delivers packages quickly but without the high shipping charges of overnight shipping. 

Expedited Shipping: This shipping option offers quicker delivery than ground, typically within 2 to 3 days. The downside is that the pricing includes additional fees. 

Overnight Shipping: This shipping method ensures delivery of packages by the next business day. It’s good for urgent shipments, offering a fast but more expensive option to customers who need faster delivery.

Domestic shipping in Canada price varies based on the size, dimensions, weight, and destination of the package. If you are looking for cheap shipping within Canada, Read further here.

Factors Influencing Shipping Costs

Parcel Weight and Dimensions: These are the key factors that affect your domestic shipping cost. Remember, the larger the parcel, the more a retailer pays for shipping it. The same applies to package weight – a heavier package will have more shipping costs. 

Distance: Distance is another key factor. The point of origin of the shipment to the destination is also an important factor that determines shipping costs.

There is a simple rule to keep in mind here. The further the parcel travels, the higher the shipping cost. 

Delivery Speed: Selecting a shipping method with a faster delivery speed will generally increase the shipping costs compared to standard delivery.

Handling Charges: If your carrier’s staff handles your package before shipping, this will also add to total shipping costs. 

To manage handling charges, you can use a simple formula. Multiply the duration it takes to package an item and divide it by 60. Then, you can multiply the number by the hourly wage.

Tracking: Tracking is an important consideration that offers security but might add to your total shipping charges.

Often the tracking facility comes at some additional cost, and sometimes carriers provide this facility for free. 

Insurance: Many carriers that offer insurance are relatively inexpensive. The insurance covers your expenses if your package gets lost or damaged.

Packaging Best Practices

Robust packaging is critical for an eCommerce business. Selecting the right packaging can keep your shipping costs under control, protect the items, help your shipments reach your customers on time, and even reduce carbon footprints. 

There are several factors to consider when it comes to choosing the right packaging for your business. We have listed some of the packaging best practices:

Boxes: Boxes are the most popular choice when it comes to packaging. However, they may not always be the best option considering the products you are shipping.

Here are a few key pointers before you choose to use shipping boxes:

• Ideal for large, bulky, and/or fragile items
• Durable
• Recyclable
• Branding is possible

Padded Mailers: Padded mailers also called ‘bubble mailers,’ are envelopes that come with a protective layer on the inside.

Here are some key pointers if you are considering using padded mailers:

• Ideal for small, flat items that come with a thin layer of protection
• Different sizes are available
• Low-cost and lightweight

Polybags: Due to their thinness and flexibility, polybags are popular among retailers to ship items that are not fragile. Polybags are more cost-efficient than boxes and padded mailers, but they are also most susceptible to shipping issues.

Here are some key pointers if you are considering using polybags:

• Ideal for small, flat non-fragile items
• Different sizes are available
• Low-cost lightweight
• Weather resistant

Filler: Whether you use boxes, padded mailers, or polybags, you need to ensure the shipped items are protected in transit. They should be able to withstand any jolt or movement that happens in a vehicle or during handling. 

If the items you are sending are too loose in the package or prone to scratching, getting bent, or scuffing using void fillers is a must. Void fillers can also improve the unboxing experience for your customers.

Here are a few popular void filler options:

• Packing paper
• Bubble wrap
• Tissue paper
• Edge protectors
• Crinkle and shredded paper
• Peanut fillers
• Inflatables

Navigating Shipping Regulations and Restrictions

Shipping regulations are critical to the success of the shipping business in Canada, and it’s never easy to navigate these regulations. 

Navigating shipping regulations begins with understanding that these regulations were not rolled out to make operations more difficult. With navigation rules for this industry, regulators have ensured that with the evolving shipping industry, all shippers and other stakeholders can continue to thrive.

Shippers are often the most affected by shipping regulations, making effective navigation necessary. They can achieve this in the following ways:

1. Team up with Freight Forwarders

Shippers do not have to navigate the shipping regulations alone. They can partner with experts such as freight forwarders to do it.

Freight forwarders have the resources to guide the shippers through the complexity of regulations, documentation, and compliance procedures.

2. Stay Updated

Staying updated is crucial for a seamless shipping process. Shippers always have to stay on top of domestic regulatory updates to identify opportunities on time. This enables you to get ready for the future, especially when a major regulatory change is on the cards.

