Best Shipping for Small Business

If you have a small business in Canada and are sending parcels through domestic and international shipping, you need to deliver fast to customers and also lower shipping costs. 

The eCommerce market in Canada is estimated to grow at 9.76% (CAGR) from 2024 to 2029. Also, customers’ expectations for quicker and cheaper shipping are posing challenges to small businesses. 

Let’s check out some key statistics:

• Around 33 percent of customers in Canada believe that delivery times can vary depending on the type of the product. 
• 19 percent of Canadian customers expect to get their packages in 2 days or less.
• 53.2 percent of customers desire free shipping.
• 25.5 percent of customers are ready to bear up to $10 for shipping. 
• 68 percent of customers think free shipping is the main reason for shopping on a retail website. But 69 percent of these customers are ready to pay shipping costs for quicker delivery.
• 55 percent of consumers abandoned shopping carts since the retail websites were not offering free delivery.

From the stats above it is evident that small businesses in Canada have to deal with the pressure of providing free or discounted shipping. 

However, they also need to cover the shipping cost maintaining the profit margin. This is why choosing the best shipping company in Canada for small business is crucial.

Importance of Shipping for Small Businesses

For small businesses, shipping can make or break a business. It is a daunting task for small retail store owners since they have to keep up with the tough competition and also make customers happy with low-cost shipping and fast delivery. This is why you need to choose the best shipping for small business in Canada.

It’s not the end. The importance of shipping for small businesses is also associated with:

• Choosing the right carrier
• Brand loyalty
• Cost control
• Maintaining the profit margin
• Customer experience

The only way to deal with these challenges is to find the best shipping for small business, the kind of business you run. 

Once you hand over your parcels to a shipping carrier, you don’t have control over them. This is why the best shipping company for small business in Canada plays a crucial role since they are responsible for delivering your parcels on time and intact.

So, it all comes down to understanding the significance of shipping and making decisions to minimize risks and ensure that the shipping is a seamless process. 

Most importantly, your shipping carrier will decide the shipping rates considering the following components:

• Shipping boxes, packaging, labels, and tape
• Human resources for loading and sending parcels
• Carrier charges for picking up and delivering parcels
• Bearing export/import fees when shipping internationally.

Managing end-to-end shipping, handling, packaging, and delivery are key areas of an eCommerce business and are closely tied to the success of your retail business. 

To overcome the challenges related to shipping, make decisions judiciously by checking the shipping options for small business in Canada and partnering with a reputable carrier that will make your life easy. 

Besides efficient shipping, an ideal shipping carrier can offer features such as tracking, order management, and other eCommerce functions that can save you time, effort, and cost.

Key Factors to Consider in Choosing Shipping Services

1. Industry Experience and Delivery Speed of the Carrier

Try to find out whether the shortlisted shipping carrier has adequate industry experience or not. It means they have the efficiency to deliver packages on time. 

You can either hire a shipping giant with a vast global network of relatively smaller shipping companies that offer efficient shipping and deep discounted shipping rates.  

A reliable carrier can help your online retail store grow by streamlining your shipping process and making customers happy.

Factors such as the delivery speed, shipping costs, and tracking facility are critical for eCommerce businesses. The following statistics show the significance of fast delivery:

• 43% of customers want faster delivery for their packages as Statista reported 
• More than 80% of customers want same-day delivery. 

Besides, choosing the best shipping options for small business in Canada, the carrier should be able to provide a delivery schedule at least a week in advance to avoid shipping delays. 

2. Check if the Carrier Can Take Care of Order Fulfillment 

This is another critical factor. You need to ensure the carrier you have shortlisted can fulfill your orders and deliver to customers smoothly. Besides, the carrier should be able to lower shipping charges with proper packaging. 

When discussing order fulfillment with the carrier, mention the location of most of your customers, shipping speed, delivery timeframe, and shipping charges your customers are willing to pay.  

