Best Shipping Options for Small Business in Canada

November 8, 2024 Siva Gowtham Reddy Kona

Shipping is one of the most important aspects for small businesses, as it impacts their success and profitability by affecting:

Customer Satisfaction
Profitability
Product Deliverability
Return Rates

With this in mind, every small business should carefully select the best shipping partners.

Factors Small Businesses Should Consider When Selecting a Shipping Provider

Shipping Costs

Shipping costs are among the most important factors to consider when selecting a shipping provider, as they directly impact your revenue and net profits over time.

Shipping costs depend on various factors, such as:
Package Volume (Dimensions)
Distance
When evaluating shipping rates, review the provider’s rate card to see if they offer volume discounts or reduced shipping rates for your sales. Choosing an affordable shipping option should be a priority for small businesses.
Deliverability
With the growth of e-commerce, customers increasingly expect quick delivery times and reliable handling of their orders. The quality of a shipping provider’s deliverability can significantly impact customer satisfaction and increase repeat orders. Here are key metrics small businesses should consider when evaluating deliverability:
- Customer Reviews: Gauge the provider’s reputation and reliability from previous clients.
- Industry Benchmarks: Compare delivery times and service quality against industry standards.
- Carrier Performance Metrics: Review metrics like on-time delivery rates and average delivery speed.
- Product Safety: Assess how well the provider handles and safeguards packages during transit.
- Return Rates: Higher return rates can indicate handling or delivery quality issues.
By considering these factors, small businesses can select a provider that meets customer expectations and enhances satisfaction.

Customer Service and Support

The customer service and support offered by your shipping partner is another critical consideration. Often, customers will contact your shipping partner’s tracking support to check on their packages, and if the support is lacking, it can negatively impact customer satisfaction.

Pincodes Delivered

When selecting a shipping service, it’s important to consider the geographic areas your partner can cover, including availability in rural areas and expected shipping times. The more postal codes your partner can serve, the greater your opportunity to expand your business into those regions.

Ease of integration with your current software

The ease of integration with your existing software simplifies the process of running an online store. One of the challenges in shipping is generating shipping labels, but integration with your accounting software, email marketing tools, and CRM systems makes it easier to create labels and send them directly to customers.

Ease of Integration with your website or e-commerce store

Order fulfilment can be one of the most tedious tasks for a small business owner, especially if their e-commerce platform or website builder, like Shopify or WooCommerce, doesn’t integrate with the shipping partner. Before selecting a shipping partner, every small business should consider the technology they use for their e-commerce store and ensure compatibility with the shipping partner's integration options.

Now that we’ve reviewed the factors small businesses should consider when selecting a shipping partner, let’s explore the best and most affordable shipping solutions available for small businesses in Canada.

Shipping is one of the most important aspects for small businesses, as it impacts their success and profitability by affecting:

Customer Satisfaction
Profitability
Product Deliverability
Return Rates

With this in mind, every small business should carefully select the best shipping partners.

Factors Small Businesses Should Consider When Selecting a Shipping Provider

Shipping Costs

Shipping costs are among the most important factors to consider when selecting a shipping provider, as they directly impact your revenue and net profits over time.

Shipping costs depend on various factors, such as:
- Package Volume (Dimensions)
- Distance
When evaluating shipping rates, review the provider’s rate card to see if they offer volume discounts or reduced shipping rates for your sales. Choosing an affordable shipping option should be a priority for small businesses.

Deliverability

With the growth of e-commerce, customers increasingly expect quick delivery times and reliable handling of their orders. The quality of a shipping provider’s deliverability can significantly impact customer satisfaction and increase repeat orders. Here are key metrics small businesses should consider when evaluating deliverability:
- Customer Reviews: Gauge the provider’s reputation and reliability from previous clients.
- Industry Benchmarks: Compare delivery times and service quality against industry standards.
- Carrier Performance Metrics: Review metrics like on-time delivery rates and average delivery speed.
- Product Safety: Assess how well the provider handles and safeguards packages during transit.
- Return Rates: Higher return rates can indicate handling or delivery quality issues.
By considering these factors, small businesses can select a provider that meets customer expectations and enhances satisfaction.

Customer Service and Support

Pincodes Delivered

Ease of integration with your current software

Ease of Integration with your website or e-commerce store

Canada Post

Canada Post offers a comprehensive suite of solutions tailored for small businesses. Their 'Solutions for Small Business' program is designed to help small Canadian businesses expand their reach both locally and internationally with efficient shipping and marketing services. Membership is free, with no hidden costs, providing access to tools, partners, and valuable insights.

