Categories: International

USPS Price Change: Introducing Zone-Based Pricing for Shipments to Canada

Image Source: istockphoto

For 2016 price change Information click here.

With the USPS postage price change just around the corner (May 31 to be exact), it’s time for ecommerce businesses to start gearing up for shipping rate changes.

We’ve already provided a general overview of some of the key changes that you should be expecting in our previous blog post, but there is one change in particular that we wanted to pay special attention to: namely, a new policy that will impact online sellers who ship to Canada.

But before we dive into the details, let’s explore why your business should be targeting Canada in the first place.

Canada: The Golden Opportunity for U.S. Retailers

While it’s common knowledge that Canadians have a thing for hockey and maple syrup, what you might not know is that Canadians also have a penchant for online shopping (and they love American brands).  

According to Multichannel Merchant, 60 percent of Canada’s online shoppers buy from U.S.-based merchants, and 37 percent of the world’s cross-border power shoppers are Canadian.

There’s no arguing with those statistics – Canada is an ecommerce market that is ripe for the picking.

Given the importance of this ecommerce market, online retailers should pay special attention to this year’s USPS price change. Here’s what you should know about shipping to Canada.

Canada is Switching to Zone-Based Pricing

In the past, shipping a package from the southern tip of Texas to Toronto, Canada would cost the same as shipping it from New York City. But starting on May 31st, the USPS will be introducing zone-based pricing for Priority Mail International packages traveling to Canada.

What is zone-based pricing? This means that shipping rates will be based on seven pricing zones. Rates will be determined by the U.S. origin ZIP code and Canadian destination postal code, allowing the USPS to provide accurate shipping rates instead of having to factor expensive routes into one blended rate.

With this latest price change, rates will be consistent across Canadian destinations, meaning a package shipped from New York City to Toronto will cost the same as one from New York City to Vancouver. However, in subsequent price changes, shipping rates to different Canadian regions may differ.

Now, here’s the question everyone’s asking: which zone is going to see savings?

If you’re shipping from a major U.S. city, like San Francisco or Chicago, to anywhere in Canada you most likely fall under Zone 1.1 and Zone 1.2, and can expect to save around $8 per package. You’ll also see greater savings if you ship packages under 1 lb. or more than 13 lbs. However, if you’re shipping from a less major city, such as Wichita, Kansas (Zone 1.4), you will see an increase of around $6 per package.

To see how shipping rates are changing for each zone, check out the graphic below.

To look up your shipping zone, click here and follow these step-by-step instructions:

  1. Click “Open” (right hand side)
  2. Refer to Column 1 and search for the first three digits of your ZIP code using “ctrl + f”
  3. Refer to Column 2 to locate the first letter of the Canadian ZIP code
  4. Refer to Column 3 to see which shipping zone corresponds with your ZIP code

Keep checking our blog for USPS price change updates and other information on USPS shipping. Also, for more insight on shipping internationally, visit our International Shipping page.

For a PDF printable version of the infographic below, click here.

About Endicia

Endicia is a leading provider of internet-based postage services that make it easier and more affordable to ship parcels through the U.S. Postal Service®. We know that shipping can be complex and our goal is to simplify your shipping operations so you can focus on doing what you do best. Visit us at www.endicia.com to learn more.

Richard Kao

When it comes to USPS price changes, Richard is Endicia's resident "numbers guru." All those comparison charts on our site - that's Richard. The explanations of shipping or mailing changes to come - Richard again. He brings 10 years of experience to Endicia's marketing team and provides a keen sense of analysis to every project he tackles. Prior to Endicia, Richard used his marketing wits to help startups, mid-sized businesses and Fortune 500 companies grow.

Share
Published by
Richard Kao

Recent Posts

How to Navigate the CUPW strike 

12-17-24 Update Effective December 17, 2024, Canada Post resumed operations and will be accepting new…

1 month ago

USPS HOLIDAY SHIPPING RATE INCREASE STARTS OCTOBER 3

The United States Postal Service (USPS) is temporarily raising rates for select package services from…

3 months ago

 2024 USPS Rate and Service Changes

Last updated September 10, 2024 At least once a year – and sometimes multiple times…

3 months ago

How Carriers Like FedEx, UPS, and USPS Are Turning to Dynamic Pricing

This year, we have seen fixed pricing on postage rates is becoming less common as more…

4 months ago

What Are Demand Surcharges and How Do They Affect Your Mailing & Shipping Costs?

What are demand surcharges? Demand surcharges are extra fees that shipping carriers add during busy…

5 months ago

 2023 USPS Rate and Service Changes 

Welcome to our United States Postal Service Updates blog, the hub for staying in the…

1 year ago