All these factors should help you decide to choose the best shipping service for small business for your online store. Particularly, if the carrier can efficiently do the job of order fulfillment, they are worth considering. 

3.  Compare Different Shipping Rates 

High shipping charges can turn your customers away. Besides, higher shipping costs of a carrier can go over your budget, and take out a major chunk of your profit. 

To keep your profit, then you have to pass on the shipping charges to your customers, which might cause a loss of customers.

To maintain your profit and make your customers happy, try comparing the shipping rates of different carriers, and choose the best shipping rates for small business.

Some of the shipping rates you receive may have hidden surcharges. This is why you need to get details about shipping charges and ensure it is a transparent pricing model.

4. Look if the tracking Feature is Available

When running an eCommerce store, tracking orders is crucial.   

When selecting the best shipping options for small business, check if the company provides a quality tracking facility to locate your shipment and whether it will reach the customer on time. 

By associating with a reputable carrier that offers various shipping solutions on one platform, you can track all your orders. You can check the status of your orders by entering the tracking number or the Order ID. 

5. Is There 24/7 Customer Service

Talking to irate customers and resolving issues about shipping is a challenge. Any shipping delay or lack of communication regarding customers’ issues can make them angry. 

This is why choose a reliable carrier that has a proactive customer service team and responds to customers’ queries efficiently via email, phone, and chat.

Top Shipping Providers for Small Businesses in Canada

Here is the list of the shipping companies:

1. ShippingChimp

When you are looking for an efficient and affordable shipping carrier, ShippingChimp can fit the bill. ShippingChimp is the number one eCommerce carrier and the best shipping company for small business in the Canadian eCommerce industry. 

With ShippingChimp as your partner, you can save as much as 53 percent on your shipping costs, regardless of the destination.

You will get the following benefits:

• Competitive shipping rates for superior service. Our shipping price start at $5.11
• 100% fully tracked deliveries and visual delivery confirmation.
• Free pick up and up to $100 worth of insurance free.
• 1-4 business days delivery
• Specialises in eCommerce package delivery

2. Canada Post

Canada’s national courier Canada Post dominates the domestic shipping scene in terms of reach and volume. Canada Post boasts of an extensive network comprising branches in 6,200 locations. 

Besides domestic shipping in Canada, Canada Post also provides overseas shipping to more than 190 countries. 

Here are the key shipping services of Canada Post:

• Regular parcel delivery in 2 to 9 business days;
• Guaranteed next-day delivery with priority shipping;
• Xpresspost shipping in 2 business days or less;
• Flat Rate shipping in 1 to 7 business days.

Overseas shipping includes:

• Priority Worldwide shipping guarantees to deliver parcels in 2 to 3 business days.
• Xpresspost International shipping delivers parcels in 4 to 7 business days. 
• Xpresspost USA shipping guarantees to deliver parcels in 2 to 3 business days.
• Tracked Packet™ shipping to the US in 4 to 7 business days.

3. Purolator

Purolator was previously known as Trans Canada Couriers. It became Purolator in 1967. 

Purolator delivers parcels to 99 percent of Canadian addresses through its low-cost and fast shipping services.

The carrier offers overseas shipping through its association with UPS and ships parcels from Canada to overseas destinations. 

Purolator provides the two types of domestic shipping services mentioned below:

Purolator Ground

• Guaranteed shipping in 2 to 4 business days
• Free pickup scheduling 
• Tracking feature
• Saturday shipping service

Purolator Express

• Guaranteed delivery in 1 to 2 business days;
• Free pickup scheduling;
• Tracking facility;
• Availability of Saturday shipping.

Besides, Purolator offers overseas shipping services to over 210 countries. 

4. Canpar

As the second-largest shipping carrier in Canada, Canpar delivers packages through 62 hubs located across the country. 

The carrier offers domestic shipping services in prominent cities such as Toronto, Montreal, and Vancouver. 

CanPar Express ships packages to all 10 provinces in Canada and the US at affordable shipping rates. 

