There’s a lot of noise right now around international trade, tariffs, and rising costs. Canada is often right in the middle of those conversations, and if you’re a U.S.-based retailer, it’s understandable to feel uncertain about what’s next. But despite the headlines, eCommerce shipping to Canada remains a valuable growth opportunity. Canada isn’t going anywhere, and neither are its consumers.
In 2024, 34% of Canadian eCommerce purchases originated from overseas, with U.S. brands accounting for 65% of them. And Canada’s online spending continues to climb, supported by a strong economy, reliable infrastructure, and high digital adoption.
Yes, international shipping into Canada comes with its own set of rules and risks. And while recent “Buy Canadian” sentiments or anti-U.S. leanings may give some businesses pause, these trends may prove temporary. In Canada, the opportunity remains steady, and with the right strategy, it’s well within reach. This guide will walk you through what to know, what to plan for, and how to expand with confidence in 2025.
Why Expand to Canada in 2025?
For many businesses, the choice to expand to Canada from the US is a logical next step. It’s close, it’s familiar, and it has a mature eCommerce audience ready to buy.
Here’s why U.S. eCommerce businesses continue to prioritize Canada:
- Digital-first customers. Over 75% of Canadian consumers shop online. A reliable online store with the right pricing and delivery options can stand out fast.
- Proximity and predictability. Lower shipping costs and shorter transit times make Canada a more cost-effective international expansion than Europe or Asia.
- Shared platforms. Many Canadian consumers already shop on global marketplaces such as Amazon, and platforms like Shopify make it easy to manage operations across borders.
What’s more, the infrastructure is already there. With modern shipping integrations and cross-border logistics providers, retailers don’t need to reinvent the wheel. But what they do need is a clear plan for how to manage the logistics—including tariffs, documentation, and last-mile delivery—that come with entering a new market.
What You Need to Know Before You Start eCommerce Shipping to Canada
If you’re a U.S. retailer planning to start shipping into Canada, here’s a smart checklist of key considerations you’ll need to address.
Tariffs and Duties
While the USMCA agreement has helped simplify trade between the U.S., Canada, and Mexico, it hasn’t eliminated import duties entirely. In fact, recent geopolitical and economic shifts have put more attention on tariffs, making it critical for businesses to understand what rates apply to their product categories. Many goods are still subject to standard import fees, and overlooking these costs can eat into your margins. Use Canada’s customs tariff database or consult a customs broker to stay informed.
You’ll also need to decide if your shipments will be Delivered Duty Paid (DDP), where you handle fees up front, or Delivered Duty Unpaid (DDU), which puts the burden on the customer. DDP is generally the better option if you’re focused on providing a seamless customer experience.
HS Codes and Documentation
Every product you ship needs a correct Harmonized System (HS) code. These codes are used to determine the appropriate duties and taxes owed. Misclassifying an item can lead to delays, penalties, or even returned shipments.
Customs Forms
To clear customs efficiently, your shipments will need several key documents: a commercial invoice, a packing list, and a customs declaration. Automating these documents through your eCommerce platform or shipping provider can significantly reduce hassle and improve accuracy.
Taxes and the De Minimis Threshold
Canadian imports are subject to a 5% Goods and Services Tax (GST), with some provinces adding Harmonized Sales Tax (HST).
Under USMCA:
- Goods valued at CAD$40 or less: Exempt from both customs duties and taxes.
- Goods valued between CAD$40.01 and CAD$150: Exempt from customs duties but subject to applicable taxes (e.g., GST, HST, PST).
- Goods valued over CAD$150: Subject to both customs duties and taxes.
In addition to USMCA rules, Canada introduced a 25% surtax on certain U.S.-origin goods. This surtax applies starting at CAD$1, based on specific HS codes outlined in lists published on March 4 and March 13, 2025. If your goods fall under these codes and are of U.S. origin, they may be subject to this additional surtax regardless of value.
Keep these thresholds in mind when pricing and setting shipping policies.
Last-Mile Delivery and Carrier Handoffs
Most U.S. shipments are handed off to a local provider, typically Canada Post but sometimes regional carriers. Make sure your shipping carrier has established integrations with these providers to ensure accurate tracking numbers and reliable delivery times.
Shipping Restrictions and Labeling Requirements
Canada has strict import standards. For example, certain electronics, supplements, or beauty products may require additional labeling or certifications. Packaging should also comply with postal service standards to avoid inspection delays.
Strategic Considerations for U.S. Retailers
Beyond logistics, there are business-level questions you’ll need to answer before committing to the Canadian market.
- Is your pricing competitive? Factor in currency conversion, added shipping costs, and potential tariffs when setting Canadian prices. Make sure you’re not losing money due to incorrect landed cost calculations.
- Is your checkout optimized for international buyers? Canadian customers expect to see pricing in CAD, and your checkout page should clearly explain delivery options, sales tax, and any customs fees.
- Are you prepared to support international customers? This includes offering customer service across time zones and managing returns from Canadian buyers. Building a reverse logistics plan into your supply chain from day one is crucial.
- Can you handle growth? Canada may start as a small portion of your sales, but that can change quickly. Make sure your fulfillment systems, customer service team, and shipping carrier can scale with demand.
A Practical Expansion Checklist
Before launching your Canadian eCommerce channel, take time to confirm the following operational pieces. Each plays a role in ensuring smooth cross-border deliveries and a better customer experience.
- Confirm HS codes and accurate product classifications
As mentioned above, every item you ship must be properly classified under the Harmonized System (HS). But also double-check that your codes align with the most recent Canada Border Services Agency (CBSA) database. A misclassified item can trigger unnecessary tariffs or delay your shipment in customs.
