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Say Yes to Shipping to Canada!

 

Are you a Canadian who wants a store or online store to ship to Canada?
Are you a store or online store located outside of Canada who does not ship to Canada?

This post is for you!

PRO's on selling to and shipping to Canada:
- Canada has one of the highest percentages of its' population online - over 86% of Canadians are online!  (This means they are ready and waiting to buy.)
- Canadians are serious consumers!  Canada relies heavily on international trade for its' consumer base - $486 BILLION worth of items are imported into Canada as of 2013.

CON's on selling to and shipping to Canada:
- Duties and taxes can add cost to the items being purchased
- Many sellers do not tell the Canadian buyer the 'landed cost' at the time of sale - meaning that the Candian buyer ends up with 'sticker shock' when they receve the invoice for duties, taxes and customs fees.
- Courier companies can be known to charge high customs fees. 

Let's look at this from the perspective of the Canadian buyer - here are some examples from Twitter with Canadians asking if the seller will ship to Canada - 

 

(That is just a small sampling - all in one day!)

So there is a demand from Canadians who want to buy from you, the seller!

Why don't companies ship to Canada?  Here's a few examples why -


When a U.S. seller decides to sell to and ship to Canada - it will most likely be a very small percentage of their sales - 10%, maybe 20% of their shipments will go to Canada.  However, those 10% or 20% can be the biggest pain to that seller.  If the Canadian is upset about duties, taxes, customs fees, etc., - they might go back to the U.S. seller and complain about it.  It's too expensive, you didn't tell me about the fees, etc., etc.  The seller then says to themselves "This is such a small percentage of my business - why should I put up with all of this grief?!" 


Well, BorderBuddy has a solution for you!

We want ALL companies to ship to Canada - and we can help!

Here is what BorderBuddy can do for Canadian buyers and U.S. (and other) sellers -
1)  Provide ALL COSTS at the time of sale.  No surprise to the Canadian buyer - no angry calls or emails to the seller.
2)  Provide customs clearance for the Canadian buyer.
3)  Be the U.S. sellers dedicated agent at the border for all things customs and border related.
4)  Provide a flat customs clearance fee for the Canadian buyer and the U.S. seller so there is no guessing on the fees.

Let's work together so you can say YES to shipping to Canada!

Contact us today.

 

 

 


"Canadian Dollar at 3 Year High" What does this mean to you? A lot!

 

Again this morning, we are seeing headlines that say "Canadian Dollar Hits a Three Year High"

What exactly does this mean to you when purchasing an item in the U.S. and importing it?  

Well, quite simply 'A lot!' - it means that you're saving a lot of money on the exchange, and again on Duties and Taxes.  

When you buy an item in the U.S. and pay U.S. dollars for it - that amount is always converted into Canadian dollars before you pay any Duties and Taxes on it.  So, if the exchange rate is lower - you are not only going to spend less Canadian dollars for the actual purchase - but you are are also going to spend less in duties and taxes because of that low exchange rate.

These headlines that we see are sometimes confusing so I thought I would do a bit of history of exchange rates over the past 10 years - from 2001 to 2011.

Below, you will see the difference in exchance rates and the impact they have on the purchase price.  To give a broad range / idea - I did the calculations at $300 (About how much you'd spend on some clothes), $3000 (About how much you'd spend on some high end electronics), $30,000 (About how much you'd spend on a nice car), and $300,000 (About how much you'd spend on a condo in Phoenix, Arizona!).

In the last 10 years, the cost of buying and importing these goods has declined signficantly!  (Espcially for that condo in Phoenix!)

Take a look at the chart below - and you'll realize the huge savings and why now is a fantastic time to import.

Canada Customs Exchange Rates
 

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How does Canada Customs assign Duty Rates?

 

I often get asked what the duty rate is for this item or that item - people want to know what the various duty rates are for the items they want to import.

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My first response is always "Where is it made?"  This is because no matter what item it is - if it's made in the U.S.A., Canada or Mexico - the item will be duty free regardless of what it is.  To get more technical, though - the item also has to qualify for NAFTA (North American Free Trade Agreement) - which makes these items duty free.

But, as a rule of thumb, if it's made in those 3 countries - you can be 90% sure it will not have any duty.  (There will still be taxes, of course!)

There are other countries that have trade agreements with Canada and the U.S. as well - but the NAFTA agreement covers U.S., Canada and Mexico - as long as the items are made / manufactured in those countries - they will be duty free!

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