How to Sell on Amazon USA from Canada?
- we1677
- Dec 5, 2024
- 3 min read
A Comprehensive Guide for Canadians Selling on Amazon US
Increasingly, entrepreneurs worldwide are exploring opportunities to sell on Amazon FBA. While Amazon Canada’s marketplace is smaller than its US counterpart, many Canadian sellers find the prospect of expanding to Amazon.com highly appealing. Amazon FBA simplifies scaling a business by managing logistics and enabling sellers to grow rapidly. Additionally, with the Amazon North America Unified Account, sellers can manage operations across Canada, the US, and Mexico seamlessly. This presents an excellent chance for Canadian entrepreneurs to expand internationally. Here’s a breakdown of why and how you can start selling on Amazon.com from Canada.
Why Sell on Amazon US as a Canadian?
Although online shopping in Canada has grown significantly—with nearly 80% of Canadians shopping online—the US market is undeniably larger. Approximately 70% of American households have Amazon accounts, and half of these are Amazon Prime members. With a customer base that is exponentially larger, Amazon.com offers immense potential for sellers.
Benefits of a North America Unified Account
Using a unified account through Amazon’s Seller Central platform allows you to:
Pay one monthly Professional selling plan fee for all North American marketplaces.
Access integrated tools to manage inventory, listings, and orders across Canada, the US, and Mexico.
Consolidate order management through a single interface.
Receive payments in your local currency with Amazon Currency Converter for Sellers (ACCS).
Advantages of Selling on Amazon.com Over Amazon.ca
1. Larger Market Size
In 2021, Canada’s population was around 38.4 million compared to the US’s 331.4 million. This tenfold difference means greater sales opportunities on Amazon.com.
2. Prime Members’ Spending
Amazon.com has over 124 million Prime subscribers, who spend twice as much as non-Prime customers. This ensures a steady stream of high-value transactions.
3. Ease of Operations with FBA
Amazon FBA simplifies international business by handling shipping, storage, packaging, and customer service. With a shared language between Canada and the US, there’s no need for translation.
4. Lower Competition
Amazon.ca has fewer listed products (133 million) compared to Amazon.com’s 350 million, meaning Canadian sellers can often find unique opportunities.
5. Competitive Pricing
Although product prices on Amazon.ca can be higher due to lower competition, selling on Amazon.com offers opportunities to capitalize on greater demand and economies of scale.
Choosing Between FBA and FBM
FBA (Fulfillment by Amazon): This method allows Amazon to handle logistics, making it ideal for those seeking a hands-off approach. All FBA-listed products are Prime-eligible, enhancing visibility.
FBM (Fulfillment by Merchant): Sellers manage their own shipping and storage. While this option can save costs, it requires more time and effort. Third-party fulfillment services are a popular alternative.
Requirements to Start Selling on Amazon US
To begin selling on Amazon.com, you’ll need:
A valid bank account (Canadian or US-based).
Tax forms.
UPC/EAN codes for your products.
A chargeable credit card (e.g., Visa or Mastercard).
A phone number and email for authentication.
For brand owners, registering your brand with Amazon ensures added protection and benefits.
Steps to Set Up Your Amazon US Seller Account
Create a Seller Account: Opt for the North America Unified Account to reduce fees and streamline operations across marketplaces.
Choose a Selling Plan: Select the Individual plan if you expect to sell fewer than 20 items per month; otherwise, choose the Professional plan for scalability.
List Products: Use the Build International Listings tool in Seller Central to create product listings across multiple marketplaces.
Ship Inventory: For FBA, send your products to Amazon’s US warehouses, ensuring compliance with labeling and packaging requirements.
Get Paid: Use services like TransferWise (now Wise) for currency conversion, minimizing fees when receiving payments in Canadian dollars.
Finding Inventory in Canada
Retail Stores: Take advantage of clearance sales at major retailers like Walmart, Costco, and Canadian Tire.
Wholesale Suppliers: Platforms like Spocket, SaleHoo, and Wholesale2B connect you with suppliers offering discounted bulk products.
Online Marketplaces: Browse platforms like Kijiji, eBay.ca, and Facebook Marketplace for deals.
Liquidation and Overstock: Companies like Direct Liquidation and B-Stock offer discounted inventory from retailers.
Local Manufacturers: Partnering with Canadian manufacturers can give you access to unique products for competitive differentiation.
Trade Shows and Expos: Events like the Toronto Gift Show are excellent for discovering new products and suppliers.
Shipping Inventory to Amazon US Warehouses
To ship inventory from Canada to the US:
Ensure your Amazon account is configured for the US marketplace.
Prepare items according to Amazon’s packaging guidelines.
Create a shipment plan in Seller Central, specifying details like quantity and ship-from location.
Choose a shipping method (small parcel or freight) and prepare customs documentation.
Ship and track your inventory using Amazon’s tracking tools.
Final Thoughts
For Canadian entrepreneurs looking to expand, selling on Amazon.com is a lucrative opportunity. With tools like FBA, the Unified Account, and international listing options, scaling your business has never been easier. By tapping into the massive US market, you can unlock significant growth potential and streamline operations using Amazon’s robust infrastructure.
Comments