Questions about import taxes and dropshipping to Canada

Hi,

Is there any Canadian resident already experienced in online selling, who could give me some advice? I am a recent resident, originally from Europe.

I am looking to use drop shippers from the UK and France mainly to market in Canada, for products that are not yet so popular here, and that seem to be a lot cheaper in Europe. My question is, do I need to pay any import duties/taxes or be responsible for the labellings (one supplier I contacted mentioned that, because of the English and French languages here)? I only intend to use drop shippers, I won't buy and store products. Also, would I be responsible for any part of the shipping?

Any input would be greatly appreciated, as I'm not sure where to go from here! Thank you / Merci!!

Carole

Hi Carole,

Welcome to the site!

If you are drop shipping to Canada using a UK or France based drop shipper, your customer is responsible for paying any import duties. It is very important that you note this in your auction listing so that the customer is not taken by surprise. It is also a good idea to check out the Customs rules and regulations for Canada in advance. Make sure that they actually allow the product to be imported and that duties aren't going to be too expensive.

Please visit Link hidden: Login to view for more information on importing.

Basically, the big advantage of drop shipping is that the drop shipper takes all the responsibility for handling and managing stock. You just transfer your customer's orders and shipment details to your drop shipper to fulfill. Just a tip, though, before you begin using a drop shipper, test
their shipping time and presentation by placing an order addressed to yourself. Continue to carry out occasional test orders to make sure standards are being maintained.

All the best!

Hi Satya, thank you for your advice.

I am looking into information I have found on the canada inland revenue website as well, and it does seem that way. So I assume that once I've registered my business they will send me info on how to remit my customers taxes... I am thinking about an online store, so now I will also need to know about how to include taxes on y site check out process (taxes differ from one province to the other).

I need to find suppliers who agree with that too! The one I had found insisted I would need to handle labelling on shipments... :)

Hi Carole,

If you're planning on selling on eBay Canada, you might want to check out the link below for more information on how to set up a sales tax table:

Link hidden: Login to view

Some drop shippers may be willing to insert your labels, catalogue, business card or other marketing materials into each shipment. If the supplier you're in contact with would not modify their labels, see if they can at least ship with your own.

All the best!