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New entrants to the Canadian market from abroad are increasing, offering goods Canadians are buying when visiting (the US), importing, or goods they previously couldn't access. The question for US based distributors/sellers is, “Do we ship goods to Canada from the US or do we put up shop in Canada.” Both have important implications best weighted blanket canada.
Through the recent recession, it appears the Canadian consumer's appetite for goods of most types outpaced demand from the US and other countries. With weak US sales, US wholesalers and retailers logically looked to Canada to push continued business growth.
Why Offering Goods to Canadians Makes Sense
The barriers for entry to Canada are few, which means when US companies look for sales growth – Canada is sensible despite its relatively smaller market size. The countries share a country-spanning border, exactly the same language is spoken, free trader and favourable trade agreements have been in place and both value one another as huge trading partners. In sum, trade is welcome.
Having said that, there are considerations and costs to conducting business abroad. Does it make most sense for US companies to sell cross-border on a per order basis? Establish relationships with Canadian sellers and distribute from the US and supply outlets in Canada via wholesale sales? Establish warehousing and distribution in Canada? Set up a physical wholesale/retail presence (a la Target, Marshall's and WalMart before them to mention a few)? In this latter case, you're essentially a start-up in Canada because you're establishing full operations – often too costly and complex save for large corporations who're building a calculated, capital-intensive investment to expand their retailer market footprint.
Outsourced Warehousing and 3PL Solutions in Canada
Establishing warehousing, distribution and fulfillment in Canada could be faster, easier and cheaper for US based companies – large and small. Top tier warehousing and distribution companies tend to be integrated with transported and logistic networks. Further, these warehousing companies are specifically in the commercial to take on the warehousing and order fulfillment function for remote US clients who set up a sales network in Canada.
The procedure for having your US based companies products in the Canadian marketplace could be simpler than you think. Beyond the cross border brokerage/duties details to sort out with Canadian customs and tax implications, the particular mechanics can be straight forward.
3PL Warehouse Fulfillment Capabilities
You will need product stored and ready for distribution as Canadian outlets or consumers demand it. Which means the warehouse will ship your goods by the skid load (to your Canadian retailer partners) as required. When you have not even established retail partners, perhaps you're taking online or mail orders from Canadian customers. Your warehousing should be equipped to pick, pack, and ship straight to consumers. Often, these warehousing partners full understand the thought of “drop shipping” ;.In sum, they act on your behalf to ship orders straight to consumers “from” you. Simply speaking, you're contracting them to be your warehouse. An integrated logistics and warehousing partner will also be able to get you great rates on shipping – be it courier discounts or freight rates.
Varying Warehouse Space = Flexible Space, Flexible Costs
Establishing operations in Canada, therefore, need not involve a massive capital investment. A warehousing partner should permit you to grow over time and accommodate your space needs centered on overall growth, and seasonal fluctuations. Often, they charge on the space your actually using at any given amount of time in the billing cycle – not on a fixed square footage basis. Also, you're charged on a per order fulfillment basis. This all adds up to more closely aligning costs with actual sales and warehouse space needs. The more inventory you hold and the more the sales, the more you spend – and inversely. This just makes good business sense and mitigates cost risks for US companies partnering with a third party Canadian warehouse.
Location of Your 3PL Canadian Warehouse
Finally, consider your Canadian warehouse and distribution location, location, location. Canada is a country of 35 million people – potential customers. You will want to locate in the most densely populated consumer markets. Consider that the Greater Toronto Area is Canada's most populated area, which falls what is recognized as the “Golden Horseshoe” surrounding Lake Ontario. This area is home with a 9 million Canadians, or nearly 26% of the entire population. That's a market size that rivals any large US market. In fact, nearly central within the Golden Horseshoe is Burlington, Ontario. It provides an excellent warehousing and distribution point from which to ascertain your Canadian fulfillment operations. It's close to all major highways and minutes from Toronto Pearson Airport positioned in Mississauga, Ontario.
US companies seeking to set up a Canadian presence to cultivate their business have too much to consider and with careful planning and relatively low priced, will find that partnering with a 3PL and warehousing company in the Greater Toronto Area may hook them up to a quick track to accessing a lucrative Canadian consumer.
Service Freight Warehousing provides outsourced warehousing and inventory management services and 3PL expertise to US and Canadian companies serving the Canadian market best weighted blanket canada. Situated in Greater Toronto, Service Freight Warehousing helps US based companies serve the Canadian market and grow sales. Contact our 3PL experts for a free of charge quote to ascertain Canadian distribution services.