Canpar’s overseas shipping covers over 200 countries. 

Canpar’s logistics services are below:

• Canpar Ground delivers in 1 to 4 business days;
• Canpar Overnight delivers in 1 to 6 business days;
• Canpar Letter Select delivers in 2 to 10 business days.
• Canpar International delivers in 2 to 10 business days.

5. General Logistics Systems (GLS)

General Logistics Systems (GLS) earlier operated as Dicom before its acquisition in 2018. Based in Quebec GLS is a regional shipping carrier that offers shipping service across Canada. 

The carrier runs its operation from 28 shipping terminals, delivering parcels to Quebec and Ontario. The carrier is said to deliver 95 percent of parcels in Quebec within 24 hours.

Besides, the company also provides freight shipping for eCommerce businesses. GLS also offers overseas shipping services via its partner network.

6. DB Schenker 

DB Schenker Canada is another well-known carrier in Canada that has been serving the country’s logistics industry for more than 50 years. The carrier has offices spread across over 2000 locations worldwide.

DB Schenker provides services, including freight forwarding, contract logistics, lead logistics, land transportation, and special products.

The main features of the carrier are below:

• The carrier can fulfill any industry needs by providing personalized services. 
• DB Schenker’s dedicated portal is called ESchenker, which makes managing orders, shipment tracking, and reporting easy.
• DB Schenker also empowers its customers by providing 24/7 

Comparison of Shipping Costs and Services
In the following shipping rates comparison, the shipping is done within St. John’s and Newfoundland & Labrador (A1A 0A4 to A1A 0B3). The parcel weight is 2 kgs, with dimensions 20x20x20.

Carrier	Shipping Rates	Delivery Times	Key Features
ShippingChimp	$10.05	2-3 business days	Low cost shipping, 100% tracking, Free pickup, $100 insurance
Canada Post Regular	$20.04	3 business days	Delivery status, tracking, signature, liability coverage
FedEx Ground	$15.53	Up to 6 business days	Tracking, pickup, money-back guarantee
Purolator Ground	$33.17	Next business day	One day faster delivery, real-time tracking,
UPS Express	$64.22	Next business day	Same-day delivery, Tracking

Small Business Shipping Challenges

1. Poor Packaging

Poor packaging may lead to broken or damaged items. These days, many consumers order wine, beer bottles, cookies, and cakes from electronic items and furniture. It means vulnerable items need meticulous packaging. 

Besides, the packaging must comply with the requirements of the shipping company and be environmentally friendly. 

2. Is the Carrier Suitable for Your Business?

This is an important aspect when choosing a career. Can the operational process of the carrier seamlessly integrate with the way your business functions?  Check out in detail how the carrier works and also give them a briefing about your process.

The carrier should be aligned with your business vision. Also, their staff should be motivated enough to adhere to the high standards of your business.

3. Do Your Items Fit in the Shipping Boxes?

If you have several items that don’t fit traditional shipping boxes, they will need special handling to avoid damage. It can affect the delivery schedule and may take a little more time to arrive at the customer’s doorstep. 

4. Does the Carrier Offer a Tracking Feature

Knowing the whereabouts of your shipment is always a concern. To deliver packages to your customers within the promised timeline, package tracking is crucial.

Missing parcels and compensating the customer might take the sheen out of your business.  Keeping track of a shipment’s latest status can prevent this from happening.

How to Optimize Your Shipping Strategy for Small Business

Check the Items You’re Shipping

You want to keep your items safe. Depending on the fragility of the items, they might need more cushioning to prevent damage. 

Efficient packing of your shipments will keep your products safe and save you money, too. 

Choose a Shipping Service Based on the Destination

Generally, the farther your items ship, the more you’ll pay, be it domestic or international destination. 

To find the most affordable small business shipping service, calculate the shipping rates by entering the details of your shipment. 

Consider the Urgency of Delivery

Check out which shipping method your customer has chosen. It is next-day delivery or regular shipping which has days to spare. 

