Starting an Etsy shop can be kind of daunting, adding listings and just getting your store setup is already a big feat, but then you realize there’s so much more to it after that. There’s a whole lot that goes behind mailing out one package so I’ve compiled a list of resources that have helped me cut costs on business and also streamline the whole shipping/packaging process in general.
In this post I will cover:
- Shipping Providers
- Shipping in Canada
- Canada Post Flat Rate Boxes
- Lettermail
- Shipping in the US
SHIPPING PROVIDERS
So you’ve heard of Canada Post, UPS, Purolator, Fedex, DHL and you might assume that’s the beginning and end all of courier companies, I thought so too. But after some research I realized their are a lot of alternatives who often piggy back off these major couriers for significantly less cost to you. Here are 5 shipping companies I’d recommend for small businesses:
- Canada Post Small Business – If you haven’t registered for an account, go and do it! It’s free and offers a lot of great perks.
- Swiftpost
- NetParcel/Paypal
- Eshipper
- Chit Chats – You’ll get $5 in free postage for signing up through my referral link.
Shipping in Canada
I ran a comparison using each companies quote calculator (there are some discrepancies in whether or not fuel charge and additional charges are included in some of the quotes so these are definitely not 100% accurate)
Package Size: 10 in x 10 in x 2 in
Weight: 500 G
Package Size: 10 in x 10 in x 2 in
Weight: 1 KG
If you’re located in a more rural area, most of these may not be available to you. Thankfully Canada Post Small Business Account has some very competitive rates. BUT if you use this, make sure you check the prices with Etsy postage (which runs through Canada Post) because I find buying your CP postage through Etsy can actually be cheaper sometimes. Or check out the Canada Post flat rate boxes.
Canada Post Flat Rate Boxes
When these first came out the Canada Post Flat Rate Boxes were an amazing deal, but as time has passed, Canada Post has significantly raised their prices on these so it’s not the first method of shipping I’d recommend, but there are definitely occasions when these come in handy. For example, if you’re shipping to Middle of Nowhere, Canada, these boxes will be cheaper. Or if you live in the middle of nowhere, it’s not a bad idea to order these. Sizes and rates are below:
Lettermail
Etsy really pushes sellers to offer free shipping and it really isn’t possible when you sell items under $20 because to build it into your cost could almost double your price if you’re using any form of tracked shipping. Enter Lettermail. Some people love it, and some people hate it. But for all the headaches it may cause, Lettermail prices can’t be beat and so long as your package fits in the slot of doom (less than 2cm thick and weighs less than 500g) then you’re good.
Benefits of Lettermail
- The cheapest way to send mail domestically in Canada
- Convenience of dropping mail in street level boxes
Negatives of Lettermail
- No tracking, which means you will have customers asking where their packages are
- Size restrictions (under 500 g, less than 2 cm thick)
- Potential of customers lying about not receiving their packages
Verdict:
- Use lettermail when sending cheaper easily replaceable items.
- IF mail gets lost, I resend the second one with tracking just so that I know it’s guaranteed to get to my customer, at the end of it, I usually still net a bit of money off that sale, or I break even. BUT you have to think about all the business you’ve gotten because you offer free shipping and it heavily outweighs charging people $10-$20 to ship something small.
- I’ve been using lettermail for about 2 years and have sent over 700 packages using lettermail. I’ve probably had to resend 3 packages due to ‘lost mail.” But there’s no way I would have made that many sales if I charged tracked package rates on my items.
Lettermail Knowhow
A few tips on using Lettermail:
- Slotboxes: these are boxes guaranteed to fit through the slot. Ideal for smaller items.
- Stamps: The cheapest way to buy stamps is to look for discount stamps on Ebay (they’re totally legal and usually a result of companies going bankrupt or collectors, or auctions) I buy mine from this seller here. It comes out to $0.63 cents a stamp (as opposed to $0.92 cents direct from Canada Post or $0.87 at Costco) That’s significant cost savings over hundreds of packages.
Shipping in the US
Honestly, the rates for Chit Chats in Canada isn’t necessarily what convinces me to use them as you can see above, they’re definitely cheaper in many cases but not always when shipping domestically. BUT if you plan on shipping to the States, you’re going to save yourself and your customers a lot of money if you use a different shipping provider. It’s almost no competition in our first chart here. Chit Chats basically has to be your go to for smaller lighter packages.
Package Size: 10 in x 10 in x 2 in
Weight: 0.5 lbs
Things change a little when your package gets bigger. Netparcel/Paypal’s UPS rates are extremely competitive and are by far the best rate when shipping slightly larger packages.
Package Size: 10 in x 10 in x 2 in
Weight: 2 lbs
I didn’t do any quotes for large packages as it doesn’t really pertain to my own store and I know a lot of Etsy sellers sell smaller goods. I hope you found this post helpful. I will be writing a follow up post to this on shipping supplies and where to buy the cheapest shipping materials.
See you in the next post
Helaine
Springbok Craft Supply 