Believe it or not, many people still think they are constrained to selling on Amazon in their current country of residence, but this couldn't be further from the truth.
The good news is, if you live in Canada then you're not restricted to selling on Amazon Canada, you can easily sell on Amazon USA (or any other Amazon marketplace for that matter).
Amazon USA vs Canada - The Marketplace Size
It's no secret that Amazon USA is the largest ecommerce marketplace in the world, which is why sellers from all around the globe want to have their products on there.
Before we get into the "how to", let's compare Amazon USA vs Canada so you can get a feel for the numbers.
MARKET SHARE
Amazon Canada's online retail market share is 41.5%, which is actually bigger than Amazon USA's market share of 37.6%.
Does this mean you should be selling on Amazon Canada? Well, of course there is plenty of opportunity however total volume of sales matters, too. The USA has just over 323 million people compared to Canada with a population of 38.9 million people.
SALES VOLUME
Amazon USA rakes in approximately $396 billion in sales per year, with the next closest country being Germany with roughly $36 billion per year. Massive difference there between the top two countries.
Amazon Canada brings in just shy of $12 billion per year, a massive difference to the US sales volume.
This right here is the main reason why the Amazon US marketplace is so attractive to sellers.
NUMBER OF SELLERS
The number of sellers, or competitors, matters. Having no competitors isn't a good thing, you want to ensure theres a big enough market, but you also don't want to dive into a saturated market. Saturation occurs more at the product level though, in my opinion.
In the USA, there are currently 1.1million third party Amazon sellers and Canada has only around 80,000.
The number of sellers in the USA might seem high, but don't let this figure put you off. There is so much opportunity on the US marketplace it's ridiculous.
Getting Set Up to Sell on Amazon USA from Canada
Amazon has made it super easy for Canadian based sellers wanting to sell on Amazon USA. All you need to do is get yourself a professional selling plan and you will have what is called a North America and Brazil Unified Account.You might be wondering why it includes Brazil. Well, Amazon added Brazil to the mix in 2023 so you can also sell there with ease.
Your unified account means you can easily switch your seller central account between the USA, Canada, Mexico and Brazil marketplaces. You don't need to setup separate accounts for each country.
You only have to pay a single selling fee for your professional selling plan, rather than having to pay for the USA, Canada, Mexico, or Brazil marketplaces individually.
3 Ways to Sell on Amazon USA from Canada
There's more than one way to bake a cake, as they say. But I certainly have my favorite ways to sell on Amazon, so I'm going to share them with you.
#1 - Online Arbitrage
Online arbitrage is, in my opinion, the best method of sourcing products to sell on Amazon. This is especially true if you are doing cross-border selling on Amazon USA from Canada.
All you need to do is trawl the internet and find bargain products online that you can order and flip on Amazon for a profit. Sure, it sounds really simple, but there isn't much more to it.
The key here is doing your research and knowing what sells well on Amazon in the US. To fast-track your online arbitrage efforts, you could always use software like Tactical Arbitrage. This will help source products for you on auto-pilot, even while you sleep!
#2 - Retail Arbitrage
If you're more inclined to hitting the big box stores on foot them perhaps retail arbitrage is a good option for you.
It's much the same as scouring the web for products, except you're doing more of the heavy lifting and physically visiting retail stores to find bargains. Then you need to buy the products, pack them into the car, and take them somewhere to store them while you list them on Amazon.
The only issue I have with retail arbitrage in this scenario is the logistics of getting the products into the USA. It adds another step to the process, and adds to your acquisition costs too.
But we'll discuss more about that soon.
#3 - Wholesale
Amazon wholesale is an amazing way to sell, but it's not for the newbies among us. I've written about selling wholesale on Amazon before, and I've even got a Wholesale Challenge, but it is important to understand how this method works before getting in too deep.
Selling wholesale on Amazon involves contacting suppliers and buying products in bulk. This obviously brings with it greater risk, but the rewards are also greater.
Let's move on to the logistics of selling on Amazon USA from Canada.
Amazon FBA or FBM?
If you're not familiar with the differences between FBA and FBM, I'll give you a brief rundown.
Fulfilment by Amazon (FBA):
- You send your products into the Amazon FBA warehouse.
- When you sell a product, Amazon picks, packs, and ships your order to your customer.
- Amazon handles customer service and returns.
- There are extra fees for FBA service and storage.
Fulfillment by Merchant (FBM):
- You (the merchant) are responsible for storing your products.
- When you sell a product, you need to pick, pack, and ship them yourself.
- All customer service including returns is handled by you, the merchant.
Which Method is Best for Selling on Amazon USA from Canada?
Well in this scenario, it's going to be be better if you signup for Amazon FBA. This way you can order your products online, if you're doing online arbitrage, and have them sent to a third party Amazon prep center, who can then ship your products directly to Amazon's FBA warehouse.
Your products need to be prepared in accordance with Amazon's FBA standards, so enlisting a third party prep service is going to be essential. You can always do this yourself, but if you're located in Canada then shipping back and forth to the USA is going to start chewing up your profits.
Points for Consideration
There's a few other points you need to consider when selling on Amazon USA from Canada. Here's some of the most common considerations you need to assess.
Do I Need a Canadian Bank Account?
Not necessarily. Obviously you'll already have one, but you can always set up a USA bank account if you want to accept US dollars.
You can get Amazon to do your currency conversions for you if you want money deposited into you Canadian bank account, but exchange rates and fees might not be in your favor.
A good option might be to setup a USA bank account and accept US dollars, transferring into your own Canadian bank account when the exchange rates are attractive.
Can I Source Inventory from Canada to Sell on Amazon USA?
Absolutely! This might be a great little niche if you can cheaply acquire some sought after Canadian products. The main considerations here is how you'll get them into the USA and into Amazon's USA based FBA warehouses.
Will you source in Canadian retail stores, or online? Will you prep the items yourself and send them directly to the FBA warehouse, or will you enlist the help of a third party prep service?
Do I Need a Trade License to Sell on Amazon USA?
Technically, you don't need a license to setup an Amazon USA selling account. This question has a lot more implications, however.
If you are selling from Canada then you are most likely only subject to Canada's various requirements and regulations for online sellers, whatever they may be, but you really need to speak to a qualified professional in regard to this.
This means you should consult with an accountant, lawyer, or other suitably qualified and relevant service to ensure that you are remaining lawful and compliant.
Can I Just Ship Directly from Canada to US Based Customers?
Absolutely you can, but it is going to be a lot easier if your products are in the USA. If you use Amazon FBA in the USA then you can also take advantage of prime customers. The advantages of sending your products into the US based FBA warehouses far outweigh the disadvantages, but if for some reason you still want to do international shipping from Canada to the USA then you are free to do so.
Conclusion
It's really not much hard to sell on Amazon USA from Canada than it is for a US based seller. You just need to work out how to get your products into the USA based FBA warehouses.
If you can crack the US market then you have hundreds of millions of customer at your fingertips. While you're at it though, you may as well sell on Amazon Canada too!
Best of luck with your cross-border adventure. Thanks for reading!
