Amazon is an online retail platform that proudly serves consumers, sellers, and the overall ecommerce community.
There’s a large and growing audience ready to buy from Canada-based sellers on Amazon. With the correct information and the right mindset, anyone can create a successful business selling on Amazon.
By selling on Amazon Canada, you can leverage the company’s fulfillment and customer service networks to get started selling safely and quickly.
Imagine the possibilities that lie ahead, with an international market at your fingertips. This article will explain how you can expand your business to serve Canadian customers and possibly the rest of the world on Amazon.
You will also learn where to find products to sell, how to set up your seller account, optimize your product listings, and what mistakes to avoid.
Why Should You Sell on Amazon Canada?
The Amazon marketplace is the ideal place to sell your products to hundreds of millions of customers worldwide.
Amazon Canada offers sellers virtually the same selling opportunities found on Amazon.com, including Amazon Fulfillment.
Selling on Amazon Canada also allows your product to be showcased to customers in the Canadian marketplace, meaning more sales.
With Amazon fulfillment, shoppers will enjoy the same Prime-eligible benefits as those offered on Amazon.com.
With Amazon Canada, you can also make passive income by selling your digital products. You don’t have to worry about selling your product, but just upload it to the platform and let the sales stack up.
There are millions of customers searching and buying on Amazon Canada every single day. Open your store today by selling on Amazon Canada, reach millions of customers, and boost your sales.
Things to be Aware of When Selling on Amazon Canada
If you are selling through Amazon Canada, be aware of the following situation:
Exchange Rate is Charged
When selling on Amazon Canada, you will be charged an exchange rate of US $ that can fluctuate daily.
Even though Amazon.ca is in Canada, you can still list your products in USD. Your exchange rate will depend on the day, so that it will change based on current market trends.
Amazon FBA Fees May be Higher in Canada
When selling on Amazon Canada, you should note, FBA fees in Canada are arguably higher than in the US due to border duties, customs charges, and taxes applied when items cross the border.
Canadian Duty Rates are Often Higher
The duty rates applied to Canadian purchases are often much higher than those applied to American purchases.
Duty rates are based on the product’s country of origin and selling price. Therefore, if you plan on selling products on Amazon Canada, be sure to check the products’ country before you set up your product listing.
No Amazon Partnered Carriers Going to Canada
Amazon does not allow partnered carriers to deliver to Canada. Therefore you should avoid listing your item as fulfilled by Amazon if you are shipping to Canada.
The cost of shipping the item to Canada is not covered, and you will be responsible should the item be lost or missed.
Canada has Federal Sales Tax
Federal Sales Tax (GST) is a consumption tax charged on most goods and services sold in Canada.
When selling on Amazon.ca, you will be responsible for remitting the tax to the Canada Revenue Agency (CRA). This will be a flat tax on top of all shipping costs charged by shipping carriers.
How Much Does it Cost to Sell on Amazon Canada?
The following are the possible fees you might encounter as a seller on Amazon Canada:
These are the costs associated with a selling plan, and they vary based on the plan you have chosen.
Subscription fees help cover Amazon.ca’s costs of offering services such as payment processing, seller support, and fraud prevention. These fees are charged monthly and can be found on your seller account dashboard.
If you sell your products on Amazon Canada, you have to pay a referral fee. Sellers pay this fee for each item sold.
The fee amounts vary by category and refer to a percentage of the selling price. Additional fees, such as the variable closing fee only applicable to media categories, are also charged.
Depending on the size or weight of your item(s), Amazon will calculate your shipping rates based on the specifications and the shipping service you select during the checkout process.
Shipping fees vary depending on the item weight, size, and service you use to ship your items.
When Amazon fulfills your order, you pay the shipping cost, plus a fee for the fulfillment services. This is called your fulfillment charge.
Amazon calculates these rates by an algorithm, and you can see them in your product’s shipment box on Amazon’s website before purchase.
