I'll be selling my products on Amazon
for more than I think five years now and
in fact today my fitness brand is my
biggest source of income hopefully now
it provides me with a steady source of
income but it wasn't always like that my
business wasn't always profitable
especially at the beginning so I've made
so many mistakes and I've learned a lot
from them and in today's video I'm going
to share with you how to sell on Amazon
as a Canadian how taxes work setting up
a corporation or LLC bank accounts and a
few tips and tricks you must know before
start selling on Amazon so without
further Ado let's get it started so as a
Canadian you're allowed to sell on all
the Amazon marketplaces all over the
world but if you're thinking between
selling on Amazon us and Amazon Canada I
highly recommend it start selling on
Amazon us for so many reasons the most
obvious reason is that the population of
us is 10 times bigger than the
population in Canada in fact the U.S
population is 333 million and Canadian
population is almost 40 million so as
you can see the US Marketplace should be
10 times bigger bigger than the Canadian
Marketplace which means in the US you're
going to have more sales but also you're
going to have more competition at the
same time so what smart Amazon sellers
do and what I personally recommend is
you start selling on Amazon us and after
a few months or after a year if your
business is profitable you can expand it
to Canadian or european marketplaces a
common misconception new sellers have is
that you can store your inventory on
Amazon Canada in Canadian fulfillment
centers and you can start selling in U.S
or Mexico and that's not true if you
want to sell in the US you need to ship
your inventory to the U.S fulfillment
centers and if you want to sell in
Canada you have to ship your inventory
to Canadian foodmen centers for example
personally when I order 10 000 units of
a product usually I send 7 000 units to
the US Marketplace and 3 000 units to
the Canadian Marketplace it's good to
know that in the Europe it's a little
bit different there's something called
the pan European FBA program which
allows you to sell all over the European
Marketplace all right so the first step
to get it started is to choose a selling
plant from Amazon and you have two
options you have the individual account
and you have the professional account as
you can see if you sell less than 40
units a month you can choose the
individual account which costs one
dollar per item plus additional fees but
if you sell more than 40 units a month
and you're serious about your Amazon FBA
business you should choose the
professional account which cost 40 US
dollars per month but hopefully I've got
a hatch for you so if you want the
professional plan you can go to Amazon
Canada and get your plan from there
which costs only 30 Canadian dollars
which is going to be a little bit less
expensive after you convert to US dollar
and you still have access to Amazon us
Amazon Mexico and save 25 Canadian
dollars every month even if you don't
have the intention to sell on Amazon
Canada you can still do this trick and
you can use this hack to sell on Amazon
us and save some money every month in
the past Amazon sellers used to need a
separate Amazon account to sell on the
US Marketplace Canadian Market
Marketplace or Mexican Marketplace but
hopefully now you will get what's called
a North American unified account so when
you sign up on any of these three
marketplaces you automatically get a
unified account this way you can sell in
all three North American marketplaces
under just one professional account all
right once we are done with our selling
plan the next step is to choose if you
want to do business as a sole prop as a
person or as a corporation or as a
company so the most common question
Canadian sellers ask is do I need to set
up a corporation or LLC to start selling
on Amazon us and the answer is no you
don't some people decide to set up a
Canadian Corporation or an LLC in the US
before we start selling on Amazon and it
has its own benefits for example you
have limited liability or you have lower
taxes with the corporation taxes but
personally what I would say is that for
the 90 of the beginners setting up a
corporation or LLC is completely
unnecessary it costs a lot of money to
set up a corporation and hire an
accountant to do your bookkeeping
accounting taxes every year and it might
cost you thousands of dollars every year
to maintain just that cooperation but
hopefully you can use your sim number
and start selling as a sole prop after a
few months or even after a year if the
business is still profitable you can
incorporate your business so it's up to
you if you want to set up a cooperation
but it's not a requirement and I usually
don't recommend it now let's talk about
the bank accounts so if you're a
beginner and you're just starting out
you can enter your Canadian bank account
information and get started Amazon
converts your money from the US dollar
to Canadian dollar and deposits into
your bank account every two weeks so a
lot of new sellers think that it's a
good idea to open a US dollar account
with their current RBC or TD or Bank
or CIBC Bank in Canada but although
their account is in the US dollar what
Amazon looks at is the location of your
bank which is in Canada so they're gonna
pay you in the Canadian dollars
regardless of if you opened a U.S
account or not they look at your bank
location not your bank account currency
