"In Canada alone, closing the gap between direct shopping in Canada vs. the US is an $USD 15 billion market opportunity.
The main driver behind this market chasm is a lack of supply - only 50% of U.S. e-commerce sites will ship internationally and only 2% provide a “landed cost quote” so that the consumer actually knows what he is going to pay before it arrives at the door.
Many successful multi-channel retailers in the US with international store presence still do not sell direct because of the difficulty in providing a great consumer experience without a significant investment in systems."
Canada Post with its new Borderfree has created stategic alliances with retailers in the U.S. to provide easy cross border shopping to Canadian consumers. I have not used this system personally, but will definately keep track of it. It will be interesting to track how successful this program is. Many Canadian consumers, myself included, maintain a mailbox just across the border in Blaine or Lynden, Washington. If you live near the border, this is not to much of a hassle. I know that for me, part of the deal of cross border shopping is buying an item online with no sales tax and then many times, even though you declare your purchase, you are not charged duty when you cross the border. With this system duty will be automatically charged. This system does bring shopping options to Canadians that were non-existent previously. Perhaps this increase in options (supply) will bring more of an equilibrium to the price disparity between U.S. and Canadian consumer goods.
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