Why Should Canadians Choose Amazon US?
Since 2017, online shopping has grown in Canada, and about 80% of the population currently shops online. But, when you compare it with the number of American shoppers, about 70% of Amazon accounts, you realize why Amazon.com is so attractive for sellers.
Half of 263 million American Amazon subscribers are also members of Amazon Prime’s premium shipping service. This service helps sellers to give a better service to buyers.
When you use North America Unified Account in “Seller Central,” you can conveniently switch between Amazon.ca, Amazon.com, and Amazon.com.mx seller tools to list products and manage orders in all stores. This has the following benefits:
- For your North America Unified Account, you can pay a single monthly Professional selling plan subscription fee
- Across the U.S., Canada, and Mexico marketplaces, you will have access to tools and services to help you manage your business
- Through a consolidated user interface, the account information updates.
- In managing Orders or with one combined Order Report, you can keep track of orders on multiple North American sales channels
- You can manage your inventory consistently and share listing information across Amazon’s U.S., Canada, and Mexico marketplaces
- Thanks to the Amazon Currency Converter for Sellers, you get paid to your local bank in your local currency
Many reasons can convince you to sell on Amazon.com, the biggest eCommerce site globally, from Canada. Here, we nail them down:
1) Fast approval of the platform
Generally, Amazon approves the accounts of new sellers within a week. This short approval process is minimal downtime for your business.
2) Huge potential market to tap into
With more than 124 million prime users in 2019, it has the most considerable potential for sales. Amazon provides regular and rapid shipping for these VIP customers who pay a monthly/annual subscription. The reports show that Prime users spend double compared with regular Amazon customers.
3) FBA makes an international business a breeze
Not only has shipping become easier by FBA, but also the whole customer experience. You don’t require to translate your inventory because both countries have the same language, English.
4) Low barriers to entry
As a Canadian-based business, selling products in the USA can be costly. Also, Amazon may put some red tape before your complicated endeavor. On the other hand, it offers some services to start your business quickly.
Amazon.com VS Amazon.ca; Which One is Better?
Many reasons can convince you to sell from Canada on Amazon.com, the biggest global eCommerce site. Here, we nail them down:
- Market size
Comparing the population of Canada to the USA in 2021 shows you how big the US market is. Canada had about 38.4 million people, whereas the US had approximately 331.4 million. See! It is about 10 times., which allows Canadian sellers to sell about 10 times more on Amazon.com than on Amazon.ca.
- Pricing
If you convert the USD to CAD, the average price of products is higher on Amazon.ca than on Amazon.com. It has two main reasons. The first reason is that the supply and demand in Canada, the competition is lower, so sellers can sell their products at a higher price. The second reason is the shipment.
- Shipping
The shipping charge to Canada is higher compared to the US. This is an extra cost to your prices as you choose to fulfill your products through Fulfillment by Merchant (FBM).
- Competition
The total number of listed products on Amazon.ca is 133 million, while there are 350 million listed products on Amazon.com. These statistics help you understand that Canada’s competition is much lower than the US.
If you want more global options, learn how to sell products internationally on Amazon.
Fulfillment methods for Amazon USA
In Canada, users can leverage one of these two methods:
FBA:
In this method, you send your products to Amazon centers, and the platform does the rest of the job for you. This is the more convenient, time-saving method since Amazon takes over the shipping, packaging, and labeling (of course, for a monthly fee). FBA also makes all your items eligible for Amazon Prime. Learning how to start an amazon fba business can benefit new sellers and people who don’t have much free time.
FBM:
Unlike FBA, in this method, you (the seller) take care of the storage, packaging, and shipping. This way, you can save money, but it is pretty time-consuming. Many FBM sellers use a third-party fulfillment service instead of Amazon. Read how to start amazon fbm here.
Financial Accounts Need to Start Selling on Amazon USA
You would need a bank account to manage your transactions. Still, you don’t necessarily require a US bank account, so it could be a Canadian bank account because Amazon makes it easy and provides an exchange service ACCS (Amazon Currency Converter for Sellers).
However, some sellers prefer to use other currency exchange services because of the transfer fees and the better rate they offer than Amazon. Transferwise Borderless account is another money transfer service that some sellers use, offering a business account with zero fees.
To eliminate excessive fees, you can also use a US bank account. Canadian bank also gives you this service, which is suitable if you want to do Online Arbitrage for long-term periods.
Step-by-Step Guide to Setup an Amazon US Account
Below are your requirements to start selling on Amazon US from CA.
- A valid bank account – Also sorted through Transferwise
- Tax forms
- UPC or EAN codes for items in your inventory
- Phone number and email address – For login purposes and two-factor authentication
- Chargeable Visa/Mastercard – Available through Transferwise is a borderless money transfer service/bank, a perfect solution offering a business account with zero fees saving you even more cash each month.
- Brand registration – If you have a registered brand name
Now, get started by following the steps:
- Create a seller account and select North America. You will pay less when choosing the North American Unified Account from Canada. No additional fee is required to sell in US and Mexico.
- Choose between a Professional account and an Individual account based on the scale of your business. If you monthly sell 20 items on amazon.com or amazon.ca, an Individual plan is better for you. Otherwise, the Professional plan is more cost-effective.
- For adding products to your list, the Build International Listing (BIL) tool in Seller Central is helpful as you list items in multiple marketplaces.
- Once you sell an item, it is time to deliver the product to the customer. In Amazon FBA service, Amazon fulfills all processes, from picking, packing, storing, and shipping to return and customer service.
