Canada is the largest export market for many US brands, but shipping every order across the border is slow and expensive for your customers. Duties, brokerage fees and delivery delays at the door are common reasons Canadian shoppers abandon a US store. The fix most growing brands use is simple: keep inventory in a Canadian 3PL warehouse and ship orders domestically. This guide explains how US companies can sell in Canada with a Canadian 3PL, what you need to set up and what to watch out for.
Why US brands store inventory in Canada
- Domestic delivery times: orders ship from inside Canada, often arriving in days instead of a week or more.
- No surprise charges for customers: you import in bulk and handle duties once, so customers are not asked to pay duties or brokerage on delivery.
- Lower shipping costs: one bulk shipment into Canada usually costs far less than hundreds of individual cross-border parcels.
- Easier returns: Canadian customers return to a Canadian address.
- Marketplace access: stock in Canada can supply Amazon.ca, Walmart.ca and Canadian retailers.
Shipping every order from the US vs using a Canadian 3PL
| Ship each order from the US | Store inventory with a Canadian 3PL | |
|---|---|---|
| Delivery time to customer | Longer, includes border clearance | Domestic delivery |
| Duties and brokerage | Often charged to the customer at the door, per order | Paid once per bulk import |
| Shipping cost per order | Higher (cross-border parcel) | Lower (domestic parcel or LTL) |
| Returns | Back across the border | To a Canadian warehouse |
| Best for | Testing the Canadian market | Steady Canadian sales |
What you need to set up
- An importer of record. Someone has to be responsible for importing the goods. Many US companies act as a non-resident importer (NRI). You need a nine-digit business number from the Canada Revenue Agency (CRA) and an import-export account.
- A CARM Client Portal account. Since the CBSA’s CARM system became fully mandatory, importers register in the CARM Client Portal and digitally delegate access to their customs broker. A paper power of attorney is no longer enough. You can also post financial security so goods are released before duties are paid (source).
- A customs broker. The broker files your entries and calculates duties and taxes. Your 3PL can work with your broker on arrival dates and paperwork.
- GST/HST registration, if required. Non-residents carrying on business in Canada generally must register for GST/HST once taxable sales go above the $30,000 small-supplier threshold. A security deposit may apply if you have no fixed place of business in Canada (source). Ask a Canadian tax adviser how the rules apply to you.
- Correct product data. HS codes, country of origin, values and a commercial invoice for every shipment. Goods made in the US, Canada or Mexico may qualify for duty-free treatment under CUSMA with the right origin documentation.
This is general information, not legal or tax advice. Customs and tax rules change, so confirm your setup with a licensed customs broker and a Canadian accountant.
How it works with a Canadian 3PL
- You ship inventory in bulk to the 3PL by truck (LTL or FTL), air or ocean.
- Your customs broker clears the goods under your importer account.
- The 3PL receives and counts the stock, then stores it on pallets, shelves or in bins.
- Your Shopify, Amazon or other store sends orders to the 3PL automatically.
- The 3PL picks, packs and ships each order inside Canada, and handles returns.
Read our guides to shipping between Canada and the US and freight forwarder vs 3PL to see who does what.
Choosing a location in Canada
Most of Canada’s population lives within a day’s drive of the Greater Toronto Area, and the GTA connects directly to the US border crossings at Detroit-Windsor and Buffalo-Niagara by highway. That is why many US brands choose a warehouse near Toronto as their first Canadian location, then ship across the country by parcel and LTL.
A Canadian 3PL for US brands
Most of the quote requests Newsom 3PL receives come from US companies. From our warehouse in Mississauga, near Toronto Pearson, we offer warehousing, e-commerce fulfillment, Amazon FBA prep, B2B distribution and cross-border fulfillment, and we ship anywhere in Canada and worldwide. Request a quote.
Frequently asked questions
Do I need a Canadian company to sell in Canada?
Not necessarily. Many US companies sell in Canada as non-resident importers. Your customs broker and tax adviser can confirm the best structure for you.
Who pays duties when I use a Canadian 3PL?
The importer of record pays duties and taxes when the bulk shipment is imported, usually through its customs broker. Your customers then receive domestic orders without extra charges.
Can a Canadian 3PL ship my orders back to the US?
Yes. Many 3PLs, including ours, also ship to the US and internationally.
How long does it take to get started?
Once your importer and broker setup is in place, a 3PL can usually set up your account and receive your first inventory within a few weeks.