For retailers everywhere, figuring out how to sell on Amazon is a key step toward reaching new customers. And there’s a good reason for this, amazon.com ranks 10th in Alexa’s global site rankings.
Selling on Amazon USA from Canada - Your Ultimate Guide
For retailers everywhere, figuring out how to sell on Amazon is a key step toward reaching new customers. And there’s a good reason for this, amazon.com ranks 10th in Alexa’s global site rankings, meaning millions of visitors land on the website every day, not just from the US but globally. Through the Amazon Global program, amazon.com has become an international powerhouse, even in countries with dedicated Amazon stores, like the UK and Germany.
This applies to Canada too. While amazon.ca ranks 7th in Canada, it only manages to hit 236th globally. What does this mean for Canadian sellers? If you’re only on amazon.ca and not on amazon.com, you’re missing a huge opportunity.
Thankfully, getting your products onto amazon.com as a Canadian seller has never been easier. This guide will break down the process and offer the insights needed to access one of the world’s largest online markets.
Why Selling on Amazon USA Matters
The numbers don’t lie, selling on amazon.com dramatically increases your potential reach. This could open doors to buyers not only in the US but beyond.
While this might add some complexity, such as dealing with shipping and adhering to export rules, Amazon simplifies the process. Their specialized account types make international selling more manageable.
Introducing the Amazon North America Unified Account
Previously, sellers needed separate Amazon seller accounts for each Amazon marketplace, like amazon.com, amazon.co.uk, and amazon.ca. But now, with the North America Unified Account (NAUA), sellers automatically gain access to the US, Canada, and Mexico marketplaces. Listing management in all three regions can be done from a single account.
If you’re a Pro Seller, you’ll only pay the subscription fee of your initial registration marketplace. So if you register on amazon.ca, you’ll cover Canada, and you won’t need to pay again for the additional markets. Of course, you’ll still face marketplace-specific fees based on where your items sell.
Managing Listings with the Build International Listings Tool
Once you have a NAUA, you can leverage the Build International Listings tool to manage listings across multiple marketplaces. This tool enables sellers to handle their Canada listings and their US/Mexico listings simultaneously, adjust prices, and streamline international sales.
However, note that this tool won’t automatically create product pages in the various markets. You’ll still need to manually create listings in each Amazon marketplace, ensuring the products have corresponding ASINs. A couple of caveats apply to the Build International Listings tool. Firstly, it’s only available to sellers who fulfill their own orders (FBM). Sellers who use Fulfilled by Amazon (FBA) can’t use this tool.
Secondly, when selling internationally, Amazon doesn’t guarantee your products meet all legal requirements in the three countries. It’s your responsibility to check local laws and regulations.
Do You Need a Local Bank Account for the US Marketplace?
Actually, no. Amazon helps sellers by offering the Amazon Currency Converter for Sellers (ACCS), which allows sellers to accept payments in US dollars and automatically convert them to Canadian dollars for deposit into their Canadian account.
That said, be aware that currency exchange comes with fees. ACCS includes these fees in their exchange rate. According to Amazon, “All fees and charges related to your use of Amazon Currency Converter for Sellers are included in the exchange rate.” While ACCS is convenient, you won’t be getting the interbank exchange rate. To gauge the true cost, compare the ACCS exchange rate to an online converter like The Bank of Canada, or Vault.
Although ACCS is handy, it’s not the only option for managing international payments via Amazon. You could opt for a free Vault account, which provides true US account details and converts money at the best FX rate. Simply add your Vault details to your Amazon seller account, and you’re ready to go.
Shipping and Inventory Management
When it comes to selling internationally, ensuring your product reaches your customers is key. This adds complexity, as international shipping involves complying with various import and export rules. Amazon won’t handle these for you, it’s your responsibility.
The Process of Shipping to the US
Sellers on Amazon have two options for shipping: either let Amazon handle the logistics through Fulfilled by Amazon (FBA) or manage it yourself with Fulfilled by Merchant (FBM).
Choosing FBA will relieve you of the headaches of logistics, but it comes with a cost. On the other hand, if you opt for FBM, you’ll need to answer a few key questions:
- Have you selected a shipping service?
- Can your product legally be shipped and received by mail in the US?
- Do you know your shipping charge and how it fits into your pricing?
- Have you calculated the delivery times and provided customers with accurate estimates?
- Are you prepared with the necessary paperwork for customs clearance?
Ensure you review US Customs and Border Protection guidelines for customs clearance invoices. This ensures your documentation is in order for cross-border shipments. Although FBA handles much of the heavy lifting, understanding international shipping is still vital.
Handling Inventory for International Sales
If you’re selling on amazon.ca, you’re likely familiar with inventory issues on Amazon. The main distinction remains between FBA and FBM.
With FBA, Amazon takes care of your inventory, storing your products across different countries. However, you’ll need to manage your stock for the US, Canada, and Mexico separately, which results in having a Marketplace-specific SKU.
With FBM, you get the advantage of a Global SKU. For instance, if you have 200 units available, that number is reflected across amazon.ca, amazon.com, and amazon.mx simultaneously. Selling five units will reduce your count to 195 across all markets. Switching from FBM to FBA requires you to adapt your inventory management as FBA doesn’t support Global SKUs.
Navigating Fees and Taxes for US Imports
If you’re handling your own fulfillment, you’ll need to be mindful of US imports each time an order is placed. Even with FBA, shipping goods to Amazon’s US warehouses means navigating US importing rules.
These shipments often incur a variety of fees and taxes, depending on the product, destination, and quantity. Your best option? Hiring a customs broker. Registered customs brokers are experienced in dealing with complex import processes, handling documentation, and ensuring the correct fees are paid. These brokers can be individual specialists or companies like FedEx, UPS, and DHL.
Steps to Get Started Selling on Amazon.com
Here’s a simplified path to get started selling on amazon.com from Canada:
- Conduct market research to identify opportunities in the US market. Assess existing products, competition, and how you can manage international shipping costs.
- Review restrictions for exporting your product to the US.
- If you haven’t already, create your seller account on amazon.ca to automatically access amazon.com and amazon.mx.
- Switch between marketplaces using the Marketplace Switcher in Seller Central.
- Create listings for each marketplace. Use the Build International Listings tool to manage pricing.
- Don’t forget to provide valid bank details from a supported country. While ACCS is convenient, consider using a free Vault account for a better exchange rate and lower fees.
Bonus Tips with Big Upside
A couple of parting ideas you might want to consider:
- Consider tapping into the Mexican market, as the NAUA makes it easily accessible.
- Make sure to do your homework. Research not only the market but also the legalities of exporting your product.
- Mix and match your fulfillment methods. You can utilize FBA for some products and FBM for others based on your needs.
- Be cautious of exchange rates when accepting payments. While ACCS is an option, a free Vault account could help you save money on currency conversions.
Selling on Amazon USA from Canada offers vast potential. By following these steps and doing your research, you can maximize your success in this lucrative market.
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