@recped wrote:
It's the new "granular rates".
More details here: https://community.ebay.ca/t5/Announcements/New-updated-rates-when-shipping-with-Canada-Post-on-eBay/...
Wondering what "granular rates" actually means?
It means that instead of calculating rates strictly on the distance from the point of deposit to the destination rates are discounted based on the proximity to one of the Canada Post main distribution facilities.
For example:
Presume you are shipping from Kamloops BC to Toronto, those packages would have to be taken to Richmond (Vancouver) BC and then to Toronto but the rates were based on the distance from Kamloops directly to Toronto (a shorter distance).
Under the new system rates are in part based on the total distance rather than the direct distance and therefore any packages deposited in Vancouver will be cheaper than the same package deposited in Kamloops even though Kamloops is about 350km closer to Toronto.
Basically Canada Post discount agreements are changing to a system which more accurately represents CP's actual cost of transport rather than the raw distance between deposit and delivery.
Bottom line, the closer you are to one of CP's major facilities the higher the discount. Or to put it another way there is a surcharge for mail sent from locations that are distant from those facilities.
Most private carriers have operated this way for a long time which is why I can ship from Toronto to Montreal for less than Toronto to Hunstville even though Huntsville is MUCH closer.
@recped
@regs43
Here is a google search on the topic. To my mind the search doesn't match the ebay limited explanation of what we are getting in regards to how the discount NOW works. Especially since a number of sellers have been ASKING/NEEDING a clear breakdown of charges which still hasn't happened. L
Granular shipping rates refer to a highly detailed and itemized system of calculating transportation costs based on specific, individual factors of each shipment, rather than using a simple flat rate or broad categories. This approach aims to accurately reflect the true cost of shipping each item or service component.
Key Characteristics
- Itemized Services: Every service provided is tracked and priced individually.
- Accuracy: Costs are directly tied to specific variables, leading to more accurate pricing for both the shipper and the customer.
- Transparency: Shippers and customers can see exactly where costs and potential profits (or savings) lie.
- Fairness: This method avoids penalizing smaller clients or overcharging larger ones, as the price is proportional to the service used.
Factors Determining Granular Rates
Granular rates are determined by breaking down the shipping process into its smallest components and applying a specific charge to each one. These factors include:
- Package Characteristics:
- Weight and Dimensions: Both actual weight and dimensional weight (DIM weight) are used to calculate the base freight cost.
- Freight Class: For LTL (Less-Than-Truckload) shipments, a specific freight class, determined by density, value, and handling characteristics, influences the rate.
- Distance and Destination:
- Shipping Zones: Carriers use detailed shipping zones to determine costs based on the distance from origin to destination.
- Port Charges: Specific port fees for services like berthing, pilotage, and handling equipment are included.
- Service and Speed:
- Shipping Speed: The chosen shipping method (e.g., ground, air, express) has a specific, separate cost associated with it.
- Handling/Documentation Fees: Costs for preparing specific shipping documents (e.g., bill of lading, customs clearance) are itemized.
- Surcharges and Additional Fees:
- Fuel Surcharges: These are added as a percentage of the base cost and fluctuate with fuel prices.
- Peak Season Surcharges: Additional fees applied during busy periods.
- Special Handling: Fees for hazardous materials, additional insurance, or specific delivery requirements (e.g., signature options) are charged separately.
Granular Rates vs. Flat Rates
Unlike flat-rate shipping, where a single fixed price applies regardless of minor variations in weight, size, or distance within a set boundary, granular rates offer a precise, variable cost structure. E-commerce giants like Amazon use a granular pricing strategy to manage the complexity of serving both small and large sellers efficiently.
