How To Sell On Amazon Canada In 3 Easy Steps

Sell on Amazon is a lesser-known marketplace, but it offers more opportunities. There are 15.9 million unique visitors annually, and they are growing fast! Here’s everything you need to know about how to sell on Amazon Canada.

Although Amazon Canada is not as big a market as Amazon U.S., its growth has been good, with an average annual sales value of more than USD 3 billion. Also, according to eMarketer data, nearly 16 million unique Canadian visitors were browsing or purchasing through Amazon Amazon sites – these numbers are music to the ears of any retailer!

Suppose you are an existing Amazon retailer outside Canada or a Canadian citizen looking for a market for your products to thrive. In that case, you may have been waiting for Amazon Canada.

Let’s get started!

Why should you sell on Amazon.ca?

Canada is a hot spot for any Amazon retailer, as it is estimated that revenue from e-Commerce sales will exceed $ 33 billion by 2024 (Source). This means that if you sell an item to Canada, you can expect a 10% -20% increase in sales compared to amazon.com.

As Amazon is very popular with Canadians, the competition will continue to grow; however, if you decide to expand your Amazon business in Canada, now is the best time to strengthen your ratings and reviews on amazon.ca while the competition is weak.

One advantage of selling on Amazon.ca is that they allow multichannel fulfillment, which means that your Canadian customers can receive orders from your website delivered directly within Canada; to avoid tasks or long travel times.

Canada has one of the easiest tax systems for purchasing because everything falls under their “synergistic” tax collection system for whatever you buy there.

How to sell on Amazon Canada

When it comes to business, you can never use the whole process. Before you start your own, make sure you have the right fit.

1. Find a suitable product to start selling

Choose a business model and research how profitable other companies in the industry have been over the past year. Also, look at what they offer as services, whether those goods/services are popular enough to finance them (especially if there is a down payment associated with the purchase), and so on.

The best-selling products vary from market to market. To find out what’s hot in Canada, use the SellerApp product research feature to check what’s trending locally and globally.

2. How to sign up for an Amazon seller account

This guide will take you through everything you need to sign up for an Amazon account in Canada. You may be eligible for an individual or professional Amazon seller based on your needs.

2.1 Individual seller account:

If you are starting and don’t have much money to invest in inventory, then the amazing Amazon Personal Account is ready for you! For only $ 1.49 CDN per auction, you can try this model and see if online marketing is for you! Aside from the monthly payment, it is a great way to get down to the e-Commerce business without commitment.

Choose an Individual amazon seller plan if:

• You are a seller selling less than 20 items per month. Note: if you sell more than 20 items, your total sales costs will exceed the professional sales plan.
• You do not need advanced marketing tools or additional programs with a professional marketing plan.
• You have not yet decided what you will sell.

2.2 Professional seller account:

A work account will be your best bet if you sell more than 20 items a month. You will find advanced tools and marketing power that come with only 29.99 CDNs per month! Professional marketing options include advanced marketing tools and advertising space.

The professional amazon seller program includes three advanced sales systems – handmade, launchpad, and the Amazon business.

• Handmade – support local designers and allows you to sell handmade items, suitable for Selling Home Decor, Beauty Products, and Jewelry.
• Launchpad – supports innovation as it allows smaller brands to sell unique products, get gift ideas and enhance product visibility.
• Amazon Business – allows major brands such as Fortune 500 companies to sell in 9 countries – Canada, United Kingdom, Germany, France, Italy, Spain, Japan, India, and the U.S.

Now, let’s start with the registration process:

3. How to Subscribe to Amazon.ca with a bank account

Requirements for signing up for an Amazon.ca merchant account:

• Bank account details, including your account and tracking numbers
• Credit card details
• Proof of national identity document
• Tax information
• Phone number

Go to the Amazon website to Sell the product and click “sign-in.” Now, you can create an Amazon account with your email I.D. and password. Enter details of your business and location.

