Best Shipping Options for Small Businesses in 2025

Shipping isn’t just about moving packages from point A to point B for small businesses in Canada. Oftentimes, it can mean the difference between generating profit or facing a loss. It is especially a critical matter to consider since the shipping setup directly impacts customer satisfaction, which then translates to repeat sales and, ultimately, long-term growth.

However, most small business owners run into the same types of roadblocks. Shipping costs can be too high and cut into margins, and delivery speeds aren’t as optimal as customers want them to be. Then there are tracking systems that often leave both seller and buyer confused. These challenges are overwhelming, especially when you consider that one misstep can turn into the loss of a customer.

Therefore, the focus in 2025 should be to take a new look at the shipping solutions available. Through this guide, you will find the best options to pick if you are a small business. The best shipping solutions for 2025 will also reveal why these are considered the best and what core attributes to look for when choosing a shipping service for your business.

So, how do you find a shipping setup that’s affordable, reliable, and won’t drown your margins?

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What Small Businesses Need from a Shipping Partner

The first matter of business is understanding what you need. While it looks like a simple question to answer, many small businesses struggle to clearly define their shipping requirements. Identifying these early ensures you choose a partner that fits both your current and future needs.

Affordability

Shipping costs should be low enough to avoid cutting into the original margins of a project. Transparent pricing, low base rates, and the absence of surprise fees are essential. Your business will thrive when you have full visibility into how much you will pay for shipping upfront.

Reliability

Customers don’t care how the shipping happens. What they expect are two things: timely delivery and products arriving in good condition. It is also important for them to track packages easily, so they feel confident in your business’s ability to transport their orders securely.

Flexibility

While most businesses begin locally, even small operations can quickly find themselves managing cross-border sales, especially with the rise of online marketplaces. A shipping partner should support both domestic deliveries and international expansion. In other words, the best solutions keep all services under one umbrella.

Scalability

A good shipping partner should grow with your business. If order volumes suddenly increase, the provider must be able to handle the demand. Seasonal spikes and event-driven surges can push volumes up exponentially. The best options are those capable of handling any product type and any size without disruption.

Top Shipping Options for Small Businesses in Canada

ShippingChimp

ShippingChimp is the perfect choice for small businesses shipping across Canada and to the US. What sets it apart is its multi-carrier savings and the fact that it can integrate with the likes of Shopify and ShipStation. The pricing starts at just $5.11 CAD, which makes it affordable. Human support is available throughout the day, and the free pickup advantage makes the platform more appealing.

Chit Chats

For Canadians who sell regularly to the United States, Chit Chats could be considered a go-to. It gives users access to USPS pricing, which means slashing cross-border shipping costs. As customs paperwork is made simple, faster deliveries become possible. The lack of a requirement to navigate complex logistics further makes the platform desirable among Canadian sellers with American customers.

Purolator

Purolator has always been a trusted Canadian carrier, and it specializes in domestic shipping with a strong B2B ecosystem underneath. It features reliable express services, which makes it suitable for those looking for time-sensitive deliveries. Thanks to its large presence across Canada, it covers multiple remote areas as well, which makes it suitable for businesses that are always in need of better domestic reach.

UPS

UPS is a strong pick for those looking for an established ecosystem. As a global leader when it comes to shipping, it is a solid choice for those looking for a balance between global reach and reliability. That being said, its services could be slightly expensive. However, since it also offers advanced tracking, scalable solutions, and dependable services, this is a suitable pick for businesses that are in their expansion phase.

FedEx

When it comes to FedEx, speed and reliability are the goals. Therefore, it is suitable for international and express deliveries. The only downside, however, is that the services are expensive. Small businesses can still gain from it thanks to precise tracking and dependable transit times. Furthermore, for those looking for urgent delivery, this shipping platform is a good pick.

DHL Express

DHL Express is often the best option for international orders outside of North America. Its global infrastructure covers over 220 countries. It is not the cheapest, however, which makes it very niche. That being said, DHL does offer a high degree of efficiency for international e-commerce, allowing small businesses to serve overseas markets effectively.

