Canada, e-commerce and logistics
Online retail growth and strong trade agreements make Canada an ideal candidate for expanding your sales reach.
So, just how do you tap into this lucrative market whilst also keeping costs down and the logistics simple?
Why Canada?
Although Canada is the second largest country in the world it has one of the lowest population densities, with people mostly concentrated in cities along the U.S. border, making it easier to deliver to than you may think. The good news is that Canadian’s have a very positive approach towards trade with the UK and a high level of trust in our brands. A previous report conducted by Royal Mail found that three in five Canadian shoppers say they like to buy UK brands. 1
The e-commerce landscape
Canada is the ninth largest market for e-commerce with a revenue of US$58, billion in 2021. In 2022, there were over 27 million e-commerce users in Canada, accounting for 75% of the population. This number is expected to grow to 77.6% in 2025.4 Differing from their neighbours in the U.S. who enjoy shopping online for clothes, Canadians prefer to seek out electronics goods. Although fashion is not far behind.
Opportunities
Various reports state that close to half of Canadian consumers’ online purchases are made at foreign retail sites. Canada has many small and medium-sized enterprises (SMEs), but the companies have been slow to enter the e-commerce industry. Canadians cite lower prices and better selection as some reasons for shopping outside the country.
93% of Canadian shoppers are more likely to shop again with an online retailer if they are satisfied with the overall delivery experience. 5
Logistics
Shipping goods from the UK to Canada may vary depending on the destination. The estimated cost of shipping a parcel from the UK to Canada varies depending on the size and weight of the shipment, how quickly it needs to be delivered, and any additional services requested such as door-to-door shipping.
The essentials
| eParcel Premium | |
|---|---|
| Transit Times | Metro + Regional: 3-8 working days National: up to 12 working days Remote areas < 1% total population |
| Maximum Dimensions | Max side < 2 meters / Girth < 3m |
| Maximum Weight | 20kg |
| eParcel Expedited | |
|---|---|
| Transit Times | 2-4 working days (excluding remote areas) Remote areas < 1% total population |
| Maximum Dimensions | ((W+H) * 2) + L< 274 cm Length < 120 cm |
| Maximum Weight | 20kg |
| Duties and Taxes | |
|---|---|
| Maximum Content Value | CAD 1,600 |
| Low-Value Limit | CAD 20 |
| GST 0% | 10% |
| Duty | Variable based on product; applicable on order over CAD 20 |
| DDP Available | Yes |
| DDP Fee | As Agreed |
| Clearance Fee | As Agreed |
Keep in mind
Your business may need to register for GST/HST depending on whether your threshold amount of revenue exceeds $30,000 CAD over any 12-month period.
This applies to non-resident vendors who:
- are not registered for the GST/HST under the normal GST/HST regime and are not carrying on business in Canada
- sell taxable digital products or services, such as online music streaming or traditional services, to Canadian consumers and other Canadian entities who are not registered under the normal GST/HST regime.
It also applies to non-resident distribution platform operators who are not registered for the GST/HST under the normal GST/HST regime and not carrying on business in Canada, and who make or facilitate such supplies through their platform.
To read more about whether you are eligible for GST/HST on goods being sold to Canada visit: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-economy-gsthst/find-out-need-register/cross-border-threshold-amounts.html
A zero-rated supply has a 0% GST/HST rate throughout all of Canada. For example, basic groceries are taxable at the rate of zero (0% GST/HST) in every province and territory.
The rate for other taxable supplies depends on the province or territory. The current rates are:
- 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon
- 13% (HST) in Ontario
- 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
Good to know
Shipments to Canada from the UK must include customs documentation. It’s important these are completed accurately to avoid parcels being delayed, returned or even destroyed. You’ll need to complete a commercial invoice, and this is something that SAMOS can help you arrange as part of our service.
What our experts say:
“It’s clear that online retailers can do a lot to secure repeat business from Canadian consumers. Streamlined shopping experiences and an efficient delivery service will give you a huge advantage.”
Simon Perkins, Commercial Director, SAMOS.