We often talk about how to sell on Amazon in the United States, but what about our Canadian friends? While Amazon Canada is not as large as Amazon United States, it is growing, and there is still plenty of room for Canadian merchants to succeed. Amazon Canada, in fact, attracts millions of unique visits each month - 15.9 million to be exact.
We'll walk you through the simple start-up procedure if you're a current Amazon seller outside of Canada, or if you're a Canadian resident wishing to get started selling on Amazon.
What are the benefits of selling on Amazon.ca?
Canada is a beehive of potential for any Amazon seller, with income from e-Commerce sales expected to exceed 33 billion US dollars by 2024. (Source). This indicates that if you sell something to Canada, you can expect a 10% -20% increase in sales over Amazon.com.
The competition will continue to grow as Amazon.ca grows in popularity among Canadians; but, if you decide to expand your Amazon business into Canada, now is the perfect time to solidify your ratings and reviews in Amazon.ca while the competition is still low.
One advantage of selling on Amazon.ca is that they support multichannel fulfillment, which means that orders placed on your website can be dispatched directly from within Canada, avoiding customs and long travel periods.
When it comes to purchases, Canada has one of the most straightforward taxation systems because everything goes under their "harmonized" system, which collects only one form of tax on everything you buy there.
What is the Best Way to Sell on Amazon Canada?
When it comes to business, there is no such thing as a one-size-fits-all solution. Make sure it's the right one for you before you start your own.
Choose the best product to sell.
Choose a company plan and examine how profitable other companies in this industry were the previous year. Look at what services they provide, whether those goods/services are popular enough to keep them financially afloat (especially if there is an upfront payment to obtaining them), and so on. The most popular items differ from one marketplace to the next.
How to Create an Amazon.ca Seller Account
This article will lead you through the entire process of registering for an Amazon seller account in Canada. You may be eligible for either the Individual or Professional plan, depending on your needs.
Individual:
If you're just getting started and don't have a lot of money to invest in inventory, Amazon's fantastic Individual Account is ideal. It's a terrific method to get into the e-Commerce industry without committing because there's no monthly subscription. You can try out this model for just $1.49 CDN per sale and see whether it's right for you!
If you're looking for a unique solution, go with the individual plan.
- You're a monthly seller who sells fewer than 20 things. Note that if you sell more than 20 things, your total per-sale fees will surpass the professional selling plan by a significant amount.
- The sophisticated selling tools and add-on programs that come with the professional selling plan aren't necessary for you.
- You haven't determined what you'll sell yet.
Professional:
The professional account is the ideal option if you sell more than 20 things each month. For only $29.99 CDN each month, you'll have access to extensive tools and advertising opportunities! Advanced selling tools and advertising capabilities are included with the professional selling option.
Handmade, launchpad, and amazon business are three advanced selling systems included in the professional seller plan.
- Handmade - encourages local creators, allows for the sale of handmade things, and is ideal for selling home decor, cosmetics, and jewelry.
- Launchpad - encourages creativity by allowing small businesses to offer innovative items, find gift ideas, and raise brand awareness.
- Amazon Business enables Fortune 500 firms to sell their products in nine countries: Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, India, and the United States.
Let's get started with the registration procedure:
How to Create an Amazon.ca Account
To open an Amazon.ca seller account, you'll need the following items:
- Details about your bank account, including account and routing numbers
- Information about your credit card
- Tax information Phone number National identification evidence
Go to the Sell on Amazon page and click "start selling."
Now, using your email and password, create a new Amazon account.
Fill in your company's information and location. Even if you don't live in the city, you can participate.
Canada, how do you sell on the Canadian market? We'll be there in no time!
Then, for Business Type, you'll have to pick one of the following:
- State-owned business
- Publicly-listed business
- Privately-listed business
- Charity
- None, I am an individual
If you don't have a registered business, select "None." Alternatively, select the option that best describes your company.
The next step is to fill in the following information:
- Your physical address
- Phone number
- DOB
- DOB
- Store name and selling plan
When you create an Amazon account, Amazon will need to validate it before it can be approved. You can start selling your products once the verification is complete and accepted!
Selling in Canada: Fulfillment Methods
When it comes to sending their products, sellers have two options: Amazon fulfillment or fulfilling orders themselves.
Sellers in the Canadian marketplace can use Fulfillment by Amazon (FBA), but they can also use Fulfillment by Merchant to handle packaging and shipping on their own (FBM). Some sellers choose this option since it allows them to have more control over their inventory while also lowering incoming shipping rates.
FBA – Fulfillment by Amazon
FBA has a number of advantages that appeal to most sellers. FBA is preferred by sellers because it saves time and provides ease over manually processing orders or using third-party shipping providers. You can store your products at one of Amazon's warehouses and have Amazon personnel pick, pack, and ship orders for you whenever a customer makes a purchase with their fulfillment program for retailers.
Another significant advantage of selling on Amazon is that all purchases are instantly eligible for Prime shipping, which guarantees rapid delivery within 1-2 days.
