YNOT – As if the economy weren’t bad enough, now the postal service is mucking with the cost of goods sold, at least in Canada.
To ensure a strike by Canada Post workers doesn’t frustrate its customers with delivery delays, Toronto-based novelty e-tailer PinkCherry Adult Toys has begun shipping consumer orders via UPS. The switch costs the company an average of $1,000 additional per day, Chief Executive Officer Dan Freedman said. That represents enormous increase in PinkCherry’s overhead, considering part of the company’s marketing plan is free shipping.
It’s enough to make the owner of an online business “go postal.”
“I keep hearing that Canada Post is obsolete in the news, but that is far from the truth for a business like PinkCherry,” Freedman said. “At a time where the economy is still on shaky ground, businesses in Canada should not have to absorb further stress.”
Still, Freedman said, PinkCherry does not intend to raise prices or discontinue free shipping. The company opened its e-commerce site more than three years ago and has enjoyed tremendous consumer support and growth, Freedman noted. In June 2009, PinkCherry launched a wholesale website and grew even more. In February 2010, the company moved from its original 6,000-square-foot warehouse to a 25,000-square-foot facility.
PinkCherry also operates an American online store. The company’s affiliate program pays 15 percent commission per sale.
