A few years ago, I started a side hustle that involved finding cheap overseas products (high-quality products, I should add), importing them here to the USA, and then selling them on for a significant profit.
Well, it went bananas.
I mean, within 12 months this side hustle had become my real job, and I was making a decent living from home. I had somehow gone from making minimum wage to making slightly more than minimum wage working half the hours.
And then disaster struck.
The US government introduced a number of new import tariffs that significantly increased the cost of importing overseas products into the country, and it nearly killed me. Within a couple of months, I was sitting below the poverty line despite working more than ever
I desperately needed a solution — and fortunately, I found one through Canadian Fulfillment.
The Canadian Fulfillment Strategy
Canadian fulfillment simply describes the process by which you purchase large shipments of overseas products, import and hold them to Canada, before sending them off to individual consumers based here in the USA.
Now, I know what you are thinking — this sounds a little unnecessary — but I promise there is a method to the madness.
See, Canada does not have the same import tariffs and duties that America does, meaning you can get your overseas products into Canada is relatively cheap. Importantly, once they are in Canada, you can send to America under Section 321 classification.
Wait, what the hell is Section 321?
Section 321 describes a category of imported goods that pass through American customs each and every day. Now, the interesting thing is that goods that gain Section 321 classification can cross the border completely free of import tariffs.
Now, there are some caveats here.
To gain Section 321 classification, the value of your order of imported products cannot have a value of greater than 800 US dollars. Within this, your shipment of goods must be imported by one person, and on a single day.
This is why Canadian fulfillment offers such a viable option.
Because your order gets broken down into smaller pieces in Canada before being sent off to individual consumers, each individual order can gain Section 321 classification, which completely eliminates your importation costs.
It is this process that saved my small business.
How to Use Canadian Fulfillment
One of the earliest ways people made use of Canadian fulfillment and took advantage of Section 321 was by jumping on craigslist and finding a person from Canada who was willing to act as a middleman on behalf of their business.
Once this person was locked in, they would get their large shipments delivered to them. Then, when an individual order came in, they would pass the shipping information across and they would send it out.
However, this did have some issues.
Simple things like having shipping delays become a common problem. Having items shipped to the wrong address was not uncommon. And then there were even reports of people claiming all the products as their own and simply selling them themselves.
This is why Canadian Fulfillment companies became a thing.
What is a Canadian Fulfillment Company?
A Canadian fulfillment company is a company designed to help entrepreneurs and small business owners take advantage of Section 321 by helping them redirect any shipments of overseas products through Canada.
Much like our friends on craigslist, they receive large orders on your behalf, before sending them to your customers here in the USA. But as their entire business is based around this model, they do it in a much more professional and time-efficient manner.
Now, it is important to note that they obviously don’t do this for free. Taking advantage of a Canadian Fulfillment company does come with an associated cost. However, in my experience, that cost is usually much less than what you get slugged for with importation.
Top Canadian Fulfillment Companies
Over the last few years, the number of Canadian fulfillment companies has increased exponentially as more entrepreneurs and small business owners have become aware of Section 321.
As such, some are much better than others.
Created for the sole purpose of removing the import tariffs that are destroying small American businesses, Stalco was one of the first major Canadian Fulfillment companies to take advantage of Section 321.
Their distribution center is extremely close to the Canadian-American border, they offer same-day fulfillment to all their customers, and they induct their packages with all major US carriers.
Really, what more could you ask for?
Interfulfillment is another Canadian fulfillment company that places a premium on your experience as a customer.
Everyone who signs up with InterFulfillment gets allocated a dedicated manager who looks after all their needs directly. As such, they provide you with a direct point of contact if you need to touch base about anything.
While they are one of the most expensive Canadian fulfillment companies out there, you could argue that you get what you pay for.
Lastly, we have Shiphype
Much like Stalco, they help American companies reduce importation costs via Section 321 in a very time-efficient manner. In fact, they are known for having two large shipping distribution centers (one on the east and one on the west coast), which helps them offer 2-day shipping to 95% of the US and Canadian population.
If you are after speed, then look no further.
Using Canadian fulfillment companies to get your goods classified as Section 321 is the key to eliminating import tariffs and boosting profits — assuming you choose the right company, that is.
So what are you waiting for? Get in contact with one of the companies listed in this article and take your earnings to the next level.