Tip: If you’re unsure about the right code, work with your logistics provider or use CBSA’s automated HS code lookup tool. When in doubt, always err on the side of more-specific product descriptions.
- Decide whether to ship DDP or DDU
Choosing between Delivered Duty Paid or Delivered Duty Unpaid affects pricing and the customer experience.
Tip: For a better brand experience, most B2C retailers choose DDP. However, many wholesale B2B sellers opt for DDU. It results in fewer surprises for the consumer and higher delivery success rates.
- Ensure all customs documentation is included
At a minimum, you’ll need a commercial invoice, a customs declaration, and a packing slip. These documents need to be consistent, as conflicting product values or vague descriptions are common causes of border delays.
Tip: Automate documentation through your platform or shipping partner to reduce manual error and ensure consistency with every shipment.
- Work with a shipping carrier that partners with Canadian last-mile providers
Your U.S.-based shipping carrier will likely hand off packages to a local carrier—such as Canada Post or a regional partner—for final delivery. When those last-mile partnerships are well-established, the handoff process is smoother, with better tracking continuity and fewer delays. Without those integrations in place, tracking can break down, leading to gaps in visibility and slower fulfillment.
Tip: Ask your carrier if they have direct integrations or service-level agreements with Canadian last-mile partners. Better coordination means fewer lost packages and more-accurate delivery times.
- Use compliant, well-labeled packaging
Canada has specific packaging and labeling requirements that go beyond just slapping on a shipping label. Oversize boxes, missing weight details, or vague customs declarations can trigger delays, or even returns. Always include key customs info like the product name, HS code, country of origin, and declared value on your commercial invoice, and if your platform allows, directly on the label. Avoid catch-all terms like “gift” or “accessory”, as customs authorities prefer detailed descriptions like “cotton T-shirt” or “wireless headphones.” And don’t forget the basics: sturdy, scannable labels and durable outer packaging built to handle international travel.
Tip: Clearly mark the outer box with the destination country and tracking number—especially if you’re consolidating shipments or using third-party logistics.
- Test your online store’s international checkout and shipping labels
Many platforms, including Shopify and WooCommerce, support international shipping, but that doesn’t mean it’s working correctly out of the box. Address fields, taxes, and shipping label generation should all be tested.
Tip: Run test checkouts using Canadian addresses (including rural postal codes and Quebec addresses). Verify that your platform populates proper customs information and shipping labels.
- Set pricing that accounts for shipping rates, fees, and currency conversion
Pricing strategy matters. If you don’t account for the full landed cost, including shipping costs, tariffs, and taxes, you could lose margin or scare off customers at checkout.
Tip: Display pricing in CAD when possible and build tools into your checkout to calculate duties, taxes, and shipping fees in advance. This can help reduce abandoned carts due to unexpected charges at checkout.
- Train your customer service team on FAQ related to Canadian orders
Shipping into another country means new questions: “Will I owe taxes?” “How long will this take?” “Why did I get charged at the door?” A well-prepared support team can reduce confusion and prevent post-purchase friction.
Tip: Build a Canadian-specific FAQ page, and make sure support agents are trained to explain DDP/DDU, shipping timelines, and tracking expectations.
- Build a return process that includes cross-border reverse shipping
Returns don’t stop at the border. Just like their U.S. counterparts, Canadian customers expect easy return options.
Tip: Partner with a provider that supports international returns, or set up a Canadian-based return address where returned items can be collected and consolidated before being shipped back to you. Having a plan in place up front makes managing returns far less of a headache down the road.
How ePost Global Supports U.S. Retailers Expanding to Canada
ePost Global works with U.S. retailers of all sizes—from Amazon sellers and Shopify merchants, to established international brands. Here’s how we help navigate the shipping process into Canada, from day one.
Customs Expertise
Our team helps you handle every part of customs clearance, from choosing the right HS code to providing accurate automation for forms. If you’re not sure what needs to be declared or how to minimize duties, we’ll guide you through it.
Flexible Service Tiers
Whether you’re shipping a few small packages a week or fulfilling thousands of orders, we offer scalable shipping services, including both express and economy options. We’ll help you choose the delivery speed that aligns with your pricing and customer expectations.
Strong Carrier Network
Our established partnerships with Canada Post and trusted regional couriers means smoother handoffs, better visibility, and fewer errors. Unlike USPS or FedEx, we designed a last-mile strategy specifically for eCommerce shipping to Canada.
Transparent Tracking and Reporting
You get near-real-time tracking and easy reporting from pickup to doorstep. You’ll always know where your packages are, and your customers will too. This reduces inquiries and builds trust with Canadian consumers.
Tariff Strategy Support
Tariffs are a reality. We help shippers reduce their burden with accurate documentation, informed HS classifications, and guidance on DDP setups. The right setup can streamline delivery times and minimize customer frustration.
Consolidation Options
Shipping to Canada doesn’t have to be expensive. We help reduce shipping costs through consolidated shipping, which is especially useful for small businesses looking for cost-effective expansion.
Built for Global Scale
Once your Canada strategy is in place, we can support your expansion into other international markets as well. Our global capabilities and platform integrations make it easy to ship products into new regions without starting over.
Confidently Expand with the Right Strategy
Shipping to Canada opens the door to millions of potential customers, but only if you’re ready. Cross-border success isn’t just about having a product that Canadian buyers want. It’s also about compliance, planning, and execution across every step of the international shipping process.
The good news? You don’t have to figure it out alone. With the right partner, even small businesses can streamline the transition into international shipping and create a better customer experience for their buyers across the border.
ePost Global is built to support your shipping needs. Whether you’re looking for faster delivery times, lower shipping rates, or a better way to manage your cross-border integrations, our team is ready to help. Let’s simplify the complexity together and make Canada your most successful new market yet.
