Case Study

Canadian Lighting & Home Hardware Shipping Optimization: 20.4% Cost Reduction Through Strategic Multi-Carrier Implementation

INDUSTRY

Luxury & Mid-Market Lighting and Home Hardware Retail

Location

Mont-Royal, Quebec

Platform Before

Freightcom

Platform After

ShipStation

Carriers Before

Freightcom, UPS, Local Courier

Carriers After

FedEx, Purolator, Canpar

Total Savings

20.4%

Implementation Time

14 Days

Why Lighting & Home Hardware Businesses Struggle with Shipping Costs

The Canadian lighting and home hardware sector operates in a high-stakes environment where shipping costs directly impact competitiveness. The Canada Lighting Market is projected to grow at a compound annual growth rate of 7.7% from 2025 to 2030, reaching projected revenue of $8.2 million¹. This growth is amplified in adjacent segments, with the Canada Smart Home Market forecast to expand at 10.10% CAGR, growing from $4.18 billion in 2025 to $6.77 billion by 2030².

However, rising demand contrasts sharply with declining domestic production. The market size of Lighting Fixtures Manufacturing in Canada has actively declined, posting a -1.7% CAGR between 2019 and 2024³. This means Canadian retailers increasingly rely on imports, fundamentally altering their logistics requirements and making cross-border shipping expertise essential.

"We went from manually checking rates on one platform to having the system automatically find the best option from three major carriers. The time savings alone were significant."

Specific Lighting & Home Hardware Shipping Challenges

  • Dimensional weight penalties: Products like chandeliers, floor lamps, and decorative mirrors require large protective packaging with significant void fill, creating DIM weights that can exceed actual weight by 800%⁴
  • Residential delivery surcharges: Many lighting purchases go to homeowners, triggering residential surcharges of $4.65 per shipment from major carriers⁵
  • Remote area penalties: Serving customers nationwide means facing surcharges up to $120.80 for remote postal codes⁶
  • Peak season cost spikes: Holiday gifting demand coincides with carriers’ highest surcharges, with oversize penalties jumping to $159.50 per shipment during peak periods⁷

Cart abandonment pressure: 92% of Canadian shoppers abandon carts due to high shipping costs⁸, making competitive shipping rates essential for conversion

The Challenge: Mont-Royal Lighting & Home Hardware Retailer

This established Quebec lighting and home hardware retailer had built a strong reputation for quality products but was struggling with shipping operations that undermined their growth potential. Operating primarily through Freightcom with UPS and local courier support, they faced multiple operational barriers.

Core problems:

  • Platform limitations: Freightcom’s restricted carrier options prevented access to optimal rates for their specific package profiles
  • DIM weight impact: Mid-weight packages (15-20 lbs) in large protective boxes resulted in significant dimensional weight penalties
  • Residential delivery costs: High proportion of B2C deliveries triggering expensive residential surcharges
  • Limited carrier leverage: Single-platform dependency reduced negotiating power and rate optimization opportunities
  • Manual rate comparison: Time-consuming process to evaluate shipping options across different carriers and service levels

Like many businesses in Canada’s lighting sector, they were paying retail rates for enterprise-scale shipping volumes without access to the tools and relationships needed to optimize costs systematically.

"We knew there had to be a better way to handle our shipping, but we didn't have the carrier relationships or time to figure it out ourselves."

The Solution: Multi-Carrier Strategy with ShipStation Integration

Through Part n Parcel’s network of 240+ Canadian businesses, we implemented a comprehensive platform and carrier optimization that addressed their specific product and delivery challenges while maintaining operational simplicity.

What Changed

  • Platform upgrade: Migrated from Freightcom to ShipStation for superior automation and carrier integration capabilities
  • Multi-carrier activation: Established direct accounts with FedEx, Purolator, and Canpar through collective buying power
  • Automated rate shopping: Configured ShipStation to compare rates across all carriers for each shipment automatically
  • DIM weight optimization: Leveraged carrier-specific DIM divisors and service levels to minimize dimensional weight impact
  • Residential delivery strategy: Optimized carrier selection based on residential vs. commercial destinations

Enterprise support access: Provided direct access to carrier customer service typically reserved for high-volume shippers

Measureable Results

Financial Impact

Operational

Customer Experience

Lighting & Home Hardware Industry Context

Market Trends

The Canadian home improvement sector continues robust expansion, with average expected spending on home renovations reaching $19,000 in 2024, nearly doubling from $10,000 reported in 2019⁹. The total home improvement industry in Canada was valued at over $80 billion in 2019 and continues driving economic activity¹⁰.

This growth coincides with structural shifts toward online purchasing. Canadian e-commerce sales reached $67.7 billion in 2023, marking 7.0% growth, with projections showing continued expansion to $104 billion by 2029¹¹. For lighting retailers, this means e-commerce represents the primary growth channel.

Cost Reality for Lighting & Home Hardware SMBs

The financial data reveals why professional optimization matters for lighting businesses:

  • Cost percentage: Shipping typically represents 21.9% of total operating expenses for miscellaneous store retailers (including home hardware)¹²
  • Rate increase pressure: Annual carrier rate hikes of 4.9% create persistent margin compression¹³
  • Conversion impact: 55% of online shoppers abandon carts due to unexpected shipping fees¹⁴

DIM weight penalties: Lighting products can incur billable weights 800% higher than actual weight due to protective packaging requirements

Who This Approach Works For

Ideal lighting and home hardware businesses:

  • Ship $10,000+ annually with mid-weight packages requiring protective packaging
  • Serve mix of B2B and B2C customers across Canada including residential deliveries
  • Currently using single-platform solutions like Freightcom with limited carrier options
  • Experience DIM weight penalties on bulky but lightweight products
  • Want to maintain operational simplicity while accessing enterprise-level rates

Results depend on current setup:

  • Businesses shipping primarily through single platforms see highest immediate savings
  • Companies with high residential delivery percentages benefit most from carrier optimization
  • Those experiencing significant DIM weight penalties gain substantial cost reductions
  • Retailers serving remote Canadian markets benefit from expanded carrier options and competitive remote area pricing

This optimization typically works best for businesses ready to invest in proper shipping infrastructure rather than treating logistics as a necessary cost center.

Why the 14-Day Implementation Worked

  • Pre-negotiated carrier relationships: Direct commercial agreements with FedEx, Purolator, and Canpar enabled immediate account activation
  • ShipStation expertise: Proven configuration templates from 240+ member companies applied specifically to lighting industry requirements
  • Automated setup process: Established integration procedures minimized learning curve and operational disruption
  • Immediate rate access: Collective buying power provided enterprise rates from day one without volume commitments

Dedicated support: Direct carrier representative relationships ensured smooth transition and ongoing optimization

Getting Started with Lighting & Home Hardware Shipping Optimization

Join 240+ Canadian businesses saving 15-40% on shipping costs through our collective network. Get your free analysis to see exactly how much your business can save.