In today’s fast-paced world, some entrepreneurs may find it hard to keep their business afloat. When a customer places an order on your website, your main concern is to deliver the product as quickly as possible. It can be easily done if you provide goods and services to a local population. The problems often arise when you need to send a product abroad.
It can be very expensive to deliver goods from China to the U.S. due to the high taxes that were imposed by the Trump administration in 2018. In most cases, high tariffs hit small and mid-sized businesses really hard. As a result, entrepreneurs lose money and become unable to grow a successful business. Luckily, there is an effective way to save your business.
If you choose to deliver products from China directly to the U.S., you will have to pay 25% in taxes. That is too much for a retailer. Did you know that you can use Section 321, introduced by the Obama administration, to avoid paying the tax? According to Section 321, an entrepreneur doesn’t have to pay any taxes for goods that have been delivered from Canada and are worth $800 or less.
Using Section 321 is extremely beneficial to importers. Section 321 entries can significantly reduce paperwork. However, there are some restrictions for Section 321 goods. Only one delivery per company or individual is allowed per day. Entrepreneurs cannot combine several Section 321 shipments into one due to the fact that their total value will be more than $800. In this case, finding a fulfillment partner is the right decision. Let’s dig deeper to find out why Canadian fulfillment might be helpful for you and your business.
Reducing Shipping Costs
Delivering products globally is very expensive. Canadian fulfillment can help you reduce shipping costs significantly. With Canadian fulfillment you do not have to worry about the details. You have an excellent opportunity to focus on your business. With a fulfillment center in Canada you do not have to hire staff or rent a warehouse. Some order fulfillment companies may even have several centers. It definitely provides easy access to a diverse market, affordable shipping and quick delivery.
Reducing Product Shipment Time
There is no doubt that customers want to get the goods or services they need without delays. If you fail to deliver the product within a short period of time, you run the risk of losing your customer. This customer is unlikely to contact you again anytime soon. Canadian fulfillment will help you prevent this unpleasant situation from happening. You will be able to ship faster and increase your profits.
Exploring a New Market
Working locally has many benefits. However, expanding your business is always a great idea. With a fulfillment center in Canada, you will be able to get more information about your potential customer base. Understanding the market will help you take your business to the next level. Plus, you will get an opportunity to customize your products and make your business even more successful.
Working with the Experts
When you choose to cooperate with a Canadian fulfillment center, you get a warehouse and highly trained people helping you with your orders. A third-party logistics provider you are dealing with has a team of professionals who know how order processing, stock management and shipping works. You can be sure that all the products ordered from your website will be shipped in time. And you will be able to deliver a great customer experience.
Reducing Shopping Cart Abandonment
Shopping cart abandonment is known to be a situation when your potential customer adds products to the cart and then suddenly leaves the website without completing the purchase. Most retailers usually pay close attention to cart abandonment and try to do their best to prevent such situations.
Imagine only that the Canadian customers like the products you offer and want to order them from your website. But they may really change their mind when they see that the delivery will take about 10 days. Customers are more likely to buy products from the online store that promises to ship them within 2 days.
That is the main reason why you should think about using Canadian fulfillment. It will help you significantly reduce cart abandonment if the main reason for customer refusal is delivery delays. Both you and your customer will be satisfied. But if there is another reason why people do not want to buy products from your eCommerce store, you should identify that reason and work hard to improve your customer experience.
Using the Benefits of the New NAFTA Agreement
The new NAFTA agreement, known as a trade agreement between the US, Mexico and Canada, came into effect on July 1, 2020. The deal increases the de minimis, the threshold under which no taxes and duties are applied for the products delivered to another country. Canada’s de minis has been one of the lowest – C$20 (US$15.04).
When the agreement came into force, this rate was changed to C$40 for taxes (US30.08). Plus, Canada provides the de minimis threshold of C$150 for duties. So, delivering products that are worth under these amounts becomes much easier and cheaper. This is great news for business owners. Small and medium-sized businesses will definitely benefit from it.
Due to the new NAFTA agreement, US traders will have a completely new market. However, they may have little or no experience in delivering products for Canadian customers. That is the situation when you might need Canadian fulfillment. So, a fulfillment center with a highly trained staff will help you achieve success and make your business thrive.
Scaling Your Business Fast
When your business grows and develops, you may see a significant increase in sales. Scaling your business means that you can handle that increase in an effective way. In fact, it can be really hard to scale a business without suffering in some other areas. You may even lose employees due to a constantly increasing workload.
With Canadian fulfillment, you will be able to scale your business faster, avoiding any unwanted issues. If you have an online store and want to ship product to the US through Canada, find a reliable third-party logistics provider and a fulfillment center. They will help you with shipments and packaging. As a result, you will have more time to focus on attracting new customers to your ecommerce store.
With a trustworthy fulfillment center in Canada you will become much closer to your customers. Fulfilling orders and delivering products in time will not be stressful any longer. Your fulfillment provider will take care of everything including picking, packing and shipping your orders. It will also help you turn your online store into a profitable and efficient business. Make your life easier with a reputable fulfillment center in Canada. Shipping has never been so simple.
