A Note from Our Whitepaper

A Note from Our Whitepaper

Last year Stalco published a whitepaper titled “Roadmap for Importing Nutraceuticals and Cosmeceuticals Into Canada.” In the whitepaper we discussed the benefits of entering the Canadian marketplace as well as the hurdles U.S. businesses might face when selling health and beauty products in Canada. Even if your company is not shipping these specific types of products, there are still a few questions you should ask first.

• What is your product? This will help determine the specific regulations and processes the company must undergo as they enter the Canadian marketplace.
• Where is the product currently being stored in the United States? This will affect the cost associated with shipping your product to Canada. The closer your U.S. distribution center is to Canada, the less expensive shipping product into Canada will be. However, the business should still budget for taxes and customs fees.
• Where do you sell your product? Retail, online, or both? If the product is sold at retail, companies may be inclined to ship larger quantities of products and multiple SKU’s into Canada. If the product is sold online, taxes and shipping fees for direct to consumer shipping should be factored into the overall product price and/or shipping fees, meaning the shipping fee the business charges to the consumer.
• How much product are you planning on importing? Depending on predicted sales volumes in Canada, the company may warehouse inventory in Canada. Typically, larger sales volumes in Canada justify dedicated inventory in Canada. Having a storage facility in Canada may help defer shipment costs that are associated with each purchase. However, if the company is importing relatively small volumes into Canada, housing product in the United States may be the most cost effective solution, as consumers incur the bulk of the added shipping costs for individual orders.