How To Engage In Cross-Border Trade In The US And Canada
Cross-border trade in North America offers a unique opportunity to US businesses who want to sell their products in new and profitable markets. Historically, Canada and the United States have always shared a very strong economic and trade relationship because they share the same border. Canada is one of the biggest purchasers of American exports which has grown significantly.
Most Canadian citizens have a strong desire for US products and they have the purchasing power to satisfy the need. Business owners in the US who want to take advantage of this opportunity must make the effort to understand the logistics involved when entering Canada’s marketplace.
Tips to American business that are considering cross-border trade
- Know and understand the marketplace – Research is the best way to gain information on what Canadian consumers want. Many industries are currently growing in Canada like health, beauty, automotive, manufacturing environment and technology. Since a large percentage of the Canadian population live near the border, they are aware of America’s brands and marketing strategies. Businesses that can provide a unique and high-quality product that appeals to both American and Canadian audiences have a greater chance to be successful in cross-border trade.
- Know the fundamental differences – Even if both countries share the same border, there are differences between the two countries. The population of Canada is spread out and Canadians in remote regions have the tendency to buy products in bulk. Incentives like free shipping can encourage consumers in remote areas to consider your product. Since there are Canadians that speak French, it will be wise for companies to package products with both American and French instructions and descriptions.
- Know the regulations – Both countries have their own set of regulations, tariffs, and custom duties for cross-border trade. In terms of shipping regulations, it is important to consider that Canada is a big country but its population is thinly spread. There would be significant costs for expedited deliveries.
It is important to consider a trucking and logistics provider like Titan Transline that can offer different transport options for your goods. Their years of experience in cross-border logistics mean that they can meet any challenges in cross-border deliveries.