Canada Post is an Expensive Delivery Service: Here is Why

  • Snap Desk
  • 29-Jul-2021
Delivery Service

Canada Post is a Crown corporation that operates as the primary postal service in the region. Although the services offered by the company are a tad expensive, it is one of the most popular and widely used postal services in the country.

There are several reasons due to which Canada Post is popular amongst the masses. This includes confirmation of delivery and tracking on almost all parcels. Therefore, Canada Post ensures safety for their customers by offering the service of claiming all undelivered items.

Additionally, parcel delivery services use a Global Shipping Program. This program tends to come with duty and sales taxes plus a service fee in addition to shipping costs. Therefore, any customer looking to ship overseas is also looking at higher shipping.

Customers are free to choose companies that offer cheaper alternatives. However, this would be a possible gamble of their parcels. Therefore, the real question is if paying higher rates is a more significant issue than getting scammed?

Most business owners would choose the former because parcels tend to have a higher value than the shipping rates. On the other hand, businesses that sell cheap items have the luxury of using cheap and fast companies which cannot be tracked.

The Choice Between Insurance & Fraud

Although Canada Post seems to be expensive compared to other parcel delivery platforms, it is one of the most trustworthy platforms in the country. Businesses selling unique high-end items are especially in need of delivery services with 100% tracking efficiency.

Besides tracking, Canada Post also offers insurance on those parcels. Therefore, postage charges are an opportunity cost that sellers have to pay to avail these services. Conversely, there are small companies like ChitChat that offer their services at little to no cost.

However, this comes at another opportunity cost of not having tracking services or insurance on the parcels. This means as a customer you would be sending your parcel into the unknown. Only your faith and prayers can make the parcel reach its destination. At the same time, Canada Post does not believe in leaving its customers hanging.

The Macroeconomic Viewpoint

From a macroeconomic perspective, fuel cost is directly proportional to the cost of truck drivers and road transport. Thereby increasing the cost of labour. This automatically makes all services throughout the company even more expensive.

Like many other delivery platforms, Canada Post has faced enormous economic downturns in the past year. This can primarily be credited to the pandemic caused by Covid-19. Therefore, the company is also trying to make up for that loss. Increased tariffs and delivery restrictions do not help the situation at all.

Overall, trusted delivery companies like Canada Post are doing their best to deliver items in these unprecedented times. The bottom line is that prices of almost everything have increased in Canada, the US, Europe, and just about everywhere around the world. Inflation is a way for companies to balance off their accounts and yet maintain the quality of their services