Cheapest Shipping Options in Canada: A complete Guide for eCommerce Sellers

If you run a small eCommerce store or regularly ship packages across Canada, you’ve probably asked: How can I lower my shipping costs without sacrificing service? With so many couriers, shipping providers, and rate plans out there, figuring out the cheapest shipping options can feel like solving a puzzle.

This guide makes it simple. We’ll break down the cheapest ways to ship boxes in Canada, show you how to calculate shipping costs, and help you create a smart, cost-effective shipping strategy for your business in 2025.

Why Shipping Costs Are High in Canada (And How to Work Around It)

Let’s start with the basics. Shipping costs in Canada can feel high compared to other countries, especially if you’re a small business trying to offer free shipping without losing customers.

• Rising fuel prices increase the shipping price you pay per shipment.
• Remote or rural areas, like small remote towns, often carry extra fees due to limited access and longer delivery times.
• Fewer courier service options means less price competition from major carriers.
• Canada's population is spread out, which leads to higher delivery costs per package.

Quick tip: Ship to a business address or a pickup location whenever possible to avoid surcharges tied to remote residential deliveries.

The Cheapest Shipping Option for Small Packages in Canada

When you’re shipping packages under 5kg, ground shipping is usually the cheapest shipping method.

• Sendle - Preferred Pickup service is an affordable option for domestic shipping.
• UPS and Canada Post offer competitive rates for small businesses doing local shipping.
• Your best courier often depends on the package's destination, weight, and size.

Cheapest Way to Ship Large or Heavy Items in Canada

Shipping larger packages can get pricey fast. If you sell items like weights, home décor, or large electronics, freight shipping is usually your cheapest option.

• LTL shipping (Less-than-Truckload) is ideal when you’re shipping big items but don’t need a full truck.
• FTL shipping (Full-Truckload) works well if you’re moving a large number of packages to a single destination.
• Major shipping companies like FedEx and UPS offer freight services with competitive rates.
• Palletized shipping can reduce operating costs and protect your goods in transit.

Pro tip: Compare rates and delivery times between LTL and FTL using a shipping calculator before booking. It can help you save money based on shipment size and destination address.

Compare Shipping Rates Across Major Canadian Carriers

Never assume one courier is always cheaper. Even the major carriers like UPS, FedEx, and Canada Post vary their shipping rates based on package dimensions, delivery speed, and zone.

For a 2 lbs (1 kg) parcel being shipped from Toronto, Ontario, to Vancouver, British Columbia, these are the indicative rates from different courier services:

Use Easyship’s shipping calculator to compare rates between several major carriers. This gives you instant access to the most affordable rates based on your specific shipping zones.

How Package Size, Weight, and Dimensions Affect Shipping Cost

Carriers like FedEx, UPS, and Canada Post use a pricing model called dimensional (DIM) weight. If your box is big but light, your cost may be based on the box size—not just the weight.

• DIM weight is calculated as (Length x Width x Height) / 5000 for most carriers. For example, if a package measures 40 cm (L) × 30 cm (W) × 20 cm (H), then DIM weight = (40 × 30 × 20) / 5000 = 4.8 kg
• Oversized items may trigger extra fees even if they’re light.
• Using right-sized packaging with lightweight packing materials helps avoid unnecessary charges.
• Most carriers charge whichever is higher: actual package weight or DIM weight.

Cheapest Shipping Options Based on Delivery Speed

Speed matters—but it comes at a cost. Here’s how to balance fast shipping with affordable rates:

• Ground shipping (3–7 days): Cheapest option. Use for non-urgent deliveries.
• 2–3 day delivery: USPS Priority Mail and Canada Post Xpresspost offer affordable rates.
• Next day delivery: UPS Air Saver and FedEx Standard Overnight are fast, but cost more.
• Same-day or expedited shipping: Great for emergencies, but expensive. Not ideal for most ecommerce sellers.

It’s always a good idea to display delivery speed options at checkout so customers can pick what matters most: price or speed.

Smart Shipping Strategies for eCommerce Businesses

Shipping is one of your biggest costs—but it can also be a sales booster if done right.

• Offer free shipping with a minimum spend to boost average order value.
• Use flat rate shipping to offer predictable pricing regardless of package weight.
• Let customers choose: cheapest shipping option, fastest, or best value.
• Be transparent about shipping labels and package tracking to build trust.

Use Third-Party Platforms to Unlock Bulk Shipping Discounts

Platforms like Easyship help small businesses get access to major carrier discounts.

• You can save up to 50% off standard retail shipping rates.
• Most platforms support integrations with Shopify, Amazon, WooCommerce, and more.
• They offer instant access to label printing, address validation, and shipment tracking.
• You don’t need to negotiate your own contracts with shipping providers.

Tips to Reduce Shipping Costs Without Sacrificing Service

Here are four easy ways to reduce delivery costs while keeping your customers happy:

• Switch to poly mailers for clothes or soft goods—they’re cheaper and weigh less.
• Drop signature confirmation unless it’s required for high-value items.
• Offer local shipping or pickup for nearby customers; it’s the cheapest way.
• Bundle multiple orders going to the same customer into one package.

Getting the cheapest shipping options in Canada doesn’t have to be complicated. By comparing rates, using the right tools, and packaging smarter, ecommerce sellers can lower their shipping costs and keep growing—without sacrificing delivery quality or customer experience.

Frequently Asked Questions About Cheap Shipping in Canada

What is the cheapest way to ship within Canada? 

Ground shipping via Canada Post Regular Parcel is often the cheapest option for smaller, lightweight packages.

Is it cheaper to use Canada Post or private couriers? 

Canada Post is best for small packages. FedEx and UPS may offer cheaper rates for larger packages or faster delivery speeds, especially with a business account.

How do I offer free shipping without hurting my margins? 

Set a minimum order value or use flat rate shipping. Many small businesses add part of the shipping price into the product cost.

How do I calculate shipping costs? 

Use a shipping calculator to factor in delivery speed, package weight, dimensions, and the package's destination. Most carriers and multi-carrier platforms have these built in.

What about international shipping? 

International shipping rates depend on the country, package weight, and import taxes. Tools like Shopify Markets can help manage global sales and customs documents.

Getting the cheapest shipping options in Canada doesn’t have to be complicated. By comparing rates, using the right tools, and packaging smarter, ecommerce sellers can lower their shipping costs and keep growing—without sacrificing delivery quality or customer experience.