I run a Canadian ecommerce apparel company. We currently ship from our Canadian 3PL to all customers. 80% of customers are USA, 10% are Canada, and 10% other international destinations.
I am strongly considering moving to a USA based 3PL to save substantial costs on our shipping. I'd like to manage all orders from 1 warehouse location as we ship under 1000 orders per month so multiple warehouses does not seem to make sense at this time.
Here is my question – because I am a registered Canadian company, we collect sales tax from our Canadian customers at the time of sale via shopify. If I begin shipping from the USA back to Canada, my concern is that because Canada has a low duty threshold some Canadian customers will be charged duty + tax with their package from the courier, in addition to at checkout – which of course is an issue.
Has anyone navigated this type of setup before? My only though is that the Canadian orders could be shipped DDP, but then I'm still unclear on how I would navigate that from the tax side of things on my end.
Anyone who can help or point me in the right direction, I'd really appreciate it.