How to Register on Amazon Canada
Registering on Amazon gives you the ability to offer millions of products that are already popular with Amazon’s growing customer base.
The first step to registering a seller account on Amazon Canada is to choose a seller plan on the Amazon website. There are two options to consider: Individual and Professional.
If you sell more than 20 items a month, the professional selling plan’s flat monthly fee of $29.99 CDN is a much better deal than paying a variable fee per item.
You can list as many items as you want during the month and be charged only for those sold over the minimum number, as well as specific selling fees.
The Individual selling plan is a popular choice for those with smaller businesses.
For sellers that only sell products occasionally, the individual plan is best as there is no monthly fee, and you pay a flat rate of $1.49 CDN per sale no matter how many items you sell.
Steps on How to Sell on Amazon Canada
1. Decide What You Want to Sell
Choosing what you want to sell on Amazon is the first step in selling on Amazon. Do some research and determine the marketability of the product.
Is there a high demand for this type of item? Is the product category getting a great deal of attention? You will also need to know your product’s costs.
2. Choose a Selling Plan
With two selling plans to choose from, Amazon allows you to decide how to sell your products.
Choose the selling plan that works for you so that you can get your products in front of millions of Amazon Canada shoppers, as well as thousands of new customers every day.
3. Publish Your Products
After you have successfully selected your selling plan, it is time to publish your products. With Amazon’s Add a Product tool, you can add your products one by one.
Although, an inventory upload file can be used by sellers with a Professional Selling Plan to upload all products at once.
4. Sell Your Products
Once you’ve listed your products, customers can search and buy them on Amazon Canada.
Customers can use 1-Click Order to buy from your storefront with a single click of a button. With Amazon, customers can make purchases quickly and easily.
5. Ship Your Products
When a customer makes an order, Amazon will notify you, and you will be responsible for shipping and customer service.
But when you sell via Fulfillment by Amazon (FBA), you can forget about shipping products yourself and focus your time on growing your business.
6. Get Paid
Now that you have listed your items for sale, it’s time to let the money roll in. Amazon will pay you for each item sold, minus their commission.
No need to keep tabs on payments, your financial information stays protected, and your money is deposited into your bank account at regular intervals.
How to List Products on Amazon Canada
To list your product, search for your product on Amazon.com, sign in to your account using your existing credentials, or first create a new account if you don’t already have one.
Once logged in, select a product category that matches your products type, and then choose your product category.
Next, enter general information about your product, including the product name, brand name (if applicable), price, shipping information, and other necessary information.
It is possible to either match an existing listing that already sells the same product or create a new listing if you are the first or only seller. Each selling plan varies in how sellers upload and list products.
If you have a professional seller account, you can list your products in bulk or keep track of your inventory with third-party systems, while individual sellers list their products one at a time.
What You Need to Start Listing Products on Amazon Canada
When selling a product on Amazon Canada, you must ensure that the product carries a global trade item number (GTIN) so your products can be identified accurately.
The most common product IDs are UPC, ISBN, or EAN codes. These product IDs are used by Amazon to identify the particular item you’re selling.
In the case of a matching listing, you won’t need to supply an ID because it already exists. But you may need to acquire a UPC or obtain an exception if you’re uploading a new product to Amazon.
Tips to a Successful Listing on Amazon Canada
When you’re adding a listing on Amazon Canada, make sure you follow these best practices. They’ll be essential to the success of your products and prevent unnecessary customer service inquiries.
Ensure that your product UPCs and GTINs fulfill the standards. The accuracy of these codes contributes to customers’ trust in the Amazon catalog’s product selection.
Products that differ merely in color, fragrance, or size may be suitable for listing as variants. Consider if the buyer would expect to see the goods on the same page. If not, make a separate list.
Your images should be at least 500 × 500 pixels in size, high-quality listings should be 1,000 x 1,000 pixels, and placed against a simple white background. At least 80% of the image area should be covered by the product.