3. Using Technology

Over the years, keeping up with constant regulatory changes has become difficult. This is why using technology has made things easier for shippers. Many shippers have installed shipping software to automate documentation, calculate duties, and track shipments, and taxes.

4. Developing Strong Relationships

Relationships are always crucial to ensuring success in the shipping business. Developing rapport with reliable carriers and shipping facilitators with a proven track record of compliance will be an added advantage.

Shippers should always keep connecting and learning from other shippers, especially those who have achieved success in their respective industries. 

Domestic Shipping Rates in Canada

Shipping Service	Weight	Delivery Time	Price
Canada Post Regular Parcel	Up to 1 kg	2 to 9 business days	Starts from CAD 18.93
Canada Post XpressPost	Up to 1 kg	2 to 8 business days	Starts from CAD 23.34
Canada Post Priority Shipping	Up to 1 kg	Next day	Starts from CAD 41.45
FedEx 2Day	Up to 1 kg	2 days	CAD 32.50
FedEx Priority Overnight	Up to 1 kg	Next business day	CAD 37.04
FedEx Standard Overnight	Up to 1 kg	Next business day	CAD 119.25
UPS Canada Standard	Up to 1 kg	1 to 5 business days	CAD 41.62
UPS Canada Expedited	Up to 1kg	2 business days	CAD 54.37
UPS Canada Express Saver (Canada)	Up to 1kg	Next business day	CAD 57.86
UPS Canada Express	Up to 1kg	1 business day	CAD 72.17
UPS Canada Express Early	Up to 1kg	Next business day	CAD 88.37
Purolator Express	—	Next business day by the EOD	CAD 91
Purolator Ground Evening	—	5 business days from 5:30 – 9:30 PM	$92.63
Purolator Express 12 PM	—	Next business day by noon	$104.01
Purolator Ground 9 AM	—	5 business days – 9 AM	$109.70
Purolator Express 10:30 AM	—	Next business day – 10:30 AM	$115.38
Purolator Express Evening	—	Next business day from 5:30 – 9 PM	$124.72
Purolator Express 9 AM	—	Next business day – 9 AM	$147.86

Note: Shipping rates are subject to changes.    

Cost-Saving Strategies for Domestic Shipping

They vary according to the domestic shipping option chosen. For example, the regular parcel is CAD 31.15, Xpresspost CAD 65.98, and Priority is CAD 93.78. 

The following are a few proven strategies that can help businesses lower shipping expenses:

Optimizing Routing: Efficient routing is crucial for reducing shipping costs. By using AI-driven route optimization, businesses can analyze traffic, weather conditions, and delivery windows to figure out the most efficient routes. This reduces fuel consumption and also improves the delivery speed.

Consolidating Shipments: Consolidating shipments involves grouping multiple orders into a single shipment to reduce costs per unit. This strategy reduces the number of trips required, maximizes the load capacity, and minimizes freight charges.  

Use Zone Skipping: In zone skipping, consolidating shipments occurs at a central location. This helps lower the number of zones a shipment goes through, which can drastically lower transportation costs. 

Use Flat-Rate Shipping: Using flat-rate shipping can be particularly beneficial for heavier items or bulk shipments, as it lowers overall shipping costs. By opting for flat-rate options, businesses can avoid unexpected surcharges.

Negotiating Bulk Shipping Rates: Businesses that ship large volumes of packages can negotiate to secure bulk shipping rates. 

Partner with Third-Party Logistics (3PLs): Partnering with 3PL providers can streamline your operational process and lower shipping expenses. 3PLs often have access to discounted rates due to their package volume.

Offering Multiple Deliveries: Offering customers various delivery options, such as standard or express can increase customer satisfaction. 

Automate Shipping Processes: Automating shipping processes will reduce the instances of human errors and improve overall efficiency. An automated system helps with order processing, label generation, and saves time, and reduces labor costs. 

Optimize Packaging: By optimizing packaging sizes, retailers can minimize dimensional weight charges. Additionally, using lightweight packaging materials where possible helps reduce overall shipping weight, resulting in more cost savings.

Measuring and Improving Shipping Performance

To measure and improve shipping performance, key performance metrics are: 

On-Time Delivery Rate (OTD): Percentage of orders delivered within the promised timeframe. 

Perfect Order Rate: Percentage of orders delivered completely and accurately, including on time. 

