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Shipping: Small Boxes from CDN to USA

     
9:01 pm on Jun 22, 2011 (gmt 0)

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Hello all,

I've got an e-commerce site that is sitting waiting for launch right now (March 15th til now), that I can't get competitive shipping rates on.

I have contacted all of the major shipping companies and made somewhat of a bidding war between the big three.

-UPS
-DHL
-Fed-Ex
-Canada Post


Those are the companies that I have contacted and the lowest price I can get is $13.00 with residential surcharge and fuel surcharge.

The item that I'm shipping (non-–RTD beverage) has the general value of approximately $25 for 500 grams (1.1lbs). The shipping price remains the same for 250 grams and 100 grams. This is cost prohibitive and I was wondering if there are any alternatives for this. I have been looking high and dry for “group shipping rates” where smaller companies like my own would be able to consolidate all of their quantities locally, and acquire much larger group rate in the thousands of boxes per day.

Any ideas would be helpful.

Thanks,

Hendy
11:15 pm on June 22, 2011 (gmt 0)

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Hi Hendy! Have you thought about using a US fulfillment center? Depending on who you might choose, paying order fulfillment fees + US shipping on a 2 pound package would be quite a bit cheaper than $13.

Rai
11:33 pm on June 22, 2011 (gmt 0)

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Hi Rai,

Thanks for the reply. I had considered that, however my plan was to have a just in time inventory. They pay me, I pay my supplier.

My understanding of order fulfillment is that we have to carry an inventory. I don't mind doing that, but it was something I would consider doing down the road.

I'll have to research a little more. Thanks for the tip.

--Hendy
1:21 am on June 23, 2011 (gmt 0)

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Oh yep, that definitely wouldn't work, then - unless you talked your supplier into warehousing some inventory on the US side. ;)
1:40 am on June 23, 2011 (gmt 0)

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I don't ship much but when I do I use Canada Post (all small parcels) and it's actually cheaper to ship to the US than Canada. I've heard that's because there's no tracking #. I just use the cheapest shipping option with them.
3:58 pm on June 23, 2011 (gmt 0)

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Careful with Canada Post. They may tack on the brokerage fee and your customer might have to pay that to get the delivery.

That will make for some angry customers.

There really is no cheap way to get your goods into the American market. You need volume and then do a consolidated shipment into the US. Low priced goods are a killer, it is nearly impossible to compete. Hopefully you don't have any US competition.