Note: Even if you do not live in Canada, you can start selling in the Canadian market; how? We’ll be there soon!

The following for Business Type, you will need to choose from the following options:

• Government business
• Business listed publicly
• Business listed privately
• Compassion
• No, I am one person

Select “None” if you do not have a registered business. Or choose an option that best describes your business.

In the next step, you must complete the following information:

• Your physical address
• Phone number
• DOB
• Payment information and bank account
• Store name and sales plan

If you sign up for an Amazon account, Amazon must verify your account before approving it. Once the verification is complete and approved, you can start selling your products for sale!

4. Ways to Fulfill Sales in Canada

Amazon sellers have two options for shipping their products: Fulfillment by Amazon or Filling Offers for Themselves.

Amazon sellers in the Canadian marketplace can take advantage of Amazon (FBA) fulfillment. Still, they also have the option to manage to package and ship themselves through Fulfillment by Merchant (FBM). Some retailers prefer this option because it can give them more control over their goods and reduce shipping costs.

4.1 FBA – Fulfillment of Amazon

FBA has many benefits that make it very attractive to many retailers. Vendors use FBA because they save time and add convenience compared to handling orders in person or through shipping services to third parties. With the Amazon seller Filling System, you can store your products in one of their stores, and Amazon staff will select, package and send you orders once a customer has made a purchase.

Another important advantage of FBA sales is that every purchase is automatically eligible for advanced shipping, ensuring fast delivery within 1-2 days.

New research from Sellbrite proves how these programs can work for your business if done right. They studied a retailer who used an FBA business with 20 active items at any time, earning about $ 21K per month in total sales over ten months of selling their goods through Amazon’s filling program via Seller Central. This proves that Amazon algorithms are there to help you. They make FBA products more visible on searches compared to FBM items.

4.2 FBM – Fulfillment By Seller

FBM means that the seller will manage his or her storage, fulfillment, and customer service. Some retailers prefer to use FMB because they can save money by avoiding Amazon payments and incoming shipping costs. Many FMB vendors now use third-party service providers.

5. Amazon Canada Dealer Funds

One of the most important things you need to do before selling on Amazon Canada is to estimate how much it will cost. Selling with FBA or FBM means that you will be responsible for other merchant payments, depending on your inventory, through the agent (FBA) or directly from the supplier (FBM).

You may have to incur transportation costs due to import costs and taxes; however, sales taxes are less severe in Canada.

For more information on taxes as they apply directly to goods coming to Canada, please visit https://www.cbsa-asfc.gc.ca/menu-eng.html.

5.1 Transfer Fees – Shipping costs

If you are looking to sell your items on Amazon, the commission transfer fee you have to pay on Amazon for selling on its site. It usually reaches 15% or less of the product’s retail price.

Amazon pulls out any of these two great prices: the percentage of that item or the minimum amount for each item, which varies depending on what you sell and its value. Amazon automatically deducts its transfer fee after each sale. You will earn your profit by deducting their 15% commission (plus any shipping costs if you trade via FBM).

5.2 Fees payable by FBA Vendors

If you decide to use the FBA filling method, Amazon charges extra fees for handling storage, packaging, shipping, and customer services. The size and weight of the goods sold determine the amount paid to FBA merchants.

6. FBA Storage Funds

In addition to the costs associated with completing the order, retailers are responsible for the final fees when selling on FBA and using Amazon’s warehouse. There are two types of long-term maintenance: monthly or yearly.

6.1 Monthly Assets for Assets

Amazon’s final monthly fees are charged within 7-15 days per month. For example, to see your January savings list payment refer to the February payment report (which covers activities from 7 -15 Feb).

Products of standard size may be cheaper but require more sophisticated shelves and thus may cost you more in terms of long-term costs if you do not consider these features carefully in the planning phase.

6.2 Long-term Asset Retention Funds

Amazon’s long-term final fees are calculated on the 15th of each month, and items stored there for more than 365 days will be charged $ 150 per cubic meter.

