The US is considered one of the leading markets in the world. Although the ongoing pandemic crisis changed our way of living, online shopping is becoming more popular by the day, as it helps people get anything they want from the comfort of their home. By now, if you own a shop, it is time to follow the market and open your business to millions as there are many different ways you can increase your profit, including sourcing new products. Unfortunately, during Trump’s reign as president, he introduced various import tariffs on overseas goods. What does this mean? It means that Chinese products are much more expensive to import into the US market. While this was done to ensure that the United States will rely mostly on its local products, it ended up making it more expensive for you and me to run our businesses.
Fortunately, there is a solution known as Canadian Fulfillment. Canadian fulfillment is the process of buying your products as you would normally do from China, and instead of importing them directly to the US, you get them shipped to Canada. Once in Canada, you can hold them there, until you get your customers’ orders, after which you ship them off as you would normally do.
Why is This a Big Deal, you are Wondering?
Simply because Canada does not have the same import tariffs as the US does. This means that all importation costs that are associated with getting your products are lower.
How is This Possible?
Well, when you import a product that passes through customs legally, and falls under a specific classification, Section 321, in this case, that permits products to cross into America free of import tariffs. This means that if you classify your products under Section 321, you will save a lot of money on shipping.
How can I get Section 321 Classification Using Canadian Fulfillment?
First of all, you need to understand that for a shipment to be classified as Section 321, its total value must not exceed 800$usd. At this time, keep in mind that you cannot break the order into smaller shipments, because it would still be counted as a single order.
This is Where Canadian fulfillment Comes into Play
If you break down your order into individual shipments in Canada before you send them off to your customers in the USA, each order will be classified as Section 321.
How can You Use Canadian Fulfillment?
Well, there are a lot of companies that do Canadian fulfillment, which can remove import costs for US businesses under Section 321. Think of them as a middleman who acts on your behalf. For example, they will receive your products from China and they will store them for you. When you receive the individual orders, the Canadian fulfillment company will send the products directly to your customers under Section 321, saving you money.
How Much does it Cost to Use a Canadian fulfillment Company?
When you require a high-quality service, you are going to pay a high cost. However, the costs are lower than the sum of the import tariffs. Many companies are very close to the borders, which can provide same-day order fulfillment and can use all the major US carriers to ship out the products. This simply means that you will get a high-quality service and your orders will reach your customers without delays.
Summary of Canadian Fulfillment
Canadian fulfillment is a great way to get your overseas products into the US through Canada without importation costs that affect your business revenue. While you might try to do it on your own, hiring a Canadian fulfillment company to do it for you is the safest bet.
With high-quality Canadian fulfillment, you can eliminate duty costs while still maintaining fast transit times that meet the delivery expectations of your customers. Furthermore, whether you want to ship electronics or FDA-approved products like supplements, tea, or food, a Canadian fulfillment company will do it easily while reducing your paperwork and simplifying your operation. With Canadian fulfillment, you also get faster clearance processing while you eliminate 100% of your duty costs.
Eliminate Import Duty and Reduce High Shipping Costs
When you import your products with Canadian fulfillment and under section 321, you avoid paying taxes and duties, which will save you thousands of dollars.
You Take Advantage of Fast Delivery Times
Many Canadian fulfillment companies are situated close to the borders and collaborate with fast cross-border services to ensure fast delivery times anywhere in the United States. Once you order your products from China, they arrive at the company’s facility, where they are forwarded into the United States and are delivered directly to your customers.
With Canadian fulfillment, you have less paperwork and fewer operations. The middleman will take care of the paperwork and import your products to Canada, will hold them until orders are prepared, and then they will take care of the order fulfillment for your customers. The popularity of importing high-quality products from countries like China and the flexibility that Canadian fulfillment gives you under Section 321, offer you the opportunity to compete in the American market with lower costs. Using Section 321 with care will reduce your shipping costs and increase your revenues, ensuring that you are highly competitive in the American Market.