If you're a brand based in the US — or anywhere outside Canada — and you're selling to Canadian customers, there's a good chance your current setup is quietly costing you more than it needs to.
Here's a pattern Redwolf 3PL sees constantly: a brand imports its goods from its manufacturer or country of origin into the US first. That's where the business is based, so it makes sense on the surface. Orders come in — DTC, wholesale, or Amazon FBA — and a portion of that US inventory gets shipped north to fill Canadian orders as they arrive.
The problem is what happens at each border crossing.
You're Paying Tariffs on Goods That Aren't Even Sold in the US
When your goods enter the US, you pay US tariffs on them — even though a chunk of that inventory is never actually sold to a US customer. It's imported, tariffed, warehoused, and then re-exported north to Canada. You've paid a US import cost on product that was always destined for a Canadian buyer.
Then You Pay for Freight — Twice
Once those goods cross into the US, they sit in a US warehouse until a Canadian order comes in. Then they get shipped again, this time north across the border into Canada. That's two full freight legs for one product: manufacturer to US, then US to Canada. Add in customs brokerage fees on each smaller, more frequent cross-border shipment, and the math starts to add up fast — especially for brands shipping smaller volumes per order rather than full pallets.
Meanwhile, Your Competitors May Be Skipping This Entirely
If a competitor is importing directly into Canada instead of routing through the US, they're avoiding the US tariff altogether, cutting out an entire freight leg, and getting product to Canadian customers faster. That's a real pricing and delivery-speed advantage — one that's easy to lose without realizing why.
The Fix: Import Directly Into Canada
The alternative is simpler than most brands assume: import directly from your manufacturer or country of origin into Canada, and use a Canadian 3PL to receive, prep, and ship from there. This works whether you're shipping direct-to-consumer, wholesale/B2B, or feeding inventory into Amazon FBA. See the full breakdown on fulfillment for international brands
This isn't just for US-based brands, either — it applies to any brand outside Canada selling to Canadian customers, regardless of where you're headquartered.
What About Setting Up to Import Into Canada?
A lot of brands assume this requires opening a Canadian company or physical branch. It doesn't. In most cases, you need:
- A 3PL partner in Canada to receive, store, and ship your goods
- A CARM (CBSA Assessment and Revenue Management) registration to import commercially
- A GST/HST number, once your Canadian sales pass the CRA's registration threshold
As of 2026, the CARM requirements have tightened — non-resident importers now need their own CARM registration and business number directly, since a customs broker can no longer clear goods using their own number on a client's behalf. Getting this set up correctly matters more than it used to.
Redwolf 3PL has helped brands get this in place quickly, including companies that landed a contract or a big order and needed to be import-ready in Canada with little advance notice. We can connect you with the right people to get CARM and GST/HST sorted fast, so a new opportunity doesn't get held up by paperwork.
The Bottom Line
If your brand is importing into the US and then re-shipping a portion of that inventory to Canada, it's worth asking whether that setup is actually saving you anything — or just adding an extra tariff, an extra freight leg, and extra delay between your product and your Canadian customers.
Redwolf 3PL receives inventory directly from manufacturers and countries of origin, handles any prep, assembly, or kitting needed, and fulfills orders to Canadian customers — DTC, wholesale, or Amazon FBA — from our Toronto facility.
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