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A Breakdown of Storage and Fulfillment Costs in Canada for Etsy and Amazon Sellers

A Breakdown of Storage and Fulfillment Costs in Canada for Etsy and Amazon Sellers

Selling on Etsy, Amazon or Shopify into the Canadian market brings attractive revenue, but processing orders from Vietnam is a major obstacle. North American shoppers expect fast delivery, and handling returns from overseas is almost impossible if you don’t have a local warehouse.

To optimise costs and earn more five-star reviews, many shop owners choose storage and order processing right in Canada.

How does fulfillment in Canada work?

Fulfillment in Canada takes care of all the logistics after the customer clicks “Buy now”. Instead of sending each small item from Vietnam whenever an order comes in (which takes 7–14 days and costs a lot per parcel), you can send one large shipment for storage in Mississauga, Ontario.

The basic process includes:

  1. Receiving: Your goods are shipped to the warehouse in Canada, counted and put on shelves.
  2. Storage: Goods are kept safely in the warehouse.
  3. Order processing (pick and pack): When a new order comes in from Etsy or Amazon, the system receives the details. Warehouse staff pick the item and pack it to standard.
  4. Labelling and delivery: Domestic carrier labels are applied and the parcel is handed over for delivery to the customer.
  5. Returns: Returned orders are received, checked and put back into stock if the product is in perfect condition.

A breakdown of fulfillment costs in Canada

When calculating your product margins, you need to understand the 4 core cost groups at the Mississauga warehouse.

1. Order processing fee (pick and pack)

This is the fee each time staff pick a product, pack it in a box or bubble mailer and apply the shipping label.

  • Starting price: from just $5 CAD per order.
  • This includes basic packing in a standard carton or mailer. Fragile items that need extra bubble wrap or foam carry a small surcharge depending on the materials used.

2. Storage fee

This is based on the space your goods take up in the warehouse (per cubic metre, per pallet or per small shelf bin for handicrafts and jewellery).

  • Money-saving tip: Rotate your stock regularly and avoid keeping inventory for more than 90 days to keep storage costs down.

3. Kitting and labelling fee

This applies when you need to change packaging, cover barcodes with new labels (FNSKU for Amazon) or bundle several products into a gift set before shipping. It is usually charged per label or per manual operation on each product.

4. Returns handling fee

Return rates on US and Canadian marketplaces range from 5% to 15% depending on the category. When a customer returns an item and you have no return address in Canada, the product is usually destroyed, which is very wasteful.

The Mississauga warehouse receives these returns, photographs them and reports their condition to you, relabels them and sends them to another customer if the product is still brand new.

Benefits of a warehouse in Mississauga, Ontario

Mississauga is the largest logistics hub in Ontario and in all of Canada, right next to Toronto Pearson International Airport. A warehouse here gives your shop a strong competitive advantage:

  • Faster delivery: Domestic shipping from Mississauga to major cities such as Toronto, Ottawa and Montreal takes just 1–3 business days, boosting your rating on Etsy and Amazon.
  • Lower domestic shipping costs: Domestic shipping within Canada and to the US starts at $35 per parcel for larger shipments, or you can use affordable domestic express services for each small parcel.
  • Easy connections: From the Mississauga warehouse, you can easily send stock into Amazon Canada FBA warehouses or forward it quickly to the US.

How to get started with fulfillment

If you are a shop owner in Vietnam and want to set up stock in Canada, follow these steps:

  • Step 1: Prepare your SKU list
    List the size, weight and a photo of each product to get a detailed quote for each packing operation.
  • Step 2: Consolidate and ship to Canada
    You can ship on your own or use our two-way air freight service, which takes 7–14 days from Vietnam to Canada, from $16/kg with import duties included.
  • Step 3: Set up the system and storage
    When your goods arrive at the warehouse at 2446 Cawthra Road, B1U8, Mississauga, Ontario, Canada L5A 3K6, we count them and update the quantities in the system so you can track them easily.
  • Step 4: Sell and track orders
    Whenever an order comes in, the details go to the warehouse for packing and dispatch. You can track each order online with your order or booking number.

For a detailed cost breakdown tailored to the size and weight of your products, prepare your product information and call +1 888-998-5199 or email info@soleiltransportation.com for the fastest support.