Welcome to part two of how Canada can fit into your fulfillment strategy.
Here’s where we’re at:
Part 2: Should you add a Canadian node?
Part 3: How to set up fulfillment in Canada ← This post
Once you’ve decided if Canada might be a fit, the next question is how to actually make the move.
It’s not as complicated as you might think.
In this part, we’ll break down the steps brands are following to set up fulfillment in Canada - from compliance and warehousing to integrations and cross-border movement.
Let’s dive in.A huge thank you to Jesse Mitchell (SFI), Yan Sim (Operating Crew), Jarrett Stewart (GoBolt), and Adam Dambrov (AMD Trade) for sharing what they are observing on the ground.
1. Start with compliance: NRI, GST, and labeling
The foundation of any Canadian setup is compliance. You’ll need two main registrations:
NRI (Non-Resident Importer) status
GST/HST account for tax purposes
These allow you to legally import goods into Canada and collect/remit sales tax. With the right broker, this step takes 2–3 weeks.
Yan explained how straightforward this step can be with the right help:
“We helped an electronics brand launch in Canada. The only product change was adding French to the instruction booklet.
We handled their NRI and GST registrations in two to three weeks. Then we shipped containers directly into Montreal. Jesse’s team picked it up, and they were live within days.
This is what a lot of companies do - they just add French to the US version of the booklet to be Canada-proof in case they expand.”
Depending on the product category, you might also need to:
Add French-language labeling
Adjust packaging to meet Canadian compliance (especially in categories like baby gear, cosmetics, food)
These tweaks are usually minor but can become blockers if ignored.
Yan shared:
“We worked with a baby crib brand that had to change the mattress size by 5% to meet Canadian regulations. It would have been considered a different product in Canada otherwise. They didn’t expect it, but once we caught it, the fix was easy.”
2. Choose the right 3PL
Once your compliance is sorted, the most important choice is your fulfillment partner.
Here’s what to look for:
A Canadian footprint: ideally in Ontario, Quebec, or British Columbia
Experience with ecommerce fulfillment and cross-border shipping
Customs brokerage support or partnerships
(Optional) US warehouse locations for future flexibility
Jesse Mitchell from SFI explained what they’re seeing in the market:
“I’m speaking to new brands every day - often they’ve already reached out to two or three 3PLs in Canada.
Outside of Vancouver, I’d say there’s ample space and capacity in the market to support most brands.
But Vancouver is tight. The 3PLs there are only taking on larger, longer-term opportunities. So most brands end up in Ontario or Montreal - and that works just fine.”
It’s also worth choosing a 3PL that’s familiar with NRI setup, GST filings, and border paperwork. That way, you don’t need to piece it together across multiple vendors.
3. Decide how you’ll bring inventory in
There’s no single playbook for moving inventory into Canada.
Some brands ship containers directly from their factory. Others transfer inventory from US warehouses. Some even bring goods up from Mexico.
What’s best depends on where your product is sitting today, how quickly you need it in market, and whether your primary goal is serving Canadian customers, deferring US tariffs, or both.
Here are the common paths I’ve seen:
Inventory flow | When it’s used |
China to Canada | Most common setup for brands importing at scale |
U.S. to Canada | If inventory is already in U.S. warehouses or ports |
Mexico to Canada | Rare, but possible for brands nearshoring production |
Canada to US | Only makes sense if you’re eligible for 321 or duty mitigation programs |
If your goal is duty deferral or cross-border flexibility, you’ll want to work with a 3PL that can:
Store inventory without clearing duties upfront
Move goods across the border when needed
Handle returns on both sides
The goal is to keep your goods close to your customers - without locking up working capital or overcommitting to a specific market. A flexible import plan helps you do that.
4. Integrate with your order management and routing logic
Once inventory lands, you’ll want to make sure it actually gets used.
That means adding the Canadian 3PL as a location in your OMS or ecommerce backend (e.g., Shopify, custom OMS) and routing orders appropriately.
Common setups:
Route Canadian orders to the Canadian node
Route East Coast US orders to Canada if faster/cheaper
Hold inventory for tariff deferral and drip-feed into US as needed
With two nodes, smart routing can help you reduce delivery times, minimize duties, and avoid unnecessary split shipments.
Yan Sim shared:
“We’ve helped brands run just two nodes. Ontario covers Canada and the Eastern U.S., and Vegas covers the West. That’s two nodes instead of three.”
5. Plan for returns and reverse logistics
Most brands keep returns local.
U.S. customers → return to U.S. warehouse
Canadian customers → return to Canadian warehouse
If you’re shipping cross-border and don’t have dual nodes, make sure you’re not forcing customers to ship internationally to return.
Jarrett summed it up:
“Returns should stay in the country they ship to. Otherwise, the customer experience breaks.”
6. Use a partner to support the entire launch
If you don’t have an internal team that’s handled international expansion before, this can all feel like a lot.
But every expert I spoke to emphasized the same thing: this isn’t rocket science - if you have the right partner.
Yan Sim shared:
“The paperwork isn’t the hard part. What slows brands down is not having someone to manage it. With the right partner, the process is fast. Without one, it’s a maze of tax forms, customs rules, and packaging changes.”
TL;DR: What a typical Canada setup looks like
Step 1: Review product and labeling requirements
Step 2: Apply for NRI and GST accounts
Step 3: Find a 3PL with Canadian operation
Step 4: Ship containers from China or the US
Step 5: Inbound inventory and complete technical integrations
Step 6: Route Canadian (and some US) orders through the new node
Step 7: Keep returns local and monitor cross-border costs
Final thoughts: When adding a Canada node actually makes sense
A Canadian fulfillment node isn’t a silver bullet. But in the right context, it can meaningfully improve your network.
If you’re already seeing steady Canadian demand, or want to grow it, here’s what a local node unlocks:
Faster delivery and better experience for Canadian customers
Fewer cross-border issues
Access to a $100B+ ecommerce market with low saturation
For larger brands, it can also simplify your U.S. setup:
Potentially Use Ontario to serve both Canada and the US East Coast
Reduce total node count without sacrificing speed
Build redundancy into your network
Bottom line: Adding Canada only makes sense if it supports your long-term goals - growing Canadian sales, optimizing coverage, or improving resilience. It’s not a quick fix for tariff pain. It’s a strategic move to future-proof your network.
