Do you want to sell on Amazon Canada? Then read this guide to learn everything you need to know to start selling on Amazon CA.
A lot of sellers are drawn to Amazon because of its massive customer base and global reach. To maximize this opportunity, many U.S. sellers are expanding their businesses to international Amazon marketplaces, including Amazon Canada.
Selling on Amazon Canada can be a great way to reach new customers, diversify your revenue streams, and grow your brand. However, it also comes with unique challenges, from tax regulations to logistical considerations.
This guide will cover the benefits and drawbacks of selling on Amazon Canada, key differences from Amazon U.S., and effective selling tips. By the end, you’ll know how to start selling and whether it’s the right move for your Amazon business.
Table of Contents
What Is Amazon Canada?
Expanding internationally is a great way to reach new customers, and Amazon Canada is one of the best options for U.S. sellers. With nearly 200 million monthly visitors, it provides a strong opportunity for growth.
Amazon Canada is the Canadian version of Amazon’s marketplace, catering to millions of Canadian shoppers. While it operates similarly to Amazon U.S., there are important differences that sellers should be aware of.
Benefits of Selling on Amazon Canada
Selling on Amazon Canada comes with several advantages for expanding your business:
- Amazon Canada attracts millions of visitors, giving your products significant exposure to a large audience.
- You can reach buyers who might not have discovered your products through the U.S. marketplace.
- Competition is less intense compared to Amazon U.S., giving you more visibility and the chance to stand out.
- The PPC costs are lower in Canada which can significantly improve profit margins.
- Provides an opportunity to diversify your revenue sources, reducing the risks associated with relying on a single marketplace.
Drawbacks of Selling on Amazon Canada
While there are many benefits to selling on Amazon Canada, it’s important to also be aware of the potential drawbacks:
- Shipping and fulfillment can be more complex due to customs, geographical barriers, and cross-border shipping.
- Learning about Amazon Canada’s unique policies and strategies takes time and effort.
- U.S. sellers must consider exchange rates when pricing products in Canadian dollars.
- Handling inventory, customer service, and orders across different marketplaces can be time-consuming.
- Expanding to another marketplace can split your attention and reduce focus on your primary platform.
Guidelines for Selling on Amazon Canada
While Amazon is a global platform, Amazon Canada has its own unique set of guidelines that sellers must follow to successfully list and sell on the platform. Understanding and adhering to these guidelines is essential for maintaining a smooth and profitable operation.
Required Information for Registration
Before you register, ensure you have access to:
- Bank account number and routing number
- Chargeable credit card
- Government-issued national ID
- Tax information
- Phone number
Amazon Seller Account Guidelines
- Only one Seller Central account per region, unless there is a legitimate business need for additional accounts.
- Ensure your business contact information (email, phone number) is current.
- Provide clear, detailed policies (return policies should be at least as favorable as Amazon’s).
- Upload a logo (120 x 30 pixels) for your storefront.
- Set clear shipping rates and return policies to build customer trust.
Taxation and Compliance
Sellers must comply with Canadian tax laws, including:
- GST (Goods and Services Tax): A 5% federal tax on most goods and services.
- HST (Harmonized Sales Tax): Combines GST and provincial taxes, ranging from 13% to 15%.
- PST (Provincial Sales Tax): Applied separately in provinces that do not use HST.
Additionally, compliance with CASL (Canada Anti-Spam Law) is required for email marketing, ensuring prior consent and easy opt-out options.
Data Protection and Privacy
Canadian privacy laws, including PIPEDA (Personal Information Protection and Electronic Documents Act), require businesses to:
- Obtain consent for collecting and using personal data.
- Implement security measures to protect customer information.
Some provinces have additional privacy laws, making it crucial for sellers to stay informed on regional regulations.
Trademark Requirements
To enroll in Amazon Brand Registry and protect your brand in Canada, you need:
- A registered Canadian trademark or a pending application with the Canadian Intellectual Property Office (CIPO).
- A U.S. trademark, which is now accepted for Amazon Canada’s Brand Registry.
Amazon Canada vs. Amazon U.S.
Amazon U.S. and Amazon Canada share many similarities, but there are key differences that can significantly affect your selling strategies. To understand these differences better, here are the key points you should keep in mind when comparing the two marketplaces.
| Aspect | Amazon Canada | Amazon U.S. |
|---|---|---|
|
Consumer Behavior |
Focus on quality, sustainability, and local products. |
Diverse customer base with a high demand for trends and tech. |
|
Market Size and Potential |
Smaller, growing rapidly, with niche opportunities. |
Larger, established with immense potential but highly competitive. |
|
Logistics and Fulfillment |
Larger geographical area, dispersed population, higher shipping costs. |
Well-developed logistics infrastructure, more shipping options. |
|
Competition and Saturation |
Less saturated, more room for new entrants, especially in niche markets. |
Highly competitive with many sellers and products, differentiation is key. |
|
Taxation and Legal Regulations |
GST/HST/PST system, federal and provincial tax laws to follow. |
Sales tax varies by state, requires careful state-specific compliance. |
|
Prime Membership & Loyalty |
High penetration, influencing frequent purchases. |
High penetration, contributing to increased purchase frequency. |
|
Advertising and Marketing |
Emerging market with opportunities for lower advertising costs. |
Highly competitive, requiring significant marketing investment. |
|
PPC Costs |
Lower than the U.S., offering better profit margins. |
Higher PPC costs, more competition, and price wars. |
How to Sell on Amazon Canada
Creating an account to sell on Amazon Canada is straightforward, as long as you follow the right steps. Here’s a detailed guide from our Amazon agency to help you get started.
