Successful entrepreneurs are always looking for ways to reduce costs while improving customer experience. Finding that delicate balance between saving your business money while still delivering quality products in a timely matter to your patrons is challenging.
Thankfully, better access to global shipping has opened the way for a broader customer reach and more affordable manufacturing.
Additionally, recent changes to import tax laws have made doing business internationally more accessible and more affordable than ever before. The secret to taking advantage of these new tax duty laws is hiring a Canadian fulfillment service.
What is a Canadian Fulfillment Service?
A Canadian fulfillment service plays the middle-man between your overseas manufacturer and your US customers. They receive and store products you order from China, then package and ship them directly to your customers.
5 Ways Canadian Fulfillment Saves You Money
Canadian fulfillment will save your business money in several ways, but here are just five that stand.
1.Save Money Through Tax Exemptions
Currently, importing goods from outside the country will cost you 25% of the product’s value. Section 321 makes an exception for goods imported from Canada to the US that are valued under $800.
The only catch is that you can only use this exemption once a day. Once you exceed the $800 cap, you will start to get charged the 25% duty.
A fulfillment company ensures that you stay under the $800 per day, saving you a lot of money in taxes.
2. Save Money on Global Shipping
Using a Canadian warehouse means you can more easily reach customers around the globe. Most customers now prefer to shop online. When you use Canadian fulfillment, you put the groundwork in place for worldwide shipping making the transition to global shipping quick and easy.
3. Save Money on Warehouse Expenses
It costs money to rent or own a warehouse. Additionally, maintaining a large building, being responsible for repairs, and paying insurance on the property and its contents will get expensive.
Canadian fulfillment services store your products in their warehouses so that you can eliminate the cost of a warehouse altogether.
It also means you don’t have to pay employees to itemize and organize goods. Your fulfillment service will take care of it all.
4. Save Money on Packing and Shipping Costs
You likely don’t have time to print labels, fill boxes, and ship packages meaning if you’re not using a fulfillment service, you’re paying employees to pack and ship your inventory.
Not only will a Canadian fulfillment service save you money on additional employees, but you won’t need to worry about printers, labels, boxes, bubble wrap, tape, or other packing materials that get expensive over time.
5. Saving Time Saves Money
As a business owner, you have a lot on your plate. You’ve likely put a lot of time and money into designing, working with a manufacturer, and marketing. Once you start selling your product, you start focusing on customer relations and satisfaction, improving your systems, and working with investors.
The last thing you need to do is personally import your products from Canada, having to ensure your product cost is less than $800 a day. You simply don’t have the time for it if you want to keep making a profit from your business.
Hiring a Canadian fulfillment company saves you time worrying about customs, arranging for packing and shipping, and managing and maintaining your warehouse.
Then you’ll have more time and energy to put back into your business to focus on customer satisfaction and marketing. Doing so will grow your business faster and make you more money in a shorter amount of time.
Is Canadian Fulfillment Worth the Investment?
Canadian fulfillment is well worth the investment. Of course, there is always an upfront cost when you invest in your business, but investing is a way to make more money.
The best way to reduce importation costs and save your business money is by employing a Canadian fulfillment center. It boosts your profit and saves you the hassle of dealing with custom laws and taxes. You can get ahead of the competition by taking advantage of Section 321 and expanding your market sooner rather than later.
By employing a Canadian fulfillment service, you will not only save money through tax exemptions on global shipping, warehouse expenses, and shipping costs, but you will have more time to grow and expand your business further.
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