Looking to sell in US

Solved
projectquirk
Tourist
10 0 2

I currently sell my products only in Canada but have been toying with the idea of selling in USA as well.

 

I am however a little confused with Shipping, Delivery & taxes. Here are my questions:

1. Shopify shipping only gives me the option of Canada post - Is that the best option?

2. Apart from the shipping costs, should I also charge my customers anything else like Duties, taxes etc?

3. What exactly is handling fee?

4. Is there any other legal aspect to selling in US from Canada?

Thanks,

Tracy

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Victor
Shopify Staff
Shopify Staff
955 83 224

This is an accepted solution.

Hi Tracy,

Thank you for getting in touch! I'll do my best to answer your questions below.

  1. If you're based in Canada you will only have the option of using Canada Post through the Shopify Shipping service, which allows you to buy and print labels directly from the admin. However, if you're able to find cheaper rates from other couriers (e.g. FedEx, Purolator) then you can opt to use these services instead of Canada Post, and either buy labels directly from the courier or via a third-party app that integrates with your Shopify store.
  2. Shipping duties are typically paid by the customer on delivery if applicable, I believe, but some shipping couriers allow the merchant to pay for the duties instead. This would allow you to incorporate the cost of any duties or taxes into the price of your products. If you leave the duties to be paid on the customer's end, you can add import information to your products ahead of time and use third-party duty calculator apps to show international customers duty estimates at checkout.
  3. A handling fee can charged for any number of reasons and would typically be added on top of the order and shipping prices, but are not mandatory or necessary in most cases. You can incorporate handling fees into the price of your shipping fees if you deem it to be necessary.
  4. Shopify cannot advise directly on the legal aspect of selling internationally, although I believe it would be relatively straightforward for you to sell from Canada to the USA. If you have any sort of physical presence in the United States (e.g. an office, warehouse or employees), or start selling a large amount to specific states (typically $100,000+ or 150-200 orders per year), then you may be deemed as having a tax nexus in a state and may need to register your business with the state-level tax authorities. However, if you are just starting out, you likely won't need to worry too much about this for some time.

I hope I've been able to answer your questions and offer some guidance here, but please let me know if you have more questions!

Kind regards,

Victor | Shopify Social Care

 

Victor | Social Care @ Shopify 
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projectquirk
Tourist
10 0 2

Hey Victor,

 

This is some great feedback. So all in all I guess I can start selling in the US and might just do it as a Pilot.

Thanks a lot for all the help.

 

Tracy

Victor
Shopify Staff
Shopify Staff
955 83 224

Hi @projectquirk,

My pleasure! I'm glad I could help. Please feel free to reach out again if you have further questions.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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Marc_Levesque1
Tourist
6 0 21

Does Shopify have it's own in-house app for Canadian stores. Canada Post is just not cutting it... 

Looked at 3rd party apps but don't know how stable they are! What are the top 3 apps on Shopify.. this way i can gauge whom has spent the time to develop their product.

Looking for a plug and play.. wish Shopify would include some embedded process for other than just Cda Post.

 

Marc

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Victor
Shopify Staff
Shopify Staff
955 83 224

Hi @Marc_Levesque1,

Shopify offers a built-in integration with Canada Post for shipping labels and rates, but we do not have such an offering with other carriers or shipping providers. There are a number of popular and widely-used apps that offer more options, which can be found on the Shopify App Store. We do not have a ranking of apps, per se, but you can learn more about their reputability based on their rating and the number of their reviews. I'd recommend checking out the following:

All of these apps offer shipping services for Canadian merchants and are not limited to only Canada Post.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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mauiswim57
Tourist
4 0 3

Why doesn't Shopify allow the creation of return labels from Canada to the US, if we have Canada listed as a shipping zone?

I'm struggling with how to handle returns from our Canadian customers. How do other stores handle this?

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Marc_Levesque1
Tourist
6 0 21

Thanks Victor, looking for something that is plug/play and does not require us opening accounts with multiple providers and independent negotiation on rates...we do not ship a great volume but Cda Post just does not cut it.

We do enjoy the Cda Post interface on our store, would like to see Shopify offer more shipping options embeded into the shipping module... till then a 3rd party app will have to be looked at... though again..want a single billing stream and not multiple accounts with Purolator, FedEx, UPS etc...

Know of an App that does this?

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Victor
Shopify Staff
Shopify Staff
955 83 224

Hi @Marc_Levesque1,

Thank you for clarifying that. I believe many of these shipping apps offer the functionality you're looking for, and help make the process of buying shipping labels as easy as possible. For example, Shipstation offers merchants the opportunity to use their own discounted rates with shipping suppliers, as opposed to the merchant using their own account with the supplier (although this option is available). Using a third-party app does mean that you are likely going to be billed for label purchases through the app, rather than have the charges appear directly on your Shopify invoice like with Shopify Shipping, but if you want access to shipping providers other than Canada Post this is the best option available to you at this time.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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Victor
Shopify Staff
Shopify Staff
955 83 224

Hi @mauiswim57,

As per our documentation on this topic, return labels bought through Shopify by US-based merchants can only be used for domestic orders. This means return labels cannot be generated within Shopify for orders sent to Canada (or anywhere else outside the United States). I would recommend checking out a dedicated returns app such as AfterShip Returns, or you could pivot to using a shipping app such as Shippo to manage your shipping, including managing your returns. 

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog