Amazon.ca Selling 101: How To Start Business On Amazon Canada

By Maurice | April 27, 2025

Starting a business on Amazon Canada can be an excellent opportunity for entrepreneurs looking to tap into the thriving e-commerce market. As Canada’s largest online marketplace, Amazon offers sellers access to millions of potential customers across the country. Whether you’re a seasoned business owner or just starting out, selling on Amazon.ca can provide a platform to launch and grow your brand.

Before diving in, it’s important to understand the basics of how to get started, the different selling options available, and the key steps to set yourself up for success. This guide will walk you through the process of becoming an Amazon seller in Canada, from creating your account to listing your first product and beyond. With the right strategy and preparation, you can leverage Amazon’s powerful infrastructure to build a thriving online business in the Canadian market.

1. Understanding Amazon Canada’s Marketplace

Amazon Canada offers a wide range of opportunities for sellers. It provides a large customer base, extensive resources, and various seller account options tailored to different business needs.

The Amazon Canada Ecosystem

Amazon Canada is one of the largest online marketplaces in the country. With millions of monthly visits, it offers a robust platform for businesses to reach a broad audience.

Canadian small and medium-sized businesses exceeded $900 million in sales on Amazon.ca stores in 2018. Additionally, 45% of these sellers also exported their products internationally. This shows the potential for reaching not just Canadian customers, but also global markets.

Benefits of Selling on Amazon Canada

Selling on Amazon Canada comes with numerous advantages. First, you gain access to an existing and substantial customer base. Amazon’s brand credibility and efficient logistics support make it easier to gain trust and ensure quick delivery.

Another benefit is the ability to expand your market reach. Even if your business is located outside of Canada, you can still sell products on the platform, allowing you to tap into the Canadian market without necessarily being physically present.

Seller Account Types

Amazon Canada offers two main types of seller accounts: Individual and Professional. Each type serves different needs and scales of business.

Individual Account: Ideal for sellers planning to sell fewer than 20 items per month. There are no subscription fees, but sellers pay a per-item fee on sales.
Professional Account: Suited for larger businesses. It requires a monthly subscription fee but provides a suite of advanced selling tools and lower per-item fees.

Choosing the right account type is crucial. Consider the scale of your operations and the features you need to succeed on the platform.

2. Initial Setup for Your Amazon Business

Choosing to start an Amazon business in Canada requires setting up your seller account, managing necessary business licenses and taxes, and creating a compelling seller profile.

Registering Your Seller Account

First, you need to register your Amazon seller account. Visit Amazon’s Seller Central and click on “Start Selling.”

Choose between individual and professional accounts based on how many items you plan to sell. For a professional account, a monthly subscription fee is required.

Fill in your business details accurately, including your business name, address, and email. You can use an existing Amazon.ca email if you’ve shopped for work previously. Verify your identity by submitting necessary documents such as a driver’s license or passport. Completing this step allows you to access Amazon’s marketplace.

Business Licensing and Taxes

Ensure you’re compliant with local laws. Apply for a business license through your provincial government. Without proper licensing, your business could face fines or other legal actions.

Register for a GST/HST number with the Canada Revenue Agency. This number is essential for collecting and remitting taxes. Make sure to understand the tax obligations for your specific business type, whether you’re operating as a sole proprietor, partnership, or corporation.

Consult a tax professional to ensure you’re meeting all legal requirements and optimizing your tax strategy. Staying compliant helps you avoid future issues that could disrupt your business operations.

Setting Up Your Amazon Seller Profile

Your Amazon seller profile is your business’s face on the marketplace. Start by crafting a professional business name and logo. A well-designed logo gives a polished look to your profile.

Write a compelling business description. Highlight what makes your products unique and emphasize your commitment to customer service. Use bullet points to make important information easily readable.

Upload high-quality images of your products and ensure they meet Amazon’s guidelines. Add detailed product descriptions, including key features and specifications, to help customers make informed purchasing decisions. A well-crafted seller profile builds trust and encourages sales.

3. Product Sourcing and Branding

Effective product sourcing and strong branding are essential to standing out in the competitive Amazon marketplace. You’ll need to find reliable suppliers, create unique products, and establish a recognizable brand.

Finding Suppliers and Manufacturers

One of the first steps in starting your Amazon business is identifying reliable suppliers and manufacturers. You can explore online directories like Alibaba, Global Sources, or even local trade shows to connect with potential partners.

Create a shortlist of suppliers and compare their prices, minimum order quantities, and quality. Always ask for samples before committing to large orders. This step helps you ensure the product meets your expectations and those of your customers.

Building a good relationship with your supplier is crucial. Clear communication about your expectations, delivery timelines, and quality standards can prevent many potential problems.

Creating Private Label Products

Private labeling allows you to sell products under your own brand name. This approach gives you more control over pricing, packaging, and marketing. Choose a product with good demand and a clear niche to stand out among competitors.

Work with your supplier to customize the product to your specifications. This might include changes to the design, packaging, or additional features that make your product unique.

Designing eye-catching packaging can greatly enhance your product’s appeal. Consider working with a professional designer to create packaging that reflects your brand’s identity and resonates with your target market.

