One of the most effective business models you can choose is to purchase overseas goods in bulk, before selling them on to consumers here in the USA.
I mean, if you know what you are looking for, you can get high quality products doing very well overseas that are yet to hit US stores. Moreover, they are often extremely affordable, which means they can be sold for a substantial profit here in America.
Well, before the introduction of President trump’s import tariffs, it was.
Since his inauguration, Trump has introduced a number of import tariffs that have made it more expensive to import overseas goods into America. This has made it much more difficult for small businesses to make a profit, while also reducing spending at a population level.
This has led to the closure of small businesses across the nation, with some experts even suggesting it may have had a negative impact on the economy at large.
Which is why Canadian fulfillment is so important.
What is Canadian Fulfillment?
As the name implies, Canadian fulfillment involves using Canadian-based companies that offer order fulfillment services to US businesses. However, they do so in such a way that it completely removes Trump’s import duties and tariffs using a customs clearance statute called Section 321.
See, these companies provide a service that lets you redirect any shipments of foreign goods through Canada. They ultimately act like a middleman, receiving orders on your behalf, and then sending them to your individual customers here in the USA.
In this manner, they break up any large order from overseas into smaller shipments. In doing so, they can get your goods imported under Section 321 which completely removes those nasty import tariffs.
Section 321 For Dummies
The problem with import tarifs and free-trade agreements – is that there are so many different types of duties for different types of goods, and for products from different countries, and even the size and value of the shipment can lead to different tarifs being levied.
As you may know, import duties on goods from China are very high at the moment and it’s likely that they’ll stay that way for the foreseeable future. But did you know that you can use Canadian fulfillment and Section 321 to legally avoid having to pay those duties? I bet not. Let’s dive a little deeper.
Section 321 Value Limits
Section 321 has a limit of $800 on the value of the shipments coming into the United States from countries like Canada. It doesn’t matter (under the Section 321 statute) where the products are originally from, so long as they are clearly marked in accordance with regulation.
Now, I know what you’re thinking. When you order a shipment of goods from China, it’s not coming over in tiny little $800 units. That’s where Canadian fulfillment comes into the equation. You can just import your goods as per normal, and have a partner in Canada receive the order for you, warehouse it, and have staff repack it as necessary and ship the products off to customers on your behalf.
Obviously, all that service isn’t going to come free of charge, but here’s the kicker – the money your business saves on import duties will more that make up for the cost of using Canadian fulfillment. You know it’s a good option when you save money and have less work to do.
Who ya gonna call?
Stalco was one of the first major Canadian Fulfillment companies to offer this unique business saving service. Based in Toronto, they have been fulfilling orders for American business since early 2018.
They have become quite popular because unlike many other order fulfillment companies, they were created for the sole purpose of removing the import tariffs that are destroying small American businesses.
Their distribution center is extremely close to the Canada-US border, and they offer same-day fulfillment to all their customers. They can also induct their packages with all major US carriers, including USPS, DHL and UPS.
All of which means that your customers get their products as fast as possible, and you save a heap of money in the process. There are other companies out there besides Stalco of course and you should pick the one that best suits your needs. But taking a look at this one, and you start to understand what I’m talking about.
Closing Thoughts
Canadian fulfillment offers the perfect way for you to reduce importation costs. It will also boost the profitability of your small business while saving you a few headaches. Like it or not, your company is going to be affected by it. Either through increased profits and growth, or from increased competition.