Business and Management

Why is Canadian Fulfillment So Important for American Ecommerce Companies?

The Canadian eCommerce market is full of potential for small to medium American eCommerce companies looking to scale.

The leading retail fulfillment in Canada offers services to ease the burden on the entrepreneur and smoothen out the process to get the product to market. A large part of an order fulfillment company's benefit for any business is the way it can help it cut down on costs, especially for inventory storage and shipping.

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What does cross-border shopping from the USA to Canada look like?

While e-commerce activity in Canada has grown overall, cross-border shopping on online US stores hasn’t. Based on Canada’s eCommerce growth, this may come as a surprise, but the truth is, American retailers and Canadian shoppers face roadblocks that make cross-border shopping way more inconvenient and expensive than it needs to be — with the most crucial ones being duties, fees and long shipping times.

The variance in domestic shipping costs within the USA. They vary based on factors such as:

1.Package size and weight

2.Type of goods

3.Origin and destination

4.Tracking and insurance

Regulations: The shipment of certain goods, such as drug and health products, is heavily regulated by Health Canada and the FDA(Food and Drug Administration). 

American retailers need to ensure that they have the appropriate certification or documentation needed for their goods to cross the northern border.

Duties: The amount owed is based on the value of the goods in Canadian dollars, and duty rates vary depending on the type of goods imported. 

Taxes: In addition to duties, there are three different types of taxes that imported goods may be subject to in Canada. While your orders will be subject to GST (Goods and Services Tax), a 5% federal tax, PST (Provincial Sales Tax) may be applied depending on the province shipped to, or HST (Harmonized Tax) which combines the federal and provincial taxes.