Discounts: Small businesses can save up to 32% on domestic shipments and up to 58% on international shipments.
Tools and Services: Canada Post provides tools like 'Snap Ship' for creating shipping labels and managing shipments easily, and 'Snap Admail' for targeted marketing campaigns.
Support and Resources: They offer service alerts, scheduled pick-ups, and expert advice through blogs and customer service.

Shipping Services:

Domestic Shipping: Fast and reliable delivery across Canada with options for same-day pickups.
International Shipping: Broad coverage with competitive pricing to more than 190 countries.
E-commerce Integration: Seamless integration with online store platforms and workflow management with trusted partners.

Environmental Commitment: Canada Post also offers carbon-neutral shipping options, aligning with modern environmental concerns.

Canada Post Shipping Costs

Purolator

Purolator focuses on empowering small businesses through efficient and reliable shipping solutions that cover both domestic and international needs. Known for its robust service offerings, Purolator facilitates small business growth with tools designed to simplify the shipping process.

Cost Savings: New business accounts can save up to 65% for 12 months, which is a significant cost reduction, making it an affordable option for small businesses looking to stretch their budget further.
Comprehensive Services: Purolator offers courier and freight shipping services, including less than truckload (LTL) and full truckload (FTL) shipments. Their specialized services ensure that businesses can handle all logistics needs under one roof.
Technology Integration: The integration of e-commerce platforms and the ability to generate and print labels online streamline operations, helping businesses save time and improve efficiency.

Shipping Services:

Domestic and Cross-Border Shipping: Provides speedy next-day delivery and reliable shipping solutions tailored for small businesses operating in Canada and across the U.S. border.
Hassle-Free Returns: Simplifies the returns process, which is crucial for enhancing customer satisfaction and fostering customer loyalty.
Exceptional Customer Service: With a focus on reliability and customer support, Purolator ensures that every package is handled with care, reinforcing trust with business customers.

Environmental Commitment: Purolator is committed to sustainable practices, offering decarbonization strategies and maintaining an environmentally conscious shipping process.

Purolator Shipping Costs

FedEx

FedEx is renowned for its broad portfolio of shipping services that cater to both domestic and international markets, making it a preferred choice for small businesses looking to expand globally.

Diverse Shipping Options: FedEx offers a range of shipping services, from overnight to economy shipping, both domestically and internationally.
Technology and Tools: The FedEx online platform provides comprehensive tools for shipping management, including the ability to generate shipping labels, schedule pickups, and track shipments in real-time.
Customized Solutions: FedEx provides specialized services tailored to the unique needs of businesses, such as freight shipping, cross-border e-commerce solutions, and logistics support.

Shipping Services:

Domestic Shipping: Known for fast and reliable delivery services within Canada.
International Shipping: Extensive global network facilitating international trade.
E-commerce Solutions: Robust support for online businesses through integration with e-commerce platforms, enhancing the customer shopping experience.

Customer Support: FedEx emphasizes exceptional customer service with a wide array of online resources, dedicated support, and hassle-free returns management.

Fedex Shipping Rate Card

UPS

UPS provides a comprehensive set of tools and services designed to meet the diverse needs of small businesses. Known for its robust logistical support, UPS helps businesses streamline operations and expand their reach both domestically and internationally.

Shipping Tools and Discounts: UPS offers free shipping supplies and tools to create shipments, schedule pickups, and manage delivery preferences. Small businesses can enjoy discounted rates and exclusive discounts to reduce costs and remain competitive.
Technology Solutions: Cutting-edge software solutions and a developer resource center allow businesses to integrate UPS functionalities directly into their websites, including address validation and tracking, which enhances the shipping process and customer experience.
Specialized Services: UPS provides tailored solutions like simplified returns, specialized order fulfillment, and seamless customs clearance, all designed to help small businesses grow and satisfy their customers.

Shipping Services:

Domestic and International Shipping: Reliable delivery services across Canada and to over 220 countries and territories worldwide.
Flexible Pickup and Drop-off Options: Businesses can schedule pickups and drop-offs according to their convenience, ensuring flexibility and efficiency.
E-commerce Integration: Direct integration with major e-commerce platforms to facilitate order management and fulfillment, helping businesses optimize their operations and reach more customers.

