Did you know that Canada Post is just months away from implementing shape-based postage rates similar to the United States Postal Service? However, Canada Post is rolling out these changes much faster and with even greater financial impact than in the U.S. As you know, the U.S. Postal Service restructured postage rates in May 2007, causing dramatic rate changes and disruption for organizations shipping small, lightweight packages like DVDs and drug prescriptions.
Effective January 12, 2009, Canada Post follows suit. Canada Post lightweight packages known as “Irregular Oversized” Lettermail will cost CAN$3.92, up from CAN$1.92 today. That’s a CAN$2.00 per unit price increase! Organizations that depend on shipping small packages are scrambling for solutions. But there is hope…
If a parcel can be re-configured to meet Canada Post’s new specifications that focus on flexibility and thickness, smart mailers can turn their Irregular Oversized Lettermail into Regular Oversized Lettermail. By doing so, postage rates would drop from CAN$3.92 down to CAN$1.96, an incredible savings of $1.96 per package.
Canada Post has already called upon Conformer Products for help. Our Conformer Media Mailer has already received approval as an automated flat from the USPS to mail DVDs, CDs, and other similar objects, and Canada Post feels hopeful that this product will pass as Regular Oversized Lettermail at the CAN$1.92 rate. Conformer is deep in the final stages of testing with Canada Post for final approval and should have word within a few weeks. Stay tuned for further product updates and postal approvals.
By Bob Makofsky