Expanding Your Ecommerce Business to Canada with Speedcommerce
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Expanding your eCommerce business to Canada is easy with Speed Commerce. Today’s eCommerce company has the opportunity to penetrate many markets and Canada has become a popular market for U.S. based merchants.
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There are basically two ways to approach addressing eCommerce order fulfillment for your Canadian customer. If your business is significant enough to handle a presence in Canada, then partnering with a local 3PL is the best course of action. Your biggest obstacle is capital resources as carrying the additional inventory in another country will require additional capital.
The second and most common way, especially for most eCommerce companies is to partner with a U.S. based 3PL provider that can support both your U.S. and Canada based customers. Shipping items from the United States to Canada involves several steps and considerations, including choosing the right shipping method, handling customs requirements, and ensuring your items arrive safely.
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Introduction to the Canadian Ecommerce Landscape
The Canadian e-commerce landscape has seen rapid development over the past decade, with retail sales forecasted to exceed seven trillion U.S. dollars in 2025. Thanks to its sizeable digital population, Canada has become a particularly profitable market in recent years in the Fast-Moving Consumer Goods (FMCG) space.
In 2022, there were over 27 million eCommerce users in Canada, accounting for 75% of the Canadian population. This number is expected to grow to 77.6% in 2025. The rise of omni shoppers, (people who buy their FMCG products both online and offline), has been key to this growth. On average, omni shoppers make 27% more retail trips than individuals who exclusively shop in-store, translating to 23% more spend annually.
E-commerce sales rates for FMCG products in Canada have held at a 79% growth rate compared with the prior 52 weeks. Nationally, e-commerce accounts for 3% of all Canadian FMCG purchases, but that share nearly doubles when isolating just the omni shopper group. The Canadian internet and e-commerce landscape is comparable in quality to the United States: even though it only has 35 million internet users, the affluence of Canadians and well-spread habits of using online shopping make it a sophisticated market.
Major Shipping Options: Evaluating the Big Players
Choosing the best shipping carrier for international shipping requires careful consideration of several factors. The choice you make can impact your business’s efficiency, customer satisfaction, and overall cost. Here are some key factors that Speed Commerce suggests that you choose when determining which shipping carrier to pick for international shipping:
1. Does the carrier cover the specific countries and regions you need to ship to. Some carriers may have more extensive international networks than others.
2. Does the carrier offer transit times that meet your customers’ expectations?
3. Compare the shipping rates offered by different carriers. Keep in mind that the cost can vary based on the destination, package weight, and dimensions.
4. At Speed Commerce we only recommend carriers that have the reputation for reliability and on-time deliveries that meet our standards.
5. International shipments often involve customs procedures. We integrate with our recommended carriers so that you don’t have to check whether the carrier provides assistance with customs documentation and clearance or if you need to handle it yourself.
6. All of the recommended carriers offer good tracking and shipment visibility, which are essential for both you and your customers.
7. All of our selected carriers offer quality customer support.
8. We take the guesswork out of the packaging requirements to ensure it complies with all carrier regulations.
9. Speed Commerce ensures that the carrier complies with international shipping regulations and is familiar with export/import rules for the countries you are shipping to.
10. Lastly, consider your returns requirements to determine if they align with how the carrier handles returns from international customers.
By carefully considering these factors, you can make an informed decision when selecting the best shipping carrier for your international shipping needs. It’s often a good practice to periodically review your choice of carrier to ensure it continues to meet your evolving requirements.
USPS
USPS (United States Postal Service) is often a cost-effective choice for shipping smaller packages to Canada. Options like USPS Priority Mail International and USPS Priority Mail Express International offer reasonable transit times. While USPS may have competitive rates, it may not provide the same level of tracking and insurance options as private carriers.
What We Do
Receiving
The inbound shipping team with Speed Commerce is ready to receive, inspect, enter into inventory, and place your products on the shelves, ready for the warehouse team to pick products for your orders.
Picking & Packing
Accurate assembly of ecommerce orders can make or break your business. Our team goes the extra mile to ensure orders are assembled correctly, packed with care, accurately labeled, and sent to shipping on time.
Shipping
Because of our shipping volume to and from our facilities, we have established relationships with major carriers and negotiated favorable rates. Ensuring your orders are received by the carrier as expected is our top priority.
Inventory Management
Making sure you have enough stock on hand (but not too much) takes expertise in ecommerce retail trends. We work closely with our clients and their Speed Commerce client success manager to anticipate spikes or dips in demand. Our team also manages monthly inventory reporting and takes measures to avoid shrinkage.
