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September 1, 2022

How to Sell on Amazon Canada 2022: The Complete Guide

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Whether you are a Canadian looking to sell on the Amazon marketplace or a non-Canadian wanting to know how to sell on Amazon Canada, this guide will give you all the information you need.

The good thing about selling on Amazon CA is that it is not so different from selling on the US Amazon marketplace. Most of the things we'll cover today, such as the selling plans, Amazon fees, and fulfillment methods, are almost similar to Amazon US.

However, one major difference between the two marketplaces is that Amazon Canada is not as big as the Amazon US marketplace. Nonetheless, this is not to say that it isn't big. In fact, the Amazon CA marketplace receives millions of unique visitors each month that you can leverage.

Let's get started.

How to Sell on Amazon CA

How to sell on Amazon CA

Selling on Amazon CA is quite similar to selling on the Amazon US marketplace with just some minor tweaks. We'll point out the differences as we go along.

If you have experience selling on Amazon US, it will be smooth sailing for you when it comes to selling on Amazon Canada.

In fact, if you already have a seller account on Amazon.com and have been selling in the United States but want to sell to Canadian consumers as well, skip to the North American Unified Account section.

We cover how to sell to Canadian consumers if you've already been selling to consumers in the U.S.

Nonetheless, if you are new to selling to Amazon, let's proceed with the steps you need to cover from setting up an account to choosing a plan, fulfillment method, and more.

1. Set Up Amazon CA Seller Account

How to sell on Amazon CA

Setting up your selling account is simple. All you need to do is go to the Start Selling Online page, choose the selling plan you want, and then fill in the required information.

A) Choose A Seller Account

As with the Amazon US marketplace, you'll need to choose between individual and professional plans.

i) Individual Plan

The individual plan is a good choice if you don't plan on selling more than 20-30 units per month. We also advise you to choose this plan if you are a beginner in the Amazon CA marketplace or unsure of what you want to sell.

With this plan, you'll pay a flat rate of CAD$ 1.49 for each item you sell, plus additional selling fees.

We advise you to get this plan if you plan to sell more than 30 items because the overall cost will be lower than the monthly fee you'll pay with the professional account.

Let's look at the professional account for more understanding.

ii) Professional Plan

This seller plan requires you to pay a monthly fee of $CAD 29.99.

Unlike the individual plan, you won't need to pay a fee for every item you sell. This allows you to sell as many items as possible at the same CAD$ 29.99.

Therefore, if you intend to sell more than 30 items on the Amazon CA marketplace, this plan is more convenient than the individual plan because you'll end up paying less. After all, CAD$ 29.99 is less than (30 x CAD$ 1.49).

Another reason this plan is better suited for sellers who want to sell more than 30 items is because you can enjoy access to advanced selling tools. These tools include APIs and reports.

You'll also get to advertise with this plan and qualify for top placements on Amazon's product details pages.

This seller plan also allows you to sell products in restricted categories. If you want to apply to Amazon selling programs like Amazon Business, Launchpad, and Handmade, this is the plan to go with.

B) Sign Up for Your Account

How to sell on Amazon CA

Signing up for your Amazon CA account is pretty straightforward once you are on the Canadian Amazon site.

Some of the details you'll need to complete the process include:

  • Bank information
  • Tax information
  • Business & contact address
  • Phone number
  • Government-issued ID
  • Chargeable credit card

The good thing about getting started with selling on the Amazon marketplace is that it's a pretty straightforward process.

Once you've clicked the "Sign up" button and filled in the necessary details, you'll need to choose your business type.

The types of businesses that will appear from the drop-down include:

  • State-owned business
  • Publicly-listed business
  • Privately-listed business
  • Charity
  • None, I'm an individual

This last option is if you don't own a registered business.

Some individual information you'll need to enter includes:

  • Phone number
  • Physical address
  • Date of Birth (DOB)
  • Billing and bank information
  • Store name and selling plan

Once you've submitted all of this information, you'll need to wait for Amazon to approve your account before you start selling.

Assuming Amazon has approved your account and you're good to go, it's time to think about fulfillment. Who will do the storing, packing, and shipping of your products? You, Amazon Canada, or a third party? Let's find out.

2. Choose A Fulfillment Method When Selling on Amazon Canada

How to sell on Amazon CA

Fulfillment basically means getting your products to your customers.

Similar to the Amazon US marketplace, you can choose between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

FBA means that Amazon will do the fulfillment for you, while FBM means that you'll it yourself.

Here's more detail about both options so you can choose the right one.

A) Fulfillment by Amazon (Amazon FBA)

Amazon FBA is a great option if you want convenience and don't mind spending a little bit extra on it. With this fulfillment method, the Amazon staff will store, pack, and ship the products to your customers and handle customer service.

All you have to do is ensure that the products get to the Amazon Canada warehouses.

One great advantage about this method, in addition to being highly convenient, is that your products will be eligible for Prime Shipping.

Why is this important?

Prime members are more likely to buy your products if they are eligible for Prime Shipping because they'll get their orders within 1-2 days while still getting value for their subscription.

If you decide to go with this method, ensure that you incorporate the FBA fees and inbound costs into your selling price to avoid making losses. Check out our detailed article on calculating Amazon seller fees for maximum profit.

Inbound fees are what it will cost you to ship your items to the Amazon Canada warehouses.

B) Fulfillment by Merchant (FBM)

With this method, you'll manage the storage, packing, shipping, and customer service processes.

It can be a good option if you don't mind doing it yourself and want to avoid paying FBA fees and inbound shipping costs.

Alternatively, you could also choose to use a third-party fulfillment service provider to handle your storage and shipping.

