Amazon FBA in Canada for Private Label Sellers: 2026 Playbook

1) Introduction

Selling on Amazon FBA in Canada opens a path to a second market, but only if you model costs before you ship. Include referral and fulfillment fees, import duties, and GST/HST in your calculations so margins don't vanish in transit. This guide explains how to evaluate whether Fulfillment by Amazon Canada fits each product, what to expect on Amazon.ca, and the practical checklist needed to launch with confidence.

This approach suits low-volume testers, Canadian-focused brands seeking local demand, cross-border sellers with small SKUs, and larger brands expanding into a second market. Products that need permits, are heavy or bulky, or sit in high-return categories add complexity and cost. A compact beauty SKU will face very different fee drivers than a bulky furniture SKU that triggers oversized fulfillment and pallet freight charges.

2) Key takeaways

• Product fit assessment: Decide whether FBA Canada suits each SKU by considering size, weight, regulatory status, and return risk. Avoid launching items that will trigger oversized fulfillment or require extra permits unless margins clearly cover the added costs.
• Model landed cost: Build a CAD landed-cost that includes referral and fulfillment fees, import duties, GST/HST, and freight so you confirm target margins before shipping. Use conservative FX and payout timing assumptions, since those can reduce profit by a few percent.
• Seller plan and tax: Choose Individual or Professional based on expected sales and tools needs, and register for GST/HST if you expect to exceed the small-supplier threshold. Set up an Amazon-supported payout method that can receive CAD efficiently to avoid payout delays and FX drag.
• Prep and labeling: Meet Amazon's inbound rules so units arrive with the correct scannable barcode setting (FNSKU/Amazon barcode or eligible manufacturer barcode), and validate labeling with a sample prep before sending inventory. That prevents common rejections and inbound delays.
• Ship and launch: Match carrier to shipment profile, clear customs, and follow a 30 to 90 day launch cadence that begins with a small test shipment. A fast sample prep and a short test run reveal problems before you scale.

3) Decide whether FBA Canada fits your private label SKU

Certain product types add paperwork and fees: regulated goods need permits, bulky items raise inbound and fulfillment charges, and categories with high returns increase handling and storage costs. Identify these factors early so you don't commit stock to an unprofitable SKU. If risk looks high, consider alternative fulfillment or a smaller test launch.

Run this readiness checklist before you ship and pause if the numbers don't meet your targets. Confirm landed cost and margin, supplier lead times with buffers for cross-border delays, SKU dimensions and weight mapped to Amazon size tiers, and an initial test quantity. Make sure your GST/HST setup and payout method are configured correctly for Amazon.ca disbursements.

• Product landed cost target (unit cost plus fees) and minimum margin threshold
• Supplier lead time and reliability, with buffer stock for cross-border delays
• SKU dimensions and weight, mapped to Amazon size tiers
• Initial test quantity, typically 50 to 200 units to validate demand and returns
• GST/HST setup and CAD payout method configured for disbursements

If landed cost pushes margins below your target, redesign packaging to cut weight and dimensional fees or reconsider the launch entirely. With product fit and risks assessed, model landed cost for a test shipment to see whether the numbers hold up. The next section explains how to calculate landed cost and model profitability in CAD.

4) Set up your Amazon seller account for Canada

Pick the seller plan that fits your expected volume and tool needs. The Individual plan charges per sale while the Professional plan charges a monthly fee and unlocks FBA tools, bulk uploads, advertising, and shipment creation, so most growing sellers choose Professional. If you already sell in the U.S., consider a North American unified account to manage Amazon.ca, Amazon.com, and Amazon.mx from one dashboard and to simplify payouts and linked bank accounts.

Prepare documents up front to avoid registration delays: government-issued photo ID, proof of address, a chargeable credit card, bank account details, and business registration or incorporation papers. Have Canadian tax registration ready when applicable, since identity checks can include tax verification. U.S. sellers adding Canada often face extra verification and should choose an Amazon-supported CAD payout path that minimizes conversion costs and delays.

Enable FBA in Seller Central by converting SKUs to Fulfilled by Amazon or using the bulk convert tool, then create your first shipping plan. Accept the FBA destinations Amazon assigns, print packing and carton labels, and ensure each carton has a valid shipment ID and matching labels to avoid holds. Receiving can take several days and longer in peak periods, so build buffer into launch timing before you move on to fee calculations and pricing.

5) Calculate fees and landed cost: model profitability in CAD

Start with the latest fee snapshot so you know the major cost drivers before you list. Referral fees vary by category, typically 6% to 45% of the sale price. Fulfillment fees vary by size tier and shipping weight, and low-price FBA discounts may apply based on current program thresholds. Monthly storage fees are charged based on average daily volume and vary by size tier, time of year, and applicable surcharges. Always verify exact tiers and current numbers in Seller Central before you set price expectations for amazon fba in canada.

Use a clear landed-cost formula: unit cost plus inbound freight plus brokerage and duties plus import taxes plus packaging and prep plus Amazon fees equals landed cost per unit. Example: unit cost CAD 5.00 plus inbound freight CAD 0.80 plus duties and brokerage CAD 0.40 plus packaging and prep CAD 0.50 plus referral fee (15% on a CAD 20 sale = CAD 3.00) and a CAD 6.00 fulfillment fee gives a landed cost of CAD 15.70. Selling at CAD 20 leaves CAD 4.30 before operating expenses, so factor currency conversion spreads and payout timing since FX and disbursements can cut margin by 1% to 3%.

Use tools to test scenarios: run Amazon's FBA calculator and a simple Excel landed-cost template side by