How to Sell on Amazon Canada (Amazon.ca) in 2024 and Make Big Money!

Is it worth selling on Amazon.ca? Let’s look at the stats.

According to eMarketer, 80.1% of Canadians will become digital buyers by 2024—that’s 31.2 million people ready to be targeted by online businesses.

In this fast-growing eCommerce space, Amazon is the country’s leading e-commerce market and receives around 16 million unique visitors each year. Interestingly enough, it’s the small to mid-tier sellers with the most success stories, half of whom—aside from selling to local audiences—also export products to major Amazon marketplaces like the US and EU.

Based on these stats, you too can set up a profitable business on Amazon.ca! 

All that's left is to learn the ‘how’.

If you want to learn how to sell on Amazon Canada in 2022 and make big money, you’ve come to the right place!

Here’s what this guide includes:

• How to create a seller central account on Amazon.ca
• The different types of selling plans and their fees
• How to ship products to customers
• Selling fees and related costs
• Tax considerations 
• How to create and optimize Amazon product listings
• Selling to and from Amazon.ca

Ready? Let’s dive right into it!

Choose a Selling Plan on Amazon.ca

The Amazon seller account registration is the same across most global marketplaces. Start by choosing a selling plan—you have two options here: the Individual plan and the Professional plan. When subscribing to the individual plan, Amazon charges a $1.49 CDN fee per sale, whereas, in the Professional plan, sellers pay a flat $29.99 CDN per month irrespective of sales. 

You should choose the Individual plan if:

• You’re new to selling on Amazon and are still deciding on what to sell
• You anticipate selling less than 30 items a month
• You don’t need access to advanced seller tools
• You want to keep inventory and other costs to a bare minimum

The Professional plan makes more sense if:

• You understand the basics of Amazon selling
• You plan on selling more than 30 items a month
• You want to apply to programs like Amazon Launchpad, Business, and Handmade

There is no wrong choice here; you can easily switch between selling plans.

How to Register for a Canadian Amazon Seller Account

To become an Amazon seller in the Canadian marketplace, head over to sell.amazon.ca and sign up for a new account. 

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Keep the following on hand to complete the registration process:

• An Amazon customer account or business email address
• A chargeable credit card
• A valid phone number
• Your tax information
• A bank account
• Your government-issued national ID (helps protect you and your customers)

Next, state your business location (it doesn’t matter if you’re located outside of Canada) and business type (select “None, I am an individual” if you don’t fall in any of the other categories). 

After submitting your details, Amazon will ask for further information like your physical address, DOB, store name, etc. Once that is done, Amazon will verify your account, after which you can list your products and do business!

Select the Right Business Model

There are different ‘ways’ of selling products on Amazon, also known as business models. Each method has its pros and cons but some offer more significant growth and earning opportunities than others. You can sell a product on Amazon via:

• Private Label
• Wholesale
• Retail and online arbitrage
• Dropshipping
• Handmade

Private label is the most popular method with third-party Amazon sellers and for good reasons, some of which include:

• Choose a ready-made product—you don’t have to necessarily design or create a new one (only the product; you do have to create a unique brand).
• Lack of competition—you own and retain the buy box.
• Creative control over the product—enhances your value and reputation.
• Lucrative profit margins—untapped product niches offer significant profit margins.
• The ability to expand your product line—build on your success to grow your revenue.

Other business models like wholesale and dropshipping offer opportunities to earn, but the constant risk of account suspensions and product listing hijackers make them less appealing than Amazon private label. Plus, advanced and affordable seller toolkits make creating and running a private label business in 2022 easier than ever before!

Types of Fulfilment Methods for Amazon Canada

Shipping products to customers and handling logistics is a major concern for Amazon sellers. You can fulfil orders yourself (otherwise known as Fulfilment by Merchant or FBM) or let Amazon handle it for you (referred to as Fulfilment by Amazon or FBA). 

Self-fulfilment may result in greater cost savings than FBA in certain situations. Still, it isn’t easy to let go of the comfort that comes with letting Amazon handle logistics, which is why it’s the more popular fulfilment method. Let’s take a look at both methods in more detail.

Fulfilment by Amazon (FBA)

Fulfilling customer orders via FBA requires you to pay a percentage-based fee for each unit sold. In exchange, Amazon will pick, package your products, store them at a fulfilment centre, and ship them out—and that’s not all. Amazon’s customer support team will also handle all queries on your behalf.

Another massive benefit of FBA is that your products become eligible for prime shipping. Prime members can get their hands on their products in 1-2 days, making your offer more appealing than FBM sellers. 