Step 1: Choose Your Selling Plan
- Individual Plan: Pay CAD 1.49 per sale (for fewer than 30 items/month).
- Professional Plan: Pay CAD 29.99/month (for more than 30 items/month).
Step 2: Gather Required Information
- Bank account and routing number
- Credit card details
- Government-issued ID
- Tax information (for Canadian sellers)
- Phone number
Step 3: Create Your Amazon Account
- Visit Seller Central for Amazon CA and click Sign Up.
- Choose your seller plan and business location.
Step 4: Enter Your Business & Seller Info
- Provide your business name, contact info, and shipping address.
Step 5: Add Billing Info
- Enter your credit card and bank account details.
Step 6: Complete Verification
- Verify your identity with a government-issued ID and phone number.
Step 7: Set Up Your Account (If Selling from the U.S. or Other Countries)
- Use the North America Unified Account to manage listings across Amazon U.S. (amazon.com), Canada (amazon.ca), and Mexico (amazon.com.mx).
Top Product Categories to Sell on Amazon Canada
High-performing product categories vary by location, and the same applies to Amazon Canada. Certain products perform better in this marketplace than in the U.S., making it essential to understand what Canadian shoppers prefer.
Selling these in-demand products can give you a competitive edge and improve your success in the region:
1. Lifestyle Products
The lifestyle category generates billions in revenue on Amazon Canada, making it a profitable niche for sellers. Popular subcategories include home organization, kitchen essentials, and wellness products that align with Canadian consumers’ daily needs.
2. Health and Personal Care
Canadians prioritize health and wellness, fueling demand for personal care items, supplements, and skincare products. Natural and organic options perform particularly well, as shoppers seek clean ingredients and sustainable packaging.
3. Electronics
Electronics remain a top-selling category in Canada, with strong demand for smart home devices, headphones, and accessories. Products that enhance productivity or entertainment, such as ergonomic keyboards or streaming devices, also sell well.
4. Sustainable and Eco-Friendly Products
Eco-conscious shopping is on the rise, with many Canadians looking for reusable, biodegradable, and ethically sourced products. Items like bamboo kitchenware, compostable packaging, and refillable beauty products appeal to environmentally aware consumers.
5. Local and Artisanal Goods
Handcrafted and locally produced items are gaining popularity as Canadians seek unique, high-quality alternatives to mass-produced products. This trend spans across home décor, apparel, and specialty food items that highlight craftsmanship and regional identity.
6. Seasonal Products
Canada’s distinct seasons create demand for specific products throughout the year. Outdoor gear for summer, winter sports equipment, and holiday decorations all present opportunities for Amazon sellers to capitalize on seasonal trends.
Effective Tips for Selling on Amazon Canada
To succeed on Amazon Canada, it’s essential to follow best practices tailored to the unique characteristics of the market. By using these tips, you can connect with Canadian shoppers, build trust, and enhance your chances of success.
1. Research and Personalize Strategy
While the U.S. and Canadian markets share similarities, a one-size-fits-all strategy won’t work. By understanding the cultural nuances of Canadian consumers, from product selection to marketing messages, you can create a more personalized experience that resonates with your audience.
Cross-border e-commerce is growing rapidly in Canada, with many consumers buying from international sellers. This trend presents an opportunity for global sellers to tap into the Canadian market, offering a wider selection of products at competitive prices that may not be available locally.
2. Speak Your Customer's Language
Canada’s bilingual nature means offering listings in both English and French is crucial for reaching a broad audience. Providing customer service in both languages not only meets regulatory requirements but also helps build loyalty with Canadian consumers, ensuring a positive shopping experience.
By offering localized content and support, you demonstrate respect for Canadian cultural diversity. This approach will make your business more appealing and accessible to a wider customer base, boosting trust and encouraging repeat purchases.
3. Target Popular Categories in Canada
Understanding the interests and preferences of Canadian shoppers is vital for success. Categories such as lifestyle, health, personal care, and electronics remain strong, but sustainable, eco-friendly products are becoming increasingly popular as Canadians show a growing interest in environmental responsibility.
In addition, products that focus on local craftsmanship or have an artisanal angle are gaining traction. Seasonal trends, such as outdoor gear in summer and winter sports equipment, also present valuable opportunities to target specific needs at different times of the year.
Looking for more strategies that can help you expand into marketplaces like Amazon CA? Enroll in MAG School’s International Launching course and learn to build a successful global business.
FAQs About Selling on Amazon Canada
Start Selling in Canada to Grow Your Amazon Business
Expanding your business to Amazon Canada is a great way to reach more customers and tap into a growing e-commerce market. With lower competition and a strong demand for various products, selling on Amazon.ca can open new revenue opportunities.
However, success in this marketplace requires understanding its unique regulations, tax requirements, and consumer preferences. By learning the essentials and building strong strategies, you can position your business for long-term growth in Amazon Canada.
Are you looking to expand your business but don’t know where to start? Let our full-service Amazon agency help you out.
