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The cost of running a business continues to rise perhaps quicker than ever before. Wages and benefits are going up for employees, many products are in short supply, shipping prices are increasing, and the list goes on.
While you’ll never want to cut costs by lowering your product or customer service standards, you can take advantage of more affordable manufacturing.
China is currently the leading manufacturer globally, making up close to 30% of global manufacturing. They produce a wide range of low-cost products from which eCommerce businesses can benefit.
Yet, importing products from overseas leads to further financial burden, no thanks to the heavy tariffs the United States has placed on Chinese goods.
The Price of Trading with China
China and the United States are in a constant struggle to win first place in world manufacturing. As a result, the countries make it extremely costly for both American and Chinese businesses to import goods from each other.
It currently costs 25% of the total value of goods to import products directly from China into the United States. Regardless of how cost-effective using a Chinese manufacturer is, the heavy tariffs make trade with China no longer worth the money saved in manufacturing.
If only there was a way to benefit from low-cost production while avoiding those hefty fees.
You Can Import for Less
Thankfully, Canada and the United States are still on good trading terms meaning import fees are much lower than other countries.
Additionally, a new statute known as Section 321 was instituted by the US government in 2019, stating that any goods imported from Canada were exempt from heavy tariffs up to $800 in value.
Because Canada and China also have a good trade relationship, importing goods directly from China into Canada without excessive fees is also easy.
Knowing this, US business owners can now import goods from China to Canada before being forwarded to addresses in the United States.
Taking advantage of Section 321 allows US eCommerce businesses to purchase Chinese manufactured products without paying exorbitant import fees.
Hiring a Canadian Fulfillment Company
As a busy business owner, you likely don’t have time to accept shipments in Canada then send them to your warehouse in the United States. If you want to take advantage of Section 321, you must hire a Canadian order fulfillment company.
What is Canadian Fulfillment?
Hiring a third-party company based in Canada allows you to receive imported Chinese goods without paying the tariffs. After receiving the goods, the fulfillment company will then store them in their warehouse in Canada.
You can have your products shipped to your warehouses in the United States, or you can save a step, and a lot of money, by having the products shipped directly from the Canadian warehouse to your customers.
Orders get processed and shipped on the same day, just as they would in the United States – but you save money importing.
Understanding Section 321
Hiring a Canadian fulfillment company can help your business thrive. Chances are you’ve already looked into purchasing affordable products from China to help your business grow. When you understand and utilize Section 321, you will have a larger return on investment and avoid a lot of unexpected import fees.
Before getting started, make sure you fully understand how Section 321 works so that you don’t have to deal with shipment delays or unnecessary fines.
What You Should Know About Section 321
If you’re new to working with Canadian fulfillment, make sure you know the ins and outs of Section 321 to avoid any complications and ensure that the process is worth your time and effort.
One thing to remember is that there is a daily limit on how much you can bring across the border. Importers can only claim Section 321 once a day, and the total value of the goods must be under $800. If you have more goods, you will have to split up shipments and bring them over on separate days.
Thankfully, if you hire a Canadian fulfillment company, they will handle all the shipping operations so that you won’t be left to space out deliveries and add up the price of goods on your own. They are experienced and know the ins and outs of Section 321, so you can be confident that you’ll save the most money on any tariffs or import fees.
The Benefits of Canadian Fulfillment
Canadian fulfillment helps you import goods for less. You’ll not only save money on the expensive tariffs, but you’ll also save on shipping and storage costs.
When you partner with a fulfillment company, the products you purchase from China are directly shipped to the company’s warehouse in Canada. When an order is made online by a customer, it is fulfilled directly from the warehouse rather than sent to a second location. This not only saves you money on goods and import fees but also lets you refocus your energy on other aspects of your business that require your attention. Partnering with a Canadian fulfillment company will help you take your eCommerce business to the next level.
