Cheapest Shipping for Small Business Canada

By Amylee Silva
July 12, 2023
cheapest shipping options Canada concept photo parcel package on door step

You have several shipping services across Canada that offer you affordable rates. You’ll be amazed to learn that some solutions allow you to save up to half of your shipping cost.

In this article, you’ll discover services offering the cheapest shipping for small businesses Canada. We’ll also focus on tips to consider to lower the shipping fees for your small business. But the real trick is learning—familiarise yourself with all the essentials of affordable shipping and set up a shipping strategy under the said conditions.

Let’s get started.

What Are the Cheapest Shipping Options for Small Business Canada?

Below are some of the cheapest shipping options for small businesses in Canada.

Canada Post

Canada Post offers cheap shipping services to small Canadian businesses. They have exclusive discounts that allow you to save more when shipping materials. You can also save money using Canada Post’s online shipping tools.

Consider Ground Shipping

Clients’ delivery expectations and the shipping price directly relate. Offer free shipping and the delivery speed slows. However, fast deliveries come at a higher cost. Therefore, when your customers need their deliveries done quickly, consider faster shipping but at a high shipping cost.

Use Shipping Solutions

Large businesses enjoy volume discounts through their couriers when they ship more parcels. However, small businesses may struggle to attain the required number of parcels, and therefore, they are unqualified for the said discounts. Luckily, some shipping companies like FlagShip provide integrated solutions such as volume discounts to small companies.

Consider companies like eShipper, which have no monthly fee but obtain it from your volume savings instead. You can also consider NetParcel as a cheaper shipping option. This shipping company lets you import orders and publish the applicable shipping rates. You can also find the cheapest shipping rates.

Fulfillment Centres for International Shipping

Small businesses that struggle with shipping and order fulfillment can consider a fulfillment company. The company will process, pack, and ship the orders for you. Even after service and storage fee deduction, you’ll save time and cash you’d otherwise use for shipping.

Business Organization Discounts

Membership in some business organizations in Canada has various deals on shipping from Canada. Such deals may include exclusive shipping discounts when shipping merchandise, letting you save big. So, if you’re a member of one, confirm if the membership has discounts.

Use Shopify Shipping

Shopify has one of the cheapest shipping rates in the country, ideal for small businesses. You can ship within Canada and beyond. Take advantage of their integrated shipping solutions to manage your customers, print labels and customs forms, manage inventory, and fulfill orders on your Shopify account. With Shopify, you can save up to 64% on Canada Post rates depending on your Shopify subscription plan and the service level and destination of your shipments. However, this discount may not apply to all types of shipments or destinations.

How to Reduce Shipping Costs for a Small Business

Consider the following tips to reduce shipping costs for a small business in Canada.

Reduce Your Package Weight

Note that the heavier your package, the more the shipping price. So, as a small business in Canada, you should make every effort to reduce the gross weight of the package. You can do so by:

  • Packing your package in a corrugated box instead of regular cardboard boxes.
  • Consider using lightweight packing materials such as bubble wrap, air pillows, foam inserts, excelsior, and packing paper.
  • Craft custom shipping packages. Ensure the shipping package dimensions matches the size and weight of your merchandise.

Choose the Right-Sized Packaging

The size and the weight of the package affect the shipping cost. So, having the right-sized packaging is crucial. To find the right-sized package, measure your items and determine the number/volume you’ll send under one shipment. This practice helps you determine the right-sized package to choose for most of your orders.

Offer Local Delivery/Pickup

If you want to cut the shipping cost completely, consider offering local delivery to local customers. Many local customers are happy with shopping online and having their purchases delivered locally. Set up your online store so that customers can access your products. Thereafter, when they make purchases, they deliver them to their homes. Alternatively, your customers can pick up their orders from your physical stores.

Use Flat-Rate Shipping When Possible

Flat-rate shipping allows you to pay a single fixed rate for your shipment regardless of their size or weight. This option allows you to pre-determine what you’ll incur for shipping your merchandise. Flat rates apply to any order that falls under a given weight range.

What Shipping Carrier to Consider for Your Small Business?

Consider the following shipping carriers for your small business in Canada.

Small Businesses Shipping Small Orders

Small businesses with small orders can consider Purolator, Canada Post, and FedEx.

Canada Post for small businesses allows small businesses to reserve a business P.O. box. You’ll receive a free priority mail starter kit. On the other hand, FedEx has a rewards program tailored for small businesses, allowing you to earn rewards every time you shop with them. Lastly, Purolator has exclusive business-related discounts for small businesses that ship with them.

Shipping Orders Exceeding 100 Per Month

You should outsource shipping if your business ships more than 100 orders monthly. You should also outsource shipping if you can’t fulfill your orders in-house or consistently ship far away.

Outsourcing your order fulfillment and shipping allows a third party to store your inventory, process, pack, and ship your orders for you. Fulfillment by Amazon is a perfect example. It allows businesses to sell on their platform and the products stored in Amazon fulfillment centers. Amazon does shipping and order fulfillment on behalf of respective brands. Ship-a-Lot and ShipBob are alternative options for businesses that partner with Shopify.

Shipping in Bulk/Large Packages

You should consider freight shipping if your business ships large/bulk packages frequently. This shipping service lets you ship bulk packages exceeding 150 lbs. The available means of shipping are air, land, and sea.

Consider FedEx, Canada Post, DHL, or Purolator for freight shipping. Independent freight services like Twill, Uber Freight, and Amazon Freight can also offer better deals.

No matter your e-commerce dealing, you must integrate shipping as part of your small business structure. If done with a viable strategy, you can succeed and expand your small business to a sizeable reliable one in Canada and beyond. Also, avoid late/failed deliveries and damaged items. Lastly, ensure you deliver your order quickly. But it doesn’t mean you spend more than required on shipping alone. Do your research to establish the cheapest way to ship products in Canada.

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