e-Commerce Fulfillment, e-Commerce

How American Brands Can Benefit From a Canadian e-Commerce Fulfillment Partner

By Geoff Parent on August, 19 2020

Second Closet is the fully integrated Canadian e-Commerce logistics and fulfillment partner you’ve been looking for. We offer cost-effective, technology-first solutions to seamlessly manage and securely store your inventory, fulfill your Canadian e-Commerce orders and manage reverse logistics.

 

When it comes to committing to e-Commerce growth, the time is now.

Regardless of industry, retail category or location, 2020 has been a watershed year for global e-Commerce. Already growing at a steady clip for years, e-Commerce grew to new heights due to COVID-19-induced shutdowns, the shuttering of brick-and-mortar retail and the now-habitual tendency of consumers to stay at home as much as possible. In Canada alone, the YoY growth in e-Commerce sales from 2019 to 2020 was 12.3%.1 More broadly, it’s projected that e-Commerce growth has been accelerated by 4 to 6 years due to the effects of COVID-19.2 Considering this growth, and the fact that buying habits have been permanently altered, it’s time for businesses of all shapes and sizes to evaluate and strategize about how they can grow and scale their e-Commerce operations.

What better time, then, is there for American businesses to optimize their fulfillment practices within Canada? Read on to learn about how American businesses can benefit from working with a Canadian e-Commerce fulfillment partner and why Second Closet is the ideal choice.

 

INQUIRE ABOUT E-COMMERCE FULFILLMENT SERVICES

 

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Canada’s growing e-Commerce consumer base is largely shut off from American brands

Regardless of COVID-19, e-Commerce in Canada is growing: Canadian e-Commerce revenue in 2019 was just over USD $25 billion. By 2024, that number is projected to grow to just over USD $36 billion — a growth rate of over 44%.3 All in all, 25 million Canadians purchased goods online in 2019 and that number is expected to grow to just over 30.1 million in 2024.4

And while e-Commerce activity in Canada has grown overall, cross-border shopping hasn’t. According to a Canada Post 2019 Canadian e-Commerce report, cross-border e-Commerce shopping was down in 2019 when compared to 2018 and only 8% of Canadians who purchased goods from US-based online stores in 2019 said they would continue to do so.5

While there are many factors contributing to this decline in cross-border shopping, one undeniable fact is that shipping and fulfilling from the United States presents avoidable inconveniences for Canadian e-Commerce shoppers. And by not finding strategic ways to address these inconveniences on behalf of their Canadian consumers, American brands deter and shut themselves off to a market of willing and ready online shoppers.

 

It’s more expensive, and more logistically inconvenient to ship and fulfill from the United States

It’s no surprise that more expensive shipping and longer wait times — especially during COVID-19 — deter cross-border shoppers. Stores located in the USA often charge Canadian customers a 25-40% shipping premium when it would otherwise be free for American customers.

Plus, for orders of $151 or more, Canadians must pay customs duties on top of the already exorbitant shipping costs. In comparison, the minimum threshold for this import tax for Canadian goods shipped to the United States is USD $800. When you add these fees and discrepancies, you can easily see why Canadian customers are far less likely to convert when it comes to cross-border shopping.

 

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How the right Canadian e-Commerce fulfillment partner can help

The Canadian e-Commerce market undoubtedly represents a tremendous opportunity for companies in the United States looking to expand their total addressable market by roughly 10% — it’s a market of roughly 25 million consumers which requires very little (if any) adjustment to their marketing efforts. But how to access it?

For digitally-oriented American brands focused on creating an excellent consumer experience from purchase to fulfillment, working with a Canadian fulfillment partner is a sound strategic move. A dedicated Canadian e-Commerce fulfillment and logistics partner can get you closer to your Canadian end consumers, reducing shipping times, slashing shipping costs and making those import taxes and premiums obsolete. Plus, these businesses can expect lower overhead costs by paying in CAD as opposed to USD.

When White Terry, a luxury bedding company, needed to find a fulfillment partner to help them scale their operations, they turned to Second Closet. Learn how we helped them scale, save 40% on shipping and shift their focus towards growth.

 

3a671b51-white-terry-logo_103m02c000000000000028       Second Closet x White Terry: Case Study

 

Why choose Second Closet?

Second Closet is a single-partner, Canadian-based e-Commerce fulfillment and logistics partner that can help American businesses fulfill seamlessly for their Canadian customers. Here’s what to expect:

1. Strategically-located fulfillment centres

Our fully owned-and-operated warehouses are strategically located in four of the largest urban centres in Canada (Toronto, Vancouver, Ottawa and Montreal) to get American businesses close to their Canadian customers and reduce shipping times. And best of all? Our services are standardized and fully-integrated no matter the location, which means we deliver the same quality of service no matter where we’re fulfilling orders. We are so confident in our ability to deliver on time that we guarantee same-day order fulfillment for orders placed before 1:00 PM local time. If the order is placed after 1:00 PM, your customers can count on next-day delivery.

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2. Discounted postage rates for healthier margins and lower shipping costs

We build the partnerships needed to stay competitive, maximize profitability, reduce abandoned carts and satisfy customers. We leverage the significant amount we spend with UPS, FedEx, Canada Post, Canpar and other major postage providers to secure excellent, discounted postage rates of up to 80% for our e-Commerce fulfillment clients and their consumers.

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3. Better returns management

The costs and headaches associated with returns can cut into earnings and create enduring logistical issues for both businesses and consumers. At Second Closet, we handle the entire returns process with ease, leading to greater customer satisfaction. When a customer requests an exchange or a return through an online store, we’ll receive the information before creating and sending the packing label at no cost to the customer. Once the customer sends the product back to us, we’ll receive the product before adding it back into inventory.

 

Looking to scale your operations in Canada? Contact Second Closet today.

Given how essential solid e-Commerce practices and strategies have become, it’s important to work with a partner who will deliver exceptional service and the collaborative approach needed to help you grow and scale effectively online. To learn more about how Second Closet can help your business, visit our website and contact us today to talk to one of our representatives.

 

INQUIRE ABOUT E-COMMERCE FULFILLMENT SERVICES

 

Sources: 

  1. Statista. “Retail e-Commerce Sales Growth in Canada from 2018 to 2024
  2. Forbes. “COVID-19 Accelerated e-Commerce Growth by 4 to 6 Years
  3. Statista. “Retail e-Commerce Revenue in Canada from 2017 to 2024
  4. Statista. “Number of Digital Buyers in Canada from 2017 to 2024
  5. Canada Post. “The 2020 Canadian e-Commerce Report

 

 

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