As some of you might have heard; we decided to turn off Free Shipping via FedEx completely. The reason was a simple financial one – it costs too much. Aftera quick review, we realised that while most of the time it wasn’t bad – the occasional ‘worst case’ scenario could really hurt us. Specifically, any order that shipped to a rural region across the country ended up costing significantly more than we had planned for.
This is probably due to how FedEx manages rural deliveries – instead of delivering the items themselves; they bring it to their closest location and then puts the item into Canada Posts’ system for delivery. Obviously, FedEx has to recoup their costs in some way for doing that – and the simplest way is to charge it to us. It also means that Canada Post is actually going to be cheaper to ship for us.
How much of a savings? In a recent worst case scenario; an order that would have cost us $50 via FedEx to ship cost us $30 via Canada Post. That’s a savings of over $20 on a $200 order.
I’ve debated getting rid of FedEx entirely; but it’s obviously a shipping method that is liked by some. As such; we’ve decided to keep it – it’s a great back-up and the additional work it adds to our workflow right now is minimal. However, we will only ship for free via Canada Post from now on.