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For merchants and businesses that routinely ship orders to customers in Canada from the US, the shipping and customs clearance process can not only be complicated but also costly. For all international shipments, special documents and filings are required to clear the order through customs. Furthermore, Canadian governmental authorities access certain taxes for cross border shipments, that when combined with other customs clearance fees from shipping carriers, can create a hefty shipping tab for the recipient. With the administrative pain of international order processing and the high cost of shipping across the border, many forward-thinking businesses are streamlining the international shipping process by outsourcing their Canadian shipping to a fulfillment company located in Canada.


Customs and Duties Can Serve as a Deterrent for Canadian Sales


One of the most compelling reasons for retailers to utilize Canadian 3PL companies for processing of Canadian orders is to maximize the revenue potential for their business. Online shoppers are heavily influenced by shipping charges associated with their orders. Additional shipping fees required to pay GST (Goods and Services Taxes), HST (Harmonized Sales Taxes), and other customs clearance fees charged by major shipping carriers can add such a high price to the order total, forcing the potential prospect to abandon the purchase altogether. In fact, according to a recent ComScore survey, as many as 40% of online shoppers abandon a purchase due to perceived excessive shipping charges! Over an entire year, this can add up to significant lost business. However, when product is shipped from Canada to Canadian customers, these per order fees can be avoided. Rather than paying them on an individual order basis, one-time charges would be incurred on an aggregate basis when a bulk of product is exported to the Canadian fulfillment center. This can significantly reduce the overall freight burden. And by limiting the freight impact to potential customers, businesses best position themselves for more closed sales on the Web and fewer lost sales due to astronomical individual shipping charges per order.


Additional Benefits of Utilizing a Canadian Fulfillment Company


In addition to the per order shipping savings, companies benefit through the use of a Canadian fulfillment provider by decreased administrative tasks and decreased transit times for orders. By not having to spend additional time processing international paperwork for each international shipment, US based merchants free up more time to spend on important business functions. And with shipping times decreased due to closer proximity to customers and no individual customs clearance for each order, customers can receive their product faster – which is crucial with increased expectations by shoppers throughout the world.


Some merchants may not ship quite enough volume each month to justify the carrying of additional inventory internationally. However, many smaller and mid-sized fulfillment firms are offering more compelling service offerings to smaller businesses that help them gain entrance to this outsourcing advantage – making this time and money saver within reach for more and more US based businesses.