Building Your Brand

Building a strong brand on Amazon involves more than just a logo and a name. Your brand should communicate a promise and meet the needs of your customers. Start by defining your brand values and what sets you apart from others.

Developing a consistent brand voice and visual identity is key. This includes logo design, color schemes, and the tone you use in product descriptions and customer communications.

Engage with customers through social media and respond to reviews promptly. Positive interactions can foster loyalty and encourage repeat business. Additionally, take advantage of Amazon’s tools like Enhanced Brand Content to create a richer shopping experience for your customers.

By focusing on these elements, you can establish a brand that not only attracts customers but also keeps them coming back.

4. Listing Products on Amazon

Listing products on Amazon Canada involves several crucial steps including setting up optimized product listings, choosing effective pricing strategies, and understanding Amazon SEO basics to enhance visibility.

Product Listing Optimization

Creating optimized product listings is vital for catching the eye of potential buyers. Start with a clear, high-quality main image and include additional images that show various angles and uses of the product. Use descriptive, keyword-rich titles that clearly convey the product’s main features and benefits. For instance, if you’re selling a blender, a good title could be “High-Power Professional Blender with 6 Blades.”

Highlight key features in bullet points. Keep them short and focused. For example:

Powerful 1000W motor
6 stainless steel blades
BPA-free plastic parts

Lastly, use the product description space to provide a detailed overview. Incorporate relevant keywords naturally to improve searchability.

Pricing Strategies

Choosing the right pricing strategy is key to attracting customers and staying competitive. Analyze the market by researching similar products and their prices. Consider tools like Jungle Scout for competitive analysis.

Dynamic Pricing: This approach allows prices to fluctuate based on market demand and competition. It can help you stay competitive without continuously monitoring prices manually.
Psychological Pricing: Use pricing psychology to your advantage. Prices ending in .99 or .95 can make products seem less expensive. For instance, pricing an item at $29.99 instead of $30.
Promotions and Discounts: Regular promotions, discounts, and coupons can attract more buyers and increase sales volume. For example, offering a 10% discount on bulk purchases or during holiday seasons can drive more traffic to your listing.

Amazon SEO Basics

Effective Amazon SEO ensures your products appear in relevant search results. Start by conducting thorough keyword research to identify what potential customers are searching for. Incorporate primary keywords naturally into your product title and bullet points. Avoid keyword stuffing as it can negatively impact your ranking.

Use the backend search term fields in Seller Central to add relevant keywords that don’t fit naturally into your product title or description. This can include synonyms and alternate spellings.

Positive reviews and ratings improve your product’s visibility. Encourage satisfied customers to leave reviews by following up with a thank-you email and a polite request for feedback.

By focusing on these practices, you can effectively list and market your products on Amazon Canada, improving your chances of success in this competitive marketplace.

5. Operations and Order Fulfillment

Efficient operations and order fulfillment are crucial for running a successful Amazon Canada business. Here, you’ll find key insights into choosing between Fulfillment by Amazon and Fulfillment by Merchant, managing inventory, and navigating shipping logistics.

Fulfillment by Amazon vs. Fulfillment by Merchant

Fulfillment by Amazon (FBA): This option allows you to store your products in Amazon’s fulfillment centers. Amazon takes care of storage, packing, shipping, and customer service. The main advantage is that it provides access to Amazon Prime customers, which can increase your sales. However, there are fees associated with storage and fulfillment services that you need to consider.

Fulfillment by Merchant (FBM): With FBM, you manage the storage, packing, and shipping of your products. This gives you more control over your inventory and potentially lower costs. However, it requires more time and effort to handle these operations yourself. This option is suitable if you have the resources and logistics to manage order fulfillment efficiently.

Inventory Management

Effective inventory management ensures you never run out of stock and miss sales opportunities. Use inventory management software to track stock levels, forecast demand, and automate reordering processes. Tools like Amazon’s own inventory management solutions or third-party software can help. Regularly audit your inventory to prevent discrepancies and overstock.

Consider setting reorder points to ensure products are restocked before running out. You should also keep a close eye on products that have a high turnover rate and adjust your inventory strategies accordingly. Proper labeling and organization within your storage facility can contribute to efficient operations.

Shipping Logistics

Shipping logistics involve getting your products from your location to the customer efficiently and cost-effectively. If using FBA, Amazon handles shipping for you, leveraging their extensive logistics network. For FBM, you are responsible for shipping. Partnering with reliable shipping carriers and understanding shipping costs are vital.

Ensure your packaging is sturdy and properly labeled to avoid damage and shipping delays. Offering expedited shipping options can enhance customer satisfaction. Additionally, consider utilizing Amazon’s unique shipping programs, such as Amazon Global Logistics, if you plan to expand your reach internationally.

Selecting the right shipping solutions can significantly impact your delivery speed and customer service quality.

6. Marketing Your Products

Effectively marketing your products on Amazon Canada can significantly boost your sales and brand visibility. Some key strategies include leveraging Amazon’s advertising tools, utilizing social media and email marketing, and driving traffic from external sources.

