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Many people around the world are interested in starting a business that sells on Amazon FBA. Although Amazon Canada is not as big a market as Amazon US, it is tempting for sellers to sell on Amazon US through CA. Using Amazon FBA helps sellers start their business faster. Additionally, with an Amazon Link Account, small business owners can sell across North America from one platform. This is a great opportunity for Canadian sellers to expand their business internationally on Amazon. Here, some tips are mentioned to show you why it is worth investing your time and effort and start selling on Amazon.com from Canada. Let’s see how to sell on Amazon US from CA.

Why Canadians Choose Amazon US? 

Since 2017, online shopping has increased in Canada and today approximately 80% of the population now shop online. But, when you compare it to the number of US consumers, which makes up about 70% of Amazon accounts, you understand why Amazon.com is so popular with sellers. 

Half of Amazon’s 263 million subscribers are also members of Amazon Prime, Amazon’s shipping service. This service helps sellers to provide better service to consumers. 

When you use a unified account for North America with “Seller Central”, you can easily switch between Amazon.ca, Amazon.com and Amazon.com.mx selling tools to list products and manage orders all shops. This has the following advantages:

There are many reasons why you might want to sell on Amazon.com, the world’s largest e-commerce site, from Canada. Here we plant them:  

1) Fast platform support 

 Typically, Amazon approves new seller accounts within a week. This short acceptance process means less downtime for your business. 

2) Big market can be exploited 

 With more than 124 million original users in 2019, this is the largest sales force. Amazon offers on-time and fast shipping for those VIP customers who pay a monthly/yearly subscription. Reports show that Prime users spend twice as much compared to regular Amazon customers.

3) FBA makes international business easier 

 Not only has shipping become easier through FBA, but so has the entire customer experience. You don’t need to translate your product because both countries share the same language, English.

 4) Low barriers to entry  

As a Canadian company, selling products in the United States can be expensive. Also, Amazon can put governance in front of your complicated business. On the other hand, it offers you some services to start your business quickly. 

Amazon.com VS. Amazon.ca; What is the best?

There are many reasons why you might want to sell from Canada on Amazon.com, the world’s largest e-commerce site. Here we nail them: 

Comparing the population of Canada and the United States in 2021 shows you the size of the American market. Canada has about 38.4 million, while the United States has about 331.4 million. Look! That’s about 10 times., which allows Canadian sellers to sell about 10 times more on Amazon.com than on Amazon.ca.

If you convert USD to CAD, the average product price is higher on Amazon.ca than on Amazon.com. There are two main reasons for it. The reason is that with supply and demand in Canada, the competition is low, so retailers can sell their products at higher prices. The second reason is shipping.

Shipping costs in Canada are higher than in the United States. This is your added value as you choose to fulfill your product through customer fulfillment (FBM).

The number of products listed on Amazon.ca is 133 million, while there are 350 million products listed on Amazon.com. These statistics help you understand that Canada’s competitiveness is much lower than that of the United States.

 Premium accounts will start selling on Amazon USA 

You will need a bank account to manage your business, but you don’t need a US bank account, so it can be a Canadian bank account. Because Amazon makes it easy for you and offers the ACCS exchange service (Amazon Currency Converter for Sellers). 

However, some sellers prefer to use other exchange services because of the shipping costs and better rates they offer compared to Amazon. Account Transferwise Borderless is another money transfer service used by some sellers as it offers free business accounts. 

To avoid overdrafts, you can also use a US bank account. The Bank of Canada also offers you this service, which is suitable if you want to do online transactions for a long time. 

A step-by-step guide to setting up an Amazon US account 

Below are the things you need to start selling on Amazon US from CA. 

Now start the following steps: 

  1. Create a reseller account and select North America. You’ll pay less by choosing a North American Joint Account. No additional fees are required to sell in the United States and Mexico. 
  2. Choose between a business account and an individual account based on the size of your business. If you sell 20 items per month on amazon.com or amazon.ca, the individual plan is best for you. Otherwise, a professional plan is more useful.
  3. To add products to your listing, Seller Central’s Build International Listing (BIL) tool is useful when listing on multiple marketplaces. 
  4. Once you’ve sold something, it’s time to deliver the product to the customer. In Amazon’s FBA service, Amazon handles the entire process from picking, packing, storing and shipping to returns and customer service. 
  5. Finally, by using Transferwise, you receive your money in small currency exchanges without paying high bank fees. 

Shipping from Canada to the USA 

It is not easy to manage your goods and logistics across borders, and you need a good shipping method. Also, you should know the import/export regulations and laws of your area of ​​operation. There are taxes and fees you must pay.

 You can make the whole process easier for yourself by using FBA (Fulfillment by Amazon). With the help of Amazon’s international logistics, you can get rid of this confusion. Consider that the FBA program on Amazon.com and Amazon.ca is different. When you sign up for Amazon.com with a Unified Account for North America, you must ship your items to an Amazon warehouse in the United States. 

