Amazon is a large company with various global marketplaces. During this big growth, however, the company recognized that it needed more localized websites in order to properly appeal to international customers and to do so without further expanding their budget. So, Amazon.com becomes Amazon’s official US-based website, while those who live in Canada shop on Amazon.ca instead – which is based in Canada as its URL suggests.
If you’re a US Amazon seller, chances are that you already see the great potential in expanding your business to Canada – an untapped market ripe with opportunities and the ability to sell cross-border from the same Amazon account. Since sellers in Canada use the same platforms as their US counterparts, it becomes easier for those looking to grow their businesses; current integrations like automated reprising can easily be set up and a new translation engine allows users to also interface with customers in French.
The table below is a Comparison Chart of Amazon US vs Amazon CA.
|Paremeters||Amazon US||Amazon CA|
|Price Strategy||Lower Price||Higher Price|
|PPC Adevertising Cost||A bit expensive||Less expensive and much better|
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Major Differences Between Amazon.com And Amazon.ca
After extensive research, we’ve listed and explained the main differences between Amazon.com and Amazon.ca. Let’s check it out!
Amazon charges higher prices than you may expect when you’re selling in Canada. The reason is that Canadians are more familiar with the idea of a sales tax added to the price paid for personal items, unlike what’s common practice in other countries where this isn’t so ubiquitous — especially if consumers weren’t expecting it! If you don’t have experience working exclusively with Amazon, then you’ll need to do some research on the products you sell to clearly understand their rules on taxes and shipping. Just go to Canada’s official Amazon listing to learn about pricing and shipping from Amazon.ca.
Recent research indicates that eggs are even healthier now than they were before. However, people in the United States rarely consume 6 to 7 eggs per week. To tackle this problem, food experts have created an ‘egg cooker’ named Rapid Egg Cooke by Dash. In Canada, it can be bought for roughly $29 on Amazon.com – but not on Amazon.ca!
One mechanism behind this is simple currency conversion – a Canadian dollar is worth less than an American dollar and therefore Canadians have fewer opportunities to buy imported goods via cross-border ecommerce sites like Amazon. However, you should double-check the product’s price in both countries before learning about its availability there . Generally speaking, lower prices tend to appeal more to budget-conscious customers while higher prices help sellers make higher profits if they manage to sell their products quickly at the optimum price.
It’s also important to remember that we were only looking at gross profits here, not considering things such as shipping costs or sales taxes for our business example. Shipping into Canada FBA may cost you more than shipping into U.S. FBA and the various sales taxes in your area can vary from product to product depending on which tax bracket your items fall into. One way a seller can save themselves from paying too much money is by ensuring they’re meeting tax minimums, because sellers with over this amount are taxed less – some sellers don’t even have to pay these fees at all if they haven’t sold enough yet!
Canada’s population is a fraction of US one but let’s face it, Canadians have to meet the same needs as their neighbours across the border and that arguably amounts to pretty significant sales figures: Amazon.com and Amazon.ca combined registered twenty-seven million unique visitors in December 2015; Canadian online shoppers are second only to those in the US and account for 25% of all online orders – which makes market research very hard so you can’t simply draw conclusions based on the numbers you get from surveys or surveys and you need to rely on hard facts when making decisions.
As you can see, none of the examples come anywhere close to being 10% of monthly US sales. In fact, there may be a reason for that: all of these products are already well established on Amazon US and due to the higher number of users here (compared to Amazon Canada), they’ve had a chance to establish much better organic rankings. We can confirm this by comparing the number of keywords they’ve managed to get indexed for.
Tens of millions of people in the US alone are searching for different products on Amazon.com on any given day, while all other countries combined only produce a fraction that amount. This is not surprising given the population size of that one country alone, and we know no matter what, this massive chunk of the world’s population will drive more than enough traffic to keep sales moving. We should note that such numbers on their own do not directly correlate to online sales, but indirectly (or at least in some cases), keyword indexing does contribute to sales.
PPC Advertising Costs
You might be surprised to discover that PPC ads in Canada perform much better and are less expensive over the long run. Canada’s market is less saturated, meaning fewer competitors and a smaller pool of bidders raises the price for niche products like yours. Moreover, there are far fewer shoppers on Amazon.ca than in other countries so it may take longer for people to find you quickly. Even so, all of these encouraging details amount to very little until we look at some real data from the ground up. Let’s take a deep look at the monthly search volumes for the top keyword that describe a chosen product and as we compare it across the market. Also, we’ll look into the average bids for the keyword.
If we start with the egg cooker, arguably the most relevant keyword is unsurprisingly “egg cooker.” The name of this product is shown to have a 10:1 population ratio to its American cousin and the monthly search volume in Canada mirrors this percentage. While not heavily researched, it carries roughly 1/10th as much traffic as its United States equivalent per month, which means all things being equal, you can expect to pay just 10% of the total amount you would normally spend in US dollars.
If you’re shipping goods directly from your supplier to an Amazon fulfillment facility in Canada, the first $30,000 in sales won’t incur any customs or duties. By trying out some of these products on Amazon, you get the chance to see if this will be a viable business or product line moving forward. Of course, no matter what decision you make there’s always going to be unknowns and perhaps a few risks involved, but we’re confident that with all the added benefits and potential profits that follow through selling online there’s not much reason for second guesses.
Shipping costs are higher in Canada than in the United States and this is because Canadians have to use delivery methods that get expensive when you have a lot of shipments going out over a given period of time. There is no option for same-day or 2-day shipping in Canada like there is in the US, so it all ends up getting really costly really fast. You also need to keep in mind that as a seller you will be required to meet customs regulations which can take anywhere from 5 (national) – 60 days(cross border). One way that you can save yourself money on shipping costs and avoid these issues late in your business’s growth stage is by making sure that your Amazon FBA business plan has avoided these troubles early on – sell your products at fulfillment centers strategically located throughout Canada; Fulfillment By Amazon will store and ship them for you !
Selling on Amazon.ca is drastically different from selling on Amazon.com. There are many factors to consider which may affect your success ability as a seller. While the market may be smaller, there are also . It actually matters where your product is shipped from, because Canada’s is so concentrated in Ontario that fulfillment costs could very well make the difference between making or losing money on a sale!
Last Updated on August 6, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.