Amazon FBA in Canada means selling products on Amazon.ca through Fulfilment by Amazon: you source inventory, ship it to Amazon’s fulfilment centres, and Amazon stores, packs, and ships each order and handles much of customer service. You pay Amazon a selling plan fee, a referral fee on each sale, and fulfilment fees. It suits organised people who like numbers, can afford to tie up money in inventory, and accept that some products won’t sell.
FBA is one way to sell physical products online. For lower-risk starts, compare reselling secondhand items, Facebook Marketplace flipping, or your own Shopify store. Handmade products usually fit better on an Etsy shop.
| Fact | Detail for Amazon FBA in Canada |
|---|---|
| Individual plan | $1.49 per item sold plus selling fees. Amazon.ca pricing |
| Professional plan | CAD $29.99 a month plus selling fees. Amazon.ca pricing |
| Plan guidance on Amazon’s page | Individual if you sell fewer than 30 units a month; Professional if more |
| Referral fees | Vary by category; many are 15% with a CAD $0.40 minimum. Amazon.ca pricing |
| Fulfilment fees | Depend on product size and weight; use Amazon’s revenue calculator |
| GST/HST | Platform rules for non-registered vendors. CRA |
| Income record | Form T2125 with the T1 |
Who does Amazon FBA in Canada suit?
Amazon FBA in Canada suits people who enjoy research and spreadsheets, can put money into inventory without needing it back next month, and are comfortable following a platform’s detailed rules. It is a poor fit if you need quick income, if losing a few hundred dollars on a product that doesn’t sell would hurt, or if you’d rather talk to customers directly.
FBA trades control for convenience. Amazon handles storage and shipping, but its fees, policies, and account health rules decide a lot about your business. Read the seller policies before you buy anything.
How do Amazon.ca selling fees work?
Amazon.ca selling fees combine a selling plan fee, a referral fee on each sale, and, with FBA, fulfilment fees. Amazon’s pricing page for Amazon.ca lists:
- Individual plan: $1.49 per item sold, plus additional selling fees. Amazon suggests it if you sell fewer than 30 units a month.
- Professional plan: CAD $29.99 a month, plus additional selling fees. Amazon suggests it if you sell more than 30 units a month, want advanced tools, or want to sell in restricted categories.
- Referral fees: a percentage of the total sale price (including shipping and gift wrap) or a per-item minimum, whichever is greater. Many categories, such as Office Products, Pet Products, Sports and Outdoors, and Toys and Games, are listed at 15% with a CAD $0.40 minimum.
- Fulfilment fees: depend on whether you ship yourself or use FBA, and on size and weight. Amazon’s page links a revenue calculator to compare.
Amazon’s page also says new selling subscriptions include access to sell on Amazon.com, Amazon.ca, and Amazon.com.mx, with fees and rules that vary by marketplace. Fees change, so confirm the live numbers on the page before you price a product.
What does Amazon FBA cost to start in Canada?
Amazon FBA in Canada starts with the plan fee and the first batch of inventory, which is usually the largest cost. The ranges below are illustrative or typical retail ranges to verify locally, not quotes.
| Item | Typical CAD range | How to think about it |
|---|---|---|
| Selling plan | $1.49 per item sold or $29.99 a month | From Amazon.ca pricing. Start on whichever fits your expected volume. |
| First test inventory | You decide; keep it small | The money you can afford to lose if the product doesn’t sell. |
| Shipping to Amazon’s fulfilment centre | Varies by weight and distance | Check rates in Seller Central before you buy inventory. |
| Labels and packaging supplies | About $30–$150 | A thermal label printer is optional; a home printer can work at first. |
| Product photos | $0–a few hundred | A phone and good daylight can be enough for simple items. |
| Fulfilment and storage fees | Per unit, per month | Depend on size, weight, and how long items sit. |
If you print a lot of labels, a thermal label printer TODO-AFFILIATE can save time, but it is optional. Keep business money separate from personal spending from the first order; KOHO TODO-AFFILIATE is one Canadian option, and any separate account works.
| Amazon FBA | Your own Shopify store | |
|---|---|---|
| Traffic | Amazon’s existing customers | You bring your own traffic |
| Shipping | Amazon picks, packs, and ships | You ship or use a fulfilment partner |
| Fees | Plan, referral, and fulfilment fees | Subscription, payment fees, and apps |
| Control | Amazon’s rules and listing format | Your brand and customer list |
How much can Amazon FBA earn in Canada?
Amazon FBA earnings in Canada depend on product cost, selling price, fees, and how fast stock sells, so this guide does not publish typical profits. What you keep depends on:
- Your landed cost per unit, including shipping to you and to Amazon
- Referral fee percentage for the category, and the minimum
- Fulfilment and monthly storage fees for the product’s size and weight
- Returns, damaged units, and stock that doesn’t sell
- Advertising spend, if you use Amazon Ads
Illustrative example
This is a teaching sketch with assumed numbers, not a quote, a forecast, or a typical result. Suppose a product sells for $30 in a 15% referral category: 15% × $30 = $4.50 referral fee. Suppose the assumed fulfilment fee is $6.00 and the landed cost per unit is $10.00. Profit per unit before the plan fee, storage, returns, and tax: $30.00 − $4.50 − $6.00 − $10.00 = $9.50. On the Professional plan at $29.99 a month, selling 20 units brings 20 × $9.50 = $190.00 − $29.99 = $160.01. On the Individual plan, the same 20 units cost 20 × $1.49 = $29.80 in per-item fees, which is about the same at this volume. If 5 of the 20 units sit unsold, the arithmetic changes quickly. Use Amazon’s revenue calculator with real fees before you buy.
