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Why Seamless Ecommerce Fulfillment in Canada is Essential to Your Business

By Alex Ioannidis

For companies in Canada and the USA looking to expand their reach and scale profitably, it’s imperative to look to the significant growth of Canada’s ecommerce consumer base. Over the last few years, Canadians have embraced ecommerce — a new reality reflected in both the growing number of consumers and the amount of revenue generated in this space over a very short time span. According to a 2019 report, 8 out of 10 Canadians are now shopping online in some capacity and 32% of Canadian shoppers say that they plan to buy more online in the upcoming year. Revenue-wise, just under $40 billion was generated in 2018. By 2023, analysts predict that this number will hit $55.4 billion — a growth rate of 38%.

In order to capitalize on these surging numbers, it’s important to work with an ecommerce order fulfillment company that has the resources, market knowledge and logistical expertise to help your business scale effectively. Read on to learn how Second Closet is this ideal order fulfillment partner for Canadian and American-based companies looking to scale with ease in the burgeoning Canadian ecommerce marketplace.

a graph showing retain ecommerce revenue in Canada and the growth from 2017 to 2024

Why Seamless Ecommerce Fulfillment Today is Key for Success Tomorrow

As revenue in the ecommerce space booms (seen above), it's no mystery that you want to set your business up for success in the future.

By investing into seamless and scaleable ecommerce efforts today, you better set yourself up to manage growing demand – and, arguably more important, the growing expectations customers have of ecommerce businesses big and small.

Free and fast delivery has become an expectation. Now more than ever, customers of ecommerce business have shortened patience for lost or delayed packages. A return policy that makes it possible to process a refund can be enough to make a shopper never return.

And where there's a painpoint, there's also an opportunity. You have the opportunity to meet these expectations with a seamless ecommerce experience and boost the view of your brand!

Leverage the Power of Canada's Growing Ecommerce Consumer Base

The Canadian e-Commerce market undoubtedly represents a tremendous opportunity for companies in the US looking to expand their total addressable market by roughly 10%: it’s a market of over 30 million consumers which requires very little (if any) adjustment to their marketing efforts. It’s essential to understand, however, that shipping and fulfilling from the US presents avoidable inconveniences to Canadian end customers. Stores located in the USA often charge Canadian customers a 25-40% shipping premium when it would otherwise be free for American customers. Plus, for orders of $151 dollars or more, Canadians must pay customs duties on top of the already exorbitant shipping costs. When you add these fees, customers are less likely to convert.

How Do You Ensure Seamless Ecommerce Fulfillment?

If you're managing the majority of your business in-house, fulfillment can be one of the hardest functions to fill. Especially for larger products (like furniture or barbecues, for example), the capital to get started alone can stop you.

However, the best way to ensure this level of quality is by bringing in an expert, either in-house or through a partnership. And since, again, the cost to fulfill in house is so high, a lot of booming ecommerce businesses go the third party logistics (3PL) route. This means finding a logistics partner that manages the shipping and fulfillment side of the business.

Here are some of the things a 3PL provider does to help ensure seamless ecommerce fulfillment and a positive experience for you and your customers.

Help You Optimize Your Ecommerce Order Fulfillment Practices

Canadians are expecting more from their ecommerce shopping experiences than ever before. Successfully navigating the realities of this ever-changing marketplace is essential for sustainable growth.

Whether your online store is just starting up or has been in business for years with tens of thousands of dollars of monthly sales, the right 3PL can help. Don’t risk abandoned carts and disgruntled customers with inconsistent fulfillment practices and high shipping costs. Instead, rely on their logistical expertise to help streamline and simplify the fulfillment process at every step along the way.

Discounted Postage Rates

Most 3PLs have close working relationships with postal services. They can leverage their partnerships with major postage providers to secure highly-competitive volume-based discounts. What does this mean for you? With the right partner, it can mean discounted shipping rates of up to 80%. T

Top Tier Logistics Technology

Most 3PL platforms integrate seamlessly with your online store. From receiving to delivery, 3PLs can easily execute end-to-end order fulfillment (inventory management, picking, packing, shipping) on time, every time, just as it happens on your online store. This technology makes the fulfillment process predictable, scalable, cost-effective and convenient so you can focus on the parts of the business you do best.

(Convenient) Storage Options

This is especially key for USA-based businesses expanding into Canada and vice versa. You need somewhere to keep your products, and as you grow, the garage isn't cutting it anymore. Most 3PL partners will store your product for you in a warehouse, freeing up your space and letting them ship orders out sooner.

With strategically placed warehouses in busy cities storing your product, you can get closer to your end customers in the biggest urban centres in the country, reducing shipping costs and wait times.

It's important to note that you should look for a partner that still remains consistent, even when you're shipping outside urban hotspots. You should expect the highest of quality, no matter where the delivery is heading.

Final Thoughts

Fulfillment has always been complicated without the expertise, and with customer expectations and demand for ecommerce growing, it's even more important to provide a best-in-class fulfillment experience.

Alex Ioannidis
By Alex Ioannidis

Alex leads the marketing team at Bolt. When he’s not keeping up with the latest ecommerce trends, you’ll find him on a baseball diamond or lapping a mountain on his snowboard.