NetParcel

NetParcel is an online platform whose primary job is to aggregate discounted courier rates. For small businesses, this approach allows access to prices typically reserved for larger shippers. NetParcel is known for its simplicity, thanks to integrations with major e-commerce platforms. The added flexibility to compare and book across carriers makes it a good option for small businesses looking for a cost-saving tool when shipping internationally.

Loomis Express

Loomis Express is known for providing a competitive domestic courier service that focuses on reliable ground and express options. It is part of the TFI International network, which means it has a strong logistics backbone. Therefore, small businesses seeking an alternative to larger names can rely on Loomis. It is affordable and has wide service coverage, which fits the needs of most businesses in Canada.

Canpar Express

For those looking for a low-cost ground shipping company, Canpar Express is a good option. However, it does have issues with timing, which is why it is best suited for non-urgent deliveries. E-commerce retailers look at it as a good pick when reach is needed but without additional costs. It also features flexible delivery options and combines affordability with wide availability, making it a staple for small businesses.

TForce Logistics

TForce Logistics focuses specifically on last-mile delivery, mainly in urban markets. Because of its focus on quick, local fulfillment, small businesses consider it ideal for customers who expect fast shipping. It has same-day and next-day options in select areas. Therefore, in metro regions, it is a powerful choice for businesses.

Comparison Table

Carrier/Platform	Best For	Avg. Savings	Strengths
ShippingChimp	SMBs / D2C brands Canada and Cross Border	30-53%	Competitive multi-carrier pricing, Shopify/ShipStation integrations, Canada & US coverage, free pickups, 24/7 support
Chit Chats	Cross-border to U.S.	20-50%	USPS pricing access, simplified customs paperwork, strong U.S. delivery network
Purolator	Domestic B2B & B2C	10-20%	Reliable express delivery, large Canadian network, strong B2B logistics
UPS	Cross-border & global	15-25%	Global reach, advanced tracking, scalable solutions for growing businesses
FedEx	Fast express service	10-20%	Reliable international shipping, precise tracking, strong express network
DHL Express	Overseas orders	15-30%	Global leader, 220+ country coverage, best for non-North American shipping
NetParcel	Rate comparison	20-40%	Online platform with discounted courier rates, easy e-commerce integrations
Loomis Express	Domestic alternative	10-15%	Competitive ground rates, Canadian coverage, part of TFI International
Canpar Express	Cost-effective ground	15-25%	Affordable ground shipping, wide Canadian reach, reliable for non-urgent deliveries
TForce Logistics	Last-mile in cities	15-20%	Same-day/next-day urban delivery, strong local fulfillment focus

How to Choose the Best Option for Your Small Business

When looking for a shipping partner, it is important to know that while every service provider could be good in their own right, not everyone will be the right fit for you. Therefore, to choose the best shipping service for your small business, focus on the key points and ask the right questions:

Where are most of your customers located?

This is the first and most important question to ask. If the majority of your buyers are inside Canada, your focus should be on domestic-focused carriers like ShippingChimp, Purolator, Canpar, or Loomis. Their cost-effectiveness makes them a good option.

However, if your business is to serve international markets, picking between ShippingChimp, Chit Chats, UPS, or DHL Express can simplify cross-border logistics and reduce costs.

Are you more concerned about speed or cost?

The second factor is to think about speed or cost. In most cases, it is a matter of either-or. Some businesses need express delivery to compete. For instance, FedEx, UPS, and DHL excel at speed but often at a higher price.

On the other hand, if margins are small, ground-focused solutions such as Canpar or rate aggregators like ShippingChimp and NetParcel will offer you highly affordable services that won’t hurt your bottom line.

Do you need cross-border or only domestic shipping?

If you are a domestic-only seller, it is better to stick with Canadian couriers. However, if international shipping is your need or you are planning international expansion, focus on shipping partners that are versatile in terms of scaling. Look for partners with strong cross-border capabilities . It will save you from shipping headaches later. To start shipping with DDP, contact ShippingChimp.

