Canadians are a big fan of the American eCommerce giant, Amazon, and they especially love shopping on their American site. With affordable prices, great deals, and a wide selection of items, it's not hard to see why Canadians prefer to shop on Amazon.com. Amazon has earned $1.18 billion last 2018 from Canadian shoppers.
It's no surprise that American companies are deciding to expand globally; maybe you're one of those companies considering a wider market, starting with Canada. Read on to know about the Fulfillment by Amazon program and how shipping globally plays a huge part in your business' success.
What is FBA's Role in Amazon.com's Shipping to Canada?
Before enrolling your business into an FBA, you must first understand what it is and how it will benefit your business. Fulfillment by Amazon is an exclusive program that helps sellers scale their business internationally. Amazon picks the package up, packs it, ships it, and provides customer service for your business, cutting down all your work almost in half.
Selling internationally used to be a pipe dream for most small businesses. The only businesses that could sell internationally were big established brands, but with the FBA initiative, small businesses can now compete internationally without breaking the bank. Amazon will handle all the tiring parts, making it easier for you to reach a foreign market. Amazon FBA's shipping rates are made more affordable, guaranteed to ease your customers’ shipping concerns and issues.
How Does FBA Work?
In simple terms, Amazon FBA works this way: you sell the item, and then Amazon ships it. You can easily understand Amazon FBA by knowing how their process works:
- Send your goods to Amazon, where they will be stored in a fulfillment center.
- Once Amazon receives your item for inventory, you can now easily track all orders on their tracking system.
- A customer can then order your product from Amazon or any other eCommerce platform where your goods are available.
- Upon notification, Amazon picks the item and packs it.
- Amazon sends the item according to the customer's shipping method. They also provide you with updated shipping information.
Amazon's involvement in this transaction also includes superb customer service, return management, and of course, Amazon FBA's shipping rates that are not only cost-effective for small businesses everywhere but also a good long-term investment. It doesn't end with just shipping the products and ensuring that you and your customer are satisfied with the overall transaction.
Among the most common misconceptions both buyers and sellers have with Amazon FBA is that its functionality is limited to the platform. Brands swear by the program for its massive scope—utilizing Amazon FBA to fulfill orders from other eCommerce stores is why most people opt for it.
After all, Amazon stores all your inventory in fulfillment centers and ensures proper management as soon as they are placed. You might want to look into this, especially if you have a growing site and are currently having trouble managing all your orders. Shipping rates are also priced lower due to added accessibility. Here are other top benefits that may convince you.
The Top Benefits of Selling With Amazon FBA
When enrolling in the Amazon FBA program, you are entitled to many benefits that greatly help your business expand in the north. These are benefits exclusive only to Canadian Amazon FBA sellers.
There's less competition up north.
Because the Canadian market is smaller than its southern counterparts, the competition is also smaller. You have more wiggle room to set prices and set the online retailing game on your terms. Be the big fish in a small pond when you move north with Amazon FBA.
The opportunity for higher profit margins exists.
One thing that might help you push your expansion to Canada is that its Amazon FBA market is less intense than other markets since there are a few sellers and less competition for you. Once you realize that your online market success relies on how sellers see your products, you have more room to increase your prices, giving you higher profits. But make sure to take note of the USD-CAD exchange rate.
It offers world-class customer service.
Scaling a business comes with its own set of worries; handling inquiries, returns, and complaints aren't something you can handle alone. It’s time you step up your mindset and delegate these tasks to the professionals as your business grows bigger.
With Amazon FBA, you have the ability to let your customers voice their concerns and issues with the stellar customer service that FBA can provide you! With Amazon's experienced team of professionals to provide you with customer support 24/7, you'll have fewer worries on your plate!
Besides, sellers under Amazon FBA also have the "Fulfillment by Amazon" seal displayed on their listings. This seal helps ease and assure customers that an excellent and smooth experience is expected from packing to delivery to customer service.
Storage won't be a problem.
If you're currently keeping some of your inventory at home, then you know how much space it takes up every month. Besides, improper storage is often the reason why a product gets damaged. Avoid all that with Amazon FBA. Let them handle your inventory by keeping all of it in their fulfillment centers.
With Amazon FBA, you'll no longer have problems with storage, in addition to letting you focus more on running your business and ensuring you're scaling your business the right way! You will also have the option to ship directly to Amazon FBA.
Factors to Consider When Shipping to Canada
Much like starting a business, starting a partnership will also feel like an investment. Think of Amazon FBA as more than just your fulfillment center and shipping partner but also as a business investment that can either grow or fail your business. In line with that sentiment, we have prepared a few factors you should consider:
The shipping costs in Canada might break you.
Unlike the US, Canada's population is more diluted, so shipping costs are comparatively higher than the south of the border. You might want to calculate the shipping costs for your products and price them accordingly. If you opt for Fulfillment by Amazon, its Amazon fulfillment services tracking feature will help you out big time!
Consider the product’s worth in Canadian dollars.
Setting prices in Canadian dollars might be a bit more challenging than you initially think. However, there are tools online you can use to set up, handle, and manage your Canadian market prices. So, you won't have to worry about going through this alone.
Make a list of products that you can actually send up north.
Amazon.com has a much wider range of items in comparison to Amazon.ca. Besides the item's cost, there's another factor that you should consider: forbidden imports. Before diving into expanding your eCommerce store to Canada, you need to research the various items that fall under this category. A little digging also helps in knowing if you can ship directly to Amazon FBA.
Now, these factors will help you decide whether or not scaling your eCommerce business to Canada is worth it. You must plan this to ensure that the business runs smoothly.
Should You Sell With Amazon FBA?
Amazon.com's shipping to Canada with Amazon FBA comes with its own set of considerations you need to think about. So if shipping to Canada is where you need your business to be right now, there are a few more things you should know.
Whether directly or through an Amazon fulfillment center, Sending goods to Canada will require you to register for a Canadian business number. Register online through Canada’s website business registration page. Once you have this number, get an import and export license from the Canada Border Services Agency. Take taxes and duties into account when selling your goods in Canada.
Explore shipping options using the Fulfillment by Merchant or any other self-fulfilling route. Amazon also recommends that you take advantage of shipping companies like UPS, USPS, or courier companies that come with product tracking features, Stallion Express included. You will be listed as the exporter in the official records.
When choosing to go with FBA instead, you'll learn that sending goods with the help of customs brokers and freight forwarders is a more affordable option for sending goods anywhere in Canada. Besides, these establishments simplify the shipping process, which lightens your overall load.
Is FBA Worth It?
Even if many sellers take advantage of Fulfillment by Amazon, it doesn't mean you should be using Amazon FBA, too. Deciding whether or not Amazon FBA is right for you is a tough choice. Researching beforehand is advised to ensure that your processes continue to operate smoothly despite the new integrations.
Convenience also plays a huge role in why most sellers opt for Fulfillment by Amazon. Besides, it's also a way for sellers to avoid delays with customs clearances and ensure they all comply with their sales tax. This, alone, makes the added cost worth it. Stallion Express can help you weigh your options to guarantee that your eCommerce business stays a huge success! On top of our fully-featured local and international shipping services, we also offer Amazon FBA services that will help you expand your business. Learn more about how we can help by visiting our website.