Shipping can be a significant expense for small businesses, but there are ways to reduce costs without sacrificing speed or reliability.
This blog post will explore the cheapest shipping options for small businesses in Canada, drawing on information from leading courier services and industry experts.
Shipping Options Available for Small Businesses in Canada
Small businesses in Canada have a variety of shipping options to choose from. These include major courier services, independent freight services, fulfillment services, and shipping resellers.
Major Courier Services
- Canada Post: As Canada’s national courier service, Canada Post offers a range of affordable shipping options for small businesses, including Regular Parcel, Xpresspost, and Priority. They also have a “Solutions for Small Business” program that provides discounts based on yearly shipping spend.
- Purolator: Purolator offers various shipping solutions tailored for small businesses, including express delivery, freight shipping, and e-commerce solutions. They also have a Business Rewards Program that offers discounts and perks to small businesses.
- FedEx: FedEx provides a range of shipping services for small businesses, including ground shipping, express shipping, and international shipping.
- UPS: UPS offers competitive pricing for both domestic and international shipping, with a focus on express and expedited services.
- DHL: DHL is a global courier service that offers domestic and cross-border shipping, with a strong reputation for international deliveries.
Independent Freight Services
Businesses shipping in bulk or very large packages might consider freight shipping. Freight shipping allows you to ship heavy packages (over 150 pounds) or bulk packages by land, air, or sea. Businesses typically use freight shipping to ship products from the manufacturer to the fulfillment center or a retailer.
Many freight companies offer three freight shipping methods: full truckload, partial truckload, and less-than-truckload. For partial or less-than-truckload shipments, you split the cost of the shipment with the other parcels onboard. This makes freight shipments an affordable option for businesses that can’t quite fill a whole truck.
Independent freight services like Uber Freight, Amazon Freight, or Twill may offer competitive rates.
Uber Freight, for example, provides small businesses with tools and resources to remain competitive by aggregating industry data to deliver real-time, instant quotes and transparent freight management.
Fulfillment Services
Fulfillment services can be a good option for businesses that want to outsource their shipping and logistics operations. These services handle tasks such as storing inventory, picking and packing orders, and shipping to customers.
- Amazon FBA: With Amazon FBA, products are stored in Amazon’s fulfillment centers, then picked, packed, and shipped by Amazon.
- ShipBob and Ships-a-Lot: Both ShipBob and Ships-a-Lot partner with Shopify for fast, affordable shipping in metro areas.
When choosing a fulfillment service, it’s important to do your research and look for a service that fits your business needs and budget.
Shipping Resellers
Shipping resellers, also known as third-party logistics providers (3PLs), can offer discounted shipping rates by partnering with major couriers and leveraging their volume discounts.
- FlagShip: FlagShip is a leading shipping reseller in Canada that gives you access to volume discounts from leading couriers like Purolator, UPS, FedEx, DHL, Canpar, and GLS.
- Stallion Express: Stallion Express is another shipping reseller that offers some of the cheapest shipping rates within Canada, with delivery times of 2-8 business days. They also provide discounted rates for US shipping and international shipping through partnerships with APC and PostNL.
Cheapest Shipping Options for Small Businesses in Canada
The cheapest shipping option for your small business will depend on several factors, including the size and weight of your packages, the destination, and the desired delivery speed. Here’s a breakdown of some of the most affordable options:
- Canada Post: Canada Post generally offers the most competitive rates for domestic shipping, especially for smaller packages. Their Solutions for Small Business program provides discounts based on yearly shipping spend, with savings of up to 30% on Priority and 34% on Xpresspost. For international shipping, Canada Post offers Tracked Packet – International with discounts up to 58%.
- FlagShip: As a shipping reseller, FlagShip provides access to discounted rates from leading couriers like Purolator, UPS, FedEx, DHL, Canpar, and GLS. They offer a rate comparison tool to help you find the best deal for every shipment, and their online shipping system simplifies the process with free features like courier pickup and commercial invoice generation.
- Stallion Express: Stallion Express offers some of the cheapest shipping rates within Canada, with delivery times of 2-8 business days. They also provide discounted rates for US shipping and international shipping through partnerships with APC and PostNL.
- Pitney Bowes: Partnering with Pitney Bowes can give you access to discounts that you can’t access as an individual or low-volume shipper. Their PitneyShip Pro software solution offers discounts of up to 34% with Canada Post and up to 68% with UPS. PitneyShip Pro also helps businesses monitor rate changes and calculate dimensional weight, ensuring accurate shipping costs.
- ShipSimple.ca: In a comparison of six major carriers, ShipSimple.ca offered the lowest shipping rates overall.