The Product Detail Page
This page describes how shoppers search for products, so you can design your Amazon listing to help them find your product.
Using the following strategies to optimize your Amazon product detail page will increase the chances that your product is found when customers are searching for similar products.
Ensure to capitalize the first letter of every word, which should be in 200 characters or less
Images should be 500 x 500 pixels or 1,000 x 1,000 pixels to increase quality
For example, different fragrances, colors, or sizes
- Bullet points
Describe features and benefits in short, descriptive sentences
- Featured offer
Customers can add the feature offer to their cart or click “Buy Now” on the detail page.
Your listing will be found more quickly if you include keywords
How to Deliver Products on Amazon Canada
When it comes to shipping items directly from Amazon to customers in Canada, there are two different fulfillment services you can choose from. Shipping direct via Amazon and shipping via a 3rd party fulfillment center.
Every method has its advantages, so it’s up to you to decide which method best suits your business.
Fulfillment by Amazon
Fulfillment by Amazon (FBA) is an excellent option for sellers looking to scale their business by providing low-cost, fast shipping to Canadian customers.
This method provides the flexibility for sellers to manage their orders directly through Amazon or a service provider of their choice.
Fulfillment by Merchant
A Merchant-fulfilled listing is when you store, pack, and ship the product directly to the customer yourself.
Merchant-fulfilled gives you complete control over the customer experience and inventory fulfillment. You receive a detailed daily summary to track performance.
Opportunities for Business Growth
Opportunity is everywhere when you’re selling on Amazon. You’re open for business in a marketplace with millions of customers.
With Amanda Canada, all your products and services can be discovered by anyone.
From sponsored product ads that reach shoppers before they begin to shop to display ads that run directly beside search results, Amazon Canada offers a variety of advertising solutions.
Three different advertising options are available on Amazon, and they can all be accessed.
1. Sponsored Brands
You can promote your brand and products through Sponsored Brands and search results ads that feature your brand logo and a custom headline, as well as three of your products.
2. Amazon Stores
A Store is a multipage shopping destination for individual brands, on which you can tell your brand story and highlight your products. And you don’t need experience with websites to use them.
3. Sponsored Products
Amazon Sponsored Products are ads that appear on search results pages and product detail pages for individual product listings, helping drive sales.
What Makes a Great Seller on Amazon?
Getting started as an Amazon seller can be a bit overwhelming, but there are many opportunities all around.
Try these strategies, and they can make a big difference in your sales and product reviews.
Keep an Eye on Your Account
Great sellers are great observers! They know that managing their account requires attention just as much as selling items.
Therefore, to maintain a high level of performance and provide the best customer service, you need to focus on account activity and efficiency rather than just sales volume.
Advertise Your Listings or Offer Deals and Coupons
As an Amazon seller, you can choose any number of ways to advertise your listings or offer deals and coupons to increase visibility for your brand.
One of the most effective methods is to run sponsored product ads. This method will show you how to run successful ads for any product type on Amazon using the Sponsored Products feature.
Expand Your Selection by Listing More Products
it is ideal for listing more than one product and creating a diverse selection for customers to grow sales and improve customer service,
Expand your selection by listing more products on Amazon, earning higher search results rankings, attracting more customers to your product pages, and ultimately selling more of your products.
Enroll in Brand Registry and Create Enhanced Brand Content
You are competing against millions of sellers. Are you doing everything possible to stand out? The more detailed your product information, the easier it is for customers to find you on Amazon Canada.
Brand Registry with enhanced brand content will give your products greater visibility on Amazon, more clicks, higher conversions, and most importantly, more sales.
The online marketplace is constantly changing, and sometimes it can be confusing.
It can be tricky to narrow it down with the many different categories and subcategories, product costs, sales tax requirements, and more to consider.
Hopefully, this easy-to-read guide will assist you in getting started on Amazon Canada.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.