Canada Post alliance to improve e-commerce shipping options
Some of Canada’s biggest retailers will be able to link more easily with Canada Post’s shipping services under a new IT partnership. The Crown Corporation is collaborating with Ottawa-based e-commerce IT specialists Thinkwrap Commerce to provide a ready-made software plug-in that will simplify and accelerate the process of e-retailers using Canada Post’s shipping data.
The new plug-in is designed for the Oracle Commerce e-commerce platform powering some of the leading retail brands in Canada, according to Canada Post.
The upshot is that e-retailers should be able to offer more customer-friendly options for shipping times, delivery locations and easier returns, as well as improved tracking, because they are better able to incorporate shipping data into their online stores.
Canada Post said e-commerce merchants will be able to use the pre-built software developed by Thinkwrap easily in their current websites without need for additional customisation.
Rene Desmarais, Senior Vice-President of Parcels at Canada Post, said: “This new collaboration will allow Canada’s biggest retailers to better meet their customers’ online shopping expectations by providing them with the kind of options they want. Improving the end-to-end online shopping experience is key to making e-commerce in Canada stronger, and more competitive.”
Canada Post is looking to expand its market share in e-commerce delivery as it contends with the ongoing decline in letter mail, which has put the company substantially into the read this year.
Recent financial results have seen Canada Post achieving more than a 4% year-on-year growth in volumes and 11% growth in revenues for parcel services.
Thinkwrap chief executive Steve Byrne said making it easier for retailers to provide more shipping options will help drive the business.
“Make no mistake; Canada Post has hit the nail on the head with its new service mix for eCommerce customers. Our eCommerce customers have confirmed this with their direct feedback,” he said.
Letter prices
Separately, Canada Post is set to raise its letter mail prices from the end of this month, under a new tiered pricing structure for both international and domestic items.
Prices for Permanent stamps bought in booklets will rise from $0.63 to $0.85, a 35% increase. Those buying single stamps for domestic letters will have to pay $1, but Canada Post said this represents just 2% of stamp sales.
Commercial customers using postage meters of indicia will pay $0.75 per domestic letter. Presort discounts will mean those sorting their letters to the correct standards will pay $0.69-$0.70 per letter.
Canada Post said it believed the average small business would pay less than $55 a year extra under the new system.
The company said it had been a “difficult decision” to raise its rates, but was a “case of necessity”.
“Lettermail volumes have fallen steadily since 2007, and that trend continues as more and more Canadians turn to digital and mobile alternatives,” the Corporation said in a statement. “With a mandate to serve all 15.5 million addresses in Canada – a number that rises on average by 170,000 addresses a year ‒ Canada Post must remain financially self-sufficient.”
Canada Post offers four-day delivery across the country for letters mailed a the $0.85 rate, three days within provinces and two days within cities.
Along with price changes, Canada Post is reducing minimum volume thresholds for some of its commercial letter pricing. The National Association of Major Mail Users said the permanent reduction in thresholds was a “significant” outcome for many large and small mailers.
