The Canadian dollar, known as the loonie, has fallen dramatically in value. Due to cheap oil prices and the Canadian mining industry reeling from a collapse in the global commodities market, the loonie has fallen about 18% over the past two years against the U.S. dollar.
As a result, American shoppers are flocking across the country’s northern border in search of getting great bang for their U.S. bucks. And while many Americans are physically crossing into Canada for shopping bargains, others are dipping across the border virtually, on laptops and smartphones.
Spending via PayPal by U.S. shoppers on Canadian websites was up 20% in 2015 from 2014, Bloomberg Business reports.
Shopping abroad online from the U.S. can be costly, with additional duties and fees tacked on to items bought abroad and shipped to the U.S., which U.S. Customs and Border Protection considers imports. But even with extra fees, many American shoppers are finding great deals using their dollars in Canada. According to a PayPal/Ipsos SA study, spending by Americans on Canadian websites is expected to grow 10% in 2016.