Introduction
Taking business up north to Amazon Canada is a smart move for U.S.-based sellers.
With 46% of U.S. sellers already operating in at least one international marketplace, Canada emerges as a natural next step for expansion.
Its proximity to the U.S., growing customer base, and relatively lower competition make it an attractive option for scaling your business globally.
In this article, we’ll explore why expanding to Canada is a game-changer and provide insights on how to get your Amazon Canada business up and running. Let’s get started!
Why Expand to Canada?
Canada’s business environment is highly accessible, with minimal language barriers thanks to English being one of its official languages.
This makes market entry easier for companies already familiar with English-speaking regions, streamlining communication and paving the way for a smoother expansion.
Expanding to Canada offers strong growth and revenue opportunities.
Also, Canada’s reduced competition compared to Amazon.com is another key advantage. A less saturated market means more visibility and fewer price wars, giving sellers more room to differentiate and grow.
When it comes to advertising costs, CPC (cost-per-click) can be 2x to 5x lower than in the U.S., giving sellers a significant cost advantage. This allows for more aggressive advertising strategies, leading to increased visibility and higher revenue.
Plus, U.S. reviews transfer directly to Canadian listings, so you launch with the credibility of established ratings, i.e. no need to start from scratch.
However, before making any move, it’s essential to first assess product demand before expanding, which brings us to the next section: evaluating demand.
Evaluating Demand
Without a clear understanding of the demand for their products in Amazon Canada, sellers risk entering a market that may not be as lucrative as expected.
That’s why evaluating demand helps sellers make informed decisions on whether the potential market demand justifies the investment
So, let’s find out how to evaluate demand using a third-party tool such as Helium 10 X-ray.
Helium 10 X-ray
To assess potential demand, you can use the Helium 10 X-ray tool to determine your competitors’ sales performance over the last 30 days. Let’s find out how it works!
Step 1: Go to Amazon.ca and enter your product keyword (e.g., “cooking torch”) in the search bar. This will display a list of products in your chosen category, helping you identify your competition.
Step 2: Identify several key competitors to analyze their sales performance. Look at both top-sellers and lower-performing products to get a balanced view of the sales volume in your category.
Step 3: Go to one of your competitor’s product detail pages and click on the X-ray Chrome Extension to access detailed sales data.
Step 4: Head to the “ASIN Sales” column to find an estimate of the monthly sales volume for each ASIN
Step 5: Analyze the data to see whether or not products in this category show a pattern of solid sales volume. If the sales figures are consistently low, then this might not be a viable niche to get into.
Requirements to Expand to Canada
To ensure a smooth expansion into Canada, many U.S.-based sellers need to be familiar with key legal, logistical, and tax requirements, including North American Remote Fulfillment (NARF), Non-Resident Importer Registration (NRI), and setting up a Brokerage Account. Let’s break down what you need to know.
North American Remote Fulfillment (NARF)
NARF is Amazon’s solution to bridge the fulfillment gap between the U.S. and Canada/Mexico. It lets you store products in U.S. fulfillment centers and ship to Canada or Mexico when orders come in.
While NARF isn’t ideal for shipping to Canada due to longer delivery times and higher costs, it’s an excellent way to test the Canadian market without committing to building out shipping channels upfront.
Let’s find out now how to enroll in NARF.
Enrolling in NARF
Step 1: Log in to your “Seller Central” account. Then, use the search bar to type in “Remote Fulfillment program”. Click on the “Remote Fulfillment with FBA” link.
Step 2: Once you land on the “Manage your Remote Fulfillment ASINs” page, click on “Generate report”. After the report is ready, click on “Download”.
Step 3: Open the downloaded report. In the Canada column, type “Yes” to enroll a product in the Canadian marketplace or “No” to exclude it. Next, save the changes you just made.
Step 4: Go back to the “Manage your Remote Fulfillment ASINs” page, and click on “Choose file” to upload the file you’ve saved in step 3. Finally, click on “Upload”.
And voila! This way, your selected products will be enrolled in the NARF program, and you will be able to see the results within 24 hours.
Non-Resident Importer Registration (NRI)
By registering yourself as a non-resident importer, you’ll be able to ship into Canada without having to be a resident.
Submitting the NRI paperwork costs around $100 USD. Once completed, the Canadian government will issue you a tax code, enabling you to handle your Canadian tax filings. Let’s find out the steps you need to take to register as an NRI.