Average Shipping Cost per Unit: Total shipping cost divided by the number of units shipped. 

Order Fill Rate: Percentage of orders fulfilled with all items requested. 

Delivery Lead Time: Average time taken to deliver an order from the moment it is placed. 

Customer Satisfaction Rating: Feedback from customers regarding their delivery experience. 

Strategies to Improve Shipping Performance:

Optimizing Inventory:

• Forecasting demand accurately 
• Managing inventory efficiently 
• Selecting warehouse location strategically 

Streamlining Order Processing:

• Automating order processing 
• Streamlining the picking and packing process 
• Accurate labeling  

Selecting Carrier:

• Select a carrier based on reliability, speed, and cost 
• Negotiate shipping rates 
• Use different carriers considering shipment size and delivery zone 

Monitoring Delivery Time:

• Monitoring the progress of the shipment in real-time  
• Identifying and resolving potential delivery delays 
• Updating customers regarding the shipment status 

Optimizing Packaging:

• Using the right packaging materials to provide protection 
• Applying proper packing techniques 
• Considering dimensional weight calculations accurately 

Implementing Technology:

• Installing a warehouse management system for managing inventory and order fulfillment 
• Using the transportation management system for route optimization 
• Using customer relationship management for tracking orders and communication

Future Trends in Domestic Shipping

The future trends in domestic shipping in Canada are likely to be dynamic. Some of the emerging trends could be:

Use of More Advanced Technology

These days, carriers are using AI, IoT, and other technologies to improve operational efficiency and customer experience. These technologies include: 

• Real-time tracking provides the latest updates to customers on their shipments 
• Uses robotics and automation to make warehouse operations up-to-date 
• Use of data analytics to optimize routes, lower costs, and improve delivery times 

Automation 

Use of automation in ports and ship navigation to improve operational efficiency and reduce costs. 

Drones

It is estimated that last-mile drone delivery will be worth $9.8 billion by 2030. 

Express Shipping

Demand for express shipping will keep increasing, with leading eCommerce companies opting for it to meet customers’ demands. 

Sustainable Shipping

There will be more emphasis on sustainable eco-friendly initiatives and sustainable shipping practices. 

Business-to-Consumer (B2C)

Due to the high demand for electronics, fashion items, children’s toys, and furniture, retail eCommerce is likely to see major growth in the B2C segment.

Conclusion

Domestic shipping is a crucial part of the local eCommerce industry in Canada. It allows businesses to deliver items to consumers on time. 

This type of shipping is usually more affordable than international shipping because it doesn’t require dealing with customs, crossing borders, or paying import or export duties. For example, Canada post domestic shipping rates are among the cheapest in the country.

To have an efficient shipping process, choose a reliable carrier that will help deliver all your orders on time at a low cost. Also, keep yourself updated with the changes in the shipping industry to ensure you are always ahead when it comes domestic shipping.

You can also partner with a leading shipping carrier for a smooth and simplified domestic shipping management. You can save time and effort as you fulfill your orders and grow your income while your shipping partner will ensure your products reach your customers in Canada.

FAQs

Q: What does domestic shipping mean?

Ans: Domestic shipping means transporting goods from one location to another within the same country.

Q: How are domestic shipping costs calculated in Canada?

Ans: Domestic shipping costs in Canada are calculated based on several factors, such as volumetric weight or a parcel’s length, width, and height, divided by a standard divisor. 

Other factors are origin and destination postal codes, the actual parcel weight, and shipping box size.

Q: How much does domestic shipping cost in Canada?

Ans: The domestic shipping costs in Canada depend on the shipping service, the weight and dimensions of the package, and the destination.

For example, Canada Post domestic shipping rates start at $9.67 for regular parcel up to 30 kg. Flat rate starts at $16.99 for parcels up to 5 kg.

Q: What packaging materials are recommended for secure domestic shipping?

Ans: Paper, paperboard, and cardboard cartons are recommended as packaging for items in shipping. Also, corrugated cardboards are robust and suitable for packaging.

Q: What are common challenges in domestic shipping, and how can I avoid them?Ans: Common challenges in domestic shipping are delivery delays due to harsh weather, incorrect addresses, traffic congestion, supply chain issues, poor packaging, or labor issues, To avoid these challenges, shippers need to take measures like using the right type of packaging, tracking shipments, maintaining regular communication with customers, and staying updated on regulations.