A new study shows how powerful these programs can be when implemented properly. They looked at a seller who had an FBA business with 20 active items at any given time and made roughly $21K in gross sales revenue each month over the course of ten months of selling their goods through Amazon's fulfillment program via Seller Central. This demonstrates that Amazon's algorithms are designed to assist you. When compared to FBM items, they make FBA products more apparent in searches.
FBM – Fulfillment by Merchant
FBM denotes that the vendor will handle all aspects of storage, fulfillment, and customer service on their own. FMB is preferred by certain sellers because it allows them to avoid Amazon's fees and inbound delivery charges. The majority of FMB merchants now use third-party fulfillment services.
Seller Fees on Amazon Canada
Estimating how much it will cost is one of the most critical things you should do before selling on Amazon Canada. You'll be responsible for some seller fees if you sell through FBA or FBM, which differ based on whether your inventory is purchased through an agency (FBA) or directly from a supplier (FBM) (FBM).
Importation and customs duty charges may result in transportation costs; however, sales taxes are not overly complicated.
Fees for Referrals
If you want to sell your things on Amazon, the referral fee is a commission you must pay to Amazon in exchange for selling on their platform. It usually amounts to 15% of the product's sale price or less.
After each sale, Amazon deducts its referral fees automatically. You'll make a profit after deducting their 15% commission (and any shipping costs if selling via FBM). Amazon deducts the greater of the two amounts: the % for that item or a per-item minimum fee, which changes depending on what you're selling and how much it costs.
Fees paid by FBA Sellers
If you choose to use Amazon's FBA fulfillment service, you'll have to pay extra for storage, packing, shipping, and customer service. The size and weight of the things sold impact the number of fees that FBA sellers must pay.
Fees for FBA Storage
Sellers that sell on FBA and use Amazon's warehouse space are responsible for storage fees in addition to the costs of fulfilling an order. Long-term storage can be done on a monthly or yearly basis.
Inventory Storage Fees on a Monthly Basis
For any given month, Amazon's monthly storage fees are levied between 7-15 days. Refer to the February payments report, for example, to discover your inventory storage fee for January (which includes transactions from 7th -15th Feb).
Standard-size products may be less expensive, but they require more complex shelving than oversized products, so they may wind up costing you more in the long run if these considerations are not carefully considered during the planning stage.
Fees for Long-Term Inventory Storage
Long-term storage rates are computed on the 15th of each month, with things stored for more than 365 days being charged $150 per cubic meter.
What is the best way to sell in Canada from the United States?
With just one account, Amazon now allows sellers to sell on Amazon.com, Seller Central Canada, and Amazon Mexico! This means you can easily move between tools in seller central for the United States, Canada, and Mexico without having to create different accounts for each marketplace.
It's simple to sell in Canada from the United States thanks to Amazon. You no longer require a registered Canadian business or bank account; all you have to do is link your US-based account to your Canadian seller account and utilize Amazon's Currency Converter for Sellers to convert earnings into your local currency automatically.
Product Listing on Amazon.ca
In just a few minutes, you can effortlessly move your US listings to the Canadian marketplace. Switch to Canada from the drop-down option in your unified account and enter an ASIN number for your products that are already listed on Amazon.com.
Once you've done this, your new Amazon.ca listing will immediately load all of the information from your US listing. Click "Sell This Product" to go to the next page.
The best part is that all of your Amazon.com reviews will be moved to your Amazon.ca site automatically.
Now all you have to do is fill out the offer page with your pricing, SKU, condition, and fulfillment method, and you're ready to sell your products to Canadian buyers.
Due to FBA costs and exchange rates, your prices will be higher in Canada. You can use a currency converter to figure out what the current USD to CAD exchange rate is.
Inventory to be sent to Canada
It can be difficult to send items to Canada. We recommend sending less FBA merchandise into the nation than what is shipped to an Amazon US warehouse if you are shipping FBA goods into the country (at least until you figure out how much product will sell per month). Because the Canadian market is smaller, it may not require as many goods as the US market.
When selling on Amazon.ca, there are a few things to keep in mind.
- In Canada, Amazon FBA fees may be higher.
- The Canadian dollar does not have a steady exchange rate.
- Canadian tariff rates are generally higher than those in the United States.
- There are no Amazon-affiliated carriers that travel to Canada.
- To import things into Canada, you'll need a Business Number.
- Make sure you have cleared the DDP (Delivered Duty Paid) process before sending UPS/FedEx to Canada; else, Amazon will refuse your package.
- A GST system exists in Canada.
What is North America Remote Fulfillment, and how useful is it?
There are two options for Amazon US marketplace sellers who want to sell their products outside of their home country: build your own warehouse/fulfillment center in another location so you can ship your goods from one location while maintaining inventory across multiple markets, or join the NARF program.
NARF, or North America Remote Fulfillment, was established by Amazon in 2019. This service allows you to ship Amazon products from the United States to Canada, and Amazon will handle all taxes, tariffs, and shipping once they are ordered on Canadian land.
While this is convenient for individuals who don't want to process international orders themselves, it's clear that using this service reduces sales volume by 90% or more when compared to physically transporting your products to Canada.
Conclusion
There's no better moment to start or build your business than today, regardless of which Amazon marketplace you choose to sell on. We hope that this guide will assist you in getting started selling on Amazon.ca.
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