Canada Post is taking steps to ensure that the eBay community is notified well in advance of our intention to adjust the pricing and the specifications of Oversize Lettermail. This is a reflection of our intent to work closely with our valued customers and partners in order to reduce the negative impact of these changes.

What is changing?

Canada Post is proposing to revise the specifications for Oversize Lettermail, and to create new specifications and pricing for “irregular” oversize items. This amounts to splitting existing Oversize Lettermail into two categories, based on the item’s thickness, flexibility and shape.

“Regular” Oversize Lettermail items will include:

• Items that are between 0.18 mm and 10 mm thick, regardless of flexibility; and
• Items that are between 10 mm and 20 mm thick that meet the new flexibility requirement and do not have box-like edges

• Items that are between 10 mm and 20 mm thick that do not meet the new flexibility requirement and/or have box-like edges

In addition to the introduction of these specifications, Canada Post has proposed a significant price increase for Irregular Oversize Lettermail that brings the price of the service in line with the cost incurred to process and deliver thick and rigid oversize items. As well, it is likely there will be a price increase for all Lettermail items, including “regular” Oversize Lettermail, to keep pace with inflation and other economic factors.

Why are these changes being made?

Oversize Lettermail items that are thick and rigid, or thick and have box-like edges, cannot be efficiently processed through the letter sortation equipment. As a result, these items are often sorted manually or are processed through the higher-cost parcels stream, which drives up processing costs.

By isolating oversize mail items that can be processed mechanically, Canada Post can continue to offer our customers a low-cost, high-value domestic shipping option for flexible, parcel-like items.

For oversize mail items that cannot be processed mechanically, these changes will bring our service pricing in line with the actual costs incurred to process and deliver “irregular” items.

How can a piece be tested to see if it meets the new flexibility requirement?

In January 2009, all Canada Post retail outlets will be equipped with tools to measure the dimensions of oversize pieces and test the flexibility of thick items. To view a prototype of a template that you can print to measure the thickness and test the flexibility of your existing oversize items, click here.

Alternatively, you can apply the step-by-step Table Flex Test to determine an item’s flexibility.

Note that these prototypes and tests are provided for illustration purposes only, and are subject to change.

How will this impact the eBay community

These changes will impact eBay sellers who use Canada Post’s Oversize Lettermail service to send items within Canada that are thick and rigid, or thick and have box-like edges. Items that would be defined as Irregular Oversize Lettermail include: media discs sent in standard CD, DVD or Blu-ray cases; hard cover books; or trading cards in protective plastic casings.

We recognize that these changes create challenges for your business, and may impact your cost to fulfill customer orders. To facilitate the transition and help you choose the most appropriate shipping option, Canada Post has compiled some recommended packaging and shipping practices that will hopefully mitigate the impact of these changes—and may even lower your shipping costs.

We look forward to continuing to work with eBay Canada and the many sellers who look to Canada Post to fulfill their customers’ orders each day.

Sincerely,

Mike Badour
General Manager, Transaction Mail Product Development and Management
Canada Post