Shipping costs in Canada are reaching alarming limits. Today, if you are planning to start an eCommerce business, shipping will be one of the most expensive items on the list, if not the most. Therefore, it is crucial we strive to look for ways to save money on shipping. In this blog post, we will discuss what is considered cheap shipping in Canada, the carriers that provide cheap shipping and what are some of the hidden charges that well up the shipping costs.
We asked logistics experts to recommend ways for cheaper shipping and they did.
But before digging deeper, here’s a question we need to ask.
Why does affordable shipping matter?
From the POV of the seller – Shipping, if done wrong, will eat up your profit margins. In a country like Canada, where the cost of shipping is notoriously high, the chances of making money while paying exorbitant shipping costs remain slim. This is why, most Canadian eCommerce founders look for affordable shipping from the very start.
From the POV of the customer – If you, the seller have to pay more on shipping, you will end up raising the shipping fee. This will in turn discourage customers from buying from your brand and promote cart abandonment issues. Let’s face it, we are all either addicted to Free Shipping or Shipping above $. This is why almost 60% of Canadian retailers have set a minimum purchase amount to qualify for free shipping,
What is considered Cheap Shipping in Canada?
One Reddit user pointed out that shipping from Canada to China is cheaper than shipping within Canada. In such a situation, what exactly do we mean by cheap shipping?
We know that cheap shipping consists of a number of factors. But generally, there are only a handful that most people take into account. Here’s what cheap shipping generally means for the average Canadian business owner-
- Standard Ground Shipping – Ground shipping means using Ground transportation for shipping. This usually takes longer than express shipping options and costs around $5-10 locally. Eg – Canada Post Regular Parcel
- Regional Carriers – Regional carriers provide better rates than national carriers because of their expansion in a certain geographical area. ShippingChimp shipping costs start at $5 for local deliveries in Canada.
- Bulk Shipping – Shipping in bulk reduces the cost per unit of shipping. This option can save you around 30% in shipping costs. Carriers like Canada Post often give such discounts to large shippers like Canadian Tire.
- Promotional Shipping – Some carriers offer Free Shipping up to a certain limit. SMBs make the most of it during the initial stages of the business.
- Flat-Rate Shipping – This kind of shipping is most suited for businesses shipping heavier items. With flat-rate shipping, you pay a flat fee regardless of the weight and size of the orders. Costs typically range from $10-$25.
In pure numbers, when you are shipping a 2kg order within the same city, less than $6 is considered cheap. Less than $10 is cheap when shipping from say Toronto to Vancouver. In cross-border, say Toronto to LA, less than $12 is cheap.
We conducted a poll to know exactly what Canadians prefer and here is what they said.
As you can see, most are fans of <$12.
Now that we know the numbers, are there certain eCommerce categories that are more likely to be sold if they are accompanied by the cheapest shipping possible? In other words, are there any product categories that people don’t want to pay any shipping fee on?
The answer is Footwear.
Canadian shoe brand, The Shoe Company frequently offers free shipping on all orders, with no minimum purchase required.
Which carriers in Canada provide such rates? Let’s dive deeper.
Top Cheap Shipping Options in Canada
- ShippingChimp – The shipping rates start at $5 at ShippingChimp, making it one of the cheapest ways to ship across Canada. With warehouses located across all important cities, free pickups, and dedicated account managers, ShippingChimp is a competitive choice for eCommerce businesses.
- Canada Post – Canada Post can reach anywhere. These rates are affordable as well.
- UPS Canada – Through the years, UPS has become a trusted carrier for Canadian businesses. Recently, they have started shipping on Saturdays as well. This makes them a good pick for eCommerce businesses.
- Purolator – Go for Purolator’s Ground service when shipping within Canada.
Interested in knowing which Canadian carriers are currently most popular? See this.
Choosing the right carrier is important, and being aware of good shipping practices is even more important. Here are some tips that would help eCom business manage their shipping costs.
Tips for reducing shipping costs
We conducted a poll to find out how shipping can be made cheap. Is it the right packaging, zone-skipping carriers, free pickups, free dropoffs or any other factor that is most suited for making shipping cheap? Here is what people chose.
Experts suggest we take these factors into account:
- Right Packaging – If you want to save on packaging costs, make sure you do not pay to ship air. The box should be of the right size, have proper dunnage and light materials and should not have too much space.
- Carriers that use Zone-Skipping – Zone-skipping is a great idea if your customers are located in a particular area.
- Free Pickups and Free Dropoffs – A carrier that takes care of pickups and dropoffs, will save you a ton of money in the long run.
- Volume Discounts – if your business is shipping high volumes, you are eligible for volume discounts. Don’t forget to ask them every time your agreement is renewed or when you switch carriers.
- Opt for Ground Shipping – Express shipping is the ideal form of shipping, we get it. But Ground shipping is the cheapest form of shipping. It is no surprise that Shippers are moving away from costly options. One example is USPS’s steep drop in expedited shipping demand (by 40.7%). In a world where Amazon has raised the standards with Prime, what happens if you choose ground shipping vs. express shipping? Gordon from USPS has rightly pointed out –
Longer transit times mean lower shipping rates. Even Adrian from FedEx says so.
Since packaging is one factor that can go very wrong and end up costing you more, it is a favourite when it comes to reducing shipping costs. A combination of strategies also work like a charm.
However, there are other factors that affect shipping costs, way more than we think they do. These include:
- Negotiations – Negotiating for the right shipping price is an underrated skill. If you are shipping high volumes, you must ask your carrier for discounted rates or free pickups. If you are running a small business, keep in mind that you can still negotiate your way through cheaper shipping costs. Negotiation is also an underrated skill which logistics experts suggest eCommerce owners choose more.
- Rate Shopping – Comparing shipping carriers and getting quotes from a couple of carriers might seem time-consuming, but it is a cost-effective activity in the long run. Most of the time, eCommerce owners get better rates from regional carriers. Gabrielle from EasyPost has said it in the most simple way possible –
- Flat Rate Shipping – If you are shipping heavy items, ship them cheaper using standard-size boxes with flat-rate shipping.
Pro Tip – After you have used all these tips, here is an additional one for you. Always opt for a carrier that has enough volume in the specific lane. Listen to Mike from Coca-Cola –
Additional Considerations
- Hidden Fees: Many things make up the final shipping charges. These hidden charges can be – fuel surcharges, residential delivery fees, and customs duties for international shipments. These can add up quickly and eat into your savings.
- Delivery Speed vs. Cost: If your customers are willing to wait a little longer, opt for standard delivery to save money.
- Insurance and Tracking: In some cases, like insurance, paying more will actually save money in the long run.
Cheap Shipping with ShippingChimp
Logistics experts all over the world suggest two things the most – comparing carriers and choosing the right packaging materials. At ShippingChimp, we give you the most competitive rates so that you get the most affordable shipping. Within the same city, we offer as low as $6. We have dedicated account managers solving your shipping needs and further lowering your shipping costs. Explore our prices here.
FAQs
1. How can I find the cheapest shipping option in Canada?
Use rate comparison tools, consider volume discounts, and choose carriers based on your specific shipping needs.
2. What factors influence shipping costs the most?
Package weight, dimensions, destination, and delivery speed are the primary factors that affect shipping costs.
3. Are there any shipping discounts available for small businesses?
Yes, many carriers offer discounts for small businesses, particularly when shipping in bulk or through loyalty programs.
- An Experts’ Guide to Cheap Shipping in Canada - August 28, 2024
- Why is Express Shipping expensive? Experts weigh in - July 23, 2024
- Which Canadian carriers deliver during the weekend? - June 7, 2024
