Empower Your Business with More Products More Sales in Canada

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I've been 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 USA for so many reasons the most   obvious reason is that the population of the US  is 10 times bigger than the population of 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 fulfillment centers  for example personally when I order 10000   units of a product usually I send 7000 units  to the US Marketplace and 3000 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 plan 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 hack  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   BMO 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 BMO Harris which is based in Chicago   you can open a bank with RBC Georgio 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 biweekly   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