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June 28, 2020  |  By Reginald Stevens In Uncategorized

How To Start Amazon FBA In Canada

Picture of Fulfillment by Amazon FBA

E-commerce in Canada is a rapidly growing market. With the increase in digitization, it is expected to increase in a few years. In Canada, retail sales trade recorded about 1.8 billion Canadian dollars from about 28.1 million Canadian online buyers.

E-commerce in Canada is also expected to go beyond 33 billion USD on retail sales revenue by 2024.

With the above figure and speculations, e-commerce in Canada is an influential economic tool individual can benefit from. You can be a part of this revenue-generating business and smile to the bank.

Do you need a head start in the e-commerce business in Canada? Amazon has got your back. With Fulfillment By Amazon (Amazon FBA), you can easily get into the e-commerce business and start selling.

Amazon FBA also gives you the Amazon edge. It helps you run the day-to-day activities of the business. You only need to focus on the entrepreneurial part of the business. With the FBA fee and your product intact, you are in business.

You can also benefit from the free shipping offered to customers of Amazon Prime. As an Amazon FBA seller, you can save your time as Amazon does the work for you. Warehousing, outsourcing of products, excellent customer service, and more are the benefits of this program.

With Amazon FBA, you can sell as much as your customers can order. One great benefit of Amazon FBA is that your products are not only limited to Amazon. You can also take advantage of other marketing channels with your Amazon FBA.

When you list your products on other sites and get orders, Amazon FBA will also fulfill them. Amazon FBA can also help you serve your clients in other countries.

How to Start Amazon FBA in Canada – Six (6) Simple Steps

Picture of How to start amazon fba in Canada

Your e-commerce business needs the Amazon advantage. The following would help you get started on your journey to expand your business with Amazon FBA.

1. Select a Good Product for the Canadian Market

All products do not give the same results. Therefore, your choice of product is essential. You can also search for the bestselling products in Canada to inform your decision. Make use of an Amazon seller research tool if you are considering a new product.

It is also important to note that there is a difference between Amazon.com and Amazon.ca. The Director of Amazon Strategy in Tinuiti explains that you can sell a product from Amazon.com to Canadians, but their products would not be visible to those shopping on amazon.ca.

2. Consider the Cost

The fast-growing market in Amazon.ca might not give you the same experience as that of Amazon.com. Amazon.ca is considered to have higher shipping costs, and the U.S sellers also consider the exchange rate.

Hence, a U.S seller might consider increasing the cost of the product to cover its shipping or duties. If you want to sell on Amazon.ca from the U.S., consider the tax and cost of shipping. Always look out for the best shipping option

3. Compare FBA and MFN: Choose the best option

Beyond border shipping, Fulfilled by Amazon (FBA) and Merchant Fulfilled Network (MFN) offer several services. You can compare their options and services and choose the best shipping means for your product.

Using Merchant Fulfilled Network shipping for Amazon.ca, the following is required;

  • Ensure there is no prohibition on your product in Canada. You can check the list of prohibited items.
  • Go through the requirements from the Canadian Border service.
  • Register as a Non-Resident Importer and get a business number.
  • You can also consider registering for Good and Services Tax (GST) or the Harmonised Sales Tax (HST) if you intend to collect taxes on Amazon.ca.
  • Mention the country you are shipping from on your profile. For instance, “ships from ” x” (country)”
  • Use a Global Stock Keeping Unit (SKU) number for your product. You can not use Global SKU for Amazon FBA.

Amazon FBA gives Canadian sellers these benefits;

  • Considering the rigorous processes involved in using MFN, Amazon FBA is appealing.
  • The excellent customer service gets a lot off your back.
  • With Amazon FBA, you can compete favorably in the Canadian market with fast shipping and Amazon quality customer service.
  • Amazon Canada FBA also includes services such as storage, picking, packaging, and shipping of products to customers. It also consists of the free shipping Amazon Prime advantage at no extra cost.

4. Create Your Product Listing in Amazon.ca

For your products to be viewed by customers on Amazon.ca, your products must be listed there. They will only be seen on the U.S listing if they check Amazon.com. Ensure you use the right SKUs on your product for the Canadian market.

5. Manage Your Accounts With NAUA

Managing different accounts could be a piece of work. This management has been made easier with the introduction of the North American Unified Account from Amazon.

With NAUA, you are in charge of what you sell and when from one seller interface. This service also helps you manage your inventory and share information about your listings on both accounts.

Note that both accounts are independent. You can use an Amazon Currency Converter for Sellers (ACCS) to convert your payment to USD.

6. Customize Your Ads for the Canadian Market

You can use proven methods from other marketplaces with the right keywords for your product. Also, follow the Amazon practices and performance data. The language differences should also be considered in your advert.

Amazon.ca is a growing market. Therefore, don’t expect too much. Maximize your Amazon.com while you spread to Amazon Canada.

Do you need a Business License to Start Selling on Amazon Canada?

The simple answer to this question is No! You don’t need a business license to sell your products on platforms online. These platforms include Amazon.

A business license is not needed because any federal government does not regulate it. Most products online don’t require government approval because they are mainly consumer products.

Individuals who sell on online platforms like Amazon, Facebook, eBay, Shopify, Craiglist, etc. don’t need a business license. But when you start making profits, you’ll need a tax code. You should register your business to be on the safe side.

Amazon.ca is another excellent platform for business owners to expand the reach of their business. Taking advantage of the services offered by the Amazon FBA program makes this expansion easier.

Article by Reginald Stevens

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