INDUSTRY
Location
Platform Before
Platform After
Carriers Before
Carriers After
Total Savings
Implementation Time
Canadian apparel businesses face mounting pressure from escalating shipping costs that directly threaten profitability. The Fashion and Apparel category represents the single largest segment of Canadian e-commerce, accounting for 26% of total market revenue¹. However, this growth comes with significant logistical challenges that disproportionately impact smaller retailers.
The financial pressure has intensified dramatically. Major parcel carriers raised their base rates by an average of 5.9% in 2024, contributing to a cumulative rise in total shipping costs of over 20% in the preceding 25-month period². These relentless rate increases are compounded by the steady inflation of surcharges, with fees like the Residential Delivery Surcharge increasing from $4.35 in 2023 to a planned $4.65 in 2025³.
Platform dependency risks: Many businesses rely on shipping platforms that can suddenly change rates or carrier relationships, creating operational instability
This rapidly growing Ottawa apparel brand had built strong momentum in both direct-to-consumer and business-to-business channels, but their shipping strategy was undermining their expansion plans. Despite using Freightcom’s platform with multiple carrier options, they faced critical operational and financial constraints.
Core problems:
Like many apparel SMBs, they lacked the individual shipping volume to negotiate preferential rates directly with carriers. Their situation reflected the broader challenge facing Canadian apparel businesses: the structure of carrier pricing inherently favors high-volume shippers, creating a systemic disadvantage for growing companies that are subject to standard list rates and surcharges⁸.
We identified that their platform dependency was preventing access to optimized carrier relationships and rates. Through Part n Parcel’s network of 240+ Canadian businesses, we implemented a comprehensive migration strategy that provided both immediate cost savings and long-term operational stability.
Transparent billing processes: Weekly billing cycle with CSV invoice format for easy reporting and analysis
The Canadian e-commerce market is projected to grow from USD 41.79 billion in 2025 to USD 66.89 billion by 2030, representing a compound annual growth rate of 9.86%⁹. Within this expansion, the online share of the Canadian fashion market is projected to grow from 25-30% in 2024 to 30-35% in 2025¹⁰.
This growth creates both opportunity and operational pressure. Every online transaction translates into a logistical operation, with the dominance of the business-to-consumer model constituting 65% of the Canadian e-commerce market in 2024¹¹.
Return cost impact: The total cost of a single return can be anywhere from 21% to as high as 65% of the item’s original value when factoring in all associated costs¹⁵
Value proposition: Access to enterprise rates through collective buying power of 240+ Canadian businesses, eliminating the volume disadvantage that keeps most apparel companies paying premium shipping rates.
Minimal operational disruption: Strategic timing and clear communication ensured smooth transition during implementation period
¹ eCommerce Industry in Canada 2017-2029 – ECDB
² Shipping Rate Changes | FedEx
³ Shipping & Courier Rate Changes: 2025 Updates | FedEx Canada
⁴ What Is Dimensional Weight? DIM Weight Calculator and Guide – Shopify
⁵ Reaching U.S. online fashion shoppers | Business Matters | Canada Post
⁶ Navigating the Canadian Shipping Landscape: Best Practices for E-commerce Merchants
⁷ How To Reduce Shipping Costs: 11 Useful Tips – Shopify
⁸ How to Spend Less On Small Business Shipping In Canada – Shipfusion
⁹ Canada E-commerce Market Size & Growth Analysis Report, 2030 – Mordor Intelligence
¹⁰ Fashion Industry in Canada 2017-2029 – ECDB
¹¹ Canada – eCommerce – International Trade Administration
¹² International trade is booming, but not all Canadian businesses are cashing-in – CFIB
¹³ The Unseen Seams: An Analysis of Shipping Costs, Complexity, and a Strategic Path Forward for Canada’s Apparel Industry
¹⁴ New insights on Canadian shopping habits: Adyen and Retail Council of Canada
¹⁵ Online Returns Hurt the Planet and Bottom Lines. Retailers Are Changing That – Canadian Business
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.
