A Complete Guide to Selling on Amazon from Canada in 2022
Welcome Back!
It’s The Zab Twins, and today, we’re presenting a comprehensive guide on how to start selling on Amazon, specifically in Canada. But before diving into the nitty-gritty of creating an Amazon FBA business, let’s discuss why you should read this article.
The Zab Twins are professional e-commerce coaches committed to helping new sellers create profitable businesses and reach their personal goals. Together, the Zabriek duo have helped hundreds of students quit their 9 to 5 jobs and scale their Amazon stores. Brian’s outside-of-the-box ideas and Arek’s analytical skills have created a powerful impact in the industry and enabled them to help people find financial freedom.
According to research, 80.1% of Canadians will become online shoppers by 2030. That means online businesses will have the opportunity to target over 31.2 million buyers! And with Amazon.ca taking the lion’s share in the e-commerce market, new sellers can count on creating a profitable business.
Based on this data, it’s evident you, too, can set up a successful Amazon FBA business! All that’s left is learning the “how.”
If you’re ready to make it big on Amazon in 2022, this is the right place for you! This article will discuss the intricacies of setting up an Amazon FBA account in Canada, from setting up infrastructure to running inspections. Check this video, where we walk you through the steps of creating a profitable Amazon.ca business.
Step-by-Step Guide to Creating a Profitable Business on Amazon
Amazon Canada is a rapidly growing e-commerce marketplace boasting tons of opportunities for Canadian sellers to crush it. In fact, Amazon.ca receives over 160 million unique visitors each month! So, if you’re a Canadian resident looking to start selling on Amazon, wondering, “Is it worth it?”
The answer is yes! To help you set up a profitable Amazon FBA business in Canada, we’ve created a step-by-step guide below. In this, we’ll go over the following:
- Should you choose the U.S. or the Canadian marketplace?
- How to set up your business account?
- How to get your products from the supplier to Amazon’s warehouse?
- Golden nuggets throughout the article
- And finally, the secret to saving money on Amazon.ca
Let’s get started!
Psst…you can watch our video here if you’re not a fan of reading.
Step # 1: Choosing Between Amazon.com and Amazon.ca
It’s no secret that Amazon is the most popular e-commerce platform in the U.S. and Canada. With over 310 million active buyers (that’s almost the population of the U.S.!) worldwide, Amazon is every buyer’s favorite online marketplace.
But as a new seller, you must ask yourself whether you should create an Amazon.com or Amazon.ca account. Here’s what we have to say: go for Amazon.com. Why?
The fact is that Amazon U.S. is the most developed. Not only does it have the largest customer base, but it also has the most expansive fulfillment and distribution network. Additionally, the buyer intent at Amazon.com is much higher, with merchants selling approximately 7,400 products per minute.
Therefore, launching your product in the U.S. marketplace makes sense before entering Amazon.ca. That way, you can enjoy better growth potential and profitability while starting your business.
On the contrary, Canada has less competition, which means you can thrive and grow faster with the right product.
Step # 2: Setting Up Your Infrastructure
Setting up an LLC or Corporation in Canada is crucial to limit your liability from business debts and lawsuits. By creating an LLC, your business gets a separate legal identity, thus distinguishing it from your personal assets. As a result, you won’t personally be liable for the company’s action.
Now, how do you set up your infrastructure? By visiting your Province’s online registry! After that, you can run a name check, file an application, and register your business.
Bonus: You can use Ownr to register, incorporate, and create legal agreements for your Amazon FBA business.
Step # 3: Sourcing and Storing Your Products
To become an Amazon FBA seller, you must first get your products from China to the U.S. fulfillment centers.
Most U.S. sellers get their products shipped to their homes. After running an inspection test, they deliver it the Amazon’s fulfillment and distribution center.
But that’s not what we’re going to do. By shipping your products from China to Canada and then to the U.S., you’ll have to pay double the shipping prices! Moreover, you’ll have to deal with additional taxes, longer shipment times, and compliance considerations.
Bonus: Amazon has inventory storage limits depending on the type of your selling account. So, if Amazon’s restriction does not match your needs, we recommend hiring a third-party logistics company. Consequently, you can send your leftover units to your 3PL provider, who will handle inventory management, storage, and fulfillment.
Moreover, we recommend using Helium10 to source high-demand products to create a profitable business. You can try this tool at a cut price by using our discount code “THEZABTWINS6M20” for 20% off 6 months or “THEZABTWINS10” for 10% off every month.
Step # 4: Running Third-Party Inspections
As we discussed, assessing and inspecting your goods isn’t a viable option for Canadians. However, you should run a third-party inspection before you pay the final cost.
That way, you’ll receive an unbiased verdict on the quality of your product. Ultimately, it helps ensure you choose a high-quality item that drives good customer experiences and positive feedback.
Bonus: Choosing the ideal third-party inspection provider is critical to ensuring you get a clear picture of your desired product. We recommend trying Movely since they promise thorough quality control to help pinpoint potential product flaws. Furthermore, the FBA product inspection company provides you with detailed reports featuring images,videos, and instructions to ensure the product matches your values.
The Golden Nugget: Taking Advantage of a Virtual Bank Account to Boost Profit Margins
Canadian Amazon sellers working in the U.S. marketplace will get paid in USD. What most newbies do is that they set up a Canadian account on their Amazon one. The downside is that your bank account will directly convert your money.
How is that bad?
To put this into perspective, let’s assume Amazon pays us the U.S. $5000.00. As your money moves from Amazon’s account to your bank account, it converts to CA $6227.00. But if you create a virtual account with TransferWise, you’ll earn $6375.57.
Now, if you start earning $10,000+, you’ll lose hundreds of dollars! Not fun, right? So, by creating an account on Wise, you can improve your profit margins by avoiding hidden costs, interest, and conversion fees.
The Bottom Line
If you aim to become the next Amazon success story, you need to learn the right tips and strategies to actualize your goals. Hopefully, this article will help you kick-start your own Amazon FBA business. But before we conclude this top, we want to ask you: “Will you choose Amazon.com or Amazon.ca?”
Book your one-on-one consultation with The Zab Twins to explore the unlimited opportunities of the Amazon marketplace. You can discover proven strategies to scale your Amazon business by visiting our YouTube channel.
References
http://urlgeni.us/facebook/FBASU
https://talk.thefbastartup.com/meet
https://www.ecomcrew.com/how-to-sell-on-amazon-ca/
https://www.sellerapp.com/blog/how-to-sell-on-amazon-canada/
