Amazon Canada Selling Fees 2024
Understanding Amazon Canada selling fees is detrimental to help you make informed decisions about your profitability. Offering a platform to connect to millions of potential customers, Amazon.ca was ranked the first in ecommerce and shopping marketplace in Canada.
How to Sign Up for an Amazon CA Seller Account
Getting started with Amazon.ca is a straightforward process.
- Visit Amazon Seller Center
- Create an Account: Click on the button that says “Create a Seller Account”
- Choose Your Selling Plan: Decide between the Individual Selling Plan and the Professional Selling Plan
- Provide Your Account Information: Enter your business name, email address, and password to create your seller account.
- Tax Information: Provide your tax information, including your business registration number (if applicable) and Goods and Services Tax (GST) number if your annual sales exceed $30,000 CAD.
- Review and Agree: Carefully review Amazon’s terms and conditions before agreeing to them
- Submit Your Application: Once you’ve completed all the steps, submit your application. Amazon will review your information and notify you of your approval status
- Start Selling: Upon approval, you can start listing your products on Amazon.ca
Fulfillment Methods for Amazon Canada
There are two primary fulfillment by Amazon Canada methods:
Fulfillment by Merchant (FBM)
With FBM, you are responsible for the entire fulfillment process, from storing your inventory to picking and packing orders to shipping them directly to customers.
This approach gives you complete control over packaging and branding, but it also requires significant investment in time, resources, and infrastructure.
FBM may be suitable for sellers with a limited product mix or those who prefer to handle fulfillment themselves.
Fulfillment by Amazon (FBA)
Amazon’s FBA program allows you to outsource storage, packaging, and shipping to Amazon.
This frees you up to focus on other aspects of your business, such as sourcing products, marketing, and customer service.
Because Amazon FBA Canada strategically locates fulfillment centers across Canada, FBA sellers can leverage Amazon;s efficient logistics network to offer delivery times to customers, potentially leading to higher customer satisfaction and repeat business.
Amazon handles customer service inquiries and returns for FBA orders, reducing your workload and ensuring a consistent customer experience.
FBA sellers can qualify for the Prime badge, which increases product visibility and can significantly boost sales, as Prime members are frequent online shoppers who spend more on average.
FBA can simplify selling to Canadian customers from the US or other countries. Amazon handles customs clearance and import duties, streamlining the fulfillment process.
Canadian Tax and Regulatory Considerations
Selling on Amazon Canada comes with specific tax and regulatory requirements.
You’ll need to register for the Goods and Services Tax (GST) if your total annual sales exceed $30,000 CAD.
Additionally, some product categories may have additional regulations or licensing requirements.
How to Sell on Amazon Canada from the US
Selling on Amazon FBA Canada from the US is possible, but there are additional considerations. You’ll need to decide fulfillment options, factoring in cross-border shipping costs and potential delays.
Understanding the Canadian customs regulations and potential import duties is also crucial.
Selling Fees on Amazon.ca
There are two main selling plans for Amazon Canada seller account: The Individual Selling Plan and the Professional Selling Plan.
Individual Selling Plan
The Individual Selling Plan is suited for sellers with a lower sales volume, as it charges a per-item fee of $1.49 CAD for each item sold.
These Amazon fees apply regardless of the product price or category.
Professional Selling Plan
The Professional Selling Plan is a subscription-based plan that caters to high-volume sellers.
For a monthly Amazon fees Canada of $29.99 CAD, professional sellers gain access to a suite of features designed to streamline their selling experience.
These features include bulk listing tools, inventory management tools, and reports & analytics.
Additionally, professional sellers benefit from lower per-item referral fees (explained below) compared to individual sellers.
Ultimately, the best plan for you depends on your anticipated sales volume and the features you deem most important for your business.
Amazon Canada Fulfillment & Shipping Fees
Fulfillment fees depend on the product category, weight, dimensions, and chosen fulfillment method.
Fulfillment By Merchant (FBM)
With FBM, you’re responsible for storing, packaging, and shipping your products to customers. Amazon charges no fulfillment fees under this model, but you’ll have separate costs for postage and packaging.
Fulfillment By Amazon (FBA)
Amazon handles the storage, packaging, and shipping for a fee. FBA fees Canada are based on a complex structure that considers product size, weight, and fulfillment tier.
Amazon offers various fulfillment tiers, each with a different fee structure. These tiers may include Amazon storage fees Canada, pick and pack fees, and shipping to Amazon FBA Canada. Selecting the most appropriate tier depends on your product mix and sales volume.
Sellers can utilize Amazon’s FBA Fee Calculator to estimate their FBA fees.
Enter your product’s dimensions, weight, category, and the shipping destination, and get estimates for:
- Fulfillment Fee
- Storage Fee
- Removal Fee
- Referral Fee
- Closing Fee
Amazon Seller Fee Changes – Canada
For sellers concerned about price competitiveness, Amazon introduced Low-Price FBA rates in February 2024. This program offers discounted fulfillment fees for products priced under $11 CAD and includes free shipping for Prime customers and standard shipping for non-Prime customers.
Amazon occasionally updates its fees, so regularly checking Seller Central resources is recommended.
Amazon Canada Fulfillment Tips
To lower their fees, Amazon sellers can follow these tips:
- Use Amazon’s FBA Revenue Calculator for fee estimation.
- Price your products competitively.
- Employ Amazon’s Fulfillment by Amazon Multi-Channel Fulfillment (MCF) to sell across various platforms.
- Optimize product listings to reduce oversized item fees.
- Carefully manage product returns.
- Unplanned Services Fees: Incurred when inventory arrives at a fulfilment center without proper preparation or labeling, necessitating unplanned services.
- Removal Order Fees: Amazon offers the option to have your inventory returned or disposed of at a fulfilment center for a per-item fee.
- Returns Processing Fees: Applied to orders when Amazon provides customers with free return shipping.