There are a myriad of ways to make money online.
You could create an online course, work as a freelance copywriter, video editor, or voice actor, or simply start a blog. In short, anything you can think of can probably turn you a profit if you know what you are doing.
However, while there is nothing inherently wrong with any of these approaches, they all pale in comparison to running an online store.
Selling products online offers a simple and effective method of creating a substantial income with minimal overheads. In fact, all you need to do is find an overseas product that has marketability and sell it on US soil for a decent profit.
Like I said — simple.
And the best bit?
If you play your cards right, you can completely eliminate many of the import tariffs associated with running an online store, making your profit margins even larger.
And it all comes down to using Section 321 and Canadian fulfillment to your advantage.
What You Need to Know About Import Costs
So, you have organized a website and done your research. In doing so, you have found a number of very high-quality products that look like they will do extremely well over here in the US.
More than that, you can get them at a very decent price, sending your profit margins through the roof.
Not so fast…
Since the start of Trump’s reign as President, several import tariffs have been introduced that actually increase the cost of importing overseas goods into America. Although these were technically introduced to increase the purchasing of home-grown products, they have had downstream effects on small businesses across the nation.
Namely, these tariffs and duties increase their running costs significantly.
In fact, experts hypothesize that these tariffs have affected more than 500 billion dollars of imports since their inception — an expense that is being passed directly onto consumers to the value of approximately 57 billion dollars per year.
Is there any wonder consumer trust in the economy is at an all-time low, and US businesses are struggling to survive?
Now, the positive here is that these tariffs are no longer a death sentence. There are a number of small businesses around North America that have found a unique — and legal — way of removing these tariffs for good.
Enter Section 321.
What is Section 321
Any product imported into the US does so under a specific classification — with a Section 321 being one of those many classifications.
The reason we are so interested in this particular classification is because any goods considered a Section 321 can enter the country completely tariff and duty free. This means that if your goods are classified as a Section 321, you remove your import costs completely.
The kicker here is that not all goods can gain Section 321.
For a shipment of goods to get Section 321 classification, it has to be valued at less than 800 USD. And unfortunately, you cannot simply break an order up into smaller packages to gain this classification.
Any import that falls under a single order or contract cannot gain Section 321 classification unless the total value is below 800 USD — which is arguably less than any US business will spend on a decent sized order.
But there is a way around it… and it comes down to Canadian Fulfillment.
Saving Money Using Canadian Fulfillment
There was a good chunk of time where the import tariffs wreaked havoc with small businesses across the nation — and in response, Canadian fulfillment was born.
To provide a very simple summary, these companies help you avoid import tariffs by getting your goods classified as a Section 321.
I am going to use the Canadian fulfillment company Stalco to provide a practical example of how this works for you
This Toronto-based company started in 2018 and offers a service to US businesses that allows them to redirect any of their overseas orders through Canada. They receive the orders on your behalf, and then store them at one of their distribution centers.
Then when you receive an order, Stalco actually fulfills it for you, sending it off to your consumers here in the USA.
Canadian Fulfillment — makes sense now, right?
Now for the good part — because each product they send becomes a complete new shipment, it gets Section 321 classification, eliminating your importation costs in the process.
We should note that although these companies do charge you for this service, it ends up saving you a huge amount of money in the long run.
More importantly, because these companies pride themselves on their ability to deliver a good service, most offer same day fulfillment on all orders and use all major US carriers — which means that your customers get their products without any delay.
If you want to run a successful online store, then using Canadian fulfillment and Section 321 to your advantage is a must. This will allow you to cut your import costs and increase your profit margins in a big way.
So, what are you waiting for?