Canada Post Strike 2.0 Could Freeze Billions in Online Sales -- Experts Warn Retailers

Cision Canada

15-05-2025

Toronto-based, Canadian eCommerce shipping company, Stallion, shares lessons from 2024, walk-out and practical next steps for merchants.
TORONTO, May 15, 2025 /CNW/ - Canadian eCommerce merchants face a fresh threat to their checkout lanes as contract talks between the Canadian Union of Postal Workers (CUPW) and Canada Post inch toward a possible May 22, 2025, strike. A repeat work stoppage could stall billions in online revenue, strain supply chains and leave rural shoppers waiting for essential supplies.
"When postal trucks parked last winter, we saw inbound shipping enquiries surge 22 percent overnight as thousands of sellers scrambled for alternatives," said Pramod Bhat, Chief Executive Officer at Stallion.
"We held our rates steady to help Canadian businesses keep moving, yet many still found themselves reacting at the last minute. If negotiations falter again, contingency planning must start before the strike actually begins."
What's at Stake
Who: Thousands of businesses and millions of Canadians who rely exclusively on Canada Post for daily parcel deliveries and returns.
What: A nationwide labour stoppage disrupting mail pickup, sorting and last-mile delivery.
Where: Urban merchants can pivot faster, but rural communities risk longer delays for parcels, prescriptions and other vital supplies.
When: May 22, 2025, is the earliest legal strike date—weeks before back-to-school promotions and months before Q4 peak.
Why it matters: Canadian eCommerce topped CAD $92 billion in 2024. Prolonged uncertainty could dampen consumer confidence, reduce revenue and squeeze already-tight small-business margins.
"Our data show rural merchants lost up to nine days in transit time during the 2024 shutdown," added Jose Sagun, Senior Business Analyst at Stallion Express.
"Building flexible shipping systems lets sellers pivot in minutes rather than hours—critical when customer reviews and return windows hang in the balance."
Five Immediate Action Steps for Merchants
Work with a shipping aggregator to access multiple alternatives to Canada Post and shipping rates.
Set transparent delivery expectations on storefront banners, cart pages and confirmation emails.
Lock in carrier pickups early —reserve capacity before volumes spike.
Canadian businesses urge both negotiating parties to reach a fair, swift settlement that protects workers while safeguarding the uninterrupted flow of goods nationwide.