The eCommerce market in Canada is growing every year, but it still has some unique challenges that other countries don’t have to deal with. The main reason for that is the size of Canada and its diverse terrain. Shipping to remote locations can be very expensive due to logistics costs. This article will help you understand what goes into shipping by air or sea, how much it costs, and the cheapest options available.
eCommerce shipping to Canada can be a tricky beast. The North-American country, famous for its Rocky Mountains, is a top online commerce market for US companies.
However, as a company, if you’ve ever tried to ship something, you should know that many variables are involved. Consider reading this to avoid the pitfalls and get your products on their way to customers across borders.
eCommerce Shipping – what is it?
eCommerce shipping is the process of sending your company’s eCommerce products to the customers. The logistics company usually gets the product from you and then delivers it to the customer.
The most important thing to remember about eCommerce shipping is that it’s not just a one-way street. There are two ways in which this happens –
- The first is when the logistics company takes the entire responsibility of handling the products from the warehouse to delivering them to the customers.
- The second is when your company does the formalities to send a package to your customer directly.
In later parts of the article, you will know why the first step is more convenient.
The eCommerce Market in Canada
Canada is North America’s second largest eCommerce market, with a total online sales value of $30.8 billion in 2018. Home to more than 38 million people, it is one of the fastest-growing eCommerce markets in the world, with online sales growing by 20% each year.
The total online retail sales for 2018 were around $27 billion, accounting for about 9% of all retail sales in Canada. The growth of the eCommerce market in Canada is also expected to continue proliferating over the next few years.
Why should US firms hire a professional shipping company to Canada?
It is essential to understand the benefits of partnering with freight forwarder companies for your business if you are an online seller.
For example, these companies usually have access to more affordable rates to help reduce shipping costs and pass on the savings to their customers. Their staff is trained in international shipping regulations, customs clearance requirements, procedures, and other aspects relevant to cross-border shipments.
In addition, they provide reliability that includes 24/7 support. This allows sellers to focus on growing their businesses instead of researching solutions that best fit their needs.
5 Factors that affect the Shipping Costs to Canada
Shipping costs are calculated in two main ways: per package and per weight.
Shipping costs can be calculated per package basis, meaning the exact price will be charged regardless of how much it weighs.
If you have multiple items in one package, shipping costs are usually factored by weight instead of the number of items (there may be exceptions). For example, if you have three products in one box, each being 6 ounces (182 g), it would cost more than if they were all 2 ounces (56 g).
Now, check out the significant factors that bring a change in the shipping costs –
Product and Package Weight / Dimensions
If you’re wondering why your product seems to cost more to ship than a similar item, this is likely due to the weight and dimensions of the package.
Larger boxes or products can be difficult for carriers to manage and will incur additional fees. You may also see this impact if you choose standard shipping options, typically delivered by USPS (United States Postal Service).
In general terms –
- If your product weighs less than 25 lbs., then it’s considered a small package
- If your product weighs more than 20 lbs., then it’s considered a large package
Distance from Source to the Destination location
The distance from the origin to the destination impacts shipping costs and how long it takes to deliver the goods.
For example, if you are shipping from New York to Canada, the costs will be considerably lower than shipping from another state away from it.
With a place closer to the destination, companies don’t even need to opt for superfast shipping. So, that also saves on shipping costs.
Air Freight costs more than Road and Rail Freight.
Air freight is one of the fastest modes of transport and, therefore, more expensive than road and rail freight. It is ideal for time-sensitive deliveries as it can be transported quickly and without delay. In fact, air freight can be used when speed is essential to your business or if you are shipping live animals or perishables like food items.
Ocean Freight is the cheapest option.
Ocean freight is the cheapest option, even cheaper than road freight. Ocean freight is an international shipping method for goods between countries. It’s also known as coastal shipping, which means the delivery occurs along a coastline or by waterway from one port to another.
The reason it’s cheaper than road freight is because there are fewer stops on your way from origin to destination. In other words, there are no inland transportation costs incurred in comparison with road transport.
Delivery Speed also affects shipping costs.
Delivery speed is also a factor in determining your shipping costs. For example, if you want your package to arrive on the same day or the next day it’s shipped, expect to pay more than if you’re okay with having it delivered within 3 days.
Wrapping Up
If you’re looking to start an eCommerce business in Canada, shipping is one of the most crucial factors to consider. The last thing you want is to have your customers wait longer than they should in order to receive their products.
Therefore, shipping to Canada via a trustworthy logistics service provider is essential. It can save your company from the complications of import and export formalities while boosting customer satisfaction and sales volume. Look for a professional freight forwarding company today.
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