Tips on Shipping to Canada From the US

The United States and Canada are strongly connected as business and trade destinations, and if you are a business in the U.S., you have probably considered expanding into Canada. Expanding into Canada is a good start for companies to enter the global market and lets companies access about 31 million buyers.

Why You Should Expand Shipping to Canada

Before entering any new market, you have to get acquainted with the new rules. Although the Canadian market is very promising and attractive for American retailers, managing cross-border shipping to Canada can be tricky.

According to statistics, revenue from Canadian e-commerce retail trade sales increased from $800 million CAD in 2016 to $1.3 billion CAD in 2018 and is expected to continue growing. Over 87 percent of the population has Internet access, which means there’s a tremendous pool of potential online buyers.

Since Amazon launched its services in Canada, the country generates 7% of the total Amazon’s sales revenue annually. These facts show Canadians are interested in buying from U.S. stores. But why are there still difficulties with handling freight from the U.S. across the Canadian border?

Are There Any Specific Regulations for Shipping to Canada?

Just like every other country, Canada has its own customs regulations, duties and taxes. It is the second largest country in the world, so even internal shipments must take time. According to Canadian customs rules, every package valued more than $20 CAD is a subject of duty.

The final cost of shipping depends on the commodity type, destination and dimensions of the shipment. It is hard to manage fast delivery abroad because you cannot predict how long your goods are going to take when crossing the border. Because of such challenges, Canadians could spend online almost two times less than the U.S. customers with annual average spending of $1,500 compared to $2,900 of an average American.

Shipping abroad may be slightly more complicated than domestic, but it is definitely not as hard as many imagine.

Opportunities for Businesses

The fact is, 60% of Canadian customers shop at U.S. online marketplaces. This means that higher shipping prices, customs rules and long transit times don’t stop the e-commerce trade flow between the neighboring countries.

Cross-country shipping is not that difficult. The main thing is to provide accurate information about the shipment. All the forms are completed for you, but everything depends on using correct data. When you have all the essential information available and completed, you are ready to ship!

Marketplaces like GoShip.com offer customs broker service and freight insurance for users who would like to ship items across the northern border. In addition, you have a completely online search board, where all the available carriers and rates are shown so you can choose the best fitting option. Get an LTL quote for your international shipment through GoShip.com today!

Leave a Reply

Your email address will not be published. Required fields are marked *