Canada's secret to eliminating U.S. shipping costs
Wednesday, December 12, 2007 at 03:05PM A lot more has been going on at the Canadian border than showing passports to border guards lately. When the value of the Canadian dollar exceeded the value of the U.S. dollar, loonies from Canada started a mass exodus from Canada to the U.S. Now, before anyone starts sending me hate mail about talking about the loonies in Canada, you should know that I am not referring to our northern neighbors. Loonies are actually, the American equivalent, of a dollar. :)
Canadians couldn’t have been happier when the value of the American dollar fell below the Loonie. Reuters reported that on November 7th, Canadians were actually getting a 10% return for every Loonie they used to buy products from American retailers and manufacturers. It was the answer to the Canadian consumer’s prayer, an extra 10% of buying power smack dab in the middle of the holiday shopping season. What I found more interesting about the situation involving the exchange rate between Loonies and dollars however, was just how consumer savvy Canadian shoppers really are. What they did to get as much for their buck as they could during the countrywide sale in the U.S., turned out to be a clever resolution to solving the logistical problem of getting those goods to their home in Canada. And they did it without paying the expensive shipping fees they typically have to pay for purchases from the U.S.
For Canadians living close to the border, three “free shipping” options were available, despite the fact that the companies they made purchases from charge shipping fees to Canada.
Option one involved driving across the border to do their shopping. Once they made the purchase, it was a matter of loading it in their vehicle and taking their goods back home with them.
Option two involved buying items online from American companies and having them sent to a U.S. post office box. Canadian buyers could then track their UPS, FedEx, DHL, and post office boxes online to find out when their items reached their mailing address in border towns in the U.S. Once the items arrived, getting them simply involved a ride over the border to pick them up. If Canadians wanted to see if traffic was heavy going in to a border town, all they had to do was check on how long border wait times were for their specific travel route.
For those who lived too far from the U.S. border or for those without a passport, option three was yet another avenue to resolving the problem of buying from American companies. Canadian shoppers could make online purchases and have brokers, like Ship Happens, in Sumas, Washington, receive their goods for them.
As an American, you may think that any of the options Canadians chose to save a few Loonies, wouldn’t be worth the amount of money they’d save; that is, until, you hear how money they could actually save. The Bellingham Herald reported that Matt Lang, the owner of Pacific Mail & Parcel LLC, reported that a Canadian customer from Vancouver Island saved $400 by buying a fireplace from Texas! That’s a great deal, whether you’re Canadian or American! Pacific Mail & Parcel has also reported that they have noticed an increase in the number of auto parts being purchased from America. That’s good news for American auto parts dealers.
But, that brings us to today, December 12, 2007. The Loonie and USD exchange rate is 1.020 CAD to $1.00 USD. Canadian buying power has dwindled down to just 2 more cents over the U.S. dollar. Buying in America is not as much of a bargain as it was just a little over a month ago, but for everyone who saved money or made money during the Canadian shopping spree, it was fun while it lasted!
Canada, we’re still open for business here in the U.S. and we’ve got some great sales going on right now so keep your eyes open for them! Even if the Loonie isn’t going crazy like it was last month, you can still save a bundle by taking advantage of door buster sales here in U.S. all from the comfort of your computer chairs! Thank you Canada for supporting American retailers, wholesalers, and shipping companies and thank you for teaching us all about how you resolved your unique logistics problems. Try to keep warm up there and come shop with us again soon!
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