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Sixty-eight percent of all e-commerce transactions in Canada are B2B, so you know that a lot of Canadian businesses are finding products and arranging payment and shipping online. As is the trend worldwide, e-commerce sales in Canada are growing rapidly, doubling in value every few years.
With a population of about 36 million and GDP approaching USD $2 trillion, Canada is a market worth pursuing, especially for U.S. suppliers who have the extra advantages of a common border and language, similar consumer culture, and a free trade agreement that eliminates tariffs on qualifying goods.
Consumers like to purchase travel services with 58 percent of Canadians purchasing airline tickets online. This is followed by entertainment events (52 percent); clothing, jewelry and other accessories (42 percent); and music (35 percent). Canadians spent over $20 billion on buying goods and services in 2015, with younger folks, between 25 and 34, responsible for the majority of purchases.
But the general population is aging, with seniors over 65 comprising nearly half the population. They tend not to be eager online shoppers, but may present other opportunities for marketers tuned into that demographic. They do have younger relatives eager to over buy for them.
Canadians are also big social media users with 67 percent of Internet users reporting visits to social media sites, good places to generate buzz about products and in some cases click and buy. There has been a lot of hype about the potential of having stores on sites such as Facebook, but so far results are lackluster. You don't want to overlook a promising sales channel, nor do you want to be spread across so many channels that you lose focus.
The most popular sites by number of visits from highest to lowest are Facebook, Twitter, and LinkedIn. Other important sites are Tumblr, Pinterest, YouTube, Google+, and Myspace.
The most popular e-commerce site is Amazon with a seven percent market share. The other major platforms have a combined 10 percent share. Also popular are eBay, Costco and Walmart. E-commerce platforms maintain fulfillment centers in Canada, so if you export there you can warehouse products and have them shipped quickly at less cost than shipping an item at a time. There are charges for picking, packing and shipping to buyers. Major centers are:
Amazon.ca
Farrow.com
Shipwire.com
Ebayenterprise.com
Witpeg.com
Directdistribution.ca
If your online promotion strategy includes online ads, and your targets are younger buyers, then purchasing ads on social media sites may generate extra sales. Digital ads by value have surpassed all other media. Potential distributors see these ads, too, so don't just think of them as working only on the private consumer.
When it comes to import duties, goods valued under $35 U.S. enter duty free, while items over that are subject to a 5% national sales tax. Some provinces also charge a provincial sales tax. Your buyer usually pays these costs but it's wise to tell them ahead of time to avoid surprises.
Goods made in the U.S. and other countries which have a free trade agreement with Canada enter duty-free. If U.S.-made entering from the U.S. and valued more than $2000, a NAFTA certificate of origin is needed. Your freight forwarder of shipping company can prepare this document, you can, or ask us here at WPG.
The cheapest shipping option for items is the U.S. Postal Service, which doesn't charge brokerage fees, but nor does it pre-pay duties and taxes, which must be paid by the consignee at the local Canadian post office. Bear in mind that brokerage fees can be as high as 10% of the value of the shipment.
U.S. exporters need not file in the Automated Export System regardless of value unless the product requires an export license. These situations are rare.
All in all, cross border selling via e-commerce is pretty easy when it comes to Canada. It's particularly suited to new-to-export companies and those who appreciate the lower costs of entry.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| CR32XH NTN | 22.225 | 50.8 | 33.3 |
| CR30XH NTN | 19.05 | 47.625 | 27 |