- Finally, using Transferwise, you receive your money at a low exchange rate without paying a high bank fee.
Where Can You Find Inventory in Canada?
There are plenty of methods to find your Amazon inventory inside the borders of Canada. here are some cost-effective, yet practical options for you:
Retail Store
International retail stores like Walmart and Costco are present in Canada too. There are also country-based options like Canadian Tire. These stores often have clearance sales and discounts and can be excellent opportunities for sourcing products at lower prices. Find deals by visiting the shops, their websites or deal finder tools.
Wholesale Suppliers
Wholesale suppliers can help you find items for your inventory in Canada. Engage with these sellers (ones like Spocket, SaleHoo, and Wholesale2B). These platforms connect you with a variety of suppliers offering bulk products at discounted rates, which can significantly reduce your cost per unit. If you are into wholesale business, this is the way to go.
Online Marketplaces
Websites like Kijiji, eBay.ca, and Facebook Marketplace can be great for finding new or gently used items at lower prices. These platforms allow for negotiation, helping you secure better deals especially if you’ve just started an Amazon business.
Liquidation and Overstock
Companies like Direct Liquidation and B-Stock offer liquidation and overstock goods from major retailers. These goods are often available at a fraction of the original cost, ideal for resale on Amazon.
Local Manufacturers
Making deals with local manufacturers can give you access to unique products that might not be widely available in the U.S. This can be a competitive advantage for your shop, offering exclusive or niche items to customers.
Trade Shows and Expos
Attending trade shows and expos, such as the “Canadian Gift Fair” or “Toronto Gift Show”, can help you discover new products and establish relationships with suppliers and manufacturers.
How to Ship Inventories from CA to Amazon.com Warehouses?
Sending your inventory from Canada to Amazon’s U.S. warehouses should be done strategically and with a plan. We have sorted this plan out for you, in a step-by-step manner:
- Adjust Your Amazon Seller Account: As a seller on the platform, you surely have a seller account. Make sure it’s registered for the U.S. marketplace.
- Prepare Inventory: Make sure every item in your inventory, complies with Amazon’s packaging and labeling requirements. A scannable barcode (UPC, EAN, or FNSKU), safe packaging, and some other requirements are necessary here.
- Create a Shipment Plan: Within your Seller Central account, navigate to the “Inventory” tab and select “Send/Replenish Inventory.” Follow the steps to create a shipment plan, which includes selecting the products to send, specifying the quantity, and providing the ship-from address.
- Select a Method: select between small parcel delivery (SPD) for packages or less-than-truckload (LTL) for larger shipments. Remember that with partnered carriers, often come discounted rates.
- Prepare Documentation: International shipping requires complete customs documentation, including a commercial invoice and some other forms (depending on the goods). These documents are needed to ensure your shipment clears U.S. customs without issues.
- Ship the Packages: Now Print the provided shipping labels and attach them to your packages. Arrange for pickup or drop-off with your own carrier.
- Track and Confirm: Amazon has tracking tools to monitor your shipment’s progress. After receiving it, the platform will process and stock your inventory, making it available for purchase on Amazon.com.
How to Sell on Amazon.com from CA with OABeans?
As we said before, your seller account on Amazon can be used as a platform to sell internationally. If your business is based in Canada, you can use FBA options and sell in the United States. OABeans Online Arbitrage Deals make business easier for you.
One of the first and most important things you need to do to succeed in the FBA business is to decide what to sell. Making a good decision in the first stages helps you get more stable benefits and spend less time manually searching for potential products. The Online Arbitrage Deals service in OABeans delivers daily lists of profitable products. These lists make product selection much easier and are made specifically for reselling in the US. Here are the steps for selling in the US with the help of OABeans lists:
- Select a subscription plan based on your business type and unique needs.
- Provide OABeans with contact information and make an account.
- Now, you will get daily lists in your email. These lists include purchase links, price history, and all your needed data.
Final Thought
If you, as a Canadian, decide to scale up your business, selling on amazon.com is a perfect way. It doesn’t have too much difficulty, and there are Amazon tools on the market to help you, like FBA, the Unified Account, Build International Listings tool. By using amazon.com, you reach a big American market and benefit from it. Transferring money is as easy as pie using a banking service like Transferwise.
FAQ
Yes. If you use the Fulfillment by Merchant (FBM) service, you are responsible for shipping the products you sell on Amazon.
If Canada is your home country, you can simply sign up for Amazon’s North America Unified Account and start selling on Amazon US from CA.
Suppose you use Fulfilled by Amazon (FBA) services and import goods into the United States. In that case, you will need an EIN (Employer Identification Number) to file your ITRs with the IRS and Sales Tax and State Tax with individual states.
The short answer is no. You don’t need a local bank account to sell on Amazon US, even if you’re in Canada. Amazon offers an exchange service ACCS (Amazon Currency Converter for Sellers).
Yes, this highly profitable way of selling on Amazon is legal in Canada.
All sellers making money on Amazon are required to pay Income Tax and Amazon Sales Tax.
The FBA program enables you to take advantage of Amazon’s vast fulfillment network, ensuring faster and more reliable delivery for your customers.
The thrill of finding discounted items and turning them into profitable sales through retail arbitrage on Amazon is both financially rewarding and personally satisfying.
Reselling on Amazon allows you to tap into the power of Prime membership, attracting customers who value fast and reliable shipping.
The streamlined shipping and logistics process of Amazon FBA helps sellers save time and reduce operational costs.
With Amazon’s secure payment system and reliable transaction process, you can conduct reselling transactions with confidence and peace of mind.
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