Cross-Docking
Need to expedite order fulfillment to meet unexpected high-demand? We’re experts in cross-docking. Our team is agile and can quickly receive (and complete their inbound checklist) on the dock, then our pick-pack team will quickly assemble orders and prepare for shipment. We don’t waste time putting items on the shelves; instead we get them out the door!
Returns Management
Get your reverse logistics under control. We manage the full end-to-end process of returned product, including refreshing and reviving! Reducing shrinkage and get your product back out the door generating profit with our returns management service.
Long-Term Storage
Store your inventory in our safe and secure warehouse and gain flexibility you need in your operations. We have space for your long-term storage needs. Centrally located, our warehouses are ideally situated to give you access to your inventory in a secured location. We offer transparent pricing, quick start, and flexible terms.
Managed Services
We remove the headaches in managing your ecommerce fulfillment and warehousing operation. We work with you to learn what’s important to you and craft our agreements to match your expectations. You’ll meet with your client account manager regularly to review our performance and make adjustments.
Speed
Your customers want their orders delivered quickly. In ecommerce, fast order fulfillment is a must! We live up to our name and ensure speed in everything we do. Same-day fulfillment gets your orders packed and shipped shortly after your customer makes their purchase.
UPS
United Parcel Service (UPS) offers international shipping services to Canada, including UPS Worldwide Express and UPS Worldwide Expedited. They provide reliable tracking and insurance options. UPS has a well-established network and presence in Canada.
FedEx
FedEx offers a range of international shipping services, including FedEx International Economy and FedEx International Priority, which provide reliable options for shipping to Canada. They offer tracking and insurance options for added security. FedEx has an extensive network, providing good coverage across Canada.
DHL
DHL is known for its fast and efficient international shipping services. DHL Express offers express delivery options to Canada, including DHL Express Worldwide, which provides fast transit times. DHL has a strong presence in Canada, making it a reliable choice for shipping to various destinations within the country.
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Understanding Customs and Duties When Shipping to Canada
Shipping goods to Canada requires an understanding of customs and duties regulations. Canada has specific rules and procedures for importing goods, and compliance is essential to avoid delays, fines, or other issues. Speed Commerce has the solutions to simplify any concerns you may have. Here’s a comprehensive guide on understanding customs and duties when shipping to Canada:
1. Classification of Goods: Every item you intend to import into Canada is assigned a specific Harmonized System (HS) code. This code categorizes products and determines the applicable tariffs and regulations. You can find the HS code for your product on the Canada Border Services Agency (CBSA) website or consult with a customs broker for assistance.
2. Customs Documentation: Prepare the necessary documentation, including: Commercial Invoice: This document provides details about the shipment, such as the product description, quantity, value, and HS code. Bill of Lading (for ocean shipments) or Airway Bill (for air shipments): These documents outline the shipping details, including the origin, destination, and transportation method. Packing List: A list of the items within the shipment along with their quantities and weights. Certificate of Origin: Depending on trade agreements (e.g., CUSMA/USMCA or CETA), you may need this document to claim preferential tariff rates. Other Required Documentation: Depending on the nature of your goods and any specific requirements, you might need permits, licenses, or certificates.
3. Duties and Taxes: Canada levies duties and taxes on imported goods, which are calculated based on factors such as the HS code and the value of the goods. These fees may include: Customs Duties: These are taxes applied to the import of specific products, and the rates vary depending on the classification and origin. Goods and Services Tax (GST)/Harmonized Sales Tax (HST): Most goods are subject to GST or HST, which is calculated based on the total value of the goods. Provincial Sales Tax (PST): Some provinces also impose PST on top of GST or HST. The applicable tax rate depends on the destination province. Excise Taxes: Certain goods, such as alcohol, tobacco, and gasoline, are subject to additional excise taxes.
4. De Minimis Threshold: Canada has a de minimis threshold, below which no duties or taxes are applicable. The threshold varies based on the type of goods and their origin. Be aware of this threshold when importing goods.
5. Importer of Record: The importer of record is responsible for customs compliance, including paying duties and taxes. Ensure that this role is clearly defined in your shipping arrangement.
6. Customs Declaration: Provide accurate and complete customs declarations, as any errors or omissions can lead to customs delays and penalties.
In summary, understanding customs and duties when shipping to Canada is crucial for a smooth import process. Properly classifying your goods, preparing accurate documentation, and complying with customs regulations are key steps in ensuring your shipments reach their destination without complications. Consulting with customs experts or customs brokers can be invaluable in navigating the customs process effectively.
