Whether you own an e-commerce business or want to order items from overseas, it is essential to figure out the question, “How are shipping costs calculated in Canada?” Knowing the shipping costs helps you determine the final price for your goods.
Shipping costs in Canada depend on various factors. For example, delivery companies charge differently depending on their popularity and the services they offer. Other factors like distance, the weight of the items, and the shipment speed also impact pricing.
There are many shipping companies in Canada, and they all charge differently to transport goods. However, the many options of shipping carriers make it challenging to choose one. To narrow down shipping company selection, consider these factors:
You want your customers’ items to reach safely, so you must get a quality shipping company. But first, check if the company has a bad reputation, like delivering broken items. You can find the reviews on the company’s website or from previous clients.
When looking at the quality, you should also consider the time the shipper takes to deliver the items. Some customers are impatient and won’t understand when the shipper gives an excuse for delays.
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The cost of transportation is among the top things businesses consider when choosing a shipping company. Some are too costly. Sadly, customers cater for shipping costs. If your business is small, pick a cheaper shipping company while considering its quality.
Working with one shipping company reduces your time investment and costs. Before hiring the shipper, ask them about the services they provide. Then, choose a courier service that can handle your company’s needs to save on costs and time.
Some goods are fragile and expensive, so they need much care. A shipping company with reasonable prices but many cases of accidents are not worth hiring to transport your customers’ items.
Be wary of shipping companies who break the law to get to the destination on time. Instead, hire companies with qualified drivers and with a high safety rating. These could be expensive, but you are sure about the safety of your goods.
Reliability is an essential factor in every business. The performance of a shipping company can make or break your company’s reputation. When choosing a shipping company, get one that ensures the timely arrival of the goods.
When your business meets customers’ expectations, they become loyal and refer their friends to you. More customers translate to more sales hence the growth of your business. On the other hand, using an unreliable shipper can lead to delays in the arrival of your loads and spoilages, causing losses.
Once you know how to identify the best shipping company for your business, your next worry is knowing how shipping cost is calculated. These charges differ among various companies and keep fluctuating with uncertain economic times.
Some factors determining how shipping cost is calculated are:
Whether you choose to transport your items by air, railway, water, or road, all these modes of transport use fuel. If the fuel prices are high, the shippers will charge high shipping rates.
Unfortunately, fuel prices keep fluctuating, meaning that shipping costs are not stable. The retailers also don’t have control over fuel prices, so they cannot do anything to lower the prices.
Canadian retailers shipping items to another country will pay more than those transporting to closer destinations. That is because shippers charge according to the distance covered. After all, they use more time and fuel to transport the items.
Some customers want same-day delivery, while others can wait for months to get their purchase. Speed deliveries cost more shipment than deliveries that take time. Some businesses offer overnight shipments to customers, which is expensive.
If you prefer speed delivery, you can ship the items by air. However, air freight is an expensive mode of transport, and you will pay more. Therefore, always make fast deliveries available for customers to choose from regardless of the costs.
Large parcels cost more to transport than small and lightweight parcels. That’s because oversized items take up more space in the ship, reducing the number of goods vessels can carry. So, to compensate for the few items transported, shippers charge more.
Retailers can save on shipping costs of large goods by compressing them during packing. As a result, they will take a smaller space, cutting costs. Besides, the smaller packages are easier and safer to transport.
A shipping company with tracking systems is worth hiring because they ensure safety. Besides, tracking the movement of the goods keeps your customers at peace and improves customer experience.
Most shippers with tracking systems charge more transportation fees. You will also pay more if the shipping company has insurance. Insurance is essential because you get compensation for lost or damaged items.
International businesses face the challenge of dealing with customs and duties. Countries charge different rates whenever a ship crosses the border, and it is hard to determine the extra fees.
The seller usually includes customs and duties in the final buying price of the item. Therefore, business owners should provide information about customs on their websites to be transparent with the buyers.
Too high shipping costs can discourage buyers from purchasing items from your business. Luckily, you can reduce the shipping costs in your store by;
When packing items, compress them all together to make them smaller. Pack the goods in smaller boxes that take up small space. You can also use lightweight containers to ensure no additional weight to transported items.
Another way to reduce size and weight is by dividing the bulky goods into smaller portions. Small-sized goods are easier to carry and are lightweight.
Shipping costs are increasing due to fuel prices and other factors. Unfortunately, business owners have little to no control over these factors, so they must keep up with them. However, you can instead choose a shipping company with flat-rate shipping.
These companies don’t charge shipping fees according to the item’s weight and size. Instead, they have a constant rate grouped for goods weighing a specific weight range, and it is easy to know the total cost of your goods.
Instead of using expensive shipping companies, you can pick and drop off items for customers who live nearby your business. You can also allow customers to pick up their orders from the store, even if they bought them online.
Besides saving money on local delivery, you will interact with your customers. You can ask them for suggestions to improve your business and the unsatisfied needs. These can give you another business idea to diversify your income.
A good customer experience increases the loyalty of your current clientele. They also refer your business to their friends, increasing sales. When you offer doorstep delivery, customers get motivated to shop.
With this, it’s likely you’ve found an answer to the question, “How are shipping costs calculated in Canada.” But don’t forget that shipping goods from a foreign country to Canada involves currency exchange, so you’ll need to factor in the current exchange rates as you calculate the shipping costs.
Any change in exchange rates between the Canadian dollar and other currencies can influence the shipping costs positively or negatively. However, you can leverage the spread by exchanging currencies in a company that offers the lowest exchange rates.
Contact KnightsbridgeFX to get a free quote for your currency exchange for shipping.
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