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Selling into Canada???

hibshman25

Vendor
Joined
Sep 25, 2005
Messages
2,848
Age
40
Location
Lebanon, PA 17042
Country
USA
Snowmobile
2017 sidewinder ltx dx
2018 snoscoot
Sales into Canada have really dropped off due to the poor exchange rate. I typically process orders through paypal. Is there any better way to go about selling into Canada? Hoping we can work together from both sides of the border. I'm open to any suggestions or tips to help.

I know the obvious is to mark packages as a gift, but as a business I don't feel comfortable doing that. I don't know what consequences would be if caught cheating the system, but I can't afford to take a chance. This business puts food on the table and a roof over our head. Dishonesty is also against my moral values.
 

Hey Travis, other then the poor currency exchange right now, another problem is shipping companies. If anything is shipped via FEDEX or UPS, we are guaranteed to face outrageous import/brokerage fees and taxes. That's why people are asking you to mark it as a gift. From my experience, using USPS seems to work the best and rarely see these added fees. I am fortunate to live a little over an hour to the border at Port Huron, MI, so I have a post office box that I ship to and bring items back. If i can help in any way, let me know. We appreciate you up here buddy!
 
Yes, only use USPS for shipping. Sometimes customs apply a charge when crossing the border into Canada, but most times they don't. Mark parcel as a used snowmobile part or just a snowmobile part. Values under $20 do not incur customs fees or tax. Parts over $20 may be subject to additional fees. You are a business, so don't jeopardize your good name and shipping privileges to save someone a few dollars. We in Canada appreciate what those south of the border do for us. Just try to keep the shipping charges reasonable. Thank you for giving this issue some thought and actually asking for some suggestions. Cheers to Travis!
 
The exchange rate $CAD to $USD is painful enough, but Paypal and credit card companies (banks) often charge a premium on top of the exchange rate of the day. If there was an easier way to get US funds to you without excessive exchange/handling fees etc, that would be ideal.
As far as shipping, yes USPS is preferred and you get a tracking number, plus shipping times comparable with other couriers as well. Cross border shipping is where Canada Customs decide whether to hoop you for taxes and/or duty. I think the marking as a "gift" thing invites them to check the parcel rather than avoid it. The important thing imo is the declared value and "used parts" on the USPS import label on the package, best to keep it as low as possible like the $20 threshold if that is accurate.
Another thing is to not include any pricing information on the packing list or shipper, sometimes they will open the package and check the packing slip, so electronic receipts/shippers work best.
Where the USPS parcel crosses the border into Canada makes a difference I find as far as getting stung with duties etc, I've gotten excess charges on items that cross into Montreal Quebec both times they landed there, although I'm sure that is out of your control Travis.
Unfortunately the exchange rate and the excessive tax we pay in Ontario at least, is problematic at this point.
 
Marking it as a gift doesn't work. Hasn't for years. Yes, USPS is the only shipper I will accept from the US unless taxes are collected up-front by the shipping company. Most shippers have that option but that takes out the chance I may or may not be charged tax if shipped through USPS. I've had some charged and others not. One package worth $300 was not charged while another at $100 was. It's a total crapshoot.

There are companies that deal with cross border shipping. I absolutely hate UPS, thieving bastards they are. Fedex is so-so. One I really like is DHL. Their collection charges are more reasonable and usually they send an invoice by mail afterwards to the receiver for the owed tax.

Yeah, the exchange rate is the killer right now. We've always had tax so we're used to that. A usual incentive to get Canadians buying is to offer the CAD$ at par to US$ but that would mean you take the hit. Would mean about a 30% discount.
 
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If you declare a lower value on the parcel and it is somehow lost, you can only file a claim for the amount you declare and then there is a limit unless you insure. I ship all over the world and no longer claim packages as a gift or lower value as I am frequently requested. That stuff will catch up to you someday.
 