Challenges to Anticipate: Environmental and Infrastructure Impacts
When shipping goods to Canada, there are environmental and infrastructure challenges to anticipate and address. These challenges can affect the efficiency and sustainability of your shipping operations. Here are some key issues to consider:
Infrastructure Challenges: Congestion: Major ports and transportation hubs in Canada, like Vancouver and Toronto, often experience congestion, especially during peak shipping seasons. Delays in processing and transportation can impact the timeliness of your shipments. Plan for potential delays and consider diversifying your routes or using less congested ports.
Infrastructure Maintenance: Infrastructure, such as roads, railways, and ports, require regular maintenance and may experience disruptions due to weather events or accidents. Stay informed about the state of infrastructure in your shipping routes and have contingency plans in place for unexpected disruptions.
Last-Mile Delivery: In urban areas, last-mile delivery can be challenging due to traffic congestion and limited delivery options. Explore sustainable last-mile delivery solutions, such as electric vehicles or alternative transportation methods, to reduce environmental impacts.
Weather and Seasonal Considerations: Canada experiences extreme weather conditions, especially in northern regions. Snowstorms, ice, and extreme cold can disrupt transportation and lead to delays. Plan for seasonal challenges and have contingency plans in place to manage weather-related disruptions.
Indigenous and Local Communities: In some regions of Canada, shipping activities can impact Indigenous and local communities. It’s important to engage with these communities and respect their rights and concerns. Consultation and collaboration can help mitigate potential conflicts and ensure responsible shipping practices.
Addressing environmental and infrastructure challenges when shipping to Canada requires a proactive approach. By considering sustainability, infrastructure resilience, and compliance with regulations, you can navigate these challenges while minimizing their impact on your shipping operations. Additionally, staying informed about changing environmental and infrastructure conditions in Canada is essential for effective supply chain management.
The Value of Partnering with a 3PL like Speedcommerce
Navigating international markets and optimizing shipping processes with Speed Commerce can help streamline your global e-commerce operations. Here’s a step-by-step guide to help you navigate international markets and improve shipping efficiency with Speed Commerce:
Market Research and Strategy: Identify target international markets based on market research, demand analysis, and growth potential. Develop a clear market entry strategy, including pricing, product selection, and marketing tactics for each market.
Product Localization: Adapt your products for international markets, considering factors like language, packaging, and compliance with local regulations. Customize product descriptions and labels as needed.
E-commerce Website Localization: Localize your e-commerce website by translating content, pricing, and product listings into the languages and currencies of your target markets. Implement geolocation features to automatically display the appropriate language and currency for visitors.
Shipping Strategy: Work closely with Speed Commerce to optimize your shipping strategy for international markets. Determine shipping options (e.g., standard, expedited, express) and set clear delivery expectations for customers.
Customs Compliance: Ensure that all international shipments comply with customs regulations, including accurate customs declarations and required documentation. Work with Speed Commerce to manage customs clearance efficiently.
Inventory Management: Maintain proper inventory levels in Speed Commerce’s fulfillment centers to prevent stockouts and overstocking. Use Speed Commerce’s inventory management tools to track stock levels in real-time.
Shipping Costs and Fees: Understand and budget for international shipping costs, including shipping fees, customs duties, and taxes. Consider offering free or discounted shipping to attract international customers.
Customer Support: Provide multilingual customer support to assist international customers with inquiries, returns, and issues. Ensure customer support is available during local business hours in target markets.
Returns and Refunds: Establish clear and fair return and refund policies for international customers. Work with Speed Commerce to manage returns efficiently and minimize return shipping costs.
Optimize Packaging: Work with Speed Commerce to optimize packaging for international shipments to reduce shipping costs and ensure product protection. Consider eco-friendly packaging options where applicable.
Analytics and Performance Monitoring: Utilize Speed Commerce’s analytics tools to track shipping performance, delivery times, and customer satisfaction in international markets. Adjust strategies based on data insights and customer feedback.
Scale and Expand: Continuously evaluate the performance of your international expansion efforts and identify opportunities to scale in existing markets or expand to new ones.
Local Partnerships and Marketing: Consider partnerships with local influencers, retailers, or distributors to help promote your products in international markets. Create targeted marketing campaigns to reach international audiences through digital advertising and social media.
By following these steps and working closely with Speed Commerce, you can effectively navigate international markets, optimize your shipping processes, and expand your global e-commerce presence while providing a seamless experience for your international customers. Regularly reviewing and adapting your strategies will be key to long-term success in international e-commerce.