Fulfilment by Merchant (FBM) or Seller-Fulfilled 

Sellers who don’t want to pay the extra FBA fees ship orders themselves, i.e., Self-Fulfilment or Fulfilment by Merchant (FBM). If you decide to take the FBM route, get ready to pack, store, and deliver orders.

Some sellers partner up with a third-party fulfilment service provider but only if the fulfilment costs are lower than or equal to Amazon’s FBA program. FBM takes precedence over FBA in niche situations like:

• High FBA fees for heavy or oversized products
• Low monthly sales volume
• An already established logistics network
• Items that require special care during transport

For the average seller, FBA offers more benefits than FBM.

Can I Do Amazon FBA in Canada?

Yes, you can do Amazon FBA in Canada and considering the advantages FBA has over FBM, you should opt for the program. However, don’t be put off by the FBA fees—it’s unlikely that you (or your third-party fulfilment service provider) can compete with Amazon’s advanced logistics network on price and delivery times. So go for FBA and let Amazon do all the heavy lifting.

Selling Fees on Amazon.ca

Amazon allows third-party sellers to use its platform in exchange for a commission (i.e., a referral fee). Then, additional expenses apply based on the fulfilment method, product category, and product type. Let’s explore some of the major ones starting with Amazon FBA fees.

Amazon FBA Fees

Amazon FBA fees apply only to FBA sellers and include a shipping fee for orders placed by Amazon.ca customers and an FBA storage fee, which consists of monthly inventory storage and long-term storage fees (if enough time has passed).

The exact amount for FBA fees depends on the size and weight of your product. The fee structure for the Canadian Amazon marketplace is as follows:

Amazon FBA Fees for Amazon.ca

Envelope Fulfilment Fee

First 100 g

CAD $3.37

Each additional 100 g

CAD $0.31

Standard Fulfilment Fee

First 250 g

CAD $5.44

250-500 g

CAD $5.57

500-1,000 g

CAD $6.40

1,000-5,000 g

CAD $7.06

Each additional 500 g

CAD $0.43

Oversize Fulfilment Fee

First 1,000 g

CAD $9.71

Each additional 500 g

CAD $0.44

Special handling fee that applies to:

1. Large-screen televisions
2. Exceeds 270 cm on the longest side
3. Exceeds 419 cm on the longest side
4. Has an outbound shipping weight exceeding 69 kg

CAD $125.00

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The second-half of FBA fees are the monthly and long-term storage costs. Under the FBA program, you must ship your inventory to a designated fulfilment centre where they are packaged and stored, waiting to be shipped out. 

The real estate occupied by your products incurs a cost known as FBA storage fees. The monthly FBA fee structure for Amazon Canada looks like this:

Monthly inventory storage fee structure

Month

Standard Size

Oversize

January – September

CAD $24 per cubic metre/month

CAD $17 per cubic metre/month

October – December

CAD $33 per cubic metre/month

CAD $23 per cubic metre/month

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The long-term storage fees only apply to inventory sitting in a fulfilment centre for more than 365. The fee is set at CAD $150 and is assessed on the 15^th of each month. For more details on Amazon’s long-term storage fees, visit the official page.

Amazon FBA fees can be a bit confusing. To know how much FBA fees you owe, check out this nifty free Amazon FBA Profit Calculator!

Amazon Referral Fees

A referral fee is a commission Amazon charges sellers for using its platform, irrespective of the fulfilment method. This percentage-based fee applies to each unit sold and varies based on the product category. The following table breaks down the fee percentages for different product categories and shows the minimum applicable referral fee.

Product categories

Referral fee percentages

Minimum applicable referral fee

Amazon Device Accessories

45%

CAD $0.40

Baby

• 8% for products priced (total sales price) CAD $15.00 or less, and
• 15% for products priced (total sales price) CAD $15.00 or more

CAD $0.40

Books

15%

-

Camera and Photo

8%

CAD $0.40

Cell Phones

8%

CAD $0.40

Consumer Electronics

8%

CAD $0.40

DVDs

15%

-

Electronics Accessories

• 15% on the portion of the total sales price up to CAD $100.00, and
• 8% on the portion of the total sales price exceeding CAD $100.00

CAD $0.40

Furniture (includes outdoor furniture)

• 15% on the portion of the total sales price up to CAD $250.00, and 
• 10% on the portion of sales price exceeding CAD $250.00
• 15% for Mattresses irrespective of price point

