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Shipping fees for Amazon skyrocket
New rules mean massive charges and the end of free two-day shipping for members in territory

Karen K. Ho
Northern News Services
Monday, April 13, 2015

NUNAVUT
One of Canada's largest online retailers is changing its shipping rules for the territory, and the shift in fees is enormous.

Amazon.ca, the Canadian arm of the popular e-commerce site Amazon.com, recently enacted new policies for shipping to what it deems remote locations. These are defined as towns far from a shipper's hub, infrequently served by shipping companies and anywhere Canada Post lists as requiring mail be airlifted. However, that last stipulation means Amazon Canada defines almost the entire territory as remote. As a result, from now on every customer who wants items shipped somewhere in Nunavut, with the exception of Iqaluit, now needs to pay $29 per shipment, plus $9.99 per pound per item.

Multiple customers in Rankin Inlet of the popular Amazon Prime service, which offered free two-day shipping for $79 a year, said they were being given refunds after the new rules regarding shipping to "remote locations" came into effect on April 8.

Keith Collier told Nunavut News/North that shopping on Amazon.ca used to be a great way to get food, supplies and other items not easily found at brick-and-mortar stores nearby.

"People who had kids I know were spending a lot," the economic development officer said. "Diapers, formulas and things like that."

After the change, Collier tried to add a $7 coffee filter to his Amazon shopping cart and quickly realized how much costs has skyrocketed. "The only option for shipping would have cost me like, 50 bucks."

Collier, who is based in Arviat, noted that the e-commerce company isn't the only major retailer which realized the high costs of servicing customers in Nunavut. Walmart Canada's website was also losing a substantial amount of money on free shipping services to the territory before recently changing its rules. Collier cited the example of a friend who ordered four barbecues from the retail giant for $80 each. When they arrived, a label showed shipping costs totalling $400.

Ryan Oliver wrote on Twitter that, during his prior experience as a project manager with the territorial government's Bureau of Statistics, he wondered about analyzing the impact of free shipping policies on poverty. "I bet it's huge and I bet this is going to hurt people who are already hurting," he tweeted.

And while the resident of Pangnirtung, figured the company was hemorrhaging money in Nunavut for several years, but Oliver admitted on Twitter he still took advantage of the policy by shipping large or heavy items including a bed, heating unit and sewing machines.

Collier also cited the issues of consumer choice, savings and food security as being affected by the new Amazon policy change.

"It's going to be painful for some people who were depending on as a cheaper option for diapers, baby food and especially items you can't get here," he said. "Any option to let people get food cheaper is good and this is one option that is now gone."

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