There are so many different ways to turn a profit online.
You can create an online course, design online educational content, sell a service, act as a freelancer, or (as is my personal preference), sell products online.
I mean, this last one is a no-brainer.
All you have to do is undertake a bit of research and find products that are doing well in overseas markets. You then create a website, import a bunch of them, and sell them on for a hefty profit.
Simple and effective.
However, over the last few years there has been a number of unique import tariffs and duties introduced into America. Designed to increase reliance on local products, these have ultimately acted to increase the cost of getting overseas goods into the country.
While this may sound like a good thing, it has not really had the desired effect.
Instead, the extra costs associated with importation have been passed onto American consumers to a value of around 57 billion dollars per year. This has caused a loss of trust in the economy and the closure of small businesses across the nation.
But it is not all doom and gloom.
In fact, there is a very good way you can save money on import costs, increasing your profits in the process.
Enter Section 321
Any good that crosses the border and onto US soil does so under a specific classification — with one such classification being Section 321. As such, Section 321 is a type of product that passes through American Customs every day.
But as far as classifications go, this one is particularly important.
Any shipment that enters the US under the classification of a Section 321 does so completely tariff and duty free. This means that if your imports can gain Section 321 classification, you can save yourself a lot of money.
But I should note that getting your goods classified as a section 321 is not a straightforward affair.
For a single shipment of goods to be considered as a Section 321, it must be worth less than 800 USD in total value. And for those of you thinking about breaking your orders up into single shipments to gain classification, think again.
Any shipments that fall under a single order valued at 800 USD or more will not gain classification — making this a completely pointless endeavor.
But there is a way around it…
Not long after these import tariffs were introduced, Companies that offered Canadian fulfillment started popping up all along the Canadian-American border.
These Canadian-based companies created a service that allows US businesses to redirect their shipments of goods through Canada. These companies receive and store these goods for you, before fulfilling orders on your behalf by sending them off to individual customers here in the USA.
And the bonus?
Because every shipment they make has its own unique order number, it obtains Section 321 classification and eliminates the cost of importation.
Before you get too excited you should know that these types of companies do charge you for this service — but it is often much cheaper than the cost of importing those goods directly into the US, which saves you heaps of money in the long run.
You may have noticed that I mentioned there are now a number of different Canadian fulfillment options on the market — of which some are a little better than others.
With this in mind, there are a few things you should look for in a Canadian fulfillment partner:
- They should have distribution centers close to the Us border to ensure fast shipping
- You want them to use all the major US carriers to ensure smooth transportation
- They should offer a same-day turnaround time between receiving your order and shipping them to your customers
- They should have good reviews and a solid reputation
If you can find a company that ticks all of these boxes, then you are good to go.
Take Home Point
Over the last few years, the cost of importation has increased exponentially, killing small businesses in the process — but it doesn’t have to.
By using Canadian fulfillment to get your goods classified as a Section 321 you can save money on your imported goods and increase your profits substantially — just make sure you pick a good company to start with.