Guide to Selling on Amazon USA from Canada

If you’re a Canadian entrepreneur aiming to expand your business or venture into e-commerce, starting an Amazon business could be one of the smartest moves you can make. Whether you’re an established seller or just starting your online business, you have an incredible platform to sell products on Amazon and reach a global audience—and the best part? You don’t have to be in the US to sell there.

This guide will teach you everything you need to know about building your Amazon FBA business from Canada. We’ll explore why the US marketplace is an ideal starting point, the ins and outs of handling fulfillment and inventory, choosing the right selling plan, and the most effective ways to manage B2B global payments and currency exchange. By the end, you’ll have a strong foundation to launch your Amazon journey and make strategic choices for long-term success.

Let’s get started!

Why sell on Amazon USA?

While Canadians can sell products on Amazon marketplaces worldwide, the US marketplace presents distinct advantages, making it an ideal starting point.

A larger customer base

The US market is enormous, with a population of 333 million compared to Canada’s 40 million. This vast difference means access to a far larger pool of potential buyers and more opportunities to drive sales. By choosing to sell products on Amazon US, you tap into one of the world’s biggest online marketplaces, enhancing your products’ visibility and boosting your sales potential.

Greater growth potential

Learning how to start with Amazon FBA in the US not only grants you access to a larger customer base but also paves the way for expansion into other markets, such as Europe. Once you establish a profitable Amazon business in the US, expanding to other regions becomes a simpler, lower-risk step. It’s a gradual growth strategy that helps you scale efficiently.

Higher sales volume

The scale of the US market often translates into higher sales volume. With a larger number of customers browsing and purchasing daily, there’s a better chance of high turnover, enabling you to scale your Amazon FBA business faster. The US’s established e-commerce culture further supports this, with online shopping integrated into everyday life for millions of people, making it a prime destination for the best-selling products on Amazon.

Increased visibility and marketing opportunities

Selling on Amazon US also boosts your product visibility, thanks to the high traffic on the platform. More eyes on your listings mean increased chances of making sales. Moreover, Amazon US provides various marketing tools, like Sponsored Products and Lightning Deals, which help promote your listings to an even broader audience, directing more traffic to your storefront and aligning your brand with top sellers in Amazon Canada and beyond.

How to sell on Amazon USA from Canada

If you're a Canadian entrepreneur looking to start selling on Amazon US, here’s a quick guide on the essentials:

Understand fulfillment and inventory management - Selling on Amazon US means managing inventory across borders. Products must be stored in fulfillment centers within the US, so you'll need to plan logistics carefully. Many sellers split their inventory based on demand, sending a higher quantity to US fulfillment centers and the rest to Canada, optimizing for highly selling products on Amazon in each region.

Choose the right Amazon selling plan - Amazon offers two plans: the Individual plan, ideal for sellers moving fewer than 40 units per month. With its $40/month fee, the Professional plan grants access to advanced features like bulk listings, detailed reports, and the Buy Box, helping you stay competitive with Amazon Canada's top sellers. Access tools like the Amazon Seller App Canada and Amazon Seller Support Canada to efficiently manage listings and customer service.

Select your business structure - As a Canadian, you can start as a sole proprietor, which is simpler and cost-effective. However, incorporating can offer legal protections and tax benefits, making it a smart move once your Amazon business grows consistently.

Amazon North America Unified Account - Game-changer for Canadian sellers

In the past, selling on Amazon’s various marketplaces required separate accounts for each region. For example, sellers who wanted to operate on amazon.com (US), amazon.ca (Canada), and amazon.com.mx (Mexico) had to create and manage independent seller accounts for each marketplace. This fragmented system often resulted in added complexity, multiple subscription fees, and time-consuming account management.

With the introduction of the North America Unified Account (NAUA), Amazon has simplified the process, enabling sellers to manage their operations across the US, Canada, and Mexico from a single account. This means that sellers no longer need to set up and maintain multiple accounts to reach customers in these three key regions.

Centralized management: Sellers can now oversee listings, inventory, and orders for all three marketplaces—US, Canada, and Mexico—through a single, unified dashboard. This eliminates the hassle of switching between accounts and streamlines operations for cross-border selling.

Simplified subscription fees: If you’re an Amazon Pro Seller, you only pay the subscription fee for the marketplace where you initially registered. For example, if you start your Pro Seller account on amazon.ca (Canada), your subscription fee will only cover this region. You’ll still gain access to amazon.com (US) and amazon.com.mx (Mexico) without incurring additional subscription charges.

