Small Business Shipping Canada – Shipping Tips and Advice

We completely understand that shipping can be stressful, time-consuming, and expensive. As a business owner, you need to make key decisions every day, and shipping success is an integral part that you need to get right. 

There are many considerations that go into finding the right shipping solution. Some of these include pricing, reliability, end-to-end tracking, insurance, an easy-to-use platform, and the list goes on!

We regularly provide shipping tips and advice here on our blog so that you can always ship like a pro. To make everything possible, be sure to leverage our easy-to-use platform and get great value shipping every time! Join Chit Chats now and get $5 in account credit.   

Small Business Shipping Canada – Costs Can Be Pricey

We consistently hear this question – why is shipping in Canada so expensive compared to services in the U.S. and throughout other countries? 

There are a few factors involved, including: 

• Overall population density. Canada is a very large country with a population of only 38.5 million people. California’s population is greater than all of Canada’s combined but it’s less than half the size of Ontario. 
• Distance from Urban Centres. Shipping to densely populated urban locations in Canada can be done relatively quickly and cost-effectively. On the flip side, getting packages to and from rural areas is time-consuming and much more expensive. 
• Fuel costs in Canada are high. The national average cost per litre for gasoline is currently hovering around $1.50–$1.60. In the U.S., the national average is at or just under $1. That’s more than 50% higher and shipping fees are greatly impacted by fuel costs. 
• Taxes on goods are fairly high in Canada – In Ontario, for example, HST is 13%. Most of the states in the U.S. have a sales tax of 4% to 9%, while a few states are at 0%. 
• A monopoly to deal with. Our country is heavily dependent on Canada Post as a carrier since they are required to deliver to every Canadian address. Even large shipping companies including FedEx rely on Canada Post to make deliveries outside of their geographical scope. 

How to Keep Profits Up and Shipping Costs Down

Shipping expenses can really eat into your profit margins, so it’s imperative that you find a low-cost/high-value solution.

Discover the ideal shipping partner fit 

This is a big one to keep shipping costs in check. Be sure to do price comparisons but also look at what you get for that price, as well. Does the price include full tracking? What does insurance cost? What’s the estimated delivery timeline? Is the service consistently reliable and loved by its customers? What’s the platform experience like? These are just a few of the questions you need to ask yourself before going into business with a shipping company. 

Your packaging matters

As a general rule of thumb, the smaller and lighter your packages are, the better the pricing will be for your shipping needs. Using lightweight poly mailers instead of cardboard is ideal, and packages with sleek dimensions are important. Essentially you want your packages to be just big enough to fit products and supporting materials inside comfortably. 

Watch out for rate increases 

Shipping companies need to adjust their pricing on a fairly regular basis to ensure their margins are maintained. Chit Chats always provides a heads-up a few days before rates increase so that our members can adjust their product pricing if they want to. We typically only make price adjustments based on our carrier’s decisions, as our goal is to always keep shipping costs as low as possible. 

Keep shipping supply costs low 

You always need various shipping supplies on hand to package orders and these expenses can add up. Be sure to work with a supply vendor who provides good pricing, and buy in bulk when there are good sales. This way you won’t need to order as often and you’ll be able to keep costs as low as possible. 

Leverage distance to your advantage 

A significant shipping factor as it relates to cost and delivery times is the distance to your customers. If shipping products from your business location is expensive and takes a while for packages to reach your customers, then you may want to consider bringing on a strategically located fulfilment partner. Run some numbers to see if your current shipping location is really cutting into profitability, and pivot if it’s a no-brainer. 

Get Chit Chats Shipping for Your Business 

It’s a delicate balancing act between keeping your customers happy and saving money on shipping. The more you can bridge the gap between these key considerations, the more success your business will enjoy. 

Chit Chats is focused on saving Canadian entrepreneurs money on shipping so they can live their dreams. We are all about a low-cost yet high-value experience and are always looking for clean solutions to address difficult logistics problems. We will always stay true to our core even as inflation and fuel prices head north. 

Get a free Chit Chats account and receive an instant $5 account credit, check out our rates and services offered, and make an informed shipping partner decision. If you need help or support of any kind, please reach out to us.