3. Consider the Amazon Canada Selling Fees

How to sell on Amazon CA

The fees we'll discuss in this section apply to both FBA and FBM sellers. You can also use the best Amazon sales calculator to estimate your profits properly.

A) Referral Fees

Think of referral fees as a kind of commission that you pay to Amazon Canada for using their platform. These fees are typically about 15% of the selling price of your item. They are applied to every item you sell regardless of the fulfillment method you use.

Amazon Canada will automatically collect these fees once you make a sale. Therefore, consider these fees as you're calculating your selling price.

Check out this information on Amazon Canada referral fees for your reference.

B) FBA Fulfillment Fees

These are fees for FBA sellers. If you are an FBA seller, you'll need to pay these fees for the services that Amazon Canada offers you. The amount you pay often depends on the size and weight of your items.

Check out this information on FBA fulfillment fees to know how much you'll need to pay to Amazon.

C) FBA Storage Fees

How to sell on Amazon CA

These fees come in two categories. The monthly storage fees and the long-term storage fees. You'll need to understand both to plan your business properly.

i) Monthly Storage Fees

These are fees that you pay Amazon Canada for properly storing your items in their warehouses.

They are often charged between the 7th and 15th day of the month following the one on which the fee applies. For example, if you are paying storage fees for the month of January, you'll be charged between the 7th and 15th of February.

Therefore, you'll reference the February column to know how much fees you'll be charged.

Another thing to note is that these fees depend on whether your items are standard-size or oversize. Standard size items often cost more than oversize items because they require more complex shelving.

ii) Long-term Storage Fees

These are often assessed on the 15th of each month. If Amazon finds that you have inventory that's stayed in the warehouses for more than 365 days, you'll need to pay Amazon a long-term storage fee of CAD$ 150 per cubic meter.

4. Consider Tax and Regulations When Selling On Amazon Canada

How to sell on Amazon CA

You should keep these tax regulations in mind when selling on Amazon Canada.

Here are the two types of taxes to consider.

A) Federal Sales Tax

These are also called Goods and Services Tax (GST) or Harmonized Sales Tax (HST). The type you'll encounter depends on the Canadian province that you are operating in.

With this type of tax, you'll still be required to pay even though your business is not registered in the country.

B) Provincial Sales Tax

These types of taxes are also called Quebec Sales Tax (QST) or Retail Sales Tax (RST). They depend on your business's specific province.

However, ensure that you consult your accountant or tax advisor for more information.

5. Get A North American Unified Account - If You Already Sell on the Amazon U.S. Marketplace

If you live in the United States or are already selling on the Amazon.com marketplace but want to tap into the Canadian marketplace, you can use this unified account. This account allows you to sell in the U.S., Canada, and Mexico marketplace.

Amazon rolled out the North America Remote Fulfillment (NARF) back in 2019. The process makes it simple for Amazon sellers looking to sell in two or all three of these areas.

Once you enroll in this fulfillment, your items will appear on Amazon.ca. The downside to this, however, is that your products will be more expensive to your Canadian customers.

This is because Amazon will handle all aspects of shipping, duties, and taxes and passes on these costs to your buyer. This is the case when your inventory isn't stored in Canada.

Nonetheless, the good news is that Amazon indicates these additional charges on the price section of the product details. The bad news is that it may make some of your potential customers opt for other sellers who don't have these extra charges.

Using NARF, you can sell under one professional account. You'll need to pay USD$ 39.99 per month to list your products in all three countries. If you want to switch between these three countries, you can do so in your Seller Central Account.

A) List Your Products on Amazon.ca

How to sell on Amazon CA

Here are the steps to follow when listing your products on Amazon CA:

  1. Go to your unified account and switch to Canada
  2. Go to the "Inventory" section and click "Add a Product"
  3. Enter your ASIN from Amazon.com and search for it

At this stage, all of your information from your Amazon.com listing will be transferred to the Amazon.ca listing draft.

  1. Click "Sell this Product"

This step will transfer all your reviews from the Amazon.com listing. This is important because it allows you to build from your existing progress instead of starting over again.

Some more information you'll need to add to complete the process include the condition of the product, price, SKU, and fulfillment method.

For the price section, convert the selling price from USD$ to CAD$ and add FBA fees if any.

B) Send Inventory to Amazon FBA Warehouses in Canada

How to sell on Amazon CA

If you choose to go to the Amazon FBA route, you'll need to send your inventory to the Amazon warehouses in Canada.

The best way to go about it is to send less inventory than you would send to the U.S. warehouse until you determine the monthly sales volume. This will save you from paying unnecessarily high storage fees until you know how much inventory you need each month.

Unfortunately, things work slightly differently in the Canadian market, and you'll need to find your own carrier. Ensure the carrier you choose offers Delivered Duty Paid (DDP) services to avoid having Amazon reject your shipment.

Some good examples of carriers that offer these services include DHL, UPS, and FedEx.

Once your carrier confirms that they're coming for your shipment, you can go to your Seller Central account and input your tracking number.

So, what happens when you don't want to send your shipment to the Amazon warehouses in Canada?

C) FBA Remote Fulfillment

How to sell on Amazon CA

You can use the remote fulfillment method when you don't want to send your inventory to warehouses.

However, the problem with this method is that it is slower than the two-day shipping enjoyed by U.S. buyers. In fact, Prime customers will have to wait 7-12 days to get their items delivered through free shipping.

Take Away

We hope that you've found immense value in this article and can now start selling on Amazon CA, whether you're new to selling on Amazon or not.

Although it's a smaller marketplace than Amazon U.S., Amazon CA is still a force to be reckoned with. In fact, because it's still growing, the competition is less than on the Amazon U.S. marketplace, which you can take advantage of.

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