How do you start Amazon FBA in Canada?
Starting Amazon FBA in Canada means reading the rules, testing one product with a small batch, and scaling only what sells. The steps below follow that order.
Step 1: Read Amazon’s fees and seller policies
Start with the Amazon.ca pricing page and the policies in Seller Central. Some categories are restricted and need approval; some products can’t be sold at all.
Step 2: Choose your sourcing model
Common models are retail or online arbitrage (buying discounted products to resell, where allowed), wholesale (buying from a brand or distributor), and private label (your own branded product). Each has different risk, capital, and rules.
Step 3: Research one product
Check the selling price, competition, size and weight (which drive fulfilment fees), and the referral fee category. Run the numbers in Amazon’s revenue calculator.
Step 4: Open a seller account
Pick the Individual or Professional plan, and work through the information checklist Amazon shows during sign-up before you start the form.
Step 5: Send a small test shipment
Prepare and label the units following Amazon’s requirements, then ship them to the fulfilment centre Amazon assigns. A small first batch limits the damage if something goes wrong.
Step 6: Track every cost
Record the purchase price, shipping, fees, returns, and storage for each unit. A product that looks profitable on the listing can lose money after storage fees.
Step 7: Reorder only what sells
Sell through the test batch, read the reports, and reorder winners in sensible quantities. Clear out slow stock before long-term storage fees build up.
What mistakes are common with Amazon FBA in Canada?
Common Amazon FBA mistakes in Canada are buying too much inventory, ignoring fees, and selling products you don’t have the right to sell. Each one can wipe out a first year’s profit.
- Big first orders. Test small. Inventory that doesn’t sell is cash you can’t get back.
- Forgetting fulfilment and storage fees. Size and weight matter as much as price.
- Restricted or brand-gated products. Check whether you’re allowed to sell an item before you buy it.
- Copying a hot product. Many sellers chase the same item; margins shrink fast.
- Mixing money. Keep a separate account so you can see real profit.
Which tax rules apply to Amazon FBA in Canada?
Amazon FBA profit in Canada is generally business income reported on Form T2125, Statement of Business or Professional Activities, and self-employed people pay both halves of the Canada Pension Plan contribution on net self-employment income. Inventory is handled through cost of goods sold, so keep purchase records.
This is not tax, legal, or insurance advice.
GST/HST registration follows the $30,000 small-supplier test across all your taxable revenue. Under the CRA’s digital-economy rules for qualifying goods, a distribution platform operator is required to charge and collect GST/HST on qualifying goods it facilitates for vendors who are not registered, while registered vendors charge and collect it themselves, including on platform sales. Confirm how your Amazon account is set up and keep the marketplace’s tax reports. For the broader picture, see tax on reselling and gig app platform income.
Which side hustles sit near Amazon FBA in Canada?
Amazon FBA in Canada sits beside the other ways to sell physical products. Reselling and Facebook Marketplace flipping test demand with less inventory risk. A Shopify store gives you your own customer list. Seasonal buying is covered in Black Friday and Boxing Day reselling.
What are the common questions?
How much does it cost to sell on Amazon.ca?
Amazon.ca lists an Individual plan at $1.49 per item sold and a Professional plan at CAD $29.99 a month, each plus selling fees. Referral fees vary by category, with many at 15% and a CAD $0.40 minimum, and FBA adds fulfilment fees based on size and weight. Confirm the live fees on Amazon's pricing page.
Which Amazon selling plan should a beginner choose?
Amazon's pricing page suggests the Individual plan if you sell fewer than 30 units a month and the Professional plan if you sell more, want advanced tools, or want to sell in restricted categories.
What is the biggest risk with Amazon FBA?
Inventory that doesn't sell. You pay for the stock, shipping, and storage up front, and slow sellers keep adding fees. Start with a small test batch and reorder only what sells.
Do I have to charge GST/HST on Amazon.ca sales?
If you are registered for GST/HST, you charge and collect it on your sales, including platform sales. Under CRA digital-economy rules, a distribution platform operator generally collects it for vendors who are not registered. Registration is required once you pass the $30,000 small-supplier threshold. This is not tax advice.
Is Amazon FBA income taxable in Canada?
Yes. Profit from selling on Amazon is generally business income reported on Form T2125, with inventory handled through cost of goods sold and both halves of CPP on net self-employment income.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- How pricing works on Amazon.ca — Amazon
- Supply of qualifying goods in Canada: GST/HST for digital-economy businesses — Canada Revenue Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- Contributions to the Canada Pension Plan — Government of Canada