Why should you consider selling with Amazon US Account from Canada

So you’ve decided to expand your online store to the US. It only makes sense as expanding your market could bring forth more audience and profit at the end of the day.

Why should you consider selling in the US?

The official link of Amazon for US consumers is “amazon.com.” If amazon.ca rakes in 80% of the population who purchase online, the US statistics are greater. In 2019 alone, 263 million people are Amazon online purchasers, and half of them are “regular buyers” or a member of Amazon Prime, Amazon’s premium shipping service.

How to start selling in Amazon USA?

Before setting up your account, here are the following things to acquire:

• Chargeable Visa/Mastercards
• Bank account
• Business phone number and address - For Amazon account log-in.
• Brand registration - Done if you have your registered brand name.
• UPC or EAN codes for your stock items
• Tax forms

1) SET UP YOUR AMAZON ACCOUNT

• Create a seller account. Select North America. You can still sell in the USA and Mexico by using a North American account. You are actually at an advantage at this juncture because the Amazon Seller account fees are cheaper in Canada than in the US.
• Choose an account type. There are two account options - professional and individual accounts. If you’re a small business and want to start small and go big later, go for an individual account. If you want to start big, go with the professional account.
• Add your products. Create the product detail pages if you’re not using FBA or Fulfillment by Amazon. FBA is a service from Amazon that arranges your storage, packaging, and shipping for your convenience.
• For the shipping process, you’ll need to choose your shipping company, arrange your customs documents, and search for a broker that clears your packages for you in transit to the US. If you’re using the FBA, Amazon will do the shipping process for you.

2) INVENTORY AND SHIPPING

The logistical side of your business, such as inventory and shipping, could be complicated because of the changing protocols from one country to another. It’s good for you to know the rigors of the process, but you can get help from Amazon to handle international transactions for you.

The easiest way to achieve smooth inventory and shipping transactions internationally is through FBA. However, if you want to do them yourself, go by the FBM or Fulfilled by Merchant) route. There are pros and cons to FBM, so before you dive in, research on the perks, you’ll be getting from FBA and FBM.

3) AMAZON SHIPPING FEES AND TAXES TO TAKE NOTE

Tax matter in the US can be a complicated subject, but it all boils down to preparing the right documentation for a smooth transaction. One document to fill out is with regard to your income taxes.

Upon opening an Amazon seller account, you’ll be answering several questions that will determine whether you’re liable or not to pay taxes to the USA. If you’re a Canadian, you are classified as a “foreign national,” which means you’re exempted from paying US taxes. You’ll need to fill out a W-8BEN form for that.

Amazon has a library of resources regarding international tax matters. You can check them out here. To ease your worry and simplify things, you just keep on paying your Canadian tax as usual and just include the profits you’re getting from your customers based in the US.

Customs taxes and fees are better handled by a customs broker. Some major shipping companies have in-house customs brokers for you if you engage with their shipping services. There are also small-time agencies that solely cater to customs broker transactions.

Expanding your business by reaching out to the US is one of the perfect ways of growing your income. The processes involved wouldn’t be as difficult if you employ the right tools such as FBA, the Unified Account Build International Listings Tool, and agencies that give Amazon-focused services.