If you’re selling on Amazon.com there’s a good chance you’ve thought of expanding into the northern part of Amazon.ca.
It is easy since you can sell your products on the Canadian marketplace with a seller account. Seller account. With its untapped market and growing online commerce and the potential for expansion in the Canadian market could be one of the best choices you’ll make.
We’ll look at:
You should understand the key distinctions between Amazon.com and Amazon.ca
The main advantages of selling on Amazon Canada
Amazon.com vs Amazon.ca
I’m sure you’ve heard that Amazon is a giant in the field of eCommerce with numerous marketplaces throughout the world.
The benefit of growing your Amazon company internationally is the fact that the Amazon platform functions exactly the same in every country it has a marketplace.
However, each country is different, and it is expected that there will be differences between nations that influence how you sell on their versions of Amazon.
Let’s review the most important differences in sellers of Amazon in the USA and Canada. Amazon within the USA as opposed to. Canada.
Competition
The number of items available on Amazon.com is about 350 million. However, it is only 133 million listed on Amazon.ca.
It’s not necessary for me to explain that there are so many items available on Amazon.com the competition is intense. Based on these numbers we can conclude that competitors in Canada are just 1/3 of the competition in the south.
Pricing
If you are comparing identical or similar items when comparing similar products, the price (when USD is converted to the currency of CAD) for products that are sold on Amazon.ca is more expensive than those sold on Amazon.com.
This is explained by two main reasons. The first is market demand and supply. If there are fewer competition items that are sold on Amazon.ca are sold at more.
The second reason–shipping–will be discussed below.
Shipping
A majority of freight forwarders will charge more to ship goods to Canada in comparison to. those in the USA. The higher shipping costs are reflected in higher costs.
Furthermore, shipping goods around Canada will be much more expensive than it is in the US. Since Canada is a massive country, with a smaller population, shipping costs are more costly and take longer.
There are also fewer shipping options that are available in the US. This means that if you are planning to sell your product via fulfillment by Merchant (FBM), you’ll need to include the additional cost into the price.
The Most Important Advantages of Selling on Amazon Canada
While selling on Amazon Canada has its drawbacks, there are also significant advantages to selling up north that should not be underestimated.
PPC Costs Have Dropped
You’ll be relieved to learn that PPC on Amazon.ca is generally more effective and less expensive than on Amazon.com. This is due to the fact that the Canadian market is less crowded and competitive, which means there are fewer bidders who can raise the price.
The disadvantage is that, due to the lesser market size, each keyword in Canada will have a fraction of the search volume of its US version.
You Have the Option to Charge More
You might have considered simply changing your existing US dollar costs to Canadian ones. In Canada, though, you can and should charge more.
While this is partly due to a lack of product variety and hence less competition (which drives up prices), it is also related to Canadian consumers’ expectation that GST (goods and services tax) will be included in the price.
Here’s an overview of everything you need to know about GST:
- GST stands for Goods and Services Tax in Canada.
- The GST is set at a fixed rate of 5%.
- You owe the Canadian government a set amount of taxes based on the stated worth of the goods you imported.
- You must also charge GST to customers and pay it to the government, less the amount you paid when your inventory was brought in.
You have the ability to scale quickly.
The conclusion from all of this is that you can scale up much more quickly on the Canadian Amazon than you can on the US Amazon.
Your Amazon advertising will be more effective and less expensive, allowing you to sell more units at larger profit margins, allowing you to reinvest more marketing dollars. The biggest drawback is that your revenue potential is significantly lesser than on Amazon US.
