Monday, February 16, 2015

Getting over the hurdle of shipping to eCommerce consumers in Canada from the US or other countries.

By Lee Smith, P.log, B.M., CEO of LSL holding Company.


The Canadian eCommerce consumer market is one of the most dynamic and untapped sources of potential income for International companies looking to extend their services and products to new markets. However, most companies are not getting the most out of this market. They have either turned it over to a large courier companies, or they use ad-hoc solutions, or worst they choose not to participate directly and have their brands represented by someone else in Canada. This leads to companies feeling like they are not getting enough for the resources that they are expending.

Important stats 

  • 90% of Canadian surveyed have made an online purchase in the past year.
  • The highest level amongst the industrialized nations.
  • 75% of Canadian lives with 100 miles of the US Border.
  • This market gets to view all of the advertising that is Generated in the US.

The invisible wall

http://thetyee.cachefly.net/Books/2012/11/02/theWall_01.jpg
Image by April Alayon.
Most company fear the invisible wall called customs and duties when it comes to dealing with Canadian. This wall is a mirage and can be tamed. There have been many tools and services created in the pass 5 years that will make it easier for a company to ship to Canada and to do so in an effective and efficient manner.

The Canadian government has set up a non-resident importer program that allows an International company to collect and remit taxes directly to the Federal Government. This makes it very easy for your customers in Canada to use your services.


Thanks to Nafta it is easier to trade in North America. With the advent of the the LVS (Low value shipment clearance), courier shipments are streamlined through the border. This gets your items to major centers in Canada faster than to many locations in your country.

Going into Canada is a great test for your company on how to expand to other countries. The proximity, the common language, and the option to test the French language side with the Quebec with very little risk. Canada is the first step of internationalization for many companies.

What do I need to do to get the most out of shipping to my Canadian customer?

1. First you have to be committed as a company to do this. There is work required up front to smooth the process which will require some commitment and support.
2. Work with the pros. There are many tools out there and you want to ensure that you are getting off on the best footing possible.
3. Have a full layout of the options that are available once you are in the Canadian market. There are many local options that you are currently unaware of.
4. Returns Management is a must.
5. Have a robust system in place to identify Canadians who shop with you and provide a Catered eCommerce experience.



    Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain to Canada they can help.

           lee@lslholdingco.com
    www.lslholdingco.com
     http://ca.linkedin.com/in/leesmith3/en

    Sunday, February 15, 2015

    What is the best courier option for small to medium start-ups in Canada?

    What is the best courier option for small to medium start-ups in Canada? By Lee Smith, P.log, B.M., CEO of LSL holding Company.


    After many years of working with the some of the largest carriers in North America, I decided to start my own firm. One of the first things I realized is that I needed to have the ability to ship from my Home Office. I thought this was a great opportunity to see what was available in the marketplace and see how the carriers out there respond to the SOHO (Small Office/Home Office). Here is what I could locate:

    The Carriers/special programs

    ·      Canada Post: Venture 1
    ·      Can-Par: None
    ·      FedEx:  None
    ·      Purolator: Business reward program
    ·      UPS: Small Business program

    The Criteria for classification

    Responsiveness: How eager was the company to get me signed up?
    Ease of Signup: Was I able to sign up right away on the website?
    Follow up: Was there any follow-up to see how I was making out using their services?

    Extras: Was there anything extra provided to ensure that I would begin to ship with them?






    Recommendation

    While rates are extremely important to the bottom line of a business, the ability to arrange a pick up and or a convenient drop off location close to your business become paramount in deciding on a carrier.

     
    It is also clear that the Carriers do not make it easy to do an apple to apples comparison, so it is imperative to understand all of your options to pick the right carrier for you. Heavier weighted items, multi-piece mailings, and need for speed will affect your choice of carrier.

    With this in mind, I have decided to utilize Canada Post as my traditional carrier for non-urgent movement of my packages. 

    Lee Smith is the CEO of LSL Holding Company, a leader in the Supply Chain selection and Courier optimization consulting. Whether you are new to the Canadian Market or looking for ways to improve your existing supply chain they can help.