A rising number of e-commerce entrepreneurs across Canada and the United States have been enlisting the help of Canadian Fulfillment Centers. And really, if you want to increase growth and improve customer service, you should be doing the same,

But what is a Canadian Fulfillment Center, and how can they help you?

What is a Canadian Fulfillment Center?

A Canadian fulfillment center is a Canadian-based company that provides third-party order fulfillment to businesses across the US and Canada.

Third-party fulfillment is a relatively simple concept. 

E-commerce business owners purchase their products in bulk as normal.

However rather than getting them shipped to a privately owned warehouse, they get them sent to a third-party. The third-party fulfillment company then stores the items and ships them to their customers on their behalf when an order is received.

Although some might view this as an excessive amount of double handling, it provides a myriad of benefits that simply cannot be overlooked.

1. Better Service of Canadian Customers

Many people fail to realize that close to 90% of the Canadian population live within a mere 60 miles of the US border.

Now, this is particularly important when you consider that most large Canadian Fulfillment Centers also reside right on the border between the US and Canada — allowing them to fulfill both countries in an incredibly efficient manner.

With this in mind, the speed at which they get products to Canadian based consumers cannot be matched. And as anyone in e-commerce knows, there is nothing a customer appreciates more than fast shipping.

This means an increase in customer satisfaction, better customer reviews, and more business growth.

2. Cheaper Shipping to US Customers

Since 2016, a number of import duties have been introduced that have made it more expensive to import Chinese goods onto American soil.

This has had a negative impact on US based e-commerce, with import duties affecting profit margins and the price of products that consumers have to pay. 

However, Canadian Fulfillment Centers offer a solution. They can receive large shipments of goods from China duty-free, and then pick-and-pack those goods for individual order fulfillment in the US when needed.

Because American businesses using third-party fulfillment no longer ship their products direct to the US, they no longer have to face the associated import costs. When this is combined with the fact that most fulfillment centers get discounted shipping rates, the savings can start to really add up.

3. Promotes Economic Growth Throughout US and Canada

The individual business benefits of utilizing a Canadian fulfillment center are apparent — but they extend well beyond the four walls of your office 

Since early 2020, Canadian Fulfillment Centers have been expanding at a rapid rate across the country. As a result, they have bought more warehouse space, invested in more land, and hired more staff.

In short, they have created more jobs. This has increased demands for freight, domestic shipping, and provides a corporate tax windfall, in the US and Canada — all of which has led to a significant increase in economic growth.

All of which means more money in the pockets of your customers, and more cashflow into your business.

4. Lower Running Costs

Enlisting the help of a Canadian Fulfillment Center obviously saves you money on shipping — but it doesn’t stop there.

It also ensures you no longer need to rent your own warehouse space to store and hold your stock. Within this, there is less need for you to personally hire more staff to work your warehouses and ship your orders.

Which equates to much lower operating expenses.

And positively, this is something that can be accomplished completely guilt free — because you are not removing these jobs from the market, instead they are being taken up by the fulfillment center.

5. Huge Business Growth

Finally, after getting involved with a Canadian Fulfillment Center, your job role will change slightly. 

There will be much less time taking, packing, and shipping orders. This leaves much more time for market research, marketing strategies, and accelerating customer support — all of which has the potential to spark business growth.

In short, you save time on the mundane and dedicate that time towards making your business better.

Key Message

To summarize, Canadian Fulfillment Centers play a key role in reducing import costs, improving shipping speeds, encouraging economic growth, lowering business running costs, and accelerating business growth.

They should be an integral part of your business. And if they are not, you are missing out.