7. Canadian Tax System and Laws

Canada has a GST / HST, a corporate sales tax system simplified for each province. There are only 13 provinces and territories, making it easier for Canadians living outside their home region to pay off their debts in one simple way.

The table below describes what type of tax applies to each province and region:

7.2 Provinces Tax by province 

• Alberta = 5% GST
• Nunavut = 5% GST
• Northwest Territories = 5% GST
• Yukon = 5% GST
•   British Columbia = 5% GST + 7% PST
• Manitoba = 5% GST + 7% RST
• Quebec = 5% GST + 9.975% QST
• Saskatchewan = 5% GST + 6% PST
• Ontario = 13%
• New Brunswick = 15%
• Newfoundland = 15%
• Nova Scotia = 15%
• Prince Edward Island = 15%

8. How can you sell in Canada from the U.S.?

Amazon allows retailers to sell on Amazon.com, Seller Central Canada, and Mexico for just one account! This means you can easily switch between U.S., Canadian or Mexican tools in the center of the seller without having separate accounts for each market location.

From the United States, Amazon makes it easy to sell in Canada. You no longer need a registered Canadian business or bank account – you must link your U.S. account with your Canadian merchant account. You use Amazon’s Currency Converter for Sellers, which automatically converts your income into your local currency.

8.1 Product listing on Amazon.ca

You can easily transfer your U.S. list to the Canadian marketplace in just a few steps. In your linked account, switch to Canada from the drop-down menu and enter the ASIN number for your available products on Amazon.com.

Once you complete this, all the information from your U.S. will automatically upload to your new Amazon.ca list. Click “Sell This Product” from there and move to the next page.

The best thing about this is that all your Amazon.com updates will be automatically transferred to your Amazon.ca list.

Enter your price, SKU, status, and filling method on the offer page, and you’re ready to sell your products to Canadian customers.

Note: Your prices will be higher in Canada due to FBA costs and exchange rates. You can use the currency conversion calculator to get an idea of ​​the current exchange rate of USD to CAD.

If you are keen to know more about How to Register a Business in Canada,

8.2 Shipping Inventory to Canada

Shipping to Canada can be a little difficult. The Canadian market is small and may not require as many commodities as the US. If you are exporting FBA inventory to the country, we recommend you submit less than what is sent to the Amazon U.S. store (at least until you find out how much product to sell per month).

Before you begin the process of exporting to Canada, be sure to read the CU. Sadian Import Border Services Agency Guide.

You can use SellerApp’s Product Ideas feature to get accurate information on the Canadian sales volume for your product niche.

Things to Know When Selling on Amazon.ca

• Amazon FBA rates may be higher in Canada
• The Canadian exchange rate is unstable
• Canadian employment rates are often higher than in the U.S.
• Amazon has no affiliate carriers in Canada.
• You need a Business Number to U.Sort goods into Canada
• While sending UPS / FedEx etc., in Canada, make sure you cancel the DDP (Delivered Duty Paid) process; otherwise, Amazon will reject your shipment.
• GST system in Canada.

While this is good for those who do not want to place their foreign orders, it can be seen that the sales volume when using this service is usually about 90% or more compared to actual shipping your products to Canada.

Closing Thoughts

If you are starting as an Amazon retailer or your business is growing into a Canadian market for the first time, we hope this guide is helpful.

Starting selling on amazon is more complex than one like to believe before you start, you have to study topics and additional things like; north American unified account, referral fees for prime shipping, an amazon seller central account and all pre-defined amazon Canada selling fees, as sellers have to pay to the amazon Canada company.

You also have to handle other matters related to your chosen canadian bank account, federal sales tax, provincial sales tax, in particular places like Quebec house, an additional tax called Quebec sales tax for using a local bank account as the local bank puts you acc as a Canadian seller account instead a standard account.

But if you keep this above knowledge and tips in mind, you will start effectively and save your shop from a bad launch.

Last Updated on August 1, 2024 by Sathi Chakraborty