CAD $0.40

Home and Garden (includes Pet Supplies)

15%

CAD $0.40

Industrial and Scientific (includes Janitorial & Sanitation and Food Service)

12%

CAD $0.40

Music

15%

-

Musical Instruments

15%

CAD $0.40

Office Products

15%

CAD $0.40

Personal Computers

6%

CAD $0.40

Software and Computer Games

15%

-

Sports and Outdoors (excludes Sports Collectibles)

15%

CAD $0.40

Tools and Home Improvement

15% (12% for base equipment power tools)

CAD $0.40

Toys and Games

15%

CAD $0.40

Video Game Consoles

8%

-

Video Games 

15%

-

Videos

15%

-

Everything Else

15%

-

Categories requiring approval

Contact Amazon for approval

Automotive and Powersports

12% (10% for tires and wheel products)

CAD $0.40

Beauty

• 8% on products with a total sales price of CAD $15.00 or less, and
• 15% on products with a  total sales price exceeding CAD $15.00 

CAD $0.40

Clothing and Accessories (includes sunglasses)

15%

CAD $0.40

Grocery and Gourmet Food

• 8% for products with a total sales price of CAD $20.00 or less, and
• 15% for products with a total sales price exceeding CAD $20.00

-

Health and Personal Care (includes Personal Care Appliances)

• 8% for products with a total sales price of CAD $15.00 or less, and
• 15% for products with a total sales price exceeding CAD $15.00

CAD $0.40

Jewellery

• 20% on the portion of the total sales price up to CAD $325.00, and
• 5% on the portion of the total sales price exceeding CAD $325.00

CAD $0.40

Luggage and Bags

15%

CAD $0.40

Major Appliances

• 15% on the portion of the total sales price up to CAD $300.00, and
• 8% on the portion of the total sales price exceeding CAD $300.00

CAD $0.40

Shoes and Handbags

15%

CAD $0.40

Sports Collectibles

View Category Requirements for referral fees

Watches

• 16% on the portion of the total sales price up to CAD $1,500.00
• 3% on the portion of the total sales price exceeding CAD $1,500.00

CAD $0.40

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There may be additional fees associated with your Amazon seller central account in addition to FBA and referral fees.

Canadian Tax Considerations

Note: The following information is taken directly from Amazon and does not constitute legal, tax, or professional advice. Consult your professional advisors for more details.

When selling products on Amazon Canada—or any other Amazon marketplace—you’re expected to pay all applicable taxes, custom clearance fees, and destination duties. Additionally, before your inventory enters Canada, you (or a designated agent) must be the Importer of records and be written down as such on custom declarations.

There are two types of sales tax in Canada: Federal Sales Tax and Provincial Sales Tax.

Federal Sales Tax is also known as Harmonized Sales Tax (HST) or Goods and Services Tax (GST). Whether HST or GST applies depends on the particular territory or province.

The Provincial Sales Tax (PST), also known as Retail Sales Tax (RST), and Quebec Sales Tax (QST), may or may not apply (based on the province). The following table shows the taxes you’re expected to pay based on each province and territory.

Sales Tax Type

Provinces/Territories

GST Only

Alberta, Nunavut, Northwest Territories, Yukon – 5%

GST and RST/QST/PST

British Columbia (7% PST + 5% GST)

Manitoba (7% RST + 5% GST)

Quebec (9.975% QST + 5% GST)

Saskatchewan (6% PST + 5% GST)

HST Only

Ontario (13%)

Newfoundland (15%)

Nova Scotia (15%)

New Brunswick (15%)

Prince Edward Island (15%)

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Even if you don’t have a physical presence in Canada, you might have to register, collect, and remit HST/GST and/or PST/QST/RST. Visit the Amazon Canada tax and regulatory considerations page for more information tax registration and non-resident importer requirements.

How to Ship Your Inventory to Canada

Before shipping inventory to an Amazon fulfilment centre in Canada, there are a few things to consider. First, we recommend calculating your monthly storage fee to determine how much you need to pay for storage expenses. 

Second, since the start of the pandemic, Amazon imposed inventory storage limitations as low as 200 units per tier size. As a result, new sellers have relatively less inventory storage room to work with, but as your Inventory Performance Index (IPI) score rises, you’re allowed to store more units. Contact a third-party storage and fulfilment service provider if you’re running short on storage space.

Note: Amazon.ca is a much smaller market than Amazon.com. You might not need to ship and stock as much inventory as you think (especially if you’re a US seller expanding into the Canadian marketplace). Start slow and see how many sales you’re making per month and plan your next move.

