How do you successfully sell physical products on Amazon dot com if you are a Canadian citizen?
In this video, I am going to go over all the things that you need to know if you are from
Canada, and you want to sell on Amazon's US marketplace.
I initially made a video 7 months ago on how to incorporate your business if you are a
Canadian citizen and you have interest on selling on the US marketplace.
However, I have an update for you guys, I've been selling on Amazon dot com, as a Canadian
citizen, I live in Canada, for over a year now.
So I just want to answer all the other questions that I have received after posting that first
So, if you are new to my channel, please subscribe and please hit that bell for more videos to
If you have not already, make sure you go back on my channel where I talk about opening
a US-based dollar account.
This means that your bank is based out of the US, it's not a Canadian-based account.
So, don't walk into a Canadian bank and try to open a US account, it's not going to work.
They can give you a US dollar account, but unfortunately, they cannot open a US-based
For US-based bank accounts, you're going to have to pick up your phone and call RBC or
So, that's RBC Georgia, or BMO Harris to open a US-based account.
This will help you when Amazon pays you your bi weekly pay check every 2 weeks.
This will help you save on conversions, it's just going to make your life a lot easier.
Even when you make payments on Alibaba dot com, to your supplier.
Everything is in US dollars.
So make sure you guys get yourself a US-based account.
When you open up your US-based bank account and when you open up your Seller Central account
on the US marketplace, they are going to make you sign a W-8BEN form.
What this form means is that it tells the US that you are a foreign person and that
you are selling in the US marketplace.
So you don't get taxed in the US, and in Canada.
You're only going to get taxed in Canada.
So, if you are making your money on Amazon dot com, all you do is report your taxes in
You don't have to report it in the US and that's exactly what the W-8BEN form does for
You cannot escape this form.
The form is going to be handed to you every time you tell Amazon or the bank that you
are a Canadian citizen, you're going to have to sign for this form.
Even if you are a sole proprietorship, you would have to sign for this form.
And if you are operating under a corporation, you would also have to sign this form.
So you cannot escape it.
When you sign up for Amazon, they will just hand you that form and tell you to sign it.
When you sign up for a US-based bank account, they are going to hand you that form and tell
you to sign it.
You can sell on Amazon dot com as an Individual, under yourself.
Or you could operate under a corporation, so you don't need to actually incorporate
I do not suggest you guys to incorporate your business right away.
You want to be making steady sales first.
After you make some steady sales, it may be time to incorporate your business so you can
lower that tax bracket.
I know everyone lives in a different province in Canada, so your tax brackets are different
I am from Vancouver, British Columbia so I am very well aware of my own tax brackets.
If I go over my personal tax bracket and if I am making a lot of sales on Amazon which
I think I am, I would like to say that I am, then it's time to incorporate my business.
Because under a corporation, your tax percentage is a lot lower than if you were to get taxed
as an individual.
Make sure you talk to your account about this.
I am not an accountant, unfortunately.
So make sure you take this information with a grain of salt.
This is just everything that I have been through the last year.
And I've incorporated my business by myself, you can do so online by yourself.
It's pretty simple, unless you are forming a very complex corporation with multiple business
You can totally do this yourself.
There is no protection if you were to sell under an individual.
So if someone chokes on your product and they want to sue you, they sue you.
They sue you and every single asset that is attached to you.
So that could be your car, that could be your home.
However, that's really... you have a really small chance of someone actually going after
you for that.
But, if you are worried, and you do see Amazon as a long term business for yourself, then
I suggest to incorporate.
However, when you incorporate, you have to do a lot of things on your own.
For example, for myself, I do bookkeeping by myself.
I have to keep track of all my expenses coming in and you know, my income coming in, and
everything that I am spending.
You have to keep track of that to the T. You have to be very accurate with that because
the government, when you are a new business, the government has their eyes on you.
They want to know that you are reporting your earnings and everything accurately so make
sure you have an accountant that you can seek advice from.
Again, this is just something that I've gone through the last year and I am still learning
about this every single day.