Advertising on Amazon

Amazon offers several advertising options to help increase your product’s visibility. The most common methods include Sponsored Products, Sponsored Brands, and Sponsored Display Ads. Sponsored Products can help individual items appear in search results and product detail pages, increasing their likelihood of being viewed and purchased.

Sponsored Brands allow you to showcase your brand logo, a custom headline, and multiple products, creating a cohesive brand experience. This can be vital for building brand loyalty and recognition.

Sponsored Display Ads target relevant audiences both on and off Amazon, helping to drive awareness and purchase intent. It’s essential to monitor your ad performance regularly and adjust your strategies based on which ads are most effective.

Utilizing Social Media and Email Marketing

Social media platforms like Facebook, Instagram, and Twitter are powerful tools for driving traffic to your Amazon listings. Create engaging content that highlights the features and benefits of your products. Posts with high-quality images, instructional videos, and customer testimonials can draw significant attention.

Beyond social media, building an email list can help you reach your audience directly. Send out newsletters with exclusive discounts, new product launches, and personalized recommendations. Email marketing can nurture customer relationships and encourage repeat purchases.

To maximize engagement, consider running social media contests and giveaways. Not only do these increase your visibility, but they also can help grow your follower base and generate user-generated content.

Driving External Traffic

Driving external traffic to your Amazon product listings can significantly enhance your selling potential. Techniques include search engine optimization, blogging, and affiliate marketing. Create blog posts on your own website or guest posts on popular blogs that link directly to your Amazon listings.

SEO tactics, such as using relevant keywords in your content, can improve your visibility on search engines. This makes it easier for potential customers to find your products.

Affiliate marketing can also be a powerful tool. Partner with bloggers, influencers, or other websites to promote your products. These partners earn a commission for each sale they refer, creating a win-win situation for both parties. Remember to track and analyze which external sources are driving the most traffic and adjust your strategies accordingly.

7. Customer Engagement and Retention

Building strong relationships with your customers is key to sustaining a successful business on Amazon Canada. Focus on delivering top-notch customer service, actively managing reviews, and taking advantage of Amazon’s feedback mechanisms.

Providing Excellent Customer Service

Great customer service is the foundation of customer retention. As a seller, you should respond promptly to customer inquiries, ideally within 24 hours. Addressing their concerns quickly shows that you value their business.

Maintain a polite and professional tone in all communications. Using Fulfillment by Amazon can help as it leverages Amazon’s world-class logistics to meet customer expectations. Regularly check your shipping and handling times to ensure timely delivery, which can enhance customer satisfaction.

Offer clear return and refund policies. Transparency helps build trust with your customers, encouraging repeat purchases. Using bullet points for your policies can make them easily readable and accessible.

Managing Customer Reviews

Customer reviews play a crucial role in influencing potential buyers. Aim to provide excellent products and services to encourage positive reviews. Politely ask satisfied customers to leave reviews but never incentivize them, as this violates Amazon’s policies.

Regularly monitor your product reviews and address any negative ones promptly. Apologize for any inconvenience and offer solutions to resolve the issue. This shows future customers that you are proactive in addressing concerns and value customer feedback.

Utilize Amazon’s Manage Your Customer Engagement tool, which allows you to send promotional emails to your followers, helping to foster a positive relationship and potentially garnering more reviews over time.

Leveraging Amazon’s Feedback System

Amazon’s feedback system provides valuable insights into your customers’ experiences. Keep an eye on your feedback score and strive to maintain high ratings. Respond to feedback courteously and professionally, acknowledging both positive and negative comments.

Use feedback to identify areas for improvement. If you notice recurring issues, address them promptly to prevent future problems. Implement solutions to improve product quality, shipping times, or customer service based on feedback.

Participating in programs like Seller Fulfilled Prime can help you maintain high levels of service and customer satisfaction. These programs often come with rigorous standards, but meeting them can greatly enhance your visibility and reputation on Amazon.

By focusing on these key areas, you can effectively engage and retain customers, fostering long-term loyalty and success for your Amazon Canada business.

Frequently Asked Questions

First, create an Amazon seller account using your business email. If you already have an Amazon customer account, you can use it to start selling. Ensure you have your business name, address, and contact details ready.

Selling from the United States requires you to understand cross-border rules. Register with Amazon.ca, provide a Canadian business address, and potentially obtain a non-resident import/export number. Make sure to comply with Canadian tax regulations.

While not always mandatory to have a business license, it is recommended to check local regulations. A business license can enhance credibility and may be required depending on your product category.

To avoid holding inventory, use Amazon’s Fulfillment by Amazon (FBA) service. FBA stores, packs, and ships your products. Alternatively, drop shipping allows you to fulfill orders directly from suppliers without stocking products yourself.

You will need to provide several documents, including your business email address, a chargeable credit card, valid government-issued ID, and bank account information. For detailed registration steps, refer to Steps to register for Amazon Business.

Participating in FBA can be profitable due to Amazon’s efficient logistics and wide customer reach. Consider the FBA fees and compare them with potential sales to determine profitability. More details can be found on Amazon Business Seller program.

Resources for Starting Business On Amazon Canada

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.