Packaging and shipping across the border to a US fulfillment center can be expensive when purchasing products online. Becoming a partner in one or more fulfillment and shipping companies known as fulfillment centers is a solution for Canadian sellers working at the end. 

These fulfillment centers specialize in receiving, picking, packing, and shipping products to Amazon fulfillment centers in the United States. The general operating procedure for most companies is as follows: 

There are a few criteria when choosing a preparation center: 

The state of your preparation location affects your sales tax. If you choose a state with a 2% sales tax instead of 7%, you can save a lot of money.

The packing and shipping speed of the preparation area is important for research. It shows that your products are ready and you can sell them as soon as possible.

Your top priority should be to ensure that your product preparation center processes your product efficiently at a reasonable cost with minimal risk of error. 

The preparation area should be large enough to store your goods. Some products require different weather conditions to avoid damage and change, so preparation conditions are necessary to reduce this risk. 

Travel time between the point of arrival and the preparation point is important for fast shipping. Choosing a preparation center close to where your products are shipped is better to save time and effort. That’s why 

 Another option is to use the FBM (Fulfilled by Merchant) process. But be aware that you will be responsible for storage, shipping, and accountability for the cost of your products using this method. 

FBM delivery times are not as fast as US customers expect. Also, if you don’t have a lot to move, shipping products from your own warehouse or location in Canada to the United States can be expensive. 

For safe and easy shipping of goods from Canada to the United States, you can use the services of reliable and well-known companies. Among these, we fix their names:

1) rumors 

It is a remittance solution with an easy-to-use platform that allows you to send money cheaply. Canada Post, Asendia, USPS are their shipping partners to manage delivery to your customers.

2) stallionexpress 

To compete with US retailers, Stallion Express is the best choice. You can improve your business results by getting discount rates on USPS postage. 

3) Hero ship 

It is an international shipping and support service that allows you to shop and buy from online retailers around the world at the lowest prices.

Shipping costs and taxes from California to the United States on Amazon 

As a Canadian seller, you must cover the tax implications of selling on amazon.com. Tax laws and regulations are complex in the United States; However, fill out your income tax form. For Canadian citizens, there is a W-8BEN form to fill out. You can get your profits from your sales in the United States and pay your Canadian taxes.

Taxes and duties are other costs you should consider when selling on amazon.com from Canada. It is recommended that you use a customs broker to solve all these problems if you choose to use the FBA or FBM system. Some of the larger shipping companies may be your dealer, but Kuehne and Nagel are other options available.

 Where can you find groceries in Canada? 

There are three general ways to find goods in Canada: 

 In general: 

 You can connect directly with the manufacturer or wholesaler and buy the product you want at a great low price. Obviously, this requires more money to spend in the first place. However, many retailers have recently introduced effective minimum purchase orders.

 Campaign Resolution: 

 You can also buy clearance products from Canadian physical stores like Walmart and resell them on Amazon. It is the best choice for beginners. With little money, you can start selling on Amazon. It is understandable, and many products with a great return on investment are available in local stores.

 Online settlement: 

Creating your merchandise through an online marketplace like Target.com and selling it on Amazon is an online marketplace. The world is your oyster and in this process, you can get products and pajamas.

 Generally, buying products from Canadian sellers to sell on amazon.com is not profitable due to the cost and complexity of the return process. But if sellers buy products from Amazon.ca for their inventory and sell them on Amazon.com, it can be profitable.

 How to sell on Amazon.Com through CA and OABeans? 

If you want to start selling on Amazon US from Canada using the OABeans service, follow these steps: 

Many of you may think that this is the same service as shipping, or that there is no difference between this service and online arbitration. None of these assumptions are true. This is a new type of business that you won’t find anywhere else. It has the following details: 

The difference between shipping and our services 

 When you buy products on Amazon.ca, the products you buy carry the Amazon Prime logo; so they reach the customer quickly and the health of your Amazon account is not at risk. Additionally, Amazon Canada will take care of product returns and refunds, and you won’t have to deal with these issues.

Differences between online arbitration and our services 

  1. You should use FBM instead of FBA.
  2. No filter is required; because it is not necessary to buy the product in the first stage.
  3. There is no need to buy future products. First, you list them on Amazon.com, and once they sell out, you can buy them from the source. 
  4. As long as the lead identity doesn’t change, the methods you get are generic and can be used.

Final thought 

If you as a Canadian decided to start your business, selling on amazon.com is a good way. It’s not too hard, and there are Amazon tools in the market that help you, such as FBA, Unified Account tool, Build International Lists. By using amazon.com, you access and benefit from the largest US market. Transferring money is easy as pie using a banking service like Transferwise.

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