By planning, you can ship a non-urgent parcel to another business through priority shipping. 

Your Shipment Frequency

Your shipping frequency is also an integral part of the shipping strategy. Consider how often your small business sends packages.

If you have a handful of parcels, you can schedule a one-time pickup online. If you ship regularly, but not daily, scheduling automatic pickups might be a good idea. 

Shipping Large or Bulky Items

Are you shipping items that are over 150 lbs.? Then you can think of air freight or less-than-truckload (LTL) services. 

LTL freight shipping can be affordable for you because it needs only a portion of the trailer space. By entering your shipment details you can get freight quotes from multiple carriers.

Support Your Customers with Shipping and Returns

Coordinating shipping for your small business is only one part of the whole process. Equip your customers with tracking and delivery tools. 

It helps enable your customers to manage their own delivery experiences. They should be able to track packages, get alerts, request to redirect packages, and much more.

Tips for eCommerce Small Business Shipping Success

Compare Shipping Rates from Different Couriers

Not all shipping rates and services are equal. This is why you need to compare them. To save shipping costs, getting access to the best rates is the first place to start. 

Shipping rates can vary drastically from one carrier to another. By comparing shipping rates, you can find the most affordable option for your business.

Make Your Packaging Efficient

Packaging plays a key role in both protecting your items and saving shipping costs. 

By using adequate-sized shipping boxes and minimizing empty space, you can significantly lower the dimensional weight, which is a key factor in determining shipping rates. 

Integrate a Shipping Automation Tool

These days, various shipping automation tools can automate these tasks, and save you precious time and money. 

You can integrate an automation tool with your sales platform or online store streamlining the shipping process.

Use eCommerce Integration

Look for shipping software solutions that will integrate smoothly with your eCommerce platform. 

With eCommerce integrations, easy-to-install plugins will easily connect with your online store, enabling you to automate tasks such as generating labels and uploading customer details. 

This saves you precious time and eliminates manual data entry errors, ensuring accurate shipping every time.

Offer Your Customers Multiple Shipping Options

Offer your customers different shipping choices, including different shipping speeds and costs to cater to their needs and budgets. 

 Also, think of keeping a free shipping option for order value above a specific amount to encourage larger purchases. 

Conclusion

To sum it up, it’s crucial to choose the right shipping partner that will help scale up your business and streamline your shipping process. 

Collect multiple quotes from different carriers before making a final decision, and don’t hesitate to negotiate. A professional carrier will have well-maintained vehicles and an efficient shipping process. 

You need to choose a reputable shipping carrier that can deliver items to consumers within the time limit and at an affordable rate. Pick a carrier that can meet your shipping requirements. 

Avoid opting for the carrier that offers the cheapest shipping rate, as it might result in poor service quality. You should also verify their insurance, vehicle fleet, past record, and their keenness to do that job efficiently.  

You may also have an option of partnering with an integrated shipping platform that offers deeply discounted shipping rates and support services. 

FAQs

Q: What is the best shipping company for small business in Canada? 

Ans: For a small business in Canada, ShippingChimp is the best shipping company because it offers up to 53% savings on shipping costs, free pickup, real-time tracking, and more.

Q: Which shipping carrier offers the best rates for small businesses? 

Ans: If you compare different carrier rates, you will find that ShippingChimp offers the best rates for small businesses. Shipping through this carrier within Canada starts at the price of $5.11 only, international shipping rates start at $7.42, and to the US it’s $5.21.

For example, if you ship from Calgary to Toronto, the ShippingChimp rate will be $7.41, whereas the other national carrier rate will be $15.97, nearly double.

Q: Is it better to use a national carrier or a third-party shipping service?Ans: Whether to choose a national carrier or a third-party shipping service provider depends on your business needs. Usually, a third-party shipping service (3PL) is a better option if you need a range of logistics services, such as inventory management, warehousing, etc. whereas a national carrier is ideal if your main need is just to transport items from point A to point B.