Shipping charge through Shopify (Canada Post) much higher than directly through Canada Post

Hi, I might have an incorrect setup in my shipping. I am about to open my store, but the shipping charge is still incorrect. So, I’m really hoping someone might know or have suggestion where I might have missed in the setup.

I’m on Basic plan. I setup my shipping using Shopify Shipping Calculated Rates, which is automatically connected to Canada Post since I’m in Canada. I have setup the default box package with 0 weight, so it won’t impact the shipping calculation.

When I tested to check the shipping cost, for the same exact weight of item on the cart and size of box being used, the shipping charge through my Shopify is so much higher than the shipping charge that I tested directly through Canada Post website as an individual. Here’s the price comparison:

Expedited: $22.15 (Shopify-Canada Post) vs $17.70 (directly Canada Post).

Express: $31.64 (Shopify-Canada Post) vs $24.90 (directly Canada Post). And so on.

So, I’m assuming there is something wrong with my setting? Help. Thank you in advance.

Hi @ma66

You can contact Shopify live chat support to resolve this: https://help.shopify.com/en/questions#/contact/chat

Hi @ma66 .

When checking rates via the Canada Post website, they seem to add a fuel surcharge after they have quoted you for your shipping label price.

Because of this, it might initially seem like the prices on their website are significantly less. Once fuel costs are added however, the final price should be at an amount that is much closer to the one that is offered via Shopify Shipping.

If you still need further help looking into this though, then as @Anindita suggested, you can contact our live support team so that we can take a closer look at your account from our end.

I’ll also leave a couple of resources below for you to have a read of, seeing as you’re currently going through your store’s shipping settings and strategies:

Shopify is a reseller of Canada Post labels, meaning they are making a profit from the sale of the labels. You’re better off getting your own account with Canada Post and linking it to your shipping rates. That’s what we did, and trust me… Shopify cannot come close to the rates we get. And our rates keep getting better with the amount of volume we do.