(SHERBROOKE) Sherbrooke A trader wants to sell its surplus goods on eBay. He first looks on the website of transactions to secure a competitive sale price that is offered there. He noted that the same product they wish to sell is sold by a Chinese trader at $ 2.98, without delivery charges. He then consults the Tariff Schedule of Canada Post to find that it would cost a minimum of $ 7.80 in shipping costs if it sold its product in Canada, even if its neighbor was the buyer. It would cost him more if the buyer was abroad. Conclusion: it is better for him to throw the product in the trash rather than trying to sell through e-commerce.
How is this possible? The starting cost for postal deliveries by air, small parcels of China to Canada or the United States is 5 ¥ (Yuan), equivalent to $ 0.99. The postal cost departure for the same package and the same in reverse service is $ 11.54. This trader Sherbrooke is Claude Denis, owner of the company Electro-5 and member of the board of the Chamber of Commerce of Sherbrooke. He is indignant before this imbalance of postage, an imbalance that leads to uneven competition force.
“What really makes me indignant is that Canada Post delivers to the Chinese package which cost him $ 0.99 across Canada when our minimum cost to us, Canadian companies, range from $ 7.80 to 11 $ 17 depending on the region, “says Denis.
Indeed, once the ordered product arrives in China on Canadian soil, the Canada Post staff who book the package at the door of the Canadian purchaser. A reality that Canada Post spokesman Muktar Abdillahi, refused to confirm despite dozen calls and emails from The Tribune.
To be clear, Canada Post factors thus deliver the Chinese package of port or airport in Canada at the gates of Canadian consumers for less than $ 0.99 while the same factors engaged for a minimum of $ 7.80 the same package of a Canadian address to another.
“In my mind, our postage rates are related to transaction costs. For example, it costs up to $ 3.37 more to deliver in a remote area in Canada. So how is it that it only costs $ 0.99 for the Chinese? I understand by this that we pay more than the actual cost of the postal service we get to fill the shortfall in deliveries for the Chinese, “says Denis.
“The consumer considers the cost of delivery in its warehouse. This allows me to conclude that Canada Post is an incentive for purchases outside the country, “protested Mr. Denis.
Electro-5 is not the only company to suffer from what some call a distortion of competition to the advantage of China. (See other text)
This distortion of competition will observe primarily on small objects.