so if you're looking to get paid in the
US dollar you should open a U.S based
bank account not a U.S dollar bank
account a U.S based bank account which
means a Canadian bank but located in the
US some Amazon sellers open a bank
account with Harris which is based
in Chicago you can open a bank with RBC
Giorgio as well the process is pretty
simple you can just call them and
they're gonna set up a bank account for
you now although you can start with your
Canadian bank account but every time
Amazon deposits money to your Canadian
bank account they're gonna charge you a
high exchange rate another thing is you
buy your inventory from Alibaba in the
US dollar as well so if you open a
us-based bank account you save a lot on
exchange rate and generally speaking it
makes everything so much easier for you
over the long term but if it's just a
short tempting of course you can go
ahead and just enter your Canadian
backing information and get us started
now let's talk about the requirements to
sell on Amazon so in order to sell on
Amazon you'll need a chargeable credit
card a bank account where Amazon can
deposit your sales by weekly a
government issued ID your scene number
or other tax information an email
address and a phone number because
they're gonna send you a text with a
verification code and you need to enter
and verify that code alright the next
question I get asked a lot is about the
income tax and the sales tax which are
very confusing for the beginners just
before I get into the taxes I want to
quickly mention that I'm not a Tax
Advisor and I'm just sharing my personal
experience so make sure to go ahead and
talk with your Tax Advisor before making
any decision so as a Canadian whether
you're a sole prop or a Corporation
Amazon automatically asks you to sign a
form to let the IRS know that you are a
non-us resident person or a company and
pay your taxes only to the CRA not IRS
now this form is called W8 Ben for
individuals or for W8 Ben E for Canadian
cooperation so it's an automated process
something like a automated tax review
which Amazon automatically asks you to
read and sign while you're creating a
seller account so you only pay income
taxes in your own country to the CRA in
Canada if you live in Canada not the IRS
which is great so we talked about the
income tax but there is something else
there's another task called the sales
tax which is a little bit more
complicated so generally speaking at the
beginning cell Sac is something that you
shouldn't be worried about I mean unless
you sell over ten thousand dollar a
month which is a crazy number you
shouldn't be worried about out sales tax
at all as you might know in Canada for
sales tax we have the GST and HST
depends on what province you live in and
as a business once you surpass the
thirty thousand dollars threshold of
sales of total sales in the last 12
months you need to register for the
gsdhsc and it starts collecting and
remitting them to the CRA but in the US
it's a little bit more complicated so
there comes a time that you'll have
Nexus in some of the U.S Estates so
there are two different kinds of mixes
in the US there is the physical Nexus
and there is the economic Nexus a
physical Nexus means that you have a
physical presence in a state a physical
presence might be something like if you
have an office in a state if you have
inventory if you have a warehouse in a
state so it needs some sort of a
physical presence there and therefore
you're gonna have the physical Nexus and
you need to be collecting and remitting
sales taxes to that estate but there is
also something called economic Nexus we
which was established I think in 2018
before that it didn't exist it was only
if you had the physical presence but now
things a little bit changed so economic
Nexus is where you reach a certain
threshold in terms of sales like 100 000
US Dollars and then you need to start
collecting sales taxes in that states
now how this works is the first step is
you have to go ahead and get a sales tax
permit because if you start collecting
sales taxes in the US or even in Canada
without the permit without the license
it's illegal so don't do that but
hopefully the process is pretty simple
you just have to go ahead and Google
sales tax permit with the specific State
and you can go ahead and just register
very quickly and go to your Amazon
Seller Central and enter that number
your sales tax number on Amazon
Marketplace and Amazon automatically
collect the taxes from the customers for
you and you're going to have to remit
them but as I mentioned earlier cell Sac
is something that you shouldn't be
worried about especially at the
beginning and once you start selling
thousands of dollars every month and you
surpass that threshold then you have to
start thinking about that and start
collecting sales taxes but for the
beginning there is no need to do that
all right now you know how to sell on
Amazon as a Canadian but you're just
halfway the next step is to go ahead and
watch this video and learn how to find
the profitable product how to sell on
Amazon how to Source them from Chinese
supplier how to pay your Chinese
supplier and much more so make sure to
go ahead and watch this video I also
created a very affordable Amazon FBA
course that you can go ahead and master
every aspect of Amazon FBA business and
learn more advanced tips and tricks I'll
leave a link down in the description as
well as always thanks for watching and
see you in the next video cheers