April 5, 2025
The ongoing Canada Post strike has disrupted more than just mail delivery. For small and mid-sized businesses (SMBs), it’s caused significant operational and financial ripple effects—right in the middle of the critical holiday season.
From delivery delays to lost sales, the impact is real—and growing. With no clear end in sight, the Canada Post strike causes financial difficulties for small businesses in ways many didn’t anticipate.
Below, we break down five key financial challenges Canadian SMBs are facing—and what they can do to weather the storm.
For many small retailers and e-commerce businesses, November through December represents the highest revenue window of the year. With postal workers on strike and major couriers like Purolator and UPS pausing shipments from third-party platforms like eShipper and ShipTime, many businesses simply can’t fulfill customer orders.
This isn’t just an inconvenience—it’s lost revenue.
In fact, the Canadian Federation of Independent Business (CFIB) estimates the strike is costing small businesses $76 million per day. That kind of volume loss during peak season can create a cash shortfall that lingers into Q1 of next year.
Inventory that was supposed to be shipped is now stuck in warehouses, offices, or fulfillment centers. This not only ties up cash, but also creates additional storage costs, especially for businesses that lease third-party warehousing space.
For SMBs with perishable or seasonal inventory—such as food, holiday goods, or apparel—this backlog translates into product depreciation and potential write-offs.
With delayed deliveries and no clear timeline for resolution, many businesses are now facing a spike in refund requests and customer service inquiries. Managing this surge takes time, resources, and in some cases, cash back out the door—further hurting your margins.
For online-first businesses, particularly those without brick-and-mortar stores, this is a serious hit to customer trust and retention.
Delayed shipments mean delayed payments, especially for businesses operating on net terms or invoicing after delivery. The longer it takes to fulfill orders or complete service delivery, the longer it takes to collect.
This creates cash flow gaps that can quickly escalate into an inability to pay vendors, employees, or rent—especially if you rely on recurring sales to sustain operations.
With Canada Post on strike and major carriers overwhelmed, many businesses are now turning to expensive last-mile delivery services or regional couriers. In urban areas, some are using on-demand options like Uber or third-party gig couriers—but at a higher price point and with limited reach.
The cost of fulfilling each order has gone up, but pricing hasn’t. This means shrinking profit margins on every item shipped—and for small businesses, those margins matter.
While you can’t control the strike, you can control how your business responds. Start with these three steps:
Understand where you may hit shortfalls over the next 30–60 days and identify which costs can be delayed or negotiated.
Use your website, email, and social channels to set expectations around delivery delays. Transparency can help preserve customer loyalty.
If you haven’t already, consider partnering with multiple couriers or exploring local delivery options where feasible.
Unpredictable disruptions like the Canada Post strike can expose just how vulnerable your cash flow really is. That’s where Vitality Cash comes in.
Our AI-powered cash flow management platform helps small businesses:
Whether you’re adjusting to lost sales, higher shipping costs, or delayed receivables, Vitality Cash gives you the clarity and control you need—in one intuitive dashboard.
The Canada Post strike causes financial difficulties for small businesses across the country—and it’s a harsh reminder that logistics are tightly intertwined with financial health.
But with the right tools, planning, and response, your business can adapt and emerge even more resilient.
An AI-integrated cash flow management solution designed to empower SMBs with predictive insights, comprehensive financial control, and streamlined operations.
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