I still get new advice from different types of business owners.
But to find out a business plan that works well for you, because we're all under different
financial situations, right?
There could, something may work out better for you but it may not work out better for
Make sure you talk to a business professional.
I am sure they can give you better advice that will fit your situation.
So after you incorporate your business, you will get a business number.
Every time you incorporate, the government will give you a business number.
That is identical to an EIN.
So, in the US, they call it an Employer Identification Number.
That's just the number of the business that you operate under.
So, if you were to open a US-based bank account, they're going to ask for an EIN.
An EIN is just your business number.
You can call and register a business number under a sole proprietorship as well.
Again, that's just to tell the government that this is my business.
I know that there are some Canadians out there who are still a little confused by this but
you do not need an EIN if you have a BN, a business number.
It's the same thing.
It's just the number that you are operating as under your own business.
So I hope that clears it up for you.
Another thing I want to tell you guys that, when you start making money on Amazon, you're
going to have to keep track of a lot of your expenses, like I mentioned.
Even if you are a sole proprietorship, you want to keep track of your expenses, keep
track of your income, and at the end of the year, your accountant will be able to easily
report your earnings to the CRA, the Canada Revenue Agency.
You do not need to open a business in the US.
I actually don't suggest you guys to open your business in the US because that will
complicate everything, being a Canadian citizen.
Just simply make sure that all the earnings that you make from Amazon dot com are reported
to the CRA, if you are operating as an individual or under a corporation and you should be fine.
Everything is going to be fine as long as you are reporting your earnings.
If you are American, you will have to charge sales tax for every single state that the
customer buys from.
So that's very similar to Canada, if I buy something from Ontario, I will have to pay
If I buy something anywhere within Canada, I have to pay taxes.
So that goes the same for Americans.
If they buy something from a different state, they have to pay taxes.
However, I've been told that since my corporation is based out of Canada, I don't charge international
buyers any type of tax.
So I don't charge sales tax.
But I've also been told that if I were a really big seller making millions of dollars on Amazon
dot com, in the US, the IRS may ask me to start charging sales tax.
That's something you need to talk to your accountant about.
However, I still consider myself as a small business so I am not charging sales tax for
my products that are being sold on Amazon dot com.
The CRA website actually indicates that you don't charge sales tax to international customers.
So I hope that clears that up for you as well.
To make your life 10 times easier, it's probably best to hire a bookkeeper or to hire an accountant
to just go over a lot of these things for you before you start your business on Amazon
A lot of this stuff, I learned on my own.
I read a lot of books.
I read a lot of blogs.
And it's just from talking to other business owners and what they have advised me to do.
So far so good.
The only thing that I really don't like doing as a business owner, I do have a corporation,
is that I have to keep track of all my expenses.
Everything that I am spending money on, all of my income, and then I have to report GST
and everything else.
It's just a lot for me to do.
So I am actually planning to outsource this to someone that I am having a meeting with.
I am planning to outsource my bookkeeping.
I am planning to just hire someone to do this all for me.
I've been doing this really well on my own for the last half year.
I've been keeping track of everything that's been coming in, all the money that's going
out, but I've been quite busy lately.
And I think it's time to really out source that.
So, I am going to make an update video for you guys, after I file my taxes for my December
And I'll talk to you guys about everything that my accountant tells me and what they
suggest to do.
Or if they have any advice, I'll be sharing that with you guys as well.
So I hope this video has helped you.
I actually would not worry about any of this yet.
I would actually focus on learning how to sell on Amazon, how to really blow up your
sales, how to choose a product, how to talk to your suppliers and really grow your business
before you worry about any of this type of stuff.
You can always outsource it later on after you have made some profits.
If you are Canadian, please check out FBA Winners Course.
It's very Canadian friendly.
I made a part specifically for Canadians, if you want to learn how to sell on Amazon.
If you guys have any questions for me, please comment below, I respond to everybody.
Please give this video a thumbs up, if you liked it.
And please subscribe to my channel, I greatly appreciate it.