Online stores are huge in 2015, but they aren’t as big in Canada. A recent study showed that only a mere 46% of businesses in Canada have a website. With very few online stores and much less selection of products, most Canadians prefer making their purchases from USA online shops. The cross-border purchases definitely come with some perks, but they do have their downsides.

Goodbye Limits

Since the introduction of online stores, Canadians have been provided with limitless shopping experiences. Before online stores, shopping in Canada was much different. Canadians don’t have as many products as the USA, which allows online stores to take those boundaries away. Now, Canadians can benefit from US products with ease and have them shipped right to their doorstep.

Additional Fees

A major drawback of purchasing items from the USA though is that they come with fees. Once an item crosses the border, it normally comes with fees, which the consumer has to pay for upon receipt of the product. This ends up costing consumers much more money.

With the USD so high compared to the CAD, it’s also a downside because Canadians end up spending more money than their fellow Americans upon converting their Canadian dollars.

Shipping fees also tend to be a little steeper since the items have a longer distance to travel. When calculating all of these extra fees, purchasing cross-border may not be quite as beneficial as you may think.

Lack of Canadian Merchants Online

Canadians don’t have much choice; very few Canadian merchants can be found online. If a Canadian wants a niche product, they are much more likely to find it available in an American online store than a Canadian one. Even Canada’s version of Amazon has a much smaller selection than the US version. With few options when buying products online, Canadians aren’t really provided with the ability to purchase products from their own country. and other merchant processors in the US make it easier for online shops to be setup even for high risk businesses. This is much more difficult to find in Canada, which could be a leading factor as to why fewer Canadian merchants are found on the internet.