{"id":76233,"date":"2025-11-14T10:15:57","date_gmt":"2025-11-14T10:15:57","guid":{"rendered":"https:\/\/dralysstore.com\/blog\/?p=76233"},"modified":"2025-11-14T10:15:57","modified_gmt":"2025-11-14T10:15:57","slug":"canada-still-works-for-u-s-sellers","status":"publish","type":"post","link":"https:\/\/dralysstore.com\/blog\/canada-still-works-for-u-s-sellers\/","title":{"rendered":"Canada Still Works for U.S. Sellers"},"content":{"rendered":"<div>\n<p>Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in 2025. Nonetheless, for U.S. merchants, Canada remains an easy first step into international sales.<\/p>\n<p>Canadian shoppers <a href=\"https:\/\/www.practicalecommerce.com\/ecommerce-investor-on-turnaround-tactics\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">buy heavily<\/a> from U.S. sites. But this year\u2019s holiday shopping season is testing even experienced sellers. Tariffs, a postal strike, and shifting taxes have turned what should be a smooth northern route into a logistical puzzle.<\/p>\n<h3>Tariff Dust-Up<\/h3>\n<p>Many pundits have described recent trade relations as a war. Helaine Rich, the vice president of strategic sales and administration at ePost Global, an international shipping provider, was more tactful.<\/p>\n<p>\u201cThe current administration really took a look at what countries are asking [American businesses] to pay when we\u2019re shipping into their countries and what they\u2019re charging as a premium on U.S. goods,\u201d said Rich.<\/p>\n<p>The result was a tariff for the United States that upset North-South relations. The back-and-forth trade negotiations included on-again, off-again reciprocal tariffs and surtaxes from the Canadian government \u2014 in some cases, up to 25%.<\/p>\n<p>At peaks in the U.S.-Canada dispute, ecommerce \u201cshipment volumes dropped quickly as tariffs rose and some Canadian consumers began avoiding U.S. brands,\u201d Rich said.<\/p>\n<p>Yet duties existed long before the recent dust-up.<\/p>\n<h3>Canadian Duties<\/h3>\n<p>\u201cNothing is more frustrating than thinking you paid for a product and then getting surprised at the door that you have to pay this, that, and the other duty,\u201d said Rich.<\/p>\n<p>Unfortunately, this is a common occurrence for Canadian shoppers buying from American ecommerce stores. Here are a few examples of what Canada typically adds.<\/p>\n<ul>\n<li><strong>Duties.<\/strong> Based on the type of goods, their origin (including whether they qualify under the United States\u2013Mexico\u2013Canada free-trade agreement or other treaties), and classification (harmonized system code).<\/li>\n<\/ul>\n<ul>\n<li><strong>GST.<\/strong> The Canadian goods and services tax applies to most imported goods, calculated on the Canadian-dollar value of goods plus duties.<\/li>\n<\/ul>\n<ul>\n<li><strong>PST or HST.<\/strong> Depending on the destination province, the importer or consumer may also owe provincial sales tax (PST) or harmonized sales tax (HST), combining federal and provincial components.<\/li>\n<\/ul>\n<h3>Postal Strike<\/h3>\n<p>The final challenge, beyond a volatile trade environment and <a href=\"https:\/\/www.practicalecommerce.com\/digital-commerce-stays-duty-free\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">duties due<\/a>, is getting a package delivered in Canada.<\/p>\n<p>Rich noted that the Canadian Union of Postal Workers is again holding strikes during the holiday season, delaying most holiday shipments, as it did last year.<\/p>\n<p>Canada Post is the nation\u2019s primary last-mile delivery service. Thus sending shipments via the <a href=\"https:\/\/www.practicalecommerce.com\/usps-rate-change-analysis-july-2025\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">U.S. Postal Service<\/a> or any other carrier that partners with Canada Post is a risk.<\/p>\n<p>For instance, <a href=\"https:\/\/www.practicalecommerce.com\/fulfillment-compared-amazon-walmart-shopify\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">Walmart Marketplace<\/a> does not allow Canada Post or any affiliated services. Sellers who try to circumvent Walmart\u2019s restriction face suspension.