Running an eCommerce business presents a prime opportunity in today’s market. At the same time, you’re faced with challenges when it comes to your supply chain including the expenses related to tariffs and duties. However, there is a solution to this problem which is to contract with a Canadian fulfillment company to assist with your shipments by making the most of the Section 321 regulation that will help you to circumvent the high import taxes.
So, take a look at the top five advantages of partnering with a Canadian fulfillment company to see if this presents the best option for your business.
Streamlining the Process
One advantage to using Canadian fulfillment relates to the services they offer. Basically, an order fulfillment provider warehouses your products and attends to the orders on your behalf. Orders, in this case, could come from in-store shoppers or online customers. To achieve the goal of meeting consumer demand and getting the goods to your locations on time, the fulfillment provider will integrate their software with your eCommerce store to streamline the fulfillment process. The fulfillment provider is thus responsible for receiving your orders from the country of origin, picking them up, packing, and preparing the products for shipment.
Applying Section 321 to Save Time and Money
Another reason Canadian fulfilment is the best way to go involves their extensive knowledge of import regulations. Furthermore, they provide expertise in applying that knowledge regarding Section 321.
Why is this important? In 2018, laws that imposed high taxes went into effect which made it quite costly to deliver goods from China directly to the U.S. In other words, the delivery of goods directly from China to the US would cost you 25% in taxes, a figure that you might agree is too expensive for any retailer.
Therefore, the most obvious benefit of the Canadian fulfillment is their ability to apply Section 321 to your shipments. This ideal situation renders your items exempt from duties and taxes. To qualify for this exemption, it is important that the shipment must be carefully planned in such a way that multiple orders arrive on separate dates. The retail value of each order must be $800 or less. Plus, you can’t schedule multiple orders for the same day since Section 321 only allows for one shipment ($800 or less) per day. This is where Canadian fulfillment provides the ideal destination point for your shipment.
Avoiding Hidden Fees
Likewise, a Canadian fulfillment company will only charge you for what you have used. As a result, you will only incur a flat storage fee for the warehouse products. Basically, you are only paying for the orders that are packed, picked, and shipped. Thus, even though you may have an increase or decrease in sales, the base costs are not affected. In turn, your bottom line won’t take a big hit by continuing to use this type of service.
Expanding the Global Reach of Your Business
With Canadian fulfillment, you have a great chance of taking your business to the global level. A significant number of companies have a framework in place that ensures shipment and delivery of orders regardless of size to different states in the US and worldwide. Thus, you can continue to serve your local base, but with faster and more cost-effective shipping provided by Canadian fulfillment. Moreover, you can target more clients in all parts of the U.S. if not the world. This is a great global platform for expanding your business to new markets. You will be able to receive and deliver orders from just about anywhere.
Preventing Cart Abandonment
Another advantage is the boost to customer service which is critical to running your business. A Canadian fulfillment company will help reduce shopping cart abandonment by providing fast and efficient shipping to your customers. Many potential clients have been known to abandon their carts (leaving the website) when they realize that the delivery of products would take longer than expected. If delivery delay is in question, then Canadian fulfillment is the best option for your supply chain because it ensures the quick delivery of products. In fact, many of these companies have numerous centers that serve different areas close to the U.S./Canadian border. So, any one of the sites can get your packages out quickly which means there’s no slow-down in the process.
Canadian Fulfillment takes advantage of the provisions of Section 321 by using top-notch order fulfillment technology. This pertains to streamlining fulfillment services including stock management, inventory tracking, shipping, and handling, security, carrier selection, and order delivery and processing of payment. Therefore, duties and warehousing costs, and any other expenses relevant to the running of your eCommerce are maintained at a minimal level. This leaves you ample time to concentrate on marketing and selling products.