Customs duties and fees when dropshipping to Canada

Free Member
  • Posts: 1
  • Joined: 20 Feb 16
  • Karma:
4 Mar 16 11:59:32 pm

I am a newbie to Dropship world and am trying to get my head around how it all works. So lets say I get a sale on my own website or a marketplace such as Amazon and then I pass on the info to my Dropshiper. My customer is located in Canada and my dropshipper is located in U.S. I understand that the duty and tariffs are all based on the price and content and country of origin of the products. But it is very annoying for the end customer to not know how much the total price would be. I am trying to come up with a way to create a much better experience for customers.

1. Is there a website that I can check my duties and built them into the prices?
2. From my research so far apparently the common practice is for the shipping companies to collect these duties from customers, is there a way that I can prepay or I can open an account with Canadian borders so that my customer doesn't have to worry about the extra fees?
3. I read somewhere, and it could be false, that rarely dropship products get import tax..... Is that correct? (I think it is not)
4. If there is no way around paying the taxes for your customers, how would you let your customers know about the Custom fees on Amazon Canada? One way that comes to mind is by contacting every person who purchase something from you and letting them know about the estimated tax and duty and ask them to cancel the order if they do not want to pay it but it is very unprofessional and very time consuming... Another way is to put it under "Condition" but RARELY anybody checks that out.
5. Is there a specific company that deals with importing from U.S that their brokerage fees and shipping rates are low? In other words who out of the major carriers are better for this? Canada Post, USPS, UPS, DHL, Purolator and etc

Please enlighten me as this is becoming such a complex issue

Thank You,

Site Admin
  • Posts: 6496
  • Joined: 27 Jul 07
  • Karma:
6 Mar 16 12:11:32 am
Hi Soroush,

William has some information on another thread that may offer some helpful advice for you regarding setting tax rates Link hidden: Login to view

Regarding dropship products only rarely being taxed, that is absolutely false. Import Duties/Taxes are based on valuations, not on any supply avenue.

Regarding the lowest rates, I really don't know about that one. Maybe speak to each of the carriers regarding their prices.


Mark (fudjj)

Community Manager

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