Third, each country has governing bodies that formulate laws governing the import of commercial goods. Visit the Canadian Border Services Agency page to ensure you’re compliant with local regulations.

Finally, you should know that Amazon Canada does not have partnered carriers like the US where sellers can work with UPS for cheap inbound FBA shipping. And clearing customs and the paperwork involved with getting goods into the country is beyond the scope of your average Amazon.ca seller. 

The solution is to work with suppliers and/or freight-forwarding companies that offer Duty Delivery Paid (DDP) services. A DDP agreement means that your service provider will handle the import taxes, clearance fees, duties, and the necessary paperwork on your behalf. Like FBA, DDP services allow sellers to outsource shipping hassles to third parties, freeing valuable time.

How to Create an Optimized Amazon Product Listing

A product listing displays your product to potential buyers. Think of it as the entrance to your store, and like any store—physical or digital—the more appealing it is, the higher the likelihood of sales. 

Covering the A-Z of Amazon product listing optimization requires a separate blog. For now, here are some best product listing optimization practices recommended by Amazon itself:

• Product title: Capitalize the first letter of each word and do not exceed 200 characters. Also include your main keyword, preferably at the start of the title.
• Product images: 500 x 500 resolution images are acceptable but 1,000 x 1,000 increase picture quality. Your main image must show your product clearly against a white background.
• Variations: Create separate product listings (ASINS) if your product has variations such as different colours, sizes, or scents.
• Bullet points: Add short, descriptive sentences highlighting your product’s salient features.
• Product Description: Provide customers with additional information you didn’t include in the bullet points. Incorporate keywords to win favour with the algorithm and increase your product listing’s reach.

The best product listings are front and back-end optimized with the right keywords and contain well-written copy that compels readers to action. Inspect best-sellers’ product listings within your niche to better understand how to craft the perfect product detail page!

How to Sell in Canada from the US and Other Amazon Marketplaces

Amazon has 16 marketplaces (or websites) across the globe divided into four distinct regions: Americas, Europe, Asia-Pacific, and the Middle East and North Africa. Selling in one marketplace makes it easier to advertise and sell products in neighbouring Amazon marketplaces within the same region.

Once you register for an Amazon seller central account in the Americas, you automatically gain access to what’s known as a North America Unified account, allowing you to switch between Amazon.com, Amazon.ca, and Amazon.mx with ease.

Click your store name found in the middle-top region of your seller central dashboard and select the marketplace you wish to switch over to. Amazon will replicate your product offer and won’t charge you extra selling plan fees (i.e. a Professional plan on Amazon.com will apply on Amazon.ca and Amazon.mx without any additional charges). 

As an Amazon.com seller, you don’t need to open up a Canadian bank account or register a new business—Amazon will convert your earnings into USD and transfer them to your local bank account.

Amazon Global Selling

If you operate an Amazon store from outside the Americas and wish to sell on Amazon.ca, you’ll need to engage in Amazon Global Selling.

Amazon Global Selling enables brands to market and sell their products in another Amazon region. The program also features the Build International Listings (BIL) tool, which helps create offers in new markets to provide a more localized experience (please note that it does not guarantee the creation of new product detail pages).

Since Amazon.ca is in English, you won’t have to do much translation if, let’s you, you’re operating in Amazon.co.uk and want to sell to Canadian buyers.

Global expansion could be the next step if you’ve found considerable success in your local marketplace. But before you expand to Amazon.ca (or any other Amazon marketplace for that matter), consider the following points:

1. Is it worth selling your product on Amazon.ca? Can you expect profits that justify the time and effort it takes to expand into a new market?
2. Is your product restricted from sale in the Canadian marketplace? (product restrictions vary across different marketplaces based on local laws)
3. You must be a resident belonging to one of these countries, own an internationally chargeable credit card, and have a valid phone number.

Meet all these requirements? Then start selling on Amazon Canada today!

Conclusion – Become the Apex Amazon Canada Seller!

By making it this far, you’re now equipped with the knowledge needed to start selling on Amazon. But simply selling on Amazon and making a few hundred dollars in sales shouldn’t be the goal—your goal should be to set up a successful and thriving eCommerce business that frees you from a 9-to-5 job!

ZonGuru is a seller toolkit that can help you achieve just that. It’s easy to use, and the availability of free guides and how-to resources will get you up to speed, even if you have no clue how to sell on Amazon! 

Don’t worry about wasting money on a subscription—try out a 7-day free trial and see for yourself!

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