Canadian retailers struggle with online shipping costs as fuel surcharges soar
Global News
For Canadian stores with high online return rates, the increased cost of shipping can be especially challenging when couriers charges fuel surcharges amid high gas price.
Canadian retailers are struggling with higher shipping costs as couriers tack hefty fuel surcharges onto shipping rates to recoup record gas prices.
The additional charge is sending the cost of shipping goods within Canada higher, topping 40 per cent for some carriers.
For stores with high online return rates, such as apparel and footwear companies, the increased cost of shipping can be especially challenging.
So far, most companies are trying to absorb the extra domestic shipping charges, Retail Council of Canada spokeswoman Michelle Wasylyshen said.
With inflation squeezing consumers and an ongoing battle for online dollars, she said retailers are reluctant to pass on costs.
“Retail is one of the most competitive industries in Canada, so raising minimum free shipping thresholds or adding surcharges to consumers directly is often done as a last resort,” she said.
“Retailers would prefer to find savings elsewhere.”
Higher domestic shipping costs come as international freight costs finally begin to stabilize.
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