2023 Canada Post Parcel Service Rate Increase: What Small Business Owners Need to Know

2023 Canada Post Parcel Service Rate Increase: What Small Business Owners Need to Know

As of September 11, 2023 Canada Post will be increasing their parcel service rates for Domestic, USA and International Parcel Services. While the average increase is only 3.4% for Domestic Parcel services and 2.5% for USA/International customers, many small business owners are not happy about the increase.

Shipping is a crucial part of any business, and with the Canada Post Parcel Service Rate Increase, small business owners need to be aware of the changes and how it will affect their bottom line. The rate increase will impact shipping options and surcharges, including liability coverage and additional handling surcharges, which will be a concern for many small businesses.

Small businesses that ship oversized or unpackaged items will also be hit with higher fees, with the additional handling surcharge increasing from $18 to $21. During peak season (October 30, 2023 to January 14, 2024) the surcharge for additional handling will increase even more, from $21 to $30. These additional fees can add up quickly, and small businesses may struggle to keep up with these costs.

Average price increases, September 2023

• The weighted average price increase for commercial customers using Domestic Parcel services is 3.4%.

• For USA/International, the weighted average price increase for commercial customers is 2.5%.

Changes to option and surcharge prices

Rate increases for shipping options and surcharges include:

• Liability Coverage (up to $100) for Regular Parcel will increase from $2.50 to $2.75.

• Additional Liability Coverage will increase from $2.50 to $2.75.

• The additional handling surcharge (for oversized/unpackaged items) will increase from $18 to $21.

Peak season surcharges (October 30, 2023, to January 14, 2024):

• The surcharge for additional handling (for oversize/unpackaged items) will increase from $21 to $30.

• The surcharge for items that exceed Canada Post’s specifications for size and weight (out-of-spec) will increase from $300 to $400.

(refer to the Canada Post Customer Guide for detailed specifications)

 

Navigating Shipping Rates as a Small Business

While Canada Post has cited rising costs as the reason for the rate increase, many small business owners are struggling to keep up with these added expenses. As a small business owner, you may be wondering how to navigate these changes and keep your shipping costs under control.

One option is to explore alternative shipping providers, such as UPS or FedEx. While they may not always be the most cost-effective option, they can provide more flexibility and control over your shipping costs. You can also consider working with a third-party logistics provider who can negotiate rates on your behalf and help you optimize your shipping strategy.

Another option is to look for ways to reduce your shipping costs. This could include optimizing your packaging to reduce the size and weight of your shipments, negotiating better rates with carriers, or exploring alternative shipping methods such as freight forwarding.

It's crucial for small business owners to stay informed and proactive when it comes to managing their shipping costs. The Canada Post Parcel Service Rate Increase is a reminder of how important it is to explore your options and look for ways to reduce costs. By doing so, you can continue to provide your customers with the quality service they expect, even in the face of rising expenses.

At the end of the day, small business owners need to find the best shipping strategy that works for them. It's essential to weigh the pros and cons of each shipping provider, the impact of potential fees and surcharges, and any other costs that come with shipping. With the right strategy in place, small businesses can navigate the Canada Post Parcel Service Rate Increase and continue to thrive.

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