Id like to add USPS is of course the only way I will buy anything from the US. UPS hits you with Brokerage fees that can and have added up to more then the part shipped. Label as what it is, snowmobile parts, I have bought many items from the US from people on TY or C body. Never have I been charged duty on used parts but have been charged taxes on declared value on package. If it comes from a business with declared value you get hit with taxes it seems but if it comes from a person with declared value it doesn't. Weird on that one! As said label used sled parts, declare a value and ship with receipt inside.

The reason no one is buying from the US is exchange, for the most part. Say your sway bar at 90 bucks adds up to around 120 ish then add shipping and finally taxes and that 90 bucks turned into 180. Not arguing the price of the part, its just a fact of life for us North of the border. Free trade did nothing to make cross border shopping better for the average Joe. I looked at a seat for my Bike at Dennis Kirk, with UPS brokerage, shipping and taxes. The seat jumped to way over double the price by the time it would get to my door. So I ordered the seat from a company in Quebec for a list price just under double the Kirk list price and shipped it Purolator express and had it at my door after shipping and taxes in about 3 days for the same price. Most stuff from the US can take up to three weeks if it gets hung up at customs. Usually a week to 10 days is normal for USPS.
 
I still do order some auto parts from RockAuto because they're still cheaper than local on some stuff, even with shipping. They collect and remit the tax at their end and I receive it via Canada Post within a week. Yeah, the price difference can be that bad sometimes still, even with the exchange rate.
 
Sorry, untill the exchange rate is better, there is not much you can do. You already ship USPS. I used to order almost everything from the states, but this winter I only did so out of desperation. If i couldnt find a part in Canada.
 
Sorry, untill the exchange rate is better, there is not much you can do. You already ship USPS. I used to order almost everything from the states, but this winter I only did so out of desperation. If i couldnt find a part in Canada.

Plus USPS significantly raised shipping rates this past winter.
 
I think some do but a lot, especially on eBay, jack up the shipping. I think some don't like shipping to Canada because of the extra paperwork and hassle.
 
They do use the excuse of extra paper work, but lets be realistic. Declared value of contents and maybe 2 more questions they have to answer. Does that justify the mark up that we get?? I have shipped in country and out of country, and I'm in and out of the post office in the same amount of time!
I have dealt with some vendors that only bill the exact amount of shipping and that should be the only way that vendors should bill. And never claim full value, I hate when I need to pay duty!!
 
Many vendors offer free shipping in lower 48. I always wonder why Canadians cant get their shipping reduced by the same amount as it costs to ship in the Sates?

Moose man said: I think some do but a lot, especially on eBay, jack up the shipping. I think some don't like shipping to Canada because of the extra paperwork and hassle.
 
Mooseman said: I think some do but a lot, especially on eBay, jack up the shipping. I think some don't like shipping to Canada because of the extra paperwork and hassle.

Rooster said.
They do use the excuse of extra paper work, but lets be realistic. Declared value of contents and maybe 2 more questions they have to answer. Does that justify the mark up that we get?? I have shipped in country and out of country, and I'm in and out of the post office in the same amount of time!
I have dealt with some vendors that only bill the exact amount of shipping and that should be the only way that vendors should bill. And never claim full value, I hate when I need to pay duty!!

It isn't cheap shipping international. USPS just jacked up the rates this past spring it now costs me $35-40 just to ship a jacket where it used to be 25-30. I always charge less than that but this keeps cutting into what little profit there is selling online with Paypal fees and selling fees. Everyone expects the vendor to absorb all costs but there is a limit. I do free shipping on most products in the US because I have to be competitive. It cost $20+ to ship a $90 helmet to California. Do the math and realize there is no money in that. No one expects to take a pay cut from their wages but vendors are expected to reduce product prices and ship for free or less. And it can be a hassle for us to ship overseas, I have had a few issues with lost packages and if full value is not declared, any insurance I can recover is based on that value. Tell me if you think its fair to declare $100 for a $300 jacket and its lost and I could lose over $200? Its a hassle when you ship a jacket and bibs to Russia and it never gets to customs and I have to reimburse the buyer $400. I have shipped all over the world and know that its more than just writing a couple of things on a customs form.
 


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