Considering expanding your Amazon business? This episode makes a compelling case for Amazon Canada as the ideal "lowest hanging fruit" for US sellers. Discover the significant advantages, including lower competition, higher profit margins, and drastically reduced advertising costs compared to the saturated US market. Learn what to expect regarding taxation and currency to smartly navigate your cross-border expansion.
Key takeaways
The Canadian Amazon market offers 2-3x lower advertising costs and higher profit margins compared to the US due to less saturation.
While Canada has a smaller population (1/10th of the US), it presents a "low-hanging fruit" opportunity for expansion with less competition.
Be prepared for Canada's GST/HST federal tax (typically 5%) which is recoverable, and understand currency exchange ramifications for profitability.
New sellers might find starting in the US easier due to Canadian tax and business registration complexities, but Canadian expansion is a priority for established US sellers.
Focus on niches with less competition in Canada to maximize profit margins, as the market is less saturated than the US.
Hi, it's Dave here. Mike is taking some much-needed time off at the moment so I'm taking the reins. Coincidentally, today's podcast topic is something that I'm in the best position to talk about - selling on Amazon Canada. If the accent isn't a giveaway already, I am Canadian myself and currently running my business out of Vancouver. So, let's start off with a question. Should you be selling in Canada? The answer to this is of course relative. But, if you are living in the United States, then Canada would technically be the "lowest hanging fruit" when it comes to expanding your business. I've added some more advantages below. The American market is increasingly becoming more saturated. Advertising rates are significantly higher in the United States. They're literally 2-3 times what they cost in Canada and almost all other marketplaces. The cost of sale is also higher in America. In Canada, the average is around 3% while it's typically above 10% south of the border. You are a lot more likely to get higher profit margins in Canada because there's less competition within the same niche. Depending on your circumstances, these disadvantages may be relevant. Canada has significantly fewer people living there than in the US. It has about a tenth of the American population. It takes a lot of work to sell in Canada because it has its own tax and business registration regiment. If you're new to selling online, it will be much easier to do so on Amazon.com. Canada has a different currency, which can have specific ramifications for your business. The Taxation Thing In America, there is no federal tax. In Canada, you have to pay the equivalent of a federal tax called the GST/HST. This is typically 5%. While you can get this amount back at the end of the year, th
What does this episode say about amazon & marketplaces?
The Canadian Amazon market offers 2-3x lower advertising costs and higher profit margins compared to the US due to less saturation.
What does this episode say about supply chain & operations?
While Canada has a smaller population (1/10th of the US), it presents a "low-hanging fruit" opportunity for expansion with less competition.
What does this episode say about finance & fundraising?
Be prepared for Canada's GST/HST federal tax (typically 5%) which is recoverable, and understand currency exchange ramifications for profitability.
What does this episode say about amazon & marketplaces?
New sellers might find starting in the US easier due to Canadian tax and business registration complexities, but Canadian expansion is a priority for established US sellers.
What does this episode say about amazon & marketplaces?
Focus on niches with less competition in Canada to maximize profit margins, as the market is less saturated than the US.
