IS IT RIGHT FOR YOUR COMPANY?
To perform a quick analysis on the opportunity value, there are a few simple calculations to perform to help as a guideline. From there, a deeper analysis should be done for accuracy.
- Understand your current duty cost. Either look at your total US duty paid on all imports, or at minimum asses one or two key products in your line. The total US duty paid becomes your opportunity for savings
- Asses your average freight cost for shipping your average-sized e-comm order domestically from within the USA. This will need to be compared with the cost of shipping from Canada. Consider your current packaging and if it is the most efficient (i.e. smallest) type of packaging solution possible. In step three this will be most important
- Determine average shipping cost from Canada for a same size parcel as above. This result may be in Canadian currency, so be sure to convert to USD for proper comparison. The closer to zero difference between Canada and USA shipping costs, the more the value in step 1 above becomes your total saving opportunity