canadian shipping services
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Canadian Shipping Services
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Stalco
One of Canada’s largest Direct to Consumer 3PLs
Targeting US online retailers
looking for shipping and
fulfillment options for the
Canadian market
Ship over 2 million units per year throughout
Canada
One of the largest volume shippers with Canada Post.
Unique flat rate pricing to ship anywhere in
Canada
Site Licensed by Health Canada
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Canadian Demographics Canada & USA share the largest unprotected border in the world with
over 90% of the Canadian population living within 150 km of the border Canada is The USA’s largest trading partner with Canadians spending
over $2B daily on American products and services Canadian Median Income of the 4 most populous provinces ( ON, QC, BC
and AB) is $78,572.00. Canadians spent over $22.3B online in 2014 which is expected to
increase by 54% to almost $40B by 2019 58% of Canadians speak English, 22% speak French, 11% both and 9%
other with 68.7% between 15-64 years, 16.1% under 14 and 15.2% over 65
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Canadian Shipping Challenges Shipping International with USPS/FedEx/UPS is
expensive. Average freight cost for package under 2 lbs to Canada $15 - $25 and rising every year
Uncertainty with tax requirements in Canada Int’l Mail services problems: untracked packages,
inconsistent duty allocation, extra COD charges for taxes, duty and brokerage fees upon delivery [ for packages sent through DDU (Delivered Duty Unpaid) services ]
Shipping times to Canada can range up to 21 days
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The Canadian Experience Shopping Online Website says now offer shipping to Canada Item on website $24.95 USD Shipping charge of $19.95 USD Seller does not pay duties/taxes
Courier charges up to $20 for customs clearance Duties and Taxes are extra Courier adds a service charge ( $10 - $20 ) for collection of duties and
taxes Item ends up costing over $100.00
True Story
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Two Solutions:
Advantages Domestic Canada Post offers lowest freight costs available Fastest available speed of delivery i.e. over 60% of the Canadian
population lives next day delivery from our location Easy returns management Lower import duties for product sent direct from manufacturers
Disadvantages Storage of inventory in Canada
1. Stalco’s In country Fulfillment
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In Country Fulfillment Implementation
We send our trucks and pick up your goods We import your products across the border & through customs directly to our
facility We Receive your goods into inventory We integrate seamlessly with your systems to receive daily order files We pick/pack and ship your goods the same day we receive your orders You get all required reports to monitor orders, inventory and returns through a
custom portal into our Warehouse Management Software All you have to worry about is selling, we take care of the rest!
How It Works
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Two Solutions:
[You continue to fulfill through your facilities, We pick up your packaged orders, carry them across the border and then inject them into the Canada Post system from within Canada]
Advantages DDP (Delivered Duty Paid) Service – Seller has the option to either collect
applicable taxes and duties at the time of sale or build them into margins: No surprise charges or required postal office pick up for the consumer
Taxes and duties pre-paid at the border guarantees seamless flow into Canada Shipped domestically with Canada Post at the lowest possible cost Customer gets product delivered to the door with no delays or additional costs
Disadvantages More costly delivery rates and longer delivery times compared to
in-country fulfillment
2. Stalco Consolidated shipping
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Consolidated Shipping Implementation
We integrate with your shipping label software and you print and apply Canada Post labels in your facility
Stalco will pick up your Canadian orders, bring them across the border and clear them through customs.
Stalco will insert the packages into Canada Post domestically typically saving you 40% off the cost of International USPS or FedEx.
Delivery time averages 3-8 days to anywhere in Canada.
How It Works
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Canadian Taxes Harmonized Sales Tax (HST) is a combination of the Canadian Federal GST
(5%) + the various Provincial Sales Taxes (PST). AB, BC, SK, MB, QC – 5% (GST ONLY) ON, NB, NL – 13% (GST +PST) PEI – 14% & NS – 15% (GST +PST)
Goods over $20 sold in the US and imported into Canada are subject to the tax where the customer is located. Calculated against the retail price in $CAD
Dependent on the product and country of origin. Most US and Mexican made products are exempt under NAFTA Calculated against the wholesale price in $CAD
Duties
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To Collect the Tax or Not? To ship DDP, US Retailers can choose to configure their
ecommerce shopping carts to calculate the HST at the time of purchase. This adds some complexity to your website but most Canadian shoppers are conditioned to pay HST especially if they know it will simplify the cross border experience.
You can skip collecting the HST and still ship DDP. You will still be responsible for paying HST but some retailers factor this cost into the margin.
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Stalco Taxes & Duties Facilitation If you ship to your Canadian customer using a DDU service, the
customer will get a notice to go to the local post office to pick up their package. Once there, they will have to pay the HST, duties, a brokerage fee and an additional service charge.
If you ship the product through our Consolidated DDP service, Stalco will pre-pay the HST and brokerage fee when it crosses the border.
You will receive an invoice from Stalco for the amount owing. If you collected HST at the time of purchase you can apply that to the invoice; Avoiding having to remit tax to Revenue Canada directly.
Stalco’s consolidated DDP service removes all the hassles away from the customer: packages arrive quickly and seamlessly
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Getting Started Stalco has been helping US companies to sell into Canada
for over 20 years. Stalco takes care of all the issues surrounding moving
packages across the border, making it easy for you to grow your Canadian client base.
Onboarding process takes less than a week and we can start picking up your Canadian orders within a few days.
Integration with your WMS gives you immediate tracking info and shipping rate tables.
SEE DRAMATIC COST SAVINGS WITH
SEAMLESS DELIVERYS TO YOUR CANADIAN
CLIENTS
WE ARE YOUR GATEWAY TO CANADIAN CUSTOMERS