Hidden Costs Small Businesses Should Watch Out For

Shipping looks very affordable in most cases, but often only on the surface. It is only after the bill is drawn that small businesses come to know the hidden costs. Therefore, businesses should always keep an eye on them.

Holiday surcharges

Due to seasonal rush, carriers often add seasonal fees during peak times like Black Friday and Christmas. As a result, shipping costs rise significantly, especially for high-volume sellers. Small businesses should consider planning ahead and find ways to build these charges into prices to prevent profit margins from taking a hit.

Fuel surcharges

Almost all major carriers apply fuel surcharges that fluctuate with market prices. They are often small when only one package is considered. However, when the volume is high, the fuel surcharge compounds, adding massive overhead. To keep tabs on them, businesses should regularly check how each carrier calculates these charges.

Rural delivery fees

When deliveries are done outside major cities, extra fees are often charged. For businesses that serve remote or rural customers in Canada, these charges often make up the bulk of additional shipping expenses. Therefore, businesses should use a charge aggregator and compare carriers on rural surcharges.

Returns processing costs

There is a lot to appreciate about free returns, as they may boost customer confidence. However, they can also become a financial burden. In addition to return shipping, carriers often charge for handling, restocking, or additional pickup services. Small businesses offering free refund services should factor these charges into the product’s total cost to prevent losing profit.

Case Example

Since the factors that influence costs are many, companies have to be strategic when it comes to pricing and shipping to control expenses. This way, the customer remains satisfied while the company itself is still able to generate income.

But it all comes down to finding the right shipping partner. That’s the story of Great Canadian Socks Company. As the company thrived, sales volume increased. However, shipping costs started to climb as well. The problem was not only the shipping cost but also high software subscription fees.

Commenting on the matter, Sid, the company’s founder, said, “We were starting to find that it was actually quite expensive because we had to subscribe to another software which had a monthly cost. So I didn’t like that. Also, I would’ve had to drop off the packages. So that was becoming an issue and taking up a lot of my time.”

To the company’s rescue came ShippingChimp. This singular platform not only reduced the shipping cost but also streamlined operations, removing the need for costly subscriptions. The real-time tracking abilities it delivered helped the company continue to prosper. As a result, the company now saves up to 53% of its costs, all thanks to ShippingChimp.

Conclusion

For Canadian small businesses, shipping doesn’t have to be a profit drain. By choosing a partner that balances affordability, reliability, flexibility, and scalability, entrepreneurs can turn logistics from a pain point into a competitive advantage. Whether it’s leveraging platforms like ShippingChimp and Chit Chats for savings, or trusted names like UPS, FedEx, and DHL for global reach, there’s a solution tailored for every stage of growth.

Affordable and reliable shipping is possible. All it requires is finding the right match for your unique business needs.

Want to see your actual savings? Share your last invoice; we’ll benchmark your rates for free.

FAQ 

What’s the cheapest shipping option for small businesses in Canada?

For many small businesses, platforms like ShippingChimp often provide the most affordable rates thanks to multi-carrier discounts and integrations with tools like Shopify and ShipStation. Rates can start as low as $5.11 CAD with free pickups included.

Is UPS or Canada Post better for small businesses?

It depends on business needs. Canada Post offers wide domestic coverage and affordable letter-mail options, making it useful for smaller packages within Canada. UPS, on the other hand, is stronger for cross-border and international deliveries, with better tracking and reliability. Many small businesses use a mix of both, depending on order destination.

Which courier is best for cross-border shipping?

For U.S.-bound shipments, ShippingChimp is a top choice. Chitchats is the second best because it provides access to USPS pricing, drastically lowering costs compared to direct shipping. UPS and FedEx are strong for consistent international service, while DHL Express is often the best option for markets outside of North America.

How can small businesses save on shipping costs?

The best strategies include comparing rates across carriers, using multi-carrier platforms like ShippingChimp , and consolidating shipments when possible. Negotiating with carriers, offering pickup options, and factoring in hidden fees such as surcharges and rural delivery costs also help protect profit margins.