The cost of shipping plays a crucial role in a company’s logistic strategies and budget planning.
Yes, and it isn’t a simple line item on a budget sheet that you tend to overlook!
If you want to maximize your profits, you have to be aware of your company’s shipping expenses.
Learning how to navigate shipping costs effectively is key. Once you do that, deciding what works best for your company will be much easier!
Many factors may affect shipping costs in Canada and understanding these gives e-commerce businesses an edge over their competitors.
How? Well, it helps your company to estimate the cost of shipping.
This results in better strategies for controlling shipping expenses. Which then helps increase profit margins and sales percentages.
The bottom line? It allows e-commerce businesses to grow.
Interesting, right? Well, here are some of the factors that you should consider:
Finally, keep in mind that shipping rates may vary depending on shipping providers. So conduct a shipping cost comparison if needed.
The question is, what are your options for these shipping providers? Read on to find out!
There are several major shipping carriers that operate within Canada. According to Statista in 2020 the leading parcel shipping providers were Canada Post with a market share of 24%, UPS with 15%, Purolator with 10%, and FedEx Canada with 8%.
Comparing and contrasting the different features of these shipping carriers is important.
Moreover, pricing structures and delivery timelines are deciding factors in estimating shipping costs.
Have a look at the table below consisting of all the important details to note:
Let your box do the talking. Make it highlight your brand’s uniqueness, creativity, and commitment to its customers.
Now, navigating through shipping fees doesn’t have to feel like solving a puzzle!
With the right tools, you can easily calculate the costs. Helping you budget better and improve your shipping strategies.
Here are three ways to do it:
An accessible way to get quick estimates on shipping costs is by online calculators.
Some of the reliable online calculators you can use are FedEx and Purolator.
These user-friendly tools only need specific details to start estimating shipping costs.
Some of the information you should input are shipment origin, destination, and date. You will also need to specify the packaging and weight.
After doing that, the online calculator will already provide an estimated shipping cost. Easy, right?
But wait, as a business owner, you have to understand that these free online calculators normally give overestimated “public” prices. This means that these answers are more expensive than they should really be!
So don’t be afraid because when you have an account, you can have as much as a 40-60% discount off the “public” price.
There are also ready-made rate tables to make estimating shipping costs much easier.
They contain a more detailed view of shipping rates in certain regions. Rate tables base these estimates on weight, size, and destination.
Canada Post has a rate table where you can compare shipping rates for Canada and other countries.
Finally, e-commerce businesses can opt to use shipping software. This can be a game-changer in calculating shipping fees!
There are several popular shipping software that can help simplify your Canadian shipping cost calculations. Here are some examples:
BONUS TIP FOR LOW RATES:
If you’re looking to get special rates with Purolator, then try to explore Buster Fetcher® Shipping Club!
Online calculators, rate tables, and shipping software are helpful in calculating shipping costs. All these tools consider specific factors such as package weight, size, destination, etc.; to provide an estimate accurately.
Shipping fees take a significant chunk of the budget for many businesses. Finding ways to reduce them can help you unlock large savings!
Your ultimate goal would be to find the most cost-effective options for your company. But, how do you do that?
Here are five strategies to help you keep these costs in check:
Wait, we got something more for you. If you want to know how to lower your next shipping invoices, you can download our 3-Step Guide and unlock greater savings!
Budgeting for shipping costs isn’t an easy task. There’s more to consider than just basic shipping rates.
Several other factors can affect your final costs. Understanding these helps businesses to avoid unexpected expenses:
Shipping insurance protects your goods from various circumstances. This will apply when the product gets lost, damaged, or stolen while in transit. The owners should expect to reimburse their fees based on the declared value of the product.
You also have to be aware of custom fees or duties especially if your company offers international shipping.
One thing that may surprise businesses is the cost of taxes. Knowing the amount of duties and taxes to pay is a great advantage.
The Canada Border Services Agency provided an Estimate Duty and Taxes Tool to help estimate taxes. But, it’s important to note that this only applies to goods for personal use.
Shipping companies add these extra fees on top of the base rates to compensate for the inconsistent fuel prices on the market. It varies depending on the parcel services whether it’s domestic, USA, or international.
Being updated with the latest fuel surcharges is a worthy advantage. Here are the reports of the top shipping carriers in Canada:
Understanding Canada shipping costs helps companies to get ahead of the competition.
First, exploring strategies is important since shipping rates are more expensive in the country. It also avoids unexpected expenses along the way.
Second, maximizing your shipping options results in effective budgeting and logistics planning. It then eventually translates into increased profitability!
Lastly, learning how to apply the most cost-effective strategy helps your company cope with the ever-changing trends of the industry. Do you want to lower your next Canada Post invoice? Optimize your shipping costs with these strategies from Buster Fetcher®!
Oh, and guess what? You can also download our 3-Step Guide on how to lower your next shipping invoices. You’re welcome!
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