If you’re reading this blog, chances are that you’re a US Amazon seller but you’re looking to expand into other countries. Surprisingly though, selling in other countries isn’t the same as selling in the United States, and there are certain things you have to know and do in order to be successful.
While Canada has typically fallen behind the US when it comes to ecommerce, studies have shown that the online market is growing – especially Amazon. There is a massive opportunity for growth if you decide to make the jump to selling in Canada, so keep reading to know if it’s best for you and how to make it happen.
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Knowing What to Sell on Amazon Canada
Before you officially decide to sell on Amazon Canada, you’re going to want to take a look and make sure the products you’re selling are allowed on Amazon.ca. Canidians can purchase your products as they are on Amazon.com, but that doesn’t mean they’ll show up on Amazon.ca. This is where you’ll want to research what products perform well on Amazon.ca and base what products you decide to sell on that data.
There are also products that are prohibited to sell on Amazon.ca, so you’ll want to review those here. Once you know that your products are good to go, it’s a good idea to compare Amazon.com and Amazon.ca best selling products to see what will perform best. Since you’ll have a different audience than the US it might take some trial and error, but you’ll come to find which products work best.
The best thing you can do when you’re deciding which products to sell is to start small. Test different products, then stick with what’s selling the most.
Consider Price & Demand for Products
One thing that deters people from using Amazon.ca to shop is that they don’t have as many products as Amazon.com and the shipping prices are typically higher. One thing that deters sellers from selling on Amazon.ca is that it costs more for them to ship items, they don’t get as much of a return because of the exchange rate, and it’s more work overall.
With these things in mind, you can look at your supply and demand and set your prices accordingly. Because of the extra shipping costs, you can typically price your item higher than you would have it on Amazon.com as long as it’s on par with the pricing of similar items on Amazon.ca or you can offer free shipping.
For example, you might have a dog toy listed on Amazon.com for $10 and free shipping. If you want to list that product on Amazon.ca, it’s going to cost more in shipping, so you’ll list it for $20 with free shipping. That free shipping will give you an advantage because most other sellers will list that $20 price then add a fee on top of that for shipping. There’s definitely a balance you’ll need to maintain, but once you get the hang of it, you can find a lot of success on Amazon.ca.
In short, to be successful on Amazon.ca, you’ll need to decide whether listing a product is worth listing then use the best fulfillment option.
Amazon.ca Listing
Amazon.com Listing
Fulfillment Options (FBA vs. MFN)
Speaking of fulfillment options, it’s crucial that you choose the right one for your products when it comes to selling on Amazon.ca. In most cases, you’ll want to go with FBA. However, it’s important to know both options if MFN happens to be better for you.
Merchant Fulfilled Network (MFN)
When sellers choose MFN, it means that they’re taking on the role of shipping their own products, packing orders, taking care of shipping, and handling all the customer service. Similar to FBM, Amazon expects you to be on par with their standards in all of these aspects, so it puts more of a burden on the seller.
Here’s what you’ll need to do if you want to go with MFN for your fulfillment and shipping:
- Make sure your products can be sold in Canada
- Read this guide to importing commercial goods
- Make sure your shipping carrier has DDP (Duties Delivered Prepaid) capability
- Get a business number and NRI (Non-Resident Importer) and read this guide about it
- Register for Harmonized Sales Tax (HST) or Goods and Service Tax (GST)
- Include where the product is shipped from in your seller profile
- Your products must include a Global SKU
Fulfilled by Amazon (FBA)
It’s no secret that there are steps that must be taken in order to export products to another country, but using FBA mitigates some of the issues that can come up. Using FBA means that Amazon is responsible for packaging, shipping, and customer service, and it can even lower the overall cost of selling on Amazon.ca.
Here are some other perks of using FBA:
- Products can be kept in an Amazon fulfillment center
- Amazon packs and ships your product (includes free shipping with Amazon Prime)
- Amazon takes care of returns and customer service
Here’s what you’ll need to do if you want to use FBA:
- Make sure your products can be sold in Canada
- Log into your Amazon Seller account and click here to find out how much FBA will cost
- Know the FBA shipping rates in Canada
- Read this guide to importing commercial goods
- Your products won’t import from Amazon.com, so you’ll want to create new listings on Amazon.ca
- Send your products to a Canadian Amazon Fulfillment Center
- Use Marketplace-specific SKUs on your products
Setting Up SKUs
To sell on Amazon.ca, you’ll need to know the difference between Global SKUs and Marketplace-specific SKUs.
Global SKUs
First, it’s important to note that Global SKUs are only used for MFN accounts, not FBA. This type of SKU is universal for all of your products across Amazon.com and Amazon.ca, so if you sell 25 products on Amazon.com and 25 on Amazon.ca, your total inventory will reduce by 50.
Click here for detailed instructions on how to set up a Global SKU.
Marketplace-Specific SKUs
Using Marketplace-specific SKUs gives each of your products a SKU specific to the marketplace they’re being sold on (Amazon.com or Amazon.ca). Unlike Global SKUs, your inventory will decrease based on which marketplace the customer buys from. You’ll use this type of SKU if you’re using FBA.
Click here for detailed instructions on how to set up a Marketplace-specific SKU.
Advertising on Amazon.ca
Using Marketplace-specific SKUs gives each of your products a SKU specific to the marketplace they’re being sold on (Amazon.com or Amazon.ca). Unlike Global SKUs, your inventory will decrease based on which marketplace the customer buys from. You’ll use this type of SKU if you’re using FBA.
Click here for detailed instructions on how to set up a Marketplace-specific SKU.
Conclusion: Is It Worth It?
Although there’s a learning curve to selling on Amazon.ca and you might not see as much revenue as you would on Amazon.com, it’s a great way to get your name and products out there. Selling internationally is a big decision, but once you decide to make that step, you can expect your business to grow in new and exciting ways.
If you want to start selling on Amazon.ca, the experts at Laser Sight Digital are here to help you through every step of the process.
