Wednesday, May 29

Canadian Fulfillment: A Beginners Guide

Up until early 2016, people made an extremely decent living finding high quality products overseas and selling them on to American consumers for a handy profit. It was a simple and effective business model.

But then disaster struck.

The Trump administration opted to introduce several unique import tariffs that increased the costs associated with importing overseas goods into the USA. 

Although this was done to increase the reliance on local products, all ended up doing was making it more difficult for small US business owners to make a living. Thousands of businesses across the country closed, and this amazing business model was rendered obsolete overnight.

Well, until Canadian Fulfillment became a viable strategy, that is.

What is Canadian Fulfillment?

Candian Fulfillment ultimately describes the process where you purchase large shipments of overseas goods, and then import them to Canada. They are then held in Canada until you receive an order, after which they are shipped off to your US based customers.

While this may sound like a rather complicated way of doing business, I can assure you that it comes with some extreme benefits.

One of which involves saving you a whole heap of money.

First and foremost, Canada does not have the same import tariffs and duties that we do here in America. This means that by shipping your overseas products to Canada, you can immediately save a substantial amount of money.

But it does not stop there. Once your shipment of goods reaches Canada, it can be broken up into individual orders. And these individual orders can gain the Section 321 shipping classification.

What is Section 321?

Wait, what in the world is Section 321?

Well, very simply, Section 321 describes a classification of goods that pass across the American border each and every day. Interestingly, any shipments that gain this particular classification cross the border without incurring a single importation cost — which can save you a lot of money.

The thing to acknowledge here is that gaining this classification can be a little easier said than done.

For a shipment to be classified as a Section 321 its total value must not be greater than 800 US dollars. And just to be clear, even if your order was broken up into multiple packages, it would not gain classification because it would fall under the same order number.

Which is where Canadian Fulfillment enters the discussion.

When you use Canadian Fulfillment to break up your order into smaller shipments, each one gains its own unique order number. This makes it eligible for Section 321, completely removing import costs in the process.

How You Can Use Canadian Fulfillment

When it comes to using Canadian fulfillment, you have a couple of options.

Option 1: You can jump on Craigslist and find someone from Canada who is willing to act as a middleman on behalf of your business. You can then pay them a small percentage of your net income as payment for their service.

This is a viable option — however, it does have some potential drawbacks.

Your ability to ship products to your customers becomes reliant on someone who probably doesn’t care about your business as much as you do. This means delays in shipping could become a reality, and simple errors like having items shipped to the wrong address could become a common occurrence.

Oh, and let’s not forget that they could always claim the products as their own and simply sell them on for a profit without you.

So, maybe onto option 2?

Option 2: You could seek help from a designated Canadian fulfillment company.

A Canadian Fulfillment company is exactly what it sounds like. A company designed to help your imported goods gain section 321 classification, in an effective and risk-free manner.

Exactly like our Canadian friend from Craigslist, they receive orders on your behalf, behttp://stalcofulfillment.comfore sending them onto your customers here in the USA — but they do it professionally.

Obviously, they don’t do this for free. But I can assure you that getting help from Canadian Fulfillment works out a lot cheaper than paying the import tariffs associated with the shipping of overseas goods.

In short, option 2 is the way to go.

Key Notes

Canadian Fulfillment and Section 321 are the perfect way to remove import costs for good. So, what are you waiting for? 

Find a high quality Canadian fulfillment company and reap the rewards.

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