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 2023—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:
Ready? Let’s dive right into it!
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:
The Professional plan makes more sense if:
There is no wrong choice here; you can easily switch between selling plans.
To become an Amazon seller in the Canadian marketplace, head over to sell.amazon.ca and sign up for a new account.
Keep the following on hand to complete the registration process:
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!
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 is the most popular method with third-party Amazon sellers and for good reasons, some of which include:
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!
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.
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.
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:
For the average seller, FBA offers more benefits than FBM.
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.
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 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
Each additional 100 g
Standard Fulfilment Fee
First 250 g
Each additional 500 g
Oversize Fulfilment Fee
First 1,000 g
Each additional 500 g
Special handling fee that applies to:
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
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
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 15th 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!
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.
Referral fee percentages
Minimum applicable referral fee
Amazon Device Accessories
Camera and Photo
Furniture (includes outdoor furniture)
Home and Garden (includes Pet Supplies)
Industrial and Scientific (includes Janitorial & Sanitation and Food Service)
Software and Computer Games
Sports and Outdoors (excludes Sports Collectibles)
Tools and Home Improvement
15% (12% for base equipment power tools)
Toys and Games
Video Game Consoles
Categories requiring approval
Contact Amazon for approval
Automotive and Powersports
12% (10% for tires and wheel products)
Clothing and Accessories (includes sunglasses)
Grocery and Gourmet Food
Health and Personal Care (includes Personal Care Appliances)
Luggage and Bags
Shoes and Handbags
View Category Requirements for referral fees
There may be additional fees associated with your Amazon seller central account in addition to FBA and referral fees.
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
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)
Nova Scotia (15%)
New Brunswick (15%)
Prince Edward Island (15%)
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.
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.
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:
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!
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.
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:
Meet all these requirements? Then start selling on Amazon Canada today!
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!
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