- E-commerce Platforms: E-commerce sites like Etsy and eBay allow you to buy and print shipping labels directly on-site. Etsy offers major discounts on shipping costs from FedEx and Canada Post. Likewise, eBay offers shipping discounts through FedEx, plus volume discounts—the more you ship, the more you save.
- Purolator Business Rewards Program: This program offers discounts and perks on every shipment, making it a cost-effective option for small businesses.
Reviews of Different Shipping Companies in Canada
Here’s a summary of reviews for different shipping companies in Canada:
| Company | Strengths | Weaknesses |
|---|---|---|
| Canada Post | Reliable domestic delivery, extensive network, affordable rates | Occasional delays, international shipping reliability varies |
| FedEx Canada | Reliable express and international shipping, competitive pricing, e-commerce expertise | Domestic express services can be expensive |
| UPS Canada | Reliable express and international shipping, advanced tracking systems, customized logistics solutions | Not always the cheapest option |
| Purolator | Expertise in local deliveries, same-day service excellence, strong customer service | Can be more expensive than other carriers |
| Canpar Courier | Reliable and convenient services, fast delivery, superior customer service | Limited international reach |
| DHL Express Canada | Extensive international network, reliable tracking systems, full customs assistance | Can be expensive for North American shipments, but often cheaper for international shipments, especially to countries with trade restrictions |
Shipping Rates for Different Sizes and Weights of Packages
Shipping rates vary depending on the size and weight of the package, the destination, and the shipping service. Here’s a general overview of shipping costs for different package weights with Canada Post, based on a shipment from Toronto to Vancouver:
| Weight | Regular Parcel | Xpresspost | Priority |
|---|---|---|---|
| 1kg | $18.51 | $24.93 | $42.10 |
| 2kg | $20.48 | $27.43 | $44.60 |
| 4kg | $23.29 | $31.23 | $49.40 |
Note that both UPS and FedEx charge for “dimensional weight,” so if your package is large or oversized, the shipping rate will be higher.
For example, really big boxes can incur additional large package fees of up to $90 or even oversize/overweight fees of up to $1200 with some carriers.
Here’s an example of how shipping rates can vary for a 2kg package depending on the destination and courier:
| Destination | Canada Post Expedited Parcel | DHL Express Worldwide |
|---|---|---|
| USA | $27.93 | $48.03 |
| Mexico | $46.66 | $97.19 |
| Europe | $61.38 | $126.50 |
As you can see, the cheapest option varies depending on the destination.
For Purolator, average standard shipping can cost around $8 for small packages, whereas large packages can cost $18 to $21.
Shipping Times for Different Shipping Companies in Canada
Shipping times in Canada vary depending on the shipping company, service level, and destination. Here’s a general overview of estimated shipping times for different companies:
| Company | Domestic Shipping Time | International Shipping Time |
|---|---|---|
| Canada Post | 2-9 business days | Up to 7 business days |
| FedEx | 1-7 business days | 1-3 business days (express) |
| Purolator | 2+ business days | Varies by service |
| UPS | 3-7 business days | Varies by service |
Standard shipping in Canada generally takes 3 to 7 business days, depending on the location. For example, for Canada Post, the estimated delivery timeline is 2 business days for local areas, 3 business days for provincial deliveries, and 4 business days within Canada.
For freight shipping, road transport typically takes 3-7 days, while sea freight can take 30-45 days. Air freight offers a faster option, with standard delivery times of 5-10 days and expedited options taking 1-3 business days.
Read also: How to Package Products for Safe Shipping Across Canada
Insurance Options for Shipping Packages in Canada
Most courier services here in Canada offer basic insurance for lost or damaged packages, but you may want to consider purchasing additional coverage, especially for high-value items. Here are some insurance options for shipping packages in Canada:
- Canada Post: Offers free liability coverage up to $100 CAD for Flat Rate Box, Priority, and Xpresspost shipping. Additional coverage is available for a fee.
- UPS: Provides coverage for parcel damage, loss, and theft up to $100 CAD. Coverage for packages with a declared value of up to $50,000 CAD is available for a fee.
- FedEx: Charges a fee for liability coverage on shipments valued over $100.
- Third-party Insurance: Companies like InsureShield, U-PIC, and Shipsurance offer third-party shipping insurance with various coverage options and competitive rates. For example, U-PIC offers discounts of 50-90% compared to carrier-provided insurance programs.
Get this, the liability coverage offered by major couriers is not “insurance” in the traditional sense. It often only covers the declared value of your package if the loss was due to the courier’s mishandling.
