Canada Post Tightens Regulations to Address Free Amazon Shipping Exploit in Nunavut

Amanda Eecherk fears a surge in her grocery expenses following Canada Post’s closure of a loophole utilized by Nunavut residents to procure pantry essentials via Amazon Prime without shipping fees.

The 42-year-old mother highlights the exorbitant cost of a can of tomatoes, priced at $10 in Rankin Inlet. However, by slightly altering her postal code during Amazon purchases, Eecherk could have nearly 10 cans dispatched to her hamlet on the northwestern edge of Hudson Bay for the same amount.

“Amazon offered the relief we desperately needed,” she expressed.

According to Amazon, its subscription service extends free shipping benefits for online purchases throughout Canada, except for remote regions. While Iqaluit residents qualify for this perk, all other Nunavut communities are exempted.

Nunavut, renowned for its vast territory, contends with some of Canada’s highest food prices and rates of food insecurity. Statistics Canada’s 2020 data reveals that 57 percent of households in the territory grappled with food insecurity during 2017-18.

In March 2018, a food price survey conducted in the territory revealed that Nunavummiut typically paid over twice the amount compared to shoppers in Ottawa.

According to Eecherk, inflation has exacerbated the situation. For instance, a cucumber that previously cost $2.79 in Rankin Inlet a few years ago now commands a price of $5.99.

She recounted how she managed to economize on groceries through a straightforward postal code adjustment. During Amazon checkout, she ensured all information was accurate but substituted the local postal code of X0C 0G0 with a fictitious one — X0C 0G1. Remarkably, Amazon Prime recognized it as eligible for free shipping, and the items were dispatched to the Rankin Inlet post office.

Canada Post tightened its enforcement of a longstanding policy to return packages with inaccurate addresses in Nunavut, prompting the closure of the loophole.

The postal service stated that parcels with incorrect addresses necessitate additional processing, typically performed manually, which disrupts the efficiency of the entire system, according to Liu.

Facing financial challenges, Canada Post reported a pre-tax loss of $748 million in its annual report last year, issuing a stark warning about its future without significant changes.

Shipping fees via Canada Post are either covered by the customer or absorbed by the online retailer, who determines how much to transfer to consumers.

This week, she browsed Amazon to gauge the cost of purchasing $100 worth of groceries on the platform, only to discover an additional $167 in shipping charges.

Krista Matthews has initiated an online petition urging Amazon Prime to broaden its free shipping services to include all communities in the North.

As the mental health and crisis response coordinator for Cambridge Bay, located on Victoria Island, Matthews asserts that access to affordable goods should not be constrained by geographical location. She noted that individuals she assists have relied on the postal code loophole for survival.

Despite inquiries regarding the petition and the potential expansion of free shipping to the North, Amazon has not provided any responses.