<\/p>\n<h3>Opportunity Nonetheless<\/h3>\n<p>Despite tariffs, taxes, and strikes, Canada remains a significant growth market for U.S. ecommerce retailers.<\/p>\n<p>Depending on the projection, total Canadian ecommerce sales will range from $40 billion USD to $43 billion in 2025. About 20% of those sales will go to American stores, making the Canadian market worth around $8 billion for the year. (In contrast, 2024 U.S. retail ecommerce sales were roughly $1.2 trillion.)<\/p>\n<p>Canada offers U.S. merchants geographic proximity, familiar consumer behavior, and lesser competition. Plus, nearly all consumers speak English.<\/p>\n<p>If a U.S.-based online store wants to <a href=\"https:\/\/www.practicalecommerce.com\/alibaba-exec-on-suppliers-tariffs-ip\" data-wpel-link=\"internal\" target=\"_blank\" rel=\"noopener\">expand internationally<\/a>, Canada is a great place to start.<\/p>\n<h3>Selling to Canada<\/h3>\n<p>Success requires researching three factors: cost competitiveness, duty-paid pricing, and carrier contingencies.<\/p>\n<h4>Cost<\/h4>\n<p>Before marketing to Canadian shoppers, merchants should model the total landed cost \u2014 product, shipping, duties, and GST\/HST \u2014 to ensure each sale is profitable, according to Rich at ePost Global.<\/p>\n<p>This step includes identifying and understanding tariffs or product restrictions. Canada forbids the import of some products sold domestically in the United States.<\/p>\n<p>Bottom line: Can a U.S. business competitively sell its products into Canada?<\/p>\n<h4>Duty-paid pricing<\/h4>\n<p>Duty-paid pricing is akin to free shipping.<\/p>\n<p>Shipping fees create friction, prompting shoppers to abandon orders if too expensive. Ditto for import duties.<\/p>\n<p>Free shipping offers remove that friction.<\/p>\n<p>The equation is similar to \u201cdelivery duty paid.\u201d If paying Canadian duties for customers increases sales volume enough to offset the cost and generate more profit, do it.<\/p>\n<h4>Carriers<\/h4>\n<p>Finally, no carrier is a good choice when it is experiencing a strike. Shipments will almost certainly encounter delays.<\/p>\n<p>Have a contingency plan that uses carriers not impacted by the current Canadian strikes.<\/p>\n<\/p><\/div>\n<p><\/p>\n<hr>\n<p><strong>Published by Dralys Blog \u2013 Stories | Insights | Innovation<\/strong><\/p>\n<p>Discover more on <a href=\"https:\/\/www.dralysstore.com\" target=\"_blank\">DralysStore.com<\/a><\/p>\n<div class=\"pld-like-dislike-wrap pld-template-2\">\r\n    <div class=\"pld-like-wrap  pld-common-wrap\">\r\n    <a href=\"javascript:void(0)\" class=\"pld-like-trigger pld-like-dislike-trigger  \" title=\"\" data-post-id=\"76233\" data-trigger-type=\"like\" data-restriction=\"no\" data-already-liked=\"0\">\r\n                        <i class=\"fas fa-heart\"><\/i>\r\n                <\/a>\r\n    <span class=\"pld-like-count-wrap pld-count-wrap\">6    <\/span>\r\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in&hellip;<\/p>\n","protected":false},"author":1,"featured_media":76234,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[36],"tags":[74,34,65,176,45,177,10],"class_list":["post-76233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dralys-insights","tag-dralys","tag-e-commerce","tag-entrepreneurship","tag-ecosystem","tag-innovation","tag-smart-shopping","tag-technology"],"acf":[],"jetpack_featured_media_url":"https:\/\/dralysstore.com\/blog\/wp-content\/uploads\/2025\/11\/111325-us-canada-featured.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/76233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/comments?post=76233"}],"version-history":[{"count":1,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/76233\/revisions"}],"predecessor-version":[{"id":76235,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/posts\/76233\/revisions\/76235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/media\/76234"}],"wp:attachment":[{"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/media?parent=76233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/categories?post=76233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dralysstore.com\/blog\/wp-json\/wp\/v2\/tags?post=76233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}