Reducing Packaging Costs
Packaging costs can add up, but there are ways to save money on packing materials:
- Buy Shipping Materials in Bulk: It might be more expensive upfront, but you’ll save money per unit in the long run. Check out sites like Uline, The Packaging Company, and WRdisplay.ca for affordable shipping materials.
- Use Flat-Rate Boxes: Flat-rate boxes are a great option for smaller, heavier items. Canada Post, Purolator, and FedEx all offer flat-rate shipping options.
- Get Free Shipping Supplies: Most mail carriers offer free shipping supplies. All you need is an account. Supplies can be ordered online for delivery or pickup.
Customs Regulations for Shipping Packages To and From Canada
When shipping to or from Canada, it’s essential to comply with customs regulations to avoid delays, fines, or seizure of your goods. Here’s a breakdown of key considerations:
Duties and Taxes
Canada charges customs duties and taxes on imported goods. The amount you pay depends on what you’re sending and where it’s made.
To figure out these costs, Canada uses a system called the Harmonized System (HS) code.
This code classifies products and determines the duty rate for each. Most goods will also be subject to a 5% Goods and Services Tax (GST), and some provinces charge an additional Harmonized Sales Tax (HST).
Documentation
To ensure your shipment complies with Canadian customs, you’ll need to prepare several documents:
- Canada Customs Invoice or Commercial Invoice: This document details your shipment, including the value and description of the goods. It’s essential for the customs clearance process.
- Bill of Lading: This is a contract between the person sending the goods and the carrier. It lists what’s being shipped, in what quantity, and where it’s going.
- Manifest or Cargo Control Document: This shows all the cargo on a transport vehicle, used by customs to check what’s entering the country.
- Shipper’s Export Declaration: For items over a certain value, this document is required by the U.S. It describes the goods being exported, their value, and their destination.
Prohibited and Restricted Items
Certain items are strictly prohibited from shipping to Canada, including illegal drugs, counterfeit goods, and certain types of weapons.
Other items are restricted and may require special permits or documentation, such as firearms, certain food products, and controlled substances.
Accurate Declarations
Ensure that your customs declaration form is filled out correctly, detailing the contents and their value. Inaccurate or incomplete information can lead to delays and fines.
Example
Imagine a small business owner shipping a package of handmade jewelry to a customer in the US. They forget to include a proper customs declaration form with an accurate description and value of the goods.
This could result in the package being held at customs, delaying delivery and potentially incurring extra fees.
Tips for Saving Money on Shipping in Canada
| Tip | Description |
|---|---|
| Compare Rates | Use online shipping calculators to compare rates from different carriers. |
| Reduce Package Weight | Use lightweight packaging materials and optimize your packaging to reduce the weight of your shipments. |
| Choose the Right-Sized Packaging | Avoid using oversized boxes, which can increase dimensional weight charges. |
| Use Flat-Rate Shipping | Consider using flat-rate boxes when possible, especially for smaller, heavier items. |
| Negotiate Rates | If you ship frequently, try negotiating rates with your preferred carriers. |
| Take Advantage of Discounts | Many carriers offer discounts for small businesses, online retailers, and members of their rewards programs. |
| Consider Shipping Resellers | Shipping resellers like FlagShip and Stallion Express can offer significant discounts compared to shipping directly with major couriers. |
| Use Free Shipping Supplies | Most mail carriers offer free shipping supplies, such as boxes and envelopes. |
| Offer Free Shipping with Minimum Orders | This can encourage customers to spend more and help you cover shipping costs. It can also increase sales. |
| Offer Flat Shipping Rates | This can simplify shipping costs for customers and make it easier to manage your expenses. |
Read also: How to Ship Products Sold Online in Canada (easy)
Final Thoughts
Shipping costs in Canada can significantly impact your small business’s bottom line.
And by the way, you can reduce these expenses and improve profitability by carefully considering your options and implementing cost-saving strategies.
Here’s a quick recap of key takeaways:
- For small businesses shipping lightweight packages domestically, Canada Post often offers the most competitive rates.
- For larger shipments or international deliveries, consider using a shipping reseller like FlagShip or Stallion Express.
- Optimize your packaging to reduce weight and dimensional weight charges.
- Take advantage of discounts and programs available to small businesses.
- Always comply with customs regulations when shipping internationally.
To get started, visit the websites of the mentioned companies or use online shipping calculators to compare rates and find the best solution for your business needs.
Read also:
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- #14 Best Accounting Software in Canada (Free + Paid)
- #7 Best Grants for Small Businesses in Canada (+ How to Apply)
