You print a label, the customer cancels their order, and the box stays on the shelf. Two weeks later, the label is still there—and in many cases, it’s already on your shipping invoice. This is one of the most insidious leaks in a Canadian small business’s shipping budget: no one notices it because it doesn’t look like a mistake.

A unused shipping label is not automatically free. Depending on the carrier and your agreement, it may be billed upon creation, automatically credited after a certain period, or remain your responsibility indefinitely if no one requests cancellation. The rules have also changed recently at Canada Post, which makes the situation even more inconsistent from one carrier to another.

Here's how each carrier operates, what deadlines to meet, and what routine to establish so that these "ghost" labels stop driving up your bill.

Why an unused label ends up costing you money

The basic principle is simple: as soon as you generate a label, the carrier creates a tracking number and, depending on its billing model, a billable line item. If the package never enters the network, that line item should disappear. The problem is that it doesn’t always disappear automatically.

Industry estimates put the proportion of labels that are generated but never used at between 2 % and 5 % of volume among small shippers, ranging from 1 % to 3 % for medium-sized shippers, and from 0.5 % to 2 % for high-volume shippers. Small businesses are therefore the most vulnerable, and they are the ones with the least time to scrutinize an invoice.

Out of 300 shipments per month at an average of 18 $ per label, 3 % of unused labels that were never credited represent approximately 160 $ per month, or nearly 1,950 $ per year. That's money you've already paid for a service that was never provided.

The good news is that when the label has never been scanned, the credit request is almost always approved. The carrier can verify in its system that no package was ever shipped. There’s no need for a debate—just submit the request within the specified time frame.

Canada Post: Pay-Per-Event Billing Is a Game-Changer

This is the change that many Canadian shippers have not noticed. As of July 2, 2025, Canada Post has been applying a event-based billing For business accounts: You are billed only for items that have been physically scanned into the network.

In practical terms, a label that was created but never dropped off should no longer appear on your invoice, and you no longer need to submit a cancellation request for unshipped items. This is the most favorable policy for shippers among the four major carriers in Canada.

However, there are two important points to note. First, if you purchase your labels through a third-party platform (marketplace, e-commerce platform, shipping reseller), that platform’s refund policy applies—not Canada Post’s. Second, a Statement of Mailing that has already been submitted follows its own cancellation procedure. In both cases, check your next invoice rather than making assumptions.

Carrier Cancellation Deadlines

The windows shown below are those typically published by carriers. They vary depending on your agreement, your country of shipment, and the tool used to create the label: always check with your representative or billing department.

Follow the strictest rule: Dispose of any unused labels within 10 days. You are then within all the windows, including those of third-party platforms, which are the shortest.

How to Apply for a Loan, Step by Step

1. Confirm that no scanning has taken place

Enter the tracking number. If the status is «label created,» «shipping information received,» or the equivalent, the package was never shipped, and your claim is valid. If an initial scan appears—even for a pickup that was later canceled—this is no longer a case of an unused label, but rather a case of an interrupted shipment, which is handled differently.

2. Cancel directly with the source, not by email

Use the cancellation feature of the tool that created the label: the carrier’s website shipping history, your multi-carrier software, or your platform’s dashboard. A cancellation made at the source leaves a time-stamped record, which resolves any potential disputes in advance.

3. Record the tracking number in a logbook

A simple spreadsheet listing the creation date, tracking number, amount, and cancellation date is all you need. This record will allow you, upon receiving the invoice, to verify in two minutes that each credit has been properly applied.

4. Always reconcile the invoice

This is the step that almost everyone skips. A promised credit isn’t the same as a credit you’ve actually received: it might show up one or two billing cycles later—or not at all. Compare your records to your next bill and follow up on any missing line items. Carriers’ statute of limitations rules work against you as the months go by—our guide on the’shipping invoice audit explains this mechanism in detail.

Four Tips to Stop Printing Ghost Labels

Print the label when you pack the order, not when you receive it. This is the most effective change, and it costs nothing. If the label is applied as soon as the box is sealed, the rate of unused labels drops to nearly zero.

Block printing for orders pending payment or stock availability. Most orphaned labels come from orders that were canceled within a few hours of purchase.

Scan the labels once a week without digitizing them. Most shipping tools allow you to filter shipments that are still in the «label created» status. Ten minutes on Friday is all it takes.

Never reprint an expired label: void it and create a new one. A label with an expired shipping date may be refused at the shipping center or returned, and a label that has been altered by hand will be automatically rejected. You will then have to pay twice.

What You Should Check This Week

Open your shipping tool, filter the shipments from the last 30 days that are still in the «label created» status, and count them. Multiply that number by your average rate. This amount is, give or take, what you’re leaving on the table every month—and the portion that’s still recoverable depends solely on the number of days that have passed.

The amounts listed in this article are for reference only and may vary depending on your agreement, the service used, the destination, and the carrier. Cancellation windows may also be changed by carriers without prior notice.

At Shipping Store, we help small businesses and individuals across Canada ship at the right rate—and get refunds for overcharges. If you suspect that unused labels have accumulated on your recent invoices, contact us: we can review your recent shipments with you and let you know which ones are still eligible for a credit.