Having a US Address for Shipping: Benefits for Canadian Businesses
- February 18, 2022
With trends like “America First” initiated by the American government and the high tariffs on some Canadian products, American buyers are leaning towards buying from American companies. Moreover, costs such as shipping, storage, or returns while operating outside of the US are expensive and make it tougher to compete with US-based competitors. This puts foreign companies in a disadvantageous position. Although this may seem hard to overcome, there is a simple solution: obtaining a US address for shipping. Let’s discuss how establishing a US address is beneficial for the long-term success of your company.
Establish your US presence
To successfully penetrate the American market, your business must establish a US presence. Your products then have a higher chance to be accepted by American buyers.
By having a US address for shipping, your business will obtain an actual address that can be listed as a business location. This provides you with a good marketing tool when selling your products to the US customer. You can place your US address on your website, brochures, e-books and other sales materials. Not to mention, that adding a US phone number, will provide added legitimacy to your business. After all, US customers feel more comfortable calling domestically. Establishing a US address will effectively expand your audience and build customer loyalty.
Reduce your shipping costs
As a foreign company, your main goal is to sell your goods in the US without sacrificing your profits. International shipping rates are rising, and the need to be cost efficient is becoming a priority.
One of the advantages of having a US address is the benefit of using US domestic shipping fees rather than international shipping rates. Instead of shipping your products from Canada to the US end customer, you will be shipping from the US, thus benefiting from US domestic rates that will significantly reduce your costs, leaving you to focus on other business operations.
Faster shipping
Not only can your business profit from reduced shipping costs, but your goods will be shipped faster. The current market conditions demand better product availability and quicker delivery time in order for buyers to even consider your goods.
With a US address, shipping within the US is substantially quicker. You don’t need to worry about hurdles such as customs and delays. If you keep your operations outside the US border, you’ll need to address customs duty (import tax) every time a package is sent to a US client.
Facilitate your payment processing
As a Canadian company operating in the US, it is imperative that your business open a US bank account.
Without a US address, your business won’t be able to open a US bank account or apply for a credit card. Furthermore, you can only receive support from American financial institutions if your company has established enough US credit history. Thus, having a US address will facilitate your business’ payment processing, and help establish your company’s credibility in the US market.
Simplify your mail management
Instead of receiving all your mail at your Canadian headquarters, it is much more efficient to manage your US mail in the US.
Getting a US address for your company means that you can benefit from an extra service, that of complete mail handling, such as receiving mail, redirecting mail, mail pickup and returns. As a result, your US mail can be filtered (i.e., bills, invoices, orders, etc.) from a US address. Moreover, you will benefit from reduced costs of redirecting mail back to Canada from a US address with no added complications. In the case of returns, the domestic handling is hassle-free and cost-efficient. You don’t need to worry about customs fees since returned mail and products will be sent to your US address.
For a smooth entry to the US market and for long-term business success, it is highly beneficial to invest in a US address for shipping. Better client experience, building customer loyalty and efficient business operations are just a few advantages that your business gains while penetrating the US market.
About Business America Services
With over 20 years in operation, Business America Services (BAS) is a cross-border logistics and US order fulfillment company. Based in Swanton, Vermont, just five minutes away from the US Customs and Border Protection Highgate Springs Port of Entry, BAS provides effective solutions to small- and medium-sized Canadian businesses to improve their US operations, shorten order fulfillment deliveries and enhance their clients’ experience.
Trusted by thousands of partners, and highly rated by the Better Business Bureau, we are devoted to providing excellent service across all of our business solutions. We consider you as our partner, thus we grow when you grow!