How to Sell on Amazon USA from Canada?

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, which is 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 endeavour. On the other hand, it offers some services to quickly start your business.

Read More: How to Start Amazon FBA Business?

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 fulfil 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.

Fulfilment methods for Amazon USA

In Canada users can leverage one 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 (ofcourse for a monthly fee). FBA also makes all your items eligible for Amazon Prime.

FBM:

Unlike FBA, in this method you (the seller) are the one taking 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.

Financial Accounts Need to Start Selling on Amazon USA

You would need a bank account to manage your transactions, but 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.

Want to know the income of Amazon’s top sellers?! Click here

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, which is 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:

1. 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.
2. 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.
3. For adding products to your list, the Build International Listing (BIL) tool in Seller Central is helpful as you list items in multiple marketplaces.
4. Once you sell an item, it is time to deliver the product to the customer. In Amazon FBA service, Amazon fulfils all processes, from picking, packing, storing, and shipping to return and customer service.
5. Finally, using Transferwise, you receive your money at a low exchange rate without paying a high bank fee.

Read More: How to Sell Internationally on Amazon?

Where Can You Find Inventory in Canada?

There are three general ways to find inventory in Canada: Wholesale, Retail Arbitrage and Online Arbitrage.

You can source products in Canada and also the USA. If you do online arbitrage, you have the option to source products from all online retail stores in the USA.

In the case of online arbitrage, all you need to do is source from websites that sell discounted products and have shipping to USA. This way, you can resell them for a higher price and profit. Websites like Qalara (Handmade fashion and decor), Walmart (Baby Products, Electronics, etc.) and Canadian Tire (Home Decor and outdoor products) are among the best sourcing options in Canada.

There are also websites that help you supply wholesale products and keep them in your inventory. Websites like Faire (Food, Beauty, Fashion, etc.), BDI (Mechanical tools) and Dorfin (Household products, stationery Supplies, Tableware, etc.).

If you want to do Retail Arbitrage, you must go to physical stores, buy items and then list them on Amazon. Many retail stores in Canada, like the Bargain Shop, Walmart Canada, FreshCo and The Great Canadian Dollar store.

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

Can you sell products on Amazon and ship them yourself?

Yes. If you use the Fulfillment by Merchant (FBM) service, you are responsible for shipping the products you sell on Amazon.

Can Canadian Amazon sellers sell in the US?

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.

Do I need “EIN” to sell on Amazon from Canada?

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.

Do you need a US bank account to sell Amazon?

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).

Is Amazon FBA legal in Canada?

Yes, this highly profitable way of selling on Amazon is legal in Canada.

Do you pay tax if you sell on Amazon?

All sellers making money on Amazon are required to pay Income Tax and Amazon Sales Tax.

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