Why Online Retailers Should Be Heading North of the Border

As in most cross-border markets, Canadians contend with duties and tax on purchases. Canada has an average duty and value-added tax of 18.5 percent, which is high, and a low de minimis of $20 Canadian dollars, both of which can deter shoppers. However, Canadians are well aware that both pricing and merchandise is superior in the U.S. even with duty costs, and that factors into their buying decisions.