Currency conversion and payment challenges for Canadian sellers

Currency conversion and payment management are critical considerations when it comes to making a profit on Amazon as a Canadian seller. Selling on Amazon USA means you’ll be dealing with US dollars, while your operational costs and income reporting back home are in Canadian dollars. This brings in some specific currency conversion challenges, which, if managed well, can help you retain a good chunk of your profits. Here’s what Canadian sellers need to know about navigating global payments effectively.

The impact of currency exchange rates on profit

One of the first financial hurdles Canadian sellers face when learning to sell on Amazon USA from Canada is the fluctuating exchange rate between CAD and USD. The value of the Canadian dollar compared to the US dollar can vary significantly over time, and even small shifts in the rate can substantially impact your bottom line.

For example, if the CAD is weaker against the USD, you might earn more CAD per sale in the US market. However, when the CAD strengthens, your US sales revenue can translate to fewer Canadian dollars. Knowing when to convert your funds and staying updated on rate trends can give you a major advantage in managing these currency conversion challenges. You might even choose to keep your funds in USD for a while if the exchange rate isn’t in your favour, then convert once it improves.

Understanding foreign transaction fees

When you sell on Amazon USA as a Canadian, foreign transaction fees are another factor that can eat into your profits. Each time your earnings are converted from USD to CAD, banks and payment processors typically charge a foreign transaction fee, which can add up quickly. And while these fees might seem small on individual transactions, they can become a substantial cost for your business over time.

To manage this, many Canadian sellers turn to specialized global payment platforms. These platforms often provide favourable exchange rates and lower fees than traditional banks, saving you more on each transaction. By exploring these options, you can significantly reduce the cost of doing business in the US market.

Do you need a local US bank account to sell on Amazon?

Surprisingly, you don’t! Amazon makes it easy for sellers by offering the Amazon Currency Converter for Sellers (ACCS). With ACCS, you can receive payments in US dollars and have them automatically converted to Canadian dollars for deposit into your Canadian bank account. You can sell in the US marketplace without opening a US bank account.

However, it’s important to understand the costs involved. Currency conversion always comes with fees, and ACCS includes these fees in its exchange rate. While ACCS is convenient, your rate won’t be the interbank exchange rate—the industry’s best. To get a clearer picture of what you’re paying, comparing ACCS rates to an online currency converter is a good idea.

A smarter alternative is using a solution like MTFX that can give you more control and better rates. MTFX provides a multi-currency account, allowing you to receive payments directly in US dollars. From there, you can convert your earnings to Canadian dollars at bank-beating exchange rates, saving you money compared to ACCS. Setting up is easy: sign up with MTFX, add your account details to Amazon, and enjoy better rates.

Best practices for minimizing conversion costs

When it comes to minimizing conversion costs for your Amazon FBA business, here are a few strategies that can make a big difference:

Use a multi-currency bank account: If you regularly sell on Amazon USA or in other markets, a multi-currency bank account lets you receive payments in USD without immediate conversion. This allows you to time your conversions more strategically, saving money when rates are favourable.

Consider a currency exchange provider: Companies that specialize in global payments and currency conversion often offer Canadian sellers better rates and lower fees than traditional banks. Look for providers that support Amazon seller payments specifically, as they’ll understand the unique needs of e-commerce businesses.

Regularly monitor exchange rates: If you’re new to how to sell on Amazon USA from Canada, keeping an eye on CAD/USD exchange rates is a simple but effective way to optimize your returns. Currency values fluctuate regularly, and converting your funds during a peak exchange rate can lead to higher earnings over time.

Factor exchange fees into your pricing: To cover currency conversion and transaction fees, it’s wise to factor these costs into your pricing strategy. This ensures you won’t lose out on profits due to unexpected fluctuations and keeps your pricing competitive in the US market.

Managing bank accounts and currency exchange with MTFX

When selling on Amazon FBA from Canada, managing currency exchange and banking is critical to maximizing profitability. While you can start with a Canadian bank account, partnering with a service like MTFX can significantly minimize exchange fees and optimize your cash flow.

Using a Canadian bank account

As a beginner, you can use your Canadian bank account to receive payments from Amazon. In this case, Amazon will convert your earnings from USD to CAD and deposit the funds into your account every two weeks. However, Amazon’s conversion rates often include hidden fees, affecting your profits.

US dollar accounts and their limitations

Many Canadian banks offer US dollar accounts, but even with these, Amazon recognizes the bank's location as Canada, which means you’ll still receive payments in Canadian dollars. This can lead to additional conversion fees, making managing your US dollar transactions harder.

