Why it's More Expensive to Buy from the USA
As a Canadian company we are unable to match the prices of USA based retailers on a product by product basis. But don't worry. There is good news...
There are a many reasons why purchasing from a Canadian based retailer is often LESS EXPENSIVE (despite the price of the product being slightly higher).
1. No Free Shipping
- It doesn't matter how much stuff you order from the USA, you will have to pay for shipping. We offer free shipping on orders over $200. That alone can make up the difference in product price.
For instance: A Cold Steel knife may be $10 cheaper in the USA, but the cheapest shipping method costs at least an additional $40 (plus all the other fees like brokerage etc.). You'd be losing money.
- It is a common misconception that ordering online from the USA will allow you to not pay the Canadian HST or GST/PST. This isn't true. When you place the order you don't have to pay the tax up front, but as it comes over the border the tax is paid on your behalf by the courier company - who then charges you when they get to your door. In almost every instance they require you to pay the tax amount in cash only. No cash = no product released and you'll have to go to the depot to pay.
3. Brokerage Fees
- The courier company delivering your goods charges this when they do all the paperwork involved with transporting your package over the border.
You order a product from the USA. The package is shipped using either FEDEX, UPS, or USPS courier services. They ship the package through the nearest Canadian border crossing. When crossing the border there is paperwork to complete and duty fees to be paid. The courier will complete all of this for you; it's called 'Brokering' your package. For this, they charge a fee. If you go to the USA to pickup your package, you will avoid paying this fee. Brokerage fees are calculated based on the total value of the order. This can range from an additional $5 all the way to $75+ (usually about $30).
- Also known as a Tariff, this is a fee charged by the Canadian Government. There are different duty fees depending on what the item is and where it was made. Many products are manufactured outside of the USA or Mexico and are subject to duty as they cross into Canada. It can range from an additional 6% - 30% of the value of the order, and sometimes even higher.
5. Disbursement Fees
- This is the fee charged by UPS and FedEx for pre-paying duty and taxes to the Canada Border Services Agency (CBSA) for you. It depends on the amount pre-paid for you. Usually an additional $6 to $7.
6. Currency Conversion
- When you pay by credit card for products priced in Canadian dollars, you pay the exact amount. When you purchase products in USA dollars the credit card companies charge a fee. It is usually an additional 2.5% of the total. This is in addition to any variance in currency value.
7. Warranty and Returns
- What happens if your product breaks, arrives DOA, or you ordered the wrong item (doesn't fit or you just don't like it). If you want to return something it has to be sealed (new-in-box) and they will charge an additional restocking fee of 15%+, and you will be responsible for shipping fees associated with sending the products back across the border to them.
8. Border Delays
- Though it doesn't cost more, we all value getting stuff quickly! Order from the States and you will be waiting a LOT longer to get your stuff. And how do you put a price on that?
Using Cold Steel's Spartan folding knife #21S.
On www.KnifeCountryUSA.com's website $77.55 ( LINK )
Listed on our site, DragonImpact.com, the Cold Steel Spartan sells for $99.99
Shipping to Canada via their least expensive route is UPS Standard at $21.89.
Our shipping is by flat rates. From $0.01 to $99.98 is $19.99, from $99.99 to $199.99 is $14.99 and over $200 is Free.
Therefore to ship this item is $14.99 (or free is you pick it up from our store in Victoria, BC)
Use the website The Final Cost.com to find the hidden costs of importing from the USA.
THE DIFFERENCE ... :
From the USA : $141.42
From Dragon Impact : $121.98
($121.98 in BC, 7% less in other provinces as we won't charge PST)
SAVINGS OF $19.44 !!
Other provinces save 7% more (for a savings of $26.44) because of no PST !!
BUY CANADIAN AND SAVE MONEY !