Shipping cost is one of the facets of modern-day business, which presents a challenge for small business in Canada. Many people would prefer free or low-cost shipping. The real challenge for small to medium business is competing with big companies such as Amazon, eBay, etc. with large volume shipping and international sellers and suppliers from China. Small or medium business cannot compete with Chinese suppliers on shipping costs. Shipping for most Chinese companies costs next to nothing because these costs are subsidised.
The shipping cost for small business in Canada is high because they do not have large volume shipping and cannot negotiate for better shipping rates like big companies. Presently Canada Post offers the cheapest shipping option than UPS, FEDEX and DHL.
Small business gets 3-5% off shipping with Canada Post. The price Canada Post charges to ship within Canada ranges between $9.99-$18 (plus 13% HST); and the larger the parcel, the prices for shipment goes up. Sending a package to the United States or an international location cost a lot more.
Small business pays more for shipping because of less volume shipping and other logistics. When a small business offers free shipping, or low-cost shipping, they must subsidise the rest of the payment out of pocket, which affects operational cost, and they must operate this way in order to compete in the modern-day marketplace.