Amazon FBA is one of the most popular means to make money online legally. Over two million people have subscribed to the idea with more people joining in every day. However, Canada has a smaller population than America and reportedly less interest in e-commerce. So, the question is;
Is Amazon FBA available in Canada? Yes, Amazon FBA is available in Canada. You can sell products to Canadian addresses on the Amazon.ca site. You should, however, note that you cannot use FBA Canada to fulfill Amazon.com orders.
Selling on the American FBA marketplace is quite different from selling on FBA Canada. If you want to start selling to our ‘brethren in the North’, there are certain things you need to know about the Canadian FBA marketplace to succeed. You can read on to learn these essential details.
What do You Need to Know about Amazon FBA in Canada?
Amazon FBA in Canada has become a worthwhile marketplace. According to a survey conducted by RBC in 2018, Amazon had the highest number of purchases by Canadians, more popular than Walmart. Considering the rapid growth in the e-commerce interest of this country, FBA Canada is worth exploring.
As an e-commerce marketer looking to explore this marketplace, here are a few things that you need to note;
Lesser Population, Less Competition
America has a large population, and with that size comes a lot of sellers, which means intense competition. On the other hand, Canada’s population is just about 35 million. Therefore, the sellers on the Canadian marketplace are lesser than on the American market, which means less competition than an American seller would typically face.
However, do not think that the smaller population means underdeveloped Amazon capabilities. Amazon Canada Prime one-day delivery is available in 19 cities of the country. Therefore, you can access millions of Prime members who would buy your products.
Potentially Better Profit Margin
Since the Amazon marketplace in Canada is less saturated compared to other markets, you can sell at a higher price and get more profit. However, ensure you factor in the exchange rate. The Canadian dollar is often weaker than the American dollar. So, you also have to keep that fact in mind when you set prices for the same products on the American and Canadian marketplace.
Varied Shipping Cost
The cost of transportation in Canada is quite higher. Ensure you factor in this cost into your product pricing. You would also have to deal with different shipping companies and unique methods in the Canadian marketplace. It might be a bit tricky in the beginning, but you would get the hang of it quickly.
Spellings in Product Listings
American spellings are quite different from Canadian spellings. You don’t want to just copy your product listings on the American marketplace to the Canadian market. It might not appeal to Canadians. Keywords might also be quite different because of cultural differences.
You can go through your product listings with a spellchecker and fix the English. You can also employ the services of an editor to help you.
Prohibited and Illegal Items
Despite the similarities between the Canadian laws and regulations and the American ones, there are still some significant differences. Therefore, you must read up on the prohibited and illegal products for Amazon Canada before you start selling. You should also check out their list of restricted items. It is your responsibility to ensure that your products fit into the Canadian regulations and laws.
Amazon Canada FBA is a Distinct Entity
You have to understand that the Amazon FBA Canada functions distinctly from Amazon US. Therefore, you must register your e-commerce business in Canada separately. You should register as a Non-Resident Importer if you are not located in Canada. You would also need a business number.
You also have to pay the appropriate Canadian taxes for your business. Some of the products you sell might be subject to a Harmonized Sales Tax or a Goods and Service Tax depending on the province where the product is sold.
Different Pricing Factors
Several factors make the price of products on Amazon Canada different from that of Amazon US. You have to consider the exchange rate, the transportation costs, the competition, and so on. One of the best ways to determine your product price, though, is to research the set price of your competition.
The Amazon Canada FBA marketplace is quite different from Amazon US and other markets. However, Amazon Canada is one of the best ways to reach the Canadian populace. You just have to understand the uniqueness of the market, which we have pointed out right above.
Are you ready to start your journey into the international marketplace with Amazon Canada? You can follow the simple steps we have outlined below to become a successful seller on Amazon Canada.
How to Become an Amazon Canada Seller in 5 Simple Steps
Selling on Amazon Canada, even when you are not in Canada, is not as hard as you might think. You can follow these steps to start selling on Amazon Canada.
Amazon Canada has its unique characteristics due to different cultures and practices. Ensure you find the best products for the Canadian marketplace. Helium 10 Research Tools help you find these products easily.
Weigh the cost difference due to the higher Canadian Shipping costs and strike a balance in your pricing to compete favorably with the local sellers. You can even gain more profits if you can balance the price and demand for products.
Use FBA to sell your products. The benefits of Amazon FBA are numerous for you and your potential customers. Set up your Amazon FBA account for Canada.
Ensure you use the right marketplace-specific SKUs for Amazon Canada’s Seller Central.
Use Amazon’s North American Unified Accounts to manage both your Amazon US and Amazon Canada accounts.
Amazon has a unique marketplace for the Canadian populace. Now that you understand the differences between Amazon Canada and the other marketplaces, you would find it easy to start selling on Amazon Canada. All you have to do is follow the steps we have highlighted for you.