Customer Support: UPS is committed to providing exceptional customer service, with support available through various channels and dedicated experts to help businesses optimize their shipping strategies.

UPS Shipping Rates:

DHL

DHL stands out as a leading global logistics provider, offering an extensive array of services that cater specifically to the needs of small businesses aiming to expand both locally and internationally. Their approach combines customized shipping solutions with robust support systems to streamline shipping processes and enhance operational efficiencies.

Global Reach and Local Expertise: DHL's vast network spans over 220 countries, making it a powerhouse for international shipping needs. This extensive reach is coupled with local expertise to ensure compliant and efficient handling of shipments.
Tailored Shipping Options: DHL offers specialized services for small businesses, including less than truckload (LTL), full truckload (FTL), and express shipping options, ensuring fast and reliable delivery.
Cutting-Edge Tools: Small businesses benefit from DHL's advanced online tools that support generating and printing shipping labels, tracking shipments, and managing logistics activities efficiently.

Shipping Services:

Cross Border Shipping: DHL excels in managing cross-border shipments, providing essential customs expertise and streamlined logistics to ensure smooth international transactions.
E-commerce Solutions: Their services are designed to support online businesses with integrated e-commerce solutions, helping to improve customer satisfaction and expand market reach.
Sustainable Options: DHL is committed to sustainability, offering eco-friendly shipping solutions to help businesses reduce their environmental impact.

Customer Support: DHL prides itself on exceptional customer service with a focus on providing comprehensive support through dedicated account managers and customer service teams.

DHL Rate Card

Chit Chats

Chit Chats positions itself as one of the most cost-effective shipping solutions in Canada, especially appealing to small businesses seeking to reduce shipping costs and improve customer satisfaction. They offer competitive rates that can significantly undercut traditional carriers by leveraging a network of trusted delivery partners.

Affordable Shipping Rates: Chit Chats claims to save small businesses over 50% on average compared to national carriers, making it the cheapest shipping option for many.
Simplified Shipping Process: They provide easy-to-use tools for generating and managing shipments, which includes the creation of shipping labels, tracking, and detailed delivery confirmations.
No Hidden Fees: Transparency in pricing ensures businesses only pay for the shipping costs without unexpected additional fees.

Shipping Services:

Canadian Shipping: Offers reliable and timely delivery within Canada with full tracking and delivery confirmation.
U.S. and International Shipping: Facilitates affordable cross-border and international shipping, supporting small businesses in reaching global markets.
Specialized Services: Includes Chit Chats Insurance and return labels, enhancing the overall shipping and customer service experience.

E-commerce Integration: Chit Chats offers seamless integration with popular e-commerce platforms, allowing businesses to connect their online stores directly for efficient order fulfillment and logistics management.

Chit Chats Rate Card

Conclusion

Final Price Comparison Table

For Canadian small businesses focusing on cost efficiency and local distribution, Chit Chats emerges as the standout choice. Offering some of the cheapest shipping rates within Canada, Chit Chats helps businesses save money on shipping materials and packing materials while still ensuring reliable delivery of small packages and larger shipments.

Canada Post is a viable option for businesses that require extensive national coverage and value having a free account with a trusted shipping carrier. Their discounted shipping rates and integration with post office facilities make them a practical solution for those who benefit from post office pickups and drop-offs.

Purolator offers competitive shipping strategy solutions tailored to businesses looking for faster shipping within Canada. They cater especially well to those needing robust logistics solutions and occasional freight services, presenting a range of options to ship products efficiently across various distances.

For businesses that prioritize global reach and need expert handling of international shipments, DHL provides extensive international shipping capabilities and specialized services. Their expertise in global logistics ensures that businesses can expand their market reach with confidence, supported by faster shipping times and reliable delivery.

FedEx stands out for companies that require speedy and dependable global services, making them an excellent choice for those looking to expand beyond Canadian borders. With competitive shipping rates and advanced e-commerce integration, FedEx supports complex shipping strategies and helps businesses start saving on international deliveries.

These recommendations aim to guide small business owners in selecting a shipping carrier that aligns with their operational needs and budget. Whether you're looking to save money on domestic shipping, expand internationally, or optimize your logistics solutions, there’s a provider ready to meet your business needs effectively and efficiently. This comparative analysis should assist in crafting a shipping strategy that enhances your competitive edge in the marketplace.