7 Ways a Canadian Fulfillment Center Can Help Boost Profits

Getting a customer to place an order on your website is just one half of the order cycle. The biggest challenge is to ensure that the product reaches the customer in the shortest possible time without any delays. Customers know what they want, and they want it now. While fulfilling domestic orders is still easy, the challenge increases when your product leaves domestic borders.

Taking into account the entire logistics flow, managing inventory, dealing with shipping companies, reducing costs, and minimizing delays is an everyday challenge. What’s more, it can also be very expensive to ship products from the US to Canada. Improving customer experience is the biggest challenge that any business faces today.

So, how do you navigate the complexities of an eCommerce store in the US, and how do you take on shipping to Canada within your budget? Simple. You look for a Canadian fulfillment center that will solve all your problems. By getting a shipping company like eShipper onboard that not only comes with popular eCommerce integrations but also has tie-ups with world-class carriers, you can take full advantage of a fulfillment center.

Read on to find out 7 ways in which a fulfillment center in Canada can help you boost your bottom line.

1. Reduced Shipping Cost

Shipping products internationally can be unbelievably expensive and a huge drain on your margins. One of the great benefits of having a fulfillment center in Canada is that it drastically helps reduce shipping costs for your company. For example, if you have to ship a small package every time you get an order from a customer in Canada, you will end up paying a lot more. It will also come along with the hassle of doing this for every order, night and day.

On the other hand, having a fulfillment center in Canada will make the last mile delivery cost-effective. With the majority of the Canadian population cluttered in the urban centers of the country, setting up a fulfillment center in such a region will go a long way in reducing costs.

2. Reduced Delivery Times

Almost 90% of the Canadian population resides within 100km of the US border. That’s your next best customer base after the domestic market. It only makes sense that you concentrate your efforts on providing satisfaction to these customers. Customers hate delays. With the world going digital and everything available at the tip of their fingers, people want things instantly. The same is true for online purchases. 

Having a fulfillment center in Canada with a shipping company would mean quicker delivery times, great user experience, excellent branding opportunities, and ultimately boost your E-commerce profits.

3. Increased Potential in a New Market

Going local always helps. When you’re in the center of all action, know the ins and outs of any market, and understand what works and what doesn’t, you increase your chances of success. As an eCommerce business that regularly ships to Canada, understanding the market can never go wrong. 

In fact, having a fulfillment center in the country can give you a chance to explore the market, customize your products, and even served a larger base than before.

4. New NAFTA Agreement = Increased Canadian Demand

The new NAFTA agreement, titled the US Mexico Canada Agreement (USMCA), has been in the works for the last 2 years. This agreement will increase the de minimis, meaning the price threshold for goods shipped to another country, up to which there are no duties and taxes applied. The USMCA goes into effect on July 1st, 2020.

Since 1985, Canada’s de minimis level has been at $20 – one of the lowest in the world. From July 1st, Canada will raise its de minimis to $150 for duties and $40 for taxes, meaning that any shipments from the USA under these amounts will not be charged duties and taxes.

This is massive news for US merchants, as an increase in cross-border demand is imminent following the agreement. US merchants will have an entirely new audience, but may have limited expertise in shipping and fulfillment for the Canadian market. With a major increase in demand, Canada can be a serious game-changer for US merchants, and having a fulfillment partner with a proven track record within Canada is pertinent in order to succeed.

5. Unparalleled Expertise in Order Fulfillment

Chances are that the third-party logistics provider (3PL) handling your order fulfillment center in Canada has been doing this for long. Plus, they have the advantage of knowing the country and all its regulations. Handing over your logistics to a 3PL would mean that you not only have to not worry about all the logistics hassles, you also get to utilize their skills and expertise in ensuring last-mile delivery and great customer experience.

Knowing that your inventory is in safe hands, that it will get delivered in time, and the customer will be happy at the end of the day is what every business hopes for. By letting a 3PL handle all this, you can focus on other aspects of your business and improve your bottom line.

6. Less Cart Abandonment

Your Canadian customers love your products and can’t wait to get their hands on them. However, once they reach the cart, they realize that shipping will take 7-10 days. Would they stick around? Chances are that they won’t. They’ll probably end up buying products from another eCommerce store that promises delivery within 1-2 days.

Having a fulfillment center in Canada would help you reduce the possibility of cart abandonment by a customer due to lengthy shipping times. With inventory stocked in your Canadian center, you can reach your customers in no time and could also promise next-day delivery in most cases. Talk about customer satisfaction!

7. Faster Scaling

As a business, you’re always looking to scale. However, with your limited resources it might not be possible to do so, especially when you are shipping internationally and incurring huge shipping costs. That’s when a Canadian fulfillment center will come in handy. By storing inventory, custom packaging, and delivering from a local center, you can achieve scale faster than ever.

As an eCommerce business that’s shipping to Canada, having a Canadian fulfillment center definitely makes sense. eShipper is a great option if you’re looking for a Canadian 3PL, and eCommerce fulfillment center. They’ll handle your inventory, packaging, and shipments, so you can focus on innovation and sales generation. Interested? Email sales@eshipper.com and ask about all your Canadian fulfillment options.