You’ve designed, marketed, and finally started selling your product, and as the sales increase, so does demand. The tricky part is knowing the best way to get your product from the warehouse to your customer. The shipping and import tax costs quickly make selling outside the country seem impossible.
The good news is that there is an easy, reliable way to expand your market and boost sales even further by using a third-party logistics partner here in Canada.
How do third-party fulfillment services work, and what are some of the benefits? Here are four of our top reasons you should work with a logistics partner.
What is a Third-party Logistics Partner?
A third-party logistic partner (3PL) or fulfillment service, first houses your products, then directly ships them to your customers to fill their orders. These services free you from housing goods, tracking inventory, creating shipping labels, dealing with returns, filling boxes, or paying on otherwise import tax-exempt items.
What are the Benefits of a Canadian Fulfillment Center?
1. Save a Lot of Money Through Tax Exemptions
As of 2020, items valued up to $800 are duty-free if imported from Canada or Mexico. That means that if your manufacturer is in China, using Canadian fulfillment can save you a lot of money because the import tax is significantly less.
Once shipments arrive in Canada, they are stored and then distributed to customers in the US and Canada tax-free. Shipping directly to Canada allows you to import products from around the world without having to pay heavy fines or taxes.
2. Grow Your Clientele
Being able to fulfill orders from a warehouse in Canada means you can easily expand your business to reach customers globally.
As the demand for online shopping continues to grow, so will the demand for your products. Using Canadian fulfillment will put you ahead of the competition as you’ll already have the groundwork for shipping worldwide in place.
3. Save Space and Money
Storage is cumbersome and expensive. It requires not only the price of renting or owning a warehouse but that of employees to keep inventory, wrap, and ship items.
On top of housing all your goods, you’ve also got to think about packaging items like boxes, tape, bubble wrap, tissues paper, labels, and much more.
When you work with a Canadian fulfillment service, the only thing you have to worry about is keeping that product selling while they store, keep an inventory of, wrap, and ship any and all items you sell through your eCommerce store.
4. Improve the Customer Experience
Customers are more likely to buy from you if you can guarantee fast delivery. Trying to handle all the shipping logistics on your own makes it nearly impossible to speed up delivery times.
Because the primary job of Canadian fulfillment is to store and ship items, they have more access to quicker and more affordable shipping options for your customers.
Additionally, most Canadian fulfillment services are set up with 24-hour customer assistance, so if there are any issues with an order, they can be taken care of in a timely fashion.
Keep Growing Your Ecommerce Business
Your competition never slows down, and neither should you. As you continue to scale your business and expand your reach, you’ll need to use financially innovative solutions to make the most significant impact on your customers and your sales margins.
Using Canadian fulfillment services is one step you can take now to simplify your storing and shipping processes, save money, reach more customers, and improve the overall quality of your eCommerce business.