How to register for NRI?
Step 1: Obtain a Canadian Business Number (BN)
A BN is a unique 9-digit identifier required for tax and import/export activities in Canada. To apply for one, reach out to the Canada Revenue Agency (CRA) using this link:
Step 2: Register for an Import/Export Account
This account, linked to your BN, is necessary for importing goods. When registering for your BN, simply indicate that you need an import/export account to apply for one.
By following these steps, you can effectively register as a non-resident importer, enabling you to ship goods into Canada without being a resident.
Brokerage Account
A brokerage account is essential for clearing your products at the Canadian border and ensuring smooth delivery. Here’s why you need one and what it does:
- Streamlining Customs Paperwork A brokerage account ensures that all necessary customs documents are prepared and submitted, saving you from potential delays or penalties. This service handles the nitty-gritty details, so you can focus on growing your business.
- Coordinating Shipment Approvals Your broker works with customs to get your products approved for entry into Canada. They’ll manage the paperwork and fees, so your goods arrive without any hitches.
- Saving Time and Avoiding Errors Importing products involves complex requirements. A brokerage account simplifies the process, reducing the risk of costly mistakes and ensuring compliance with Canadian regulations.
Understanding the Canadian Taxes and Duties
Navigating Canadian taxes is a crucial part of expanding your business to Amazon Canada. Let’s break down the key taxes you need to understand:
Goods and Services Tax (GST): A 5% tax applied to most goods imported into Canada. For example, shipping $100,000 worth of goods incurs $5,000 in GST.
Harmonized Sales Tax (HST): Applicable in certain provinces, combining GST with provincial sales tax.
Provincial Sales Taxes (PST/QST): Separate taxes in provinces like Quebec (QST) and British Columbia (PST).
Although taxes like GST can seem steep, Amazon Canada is more lenient with price increases because of lower competition.
This pricing flexibility can help offset the GST, making Canada a profitable market for expansion.
Getting set up in Canada: Step-by-Step Guide
Now that you’ve got the basics covered and your legal paperwork sorted, it’s time to dive into setting up your Amazon Canada account.
Switch to the Canadian Marketplace
Sellers used to need separate accounts for the U.S., Canada, and Mexico. Now, with Amazon’s North American Unified Account, you can manage all three marketplaces—Amazon.com, Amazon.ca, and Amazon.com.mx—under one professional account.
It’s pretty straightforward to switch marketplaces. Just go to your “Seller Central” account, click your seller name at the top, and select Canada from the dropdown menu and that’s it!
Listing your products on Amazon Canada
Now that you’ve switched to Canada, as we showed earlier, it’s time to start listing your products. The best part? You can easily transfer your U.S. listings to Amazon Canada.
Let’s walk you through the process!
Step 1: Head to the Catalog tab on your “Seller Central”, then click on “Add Products.”
Step 2: Enter the ASIN of the product you want to list and click submit.
Step 3: When the product you want to list pops up, simply fill out the required details (e.g. price, SKU, condition, and fulfillment channel) as shown in the screenshot below. Once everything is complete, click “Save and Finish” to finalize your listing.
Choose Your Shipping Strategy
You’re almost ready to launch your business on Amazon Canada—now all that’s left is to finalize your shipping method.
There are two shipping options: Shipping to a Canadian FBA warehouse or direct shipping to Canada. The right choice depends on your supplier’s location and your business needs. Let’s find out the main differences between each.
1) Shipping to a Canadian FBA Warehouse
If you already have a U.S.-based warehouse, you can ship your inventory directly from there to an Amazon FBA warehouse in Canada.
2. Direct Shipping to Canada
Want to cut out the middleman and avoid unnecessary detours? Ship directly from your supplier to Canada instead of routing through a U.S. warehouse!
This option helps you dodge the 25% tariff on goods entering the U.S. and saves you valuable time by skipping the extra stop.
It’s especially smart if your supplier is overseas, like in China, offering you a faster and more cost-effective shipping solution.
Key takeaway: Whatever shipping method you pick, start small.
Send fewer units than you would for the U.S. market until you grasp your monthly sales in Canada. Just because your product thrives in the U.S. doesn’t guarantee the same demand up north.
Wrapping Up
Now that you’ve got the tools, insights, and actionable steps, it’s time to take your Amazon business across the border. The next step? Dive in, implement what you’ve learned, and start capturing the untapped potential of the Canadian market.
