Ray,

If you check around you will find that most shops that offer Mail-Order or eCommerce charge their shipping fees based on dollar value of the order. I charge it that way in my shop for the following reasons.

The Canada Post Rate Guide groups areas by distance from a sorting station to determine Rate Codes. There are about 43 different originating & destination codes for shipping within Canada, you have to find the originating code & destination code and then match them up to the service level you are using ( Standard Parcel, Expedited Parcel, Express Post, Express Courier plus a few more). After this you have to calculate the cubic weight of the package in kilograms (LxWxH in cm /6000) and find the right weight class for the package. Then you have to apply the fuel surcharge for that month and then see what tax laws apply (GST,HST or Tax exempt).

It is far cheaper for me to charge the flat fees and absorb the differences (yes i run a loss on my shipping charges) than to take all day trying to figure out a rate quote that probably wouldn't even be right.

The process for shipping outside of Canada is about the same but has a bit more paperwork involved.