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How to price shipping to Canada without losing money

Five steps: know your real label cost, know the border cost, choose who pays it, set limits for the orders that do not fit, and review once a month.

By the Othermile team

A pair of white sneakers beside a blank price tag, a magenta pencil and a laptop

Short answer: price Canadian shipping from three numbers, not one: what the label costs you, what your customer may pay at the door, and what you can absorb. Then decide who pays the border, you at checkout or your customer at the door, and set a limit for the orders that do not fit.

Step 1: know your real label cost

Look at your last 20 orders to Canada and note what each label really cost, by weight. Most stores find a spread: a light T shirt and a heavy hoodie can differ by several dollars. If you use one flat rate, it should cover your typical order, not your lightest.

The owner's limits decide which orders ship on their own and which wait.
The owner's limits decide which orders ship on their own and which wait. Try it free

Step 2: know the border cost for your typical order

For an order shipped from the US, the customer may owe sales tax (5% to 15%), duty on goods made outside North America above C$150, and the carrier's clearance fee. Our guide to mail or courier into Canada works through three real examples.

Step 3: choose who pays the border

OptionWhat the customer seesWhat you risk
Customer pays at the doorA cheaper checkout, then a bill on deliveryRefused parcels, complaints, lost repeat orders
You pay, priced into shippingA higher shipping line, nothing at the doorUndercharging on some orders, overcharging on others
Duties included rate at checkoutThe exact border cost for that cart, paid onceAlmost nothing, once the amounts are right per cart

Duties included rates per cart are the most accurate and the ones customers trust most, but they need each product's tariff code and origin. That is the job Othermile does at checkout on Shopify and WooCommerce.

Step 4: set limits for the orders that do not fit

No flat price fits every order. Pick three numbers:

  • The most a customer should pay at the door. Above it, the order is a likely refusal.
  • The most you will lose on shipping. When the label costs more than you charged by this much, you want to know first.
  • The lowest margin you accept. Below it, the order is not worth shipping as it is.

Orders inside the limits ship as usual. The rest are worth a look before they go: a cheaper carrier, a duty paid label or a note to the customer can save the order.

Step 5: review once a month

Rules change and carriers update their fees. Once a month, look at what your Canadian orders really cost you and adjust the rate.

Try it on your own parcel

What would this parcel owe at the border?

Change the product, where it was made, the price or how it ships, then check. Free, with no account.

Your estimate appears here.
Pick a product and price, then check.

Othermile checks every order like this before it ships, and holds the costly ones for your OK. Start free

Check your own numbers

These are estimates from the official rules, not customs advice.

This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.

Selling on Shopify?

Othermile for Shopify

Check every Shopify order for Canada and US duties, tariffs and fees before it ships, hold the costly ones in Shopify, and show shoppers the cost at checkout.

Selling on WooCommerce?

Othermile for WooCommerce

A free plugin that checks every WooCommerce order for Canada and US duties, tariffs and fees, puts costly ones On hold, and shows shoppers the cost.

See what your own orders cost at the border.

Start free

Or price a parcel above, or get an email when the rules change