Why choose MTFX for currency exchange?

By partnering with MTFX, you can open a US-based account or leverage MTFX’s competitive exchange rates to significantly reduce the cost of converting USD to CAD. MTFX provides exchange rates much closer to the mid-market rate, helping you avoid the higher fees typically charged by banks. Additionally, MTFX offers seamless global payment solutions so you can manage your international payments more efficiently.

For those looking to go a step further, opening a US-based bank account through options like BMO Harris or RBC Georgia can provide even more cost savings, especially when sourcing inventory in US dollars. With MTFX facilitating smoother cross-border transactions, you can maximize your revenue while minimizing costly currency conversion fees.

Essential requirements for selling on Amazon

Before you can start selling on Amazon FBA from Canada, there are a few key requirements you’ll need to have in place. These ensure you can smoothly set up your account, process payments, and manage your sales.

• A chargeable credit card: Amazon requires a valid credit card to cover any seller fees, whether for your selling plan, advertising costs, or other charges.
• A bank account: This is where Amazon will deposit your sales proceeds every two weeks. You can use a Canadian bank account, but as discussed earlier, using MTFX to manage currency conversion can save you money on fees.
• Government-issued ID: A valid ID like a passport or driver’s license will be needed for verification.
• Social Insurance Number (SIN): If you're a sole proprietor, you'll need your SIN for tax purposes and account setup.
• A valid email address: This will be your main point of contact for communications from Amazon and customer queries.
• A phone number: You’ll need a phone number to receive verification codes via text, which is crucial for securing your account and managing two-factor authentication.

Tips for success on Amazon FBA

Selling on Amazon FBA offers tremendous opportunities for growth, but success requires a strategic approach. Here are key tips to help you thrive as a Canadian seller on Amazon FBA:

1. Identify and sell high-demand products: The key to success is finding highly selling products on Amazon that offer good margins. Use product research tools like Jungle Scout or Helium 10 to analyze demand, competition, and potential profitability. Look for niches with high customer interest but manageable competition. This approach can help you choose the best products to sell on Amazon FBA.

2. Optimize product listings for visibility and conversions: Creating high-quality, optimized product listings is crucial for any Amazon FBA business. Ensure your product titles are clear and descriptive and include relevant keywords. Use professional-quality images showcasing your product from multiple angles, and write detailed bullet points highlighting key features and benefits.

3. Maximize the benefits of Amazon’s FBA service: By leveraging Amazon's FBA, you benefit from Amazon’s vast logistics network. Your products become eligible for Prime shipping, increasing visibility and appeal. FBA also handles customer service and returns, providing a seamless buying experience while saving you time and resources. Using FBA can help you achieve success as you sell on Amazon business.

4. Build a strong reputation through positive customer reviews: Encourage satisfied buyers to leave reviews and address any negative feedback promptly. Maintaining a high star rating builds trust with potential buyers. It increases the chances of ranking higher in Amazon search results, setting you up to be among the Amazon Canada top sellers.

5. Manage your inventory to avoid stockouts and lost sales: Running out of stock can hurt your product’s ranking and lead to lost sales opportunities. Use Amazon’s inventory management tools to monitor stock levels closely and set alerts when stock runs low. Consider services like MTFX for efficient global payments and inventory sourcing to ensure timely restocking and managing any currency conversion challenges efficiently as you expand.

6. Utilize Amazon’s marketing tools to boost visibility: Amazon offers various advertising options, like sponsored product ads and Lightning Deals, to increase product visibility. Invest in these marketing opportunities to attract more customers and drive sales. Monitor your ad performance regularly to optimize spending and ensure a good return on investment, helping to turn your product into one of the best-selling products on Amazon.

Build and grow your Amazon US business with MTFX

Expanding your Amazon FBA business from Canada to the US presents incredible opportunities, but managing global payments, currency exchange, and cross-border logistics can be challenging. This is where MTFX comes in, offering tailored solutions to help you efficiently grow your Amazon US business.

Optimize currency conversion and reduce fees

Managing currency exchange is one of the biggest hurdles for Canadian sellers on Amazon US. Amazon typically converts your US dollar earnings to Canadian dollars at less favourable rates, cutting your profits. With MTFX, you can access competitive exchange rates closer to the mid-market rate, reducing conversion fees and helping you keep more of your earnings.

Streamline international payments and cash flow

MTFX offers a seamless global payment solution that allows you to manage your international payments from a single, user-friendly platform. Whether you’re paying suppliers in the US or China, MTFX ensures fast, reliable payments with minimal fees. This improves your cash flow and allows you to reinvest in your business and scale faster.

Mitigate currency risk with tailored risk management tools

Fluctuations in exchange rates can significantly impact your profits. MTFX provides advanced risk management tools like forward contracts, enabling you to lock in favourable exchange rates for future payments. This protects your margins from currency volatility, giving you greater financial stability as you grow your Amazon business.

Simplify your financial operations

Managing cross-border transactions can be complex, but MTFX simplifies the process. Their platform integrates seamlessly with your business, automating payments, invoicing, and currency conversions. This reduces administrative burdens, allowing you to focus on growing your Amazon FBA business without getting bogged down by financial complexities.

Expand into new markets with ease

As your Amazon business grows, you may want to explore additional marketplaces like Mexico or Europe. MTFX’s global payment solutions make it easy to manage payments across multiple currencies and regions, supporting your expansion into new markets without the financial headaches.

Conclusion

Selling on Amazon FBA from Canada offers immense potential, especially when targeting the larger and more lucrative US marketplace. However, success requires careful planning, smart financial management, and efficient logistics. By leveraging MTFX’s global payment solutions, you can overcome common challenges like high currency conversion fees, delayed payments, and currency risks.

Create your MTFX account today and build a growth-oriented Amazon business.

FAQs

1. How does Amazon FBA work?

Amazon FBA (Fulfillment by Amazon) lets sellers store products in Amazon fulfillment centers, where Amazon handles storage, shipping, customer service, and returns. This streamlines the Amazon FBA business process, allowing sellers to focus on growing their business.

2. What does Amazon FBA cost?

Amazon FBA costs vary based on product size, weight, storage time, and Amazon FBA shipping charges. You’ll pay storage and fulfillment fees, so it’s essential to calculate these costs to maintain profit margins.

3. What is the Amazon FBA return policy?

Amazon manages returns for FBA sellers, offering customers a 30-day return policy. This is beneficial to sell to Amazon business users as it reduces the seller's involvement in handling returns.

4. How much does an Amazon FBA seller make?

Earnings depend on the products, sales volume, and costs like Amazon seller shipping costs and advertising. Successful sellers can make significant profits, especially when selling highly selling products on Amazon with good margins.

5. What is Amazon FBA PL?

Amazon FBA Private Label (PL) is where sellers create and sell their own branded products through Amazon FBA, offering a higher profit potential and control over product quality.

6. Can I sell my Amazon seller account?

Yes, you can sell an Amazon seller account, but following Amazon’s guidelines and ensuring the account is in good standing before selling is essential.

7. Can you do Amazon FBA from Canada?

Canadians can use Amazon FBA to sell on Amazon USA or other international marketplaces. Amazon’s global fulfillment network allows it to manage cross-border sales from Canada.

8. How to start an Amazon FBA business as a beginner?

Sell on Amazon FBA for beginners involves setting up an account, finding products, sourcing inventory, and listing products. Using tools like the Amazon seller app Canada simplifies this process for Canadian sellers.

9. What are the best products to sell on Amazon FBA?

The best products to sell on Amazon FBA are usually high-demand, low-competition items. Tools like Helium 10 and the Amazon seller database can help find profitable niches.

10. What is the Amazon FBA fee structure?

Amazon charges storage fees, fulfillment fees, and optional costs like advertising fees. Calculate Amazon FBA shipping charges carefully to understand your cost structure.

11. How to sell on Amazon USA from Canada?

How to sell on Amazon USA from Canada involves setting up a US Amazon seller account, sourcing inventory, and using FBA to fulfill orders in the US.

12. Is there Amazon seller support in Canada?

Yes, Amazon seller support Canada assists Canadian sellers with questions on listing products, resolving account issues, and understanding fulfillment requirements.

13. How do I optimize my product listing on Amazon?

To succeed in the Amazon FBA business, optimize listings by including relevant keywords, high-quality images, and detailed descriptions. This improves visibility and conversions.

14. What are Amazon FBA shipping charges?

Amazon FBA shipping charges depend on product size, weight, and distance from the fulfillment center. Consider these charges to manage your profit margins effectively.

15. What are some challenges with global payments in Amazon FBA?

Managing cross-border payments and currency conversion challenges is crucial for Canadians selling on Amazon USA. Using global payment providers can help minimize costs and simplify transactions.