In spite of uncertainties regarding future policies, economic recovery in North America is gaining traction. The American private sector is in good shape and corporate profitability is on an all-time high. While diversification is almost always good, the US is Canada’s number one global customer with a highly profitable market that is located next door.
The long history of cross-border trade between the US and Canada has continued in spite of the coronavirus pandemic. The two countries share the world’s longest undefended border making them reliant on each other for trade and security. Both American and Canadian businesses are an extension of each other in transportation, manufacturing, trade, eCommerce, and communication. Businesses, goods, and services are very similar but the difference lies in the consumers.
Canadian consumers tend to be value shoppers meaning they prefer to look for the best deals and best prices instead of brand names. This characteristic stems from having less disposable income than Americans and the lower cost of living in Canada. However, most American consumers are also looking for the best deals but their approach is different from the Canadians.
Canadians don’t mind putting in some extra efforts to find the best deal with 87% stocking up on their favourite products once they are on sale. At least 56% of Canadian shoppers would regularly participate in retail loyalty programs. In Canada, eCommerce represents 10% of all retail sales compared to 12.8% in the US.
Before engaging in cross-border trade, it is important for a merchant to do some research on shipment requirements and border clearances. Make sure that all paperwork is prepared ahead of time because missing and incomplete documentation can cause delays at the border. If high value or fragile items are being shipped, it would be a smart move to ensure the shipments. Always use a customs broker who has experience in cross-border trade between the US and Canada.
It is also important to choose a logistics and trucking provider like Titan Transline that has extensive experience in transporting goods throughout all of North America. The company has a professional team that is always ready to provide personalized and expert service.