Selling on Amazon has become one of the most popular ways for businesses and entrepreneurs to reach a wider customer base. While most sellers start out on Amazon.com in the US, expanding your sales to Amazon Canada can significantly grow your business.
Amazon.ca attracts millions of customers across Canada looking for a vast selection of products at competitive prices. Becoming a seller on Amazon Canada provides access to this large market and enables you to boost your sales.
In this complete guide, we’ll cover everything you need to know about selling on Amazon Canada, including:
Getting Started on Amazon Canada
To become a seller on Amazon Canada, you need to create a seller account and list your products. Here are the steps to get started:
1. Create an Amazon Seller Central Account
- Go to services.amazon.ca and click on “Start Selling Online.”
- Choose to sell as an individual or as a professional and enter your information to create an account.
- You’ll need to provide your business name, address, credit card, bank account details and tax information.
2. List Your Products
- Sign into your Seller Central account.
- Click on “Add a Product” and enter your product name, SKU, product description and images.
- Select the product category and set a competitive price.
- Choose your shipping settings and publish your listing.
It’s free to create a seller account and list products on Amazon Canada. You only pay referral fees when your products sell.
Amazon Canada Fees
When selling on Amazon Canada, there are two main types of fees to factor into your costs:
Referral Fees
- These are percentage fees charged on the total sales price of your product, excluding shipping.
- Referral fees vary by product category but range from 8-15%.
Fulfillment Fees
- If you use Amazon’s Fulfillment by Amazon (FBA) service for shipping and customer service, there are fulfillment fees.
- Fees include picking and packing, shipping, customer service and storage.
- FBA fees vary depending on product size and volume.
Amazon also charges other optional fees for features like sponsored ads and storage for merchant-fulfilled items. Plan your pricing strategy accordingly to cover Amazon fees and remain profitable.
Optimizing Your Amazon Canada Listings
Creating optimized Amazon product listings gives your items the best chance of being discovered by customers. Follow these tips:
- Choose descriptive titles and bullet points – Include keywords that customers search for. Highlight key product features and benefits.
- Write detailed product descriptions – Include features, dimensions, materials, uses, etc. Optimize text with keywords.
- Take professional photos – Show your product from multiple angles. Use a clean, white background.
- Encourage reviews – Ask satisfied customers to leave positive feedback and reviews. This builds social proof.
- Monitor and improve – Check your listing’s search rank for keywords. Make changes to improve visibility.
Thorough, well-optimized listings help buyers find your products when searching and make the sale.
Fulfillment Options on Amazon Canada
Amazon provides two fulfillment options for getting your products to customers in Canada:
1. Fulfillment by Amazon (FBA)
With FBA, you ship your inventory to Amazon’s fulfillment centers in Canada. When an order is placed, Amazon picks, packs and ships your product. They also provide customer service and process returns.
Benefits:
- Fast Prime shipping options
- Lower shipping rates
- Access to Amazon’s large customer base
- Reduced labor on fulfillment
Drawbacks:
- Amazon fees for storage and fulfillment
- Less control over inventory and shipping
2. Merchant Fulfillment
With merchant fulfillment, you handle storage, picking, packing and shipping orders yourself from your own facility. You can choose your shipping carrier.
Benefits:
- Lower overall fees
- More control over fulfillment and inventory
- Ability to differentiate with packaging
Drawbacks:
- Slower shipping times
- Higher shipping costs
- More labor for fulfillment
Consider sales volume, product size, staffing and budget when choosing the best fulfillment method.
Amazon Canada Seller Policies and Restrictions
Amazon Canada operates independently from Amazon.com in the US but has similar seller policies. Here are some key policies to know:
- Product categories – Certain categories like jewelry, food, and supplements have approval requirements.
- Prohibited products – Restricted products include prescription drugs, weapons, and illegal/unsafe items.
- Brand approval – You must show documentation to sell major trademarked brands.
- Collecting GST/HST – Amazon handles GST/HST on your behalf for FBA sales. For merchant fulfillment, you must collect.
- CAD pricing – List prices in Canadian dollars (CAD), not US dollars. Set prices competitively for Canada.
- Shipping policies – FBA shipments go to Amazon fulfillment centers in Canada. Merchant fulfillment packages require prepaid return postage.
Carefully review Amazon’s seller policies to remain compliant and avoid account suspensions.
Advertising Your Products on Amazon Canada
Amazon offers paid advertising options to increase product visibility and sales in Canada:
- Sponsored Products – Pay for keywords so your listing is displayed at the top of search results.
- Sponsored Brands – Show your brand, logo, and products together in search results.
- Amazon Stores – Curate a custom brand storefront showcasing your products.
- Display Ads – Purchase display banner ads on Amazon to reach shoppers.
- Amazon Marketing Services – Use Amazon’s insights and tools to create targeted ad campaigns.
Leverage advertising to reach more Canadian shoppers searching for products like yours. Start small and monitor performance.
Building Your Brand on Amazon Canada
Beyond just selling products, you can build brand awareness and establish authority on Amazon Canada:
- Create an Amazon Storefront – Customize your brand store with logo, banners, featured products and branding.
- Enroll in Brand Registry – Protect brand assets and access performance analytics.
- Join Amazon Influencer Program – Get your own dedicated URL and creator page to showcase your brand.
- Participate in Amazon Vendor Programs – Unlock bigger brand building initiatives and merchandising.
- Use A+ Content – Add enhanced content like videos, images and text to educate customers on your brand.
Cultivate your brand presence on Amazon to better connect with customers and stand out.
Amazon Canada vs. Amazon US Comparison
While Amazon operates in both the US and Canada, there are some key differences between selling on each marketplace.
| Factor | Amazon.com (US) | Amazon.ca (Canada) |
| Product selection | 350 million | 200 million |
| Customers | 200 million | 9 million |
| Fulfillment | Ships worldwide | Ships within Canada |
| Advertising | More competition, higher costs | Less competition, lower costs |
| Sales volume | Much larger % of ecommerce | Smaller % of ecommerce |
| Culture | Tailored to US | Adapted for Canada |
This table summarizes the major points of comparison:
- Amazon.com has a wider selection and much larger customer base.
- FBA fulfillment is contained within the country on Amazon.ca vs worldwide on the US site.
- Advertising is more expensive with more sellers competing on Amazon.com.
- Amazon.ca represents a smaller portion of all ecommerce sales in Canada.
- Amazon.ca localizes products and content for Canadian culture and languages.
Selling on both marketplaces can help you expand your reach. But you need to optimize your strategy and listings for each audience. Carefully research product fit, competitor pricing, promotions and advertising options that work for Canada specifically.
Conclusion
Selling on Amazon Canada opens up a large new customer base for your products. With over 9 million customers shopping on Amazon.ca, it provides major expansion potential for your ecommerce business.
By following this guide, you can successfully set up your seller account, create optimized listings, choose the right fulfillment methods and employ smart branding and marketing tactics. Remember to tailor your Amazon strategy specifically for the Canadian market.
Enhancing Your Amazon Canada Strategy with Algopix
Algopix is an invaluable tool for sellers aiming to succeed on Amazon Canada. By providing detailed market insights, optimizing listings, managing inventory effectively, and understanding the Canadian market, Algopix empowers sellers to make data-driven decisions and maximize their success in this dynamic marketplace. Try now for free.
