PrintThe Canadian Toy Association (CTA), an affiliate partner of the Toy Industry Association (TIA), recently asked its members to share the unique perks of partnering with a Canadian distributor. A survey of U.S. TIA members found that Canada is their No. 1 target market for toy, game, and youth entertainment product distribution.

The top four advantages, compiled by CTA, are as follows:

• Import Logistics and Regulatory Compliance: As an importer of record, distributors assume the burden of freight, brokerage and compliance with Canadian customs documentation, and will also carry the necessary $3 million in juvenile product liability insurance, helping to shield retail clients and provide them with the confidence they need to stock and sell U.S. products in communities across Canada.

Canadian law is also very clear on the set of metrics that must be met (in hours, days, and weeks) in the event of a recall, and Canadian distributors can assist both manufacturers and their retail clients in complying with a recall in a timely manner.

• Leverage Existing Relationships with Canadian Retailers: Canadian distributors already have vendor numbers established with retailers across Canada, including all the major stores and chains, and have existing relationships within specialty markets.

Purchasing products through a distributor is of particular value to small- and mid-size retailers, who often don’t have the time or resources to complete customs paperwork.

• Promotion of Your Product to Canadian Consumers: Canadian distributors have unique insight into regional consumer preferences, as well as access to a vast array of TV, print, and online media contacts that can be of benefit to companies looking to promote their products in Canada.

Canadian distributors can help manufacturers to navigate regulations related to advertising to children, where subtle differences exist between Canadian and U.S. law.

• Compliance with Employment Standards: While some companies may choose to have a member of their sales team—located at their head office—assigned to the Canadian market, Canadian distributors provide additional value for those considering having one or several employees based in Canada.

By using a distributor, companies can avoid having to deal with Canadian employee tax structures, CPP (Canada Pension Plan) contributions, and a minimum wage ($11) that is higher than in many U.S. states. The distributor acts as the employer and is responsible for compliance with employment law.

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Guest Auther

Guest Auther

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