Canada Post Strike Disrupts eCommerce Operations, Alternative Carriers Come To The Rescue
TORONTO, Nov. 26, 2024 /CNW/ - In response to recent disruptions in Canada's shipping industry, alternative shipping companies like Stallion Express are stepping up to support eCommerce businesses nationwide during the critical holiday season. With over 27 million Canadians engaging in online shopping, accounting for 72.5% of the population, the demand for reliable shipping services is paramount.
With Canada Post serving as the backbone of shipping for countless businesses, the disruption has left businesses nationwide scrambling for solutions during the busiest shipping period of the year.
A Nation in Shipping Crisis
The immediate impact of the strike has been felt across urban and rural areas alike, but remote regions have been hit particularly hard. Without Canada Post, many businesses lack alternatives to deliver to customers in these locations. This has led to cancelled orders and refunds, further straining the resources of small businesses.
"Customers expect to receive their packages within 2-4 days on average nowadays, and the strike has disrupted the entire eCommerce shipping ecosystem. These delays can significantly impact business reputation and customer relationships," said Jose Sagun, Senior Business Analyst at Stallion Express.
Adding to the turmoil, many online sellers have been forced to pause their stores to temporarily stop receiving orders until shipping disruptions subside.
"We're seeing many e-commerce sellers resort to vacation or maintenance mode because they simply cannot guarantee timely deliveries to their customers," said Sagun. "Pausing an online store during the holiday season is a difficult decision, but for many small businesses, it's their only viable option. Some sellers are even considering driving themselves to complete local deliveries."
Businesses Seek Alternatives
Faced with an unprecedented shipping challenge, businesses have been quick to seek alternative solutions. Providers like Stallion Express, Uni Uni, Fleet Optics, UPS, and Purolator have stepped in to fill the gap left by Canada Post, handling increased shipping volumes and alleviating some of the immediate pressure.
Stallion Express, a leader in shipping for Canadian eCommerce, has experienced a significant uptick in demand. "We've seen a massive increase in signups as businesses search for affordable and dependable shipping alternatives," Sagun added. "Most alternatives to the national carrier are reportedly expensive, making our discounted rates essential for businesses trying to stay afloat."
Holiday Season Challenges For E-commerce
The eCommerce market in Canada is projected to grow by 9.76% from 2024 to 2029, resulting in a market volume of US$104.40 billion by 2029. The holiday season intensifies the stakes as it experiences the highest shipping volumes.
"Shipping delays during the holidays can lead to frustrated customers especially because a major portion of the orders are gifts for family and friends" Sagun explained. "Businesses that can adapt quickly and find reliable solutions will have a competitive edge in terms of customer satisfaction."
A Wake-Up Call for the Industry
The strike serves as a stark reminder of the need for diversification and flexibility in shipping strategies. By embracing alternative solutions and investing in innovative logistics systems, businesses can better prepare for future disruptions.
"The demand we've seen since the strike was called shows how essential affordable, dependable shipping options are to Canadian businesses," Sagun said.
As the strike continues, Canadian businesses are demonstrating resilience and resourcefulness, ensuring the country's eCommerce sector keeps moving forward.
SOURCE Stallion Express
