Starting an Amazon FBA (Fulfillment by Amazon) business in Canada is one of the most promising ways to enter the e-commerce industry. With the growing popularity of online shopping and Amazon’s vast customer base, this guide will walk you through the exact steps to successfully launch and scale your FBA business in Canada in 2025.

What is Amazon FBA? Why is it Popular in Canada?

Amazon FBA allows sellers to store their products in Amazon’s warehouses, where Amazon handles storage, shipping, returns, and even customer service. This service eliminates much of the logistical stress for sellers and gives access to Amazon’s vast Canadian and international marketplaces.

Why Choose Amazon FBA in Canada?

Access to a Growing Market: Canadian e-commerce sales are projected to grow significantly in 2025.
Simplified Logistics: No need to manage storage, packaging, or shipping yourself.
Opportunities for Global Sales: Through Amazon’s unified North America marketplace, sellers can expand to the U.S. and Mexico.

Step 1: Set Up Your Amazon Seller Account

To begin your Amazon FBA journey, you’ll need to create a seller account on Amazon Seller Central Canada.

Choose a Selling Plan:

Individual Plan: Pay CAD 1.49 per sale. Ideal for beginners who want to test the waters.
Professional Plan: CAD 29.99/month. Recommended for serious sellers who plan to sell more than 20 products per month.

Registration Requirements:

Business name and address.
Government-issued ID.
Bank account information.
Tax details (GST/HST number if applicable).

Step 2: Research and Select Products to Sell

Choosing the right products is critical to your success. Use tools like Explorador de la jungla, Helio 10, or AMZScout to find profitable and low-competition products.

What to Look For:

High Demand: Products with strong sales history and steady demand.
Low Competition: Focus on niches where you can stand out.
Lightweight Products: Keep shipping costs low by selecting small and lightweight items.
Price Range: Products priced between CAD 20 and CAD 50 often have better profit margins.

Trending Products for 2025:

Research Canadian consumer trends for insights into what’s popular in specific categories like health and beauty, home goods, and tech accessories.

Step 3: Source Your Products

Once you’ve identified your products, the next step is sourcing them. You can choose from:

Domestic Suppliers: Faster shipping times and easier compliance with Canadian regulations.
International Suppliers: Platforms like Alibaba can help you find cost-effective manufacturers.

Tips for Sourcing:

Request samples before placing a bulk order.
Negotiate pricing, especially for large orders.
Consider suppliers with good reviews and proven track records.

Step 4: Ship Products to Amazon Fulfillment Centers in Canada

Prepare Your Inventory:

Label products according to Amazon’s guidelines.
Pack items securely to prevent damage during transit.

Create a Shipment Plan:

Use your Amazon Seller Central account to create a shipment plan.
Select the fulfillment centers closest to your target customers.

Use a Freight Forwarder:

If you’re sourcing products internationally, work with a freight forwarder to handle shipping, customs, and delivery to Amazon’s warehouses.

Step 5: Create and Optimize Product Listings

Your product listing is the first impression customers will have of your product. Optimize it to increase visibility and sales.

Key Components of a Great Listing:

Title: Include primary keywords and describe the product clearly.
Bullet Points: Highlight features and benefits in easy-to-read points.
Description: Provide a detailed overview, using persuasive language.
Images: Use high-quality photos that show the product from multiple angles.

2025 Update for Amazon Canada Listings:

Amazon has updated its algorithm to prioritize listings with enhanced A+ Content and videos. Consider investing in these for better conversions.

Step 6: Launch and Market Your Products

Amazon PPC (Pay-Per-Click):

Start running Amazon ads to drive traffic to your listings. Set a daily budget and test different ad types (sponsored products, sponsored brands, etc.).

External Marketing:

Use social media platforms to promote your products.
Partner with influencers in your niche to reach a wider audience.

Discount Launch Strategy:

Offer limited-time discounts or free shipping to boost initial sales and attract reviews.

Step 7: Manage and Scale Your Business

Monitor Your Performance:

Use Amazon’s analytics tools to track your sales and identify areas for improvement.
Pay attention to your seller rating and customer reviews.

Adjust Inventory Levels:

Avoid stockouts or overstocking by monitoring inventory levels and sales trends.

Expand to New Markets:

Once your Canadian store is established, consider expanding to Amazon U.S. or Amazon Mexico.

Costs of Starting Amazon FBA in Canada in 2025

Breakdown of Typical Costs:

Amazon Fees:
- Referral fees: 8-15% of the product price.
- Fulfillment fees: Vary by product size and weight.
Product Costs:
- Initial inventory: Expect to spend CAD 1,000–3,000 for a small batch.
Marketing Budget:
- Set aside CAD 300–500 for initial PPC campaigns.
Storage Fees (2025 Update):
- Non-peak periods: CAD 30 per cubic meter.
- Peak periods: CAD 43 per cubic meter.

Challenges and How to Overcome Them

1. Competition:

Start with a niche product and focus on differentiation to stand out.

2. Customs and Taxes:

Work with experienced freight forwarders and stay compliant with Canadian tax regulations (e.g., GST/HST).

3. Cash Flow Issues:

Manage inventory levels carefully to avoid tying up too much capital.

Is Amazon FBA Worth It in Canada in 2025?

Absolutely! With the right strategy and consistent efforts, Amazon FBA remains a lucrative business model in Canada. The growing e-commerce market and Amazon’s infrastructure make it an excellent choice for new and experienced entrepreneurs alike.

Conclusion

Starting an Amazon FBA business in Canada in 2025 requires careful planning, research, and execution. By following the steps outlined in this guide, you can set yourself up for success in the booming e-commerce industry.

Ready to start? Sign up for an Amazon Seller account today and take the first step toward building your FBA business in Canada!

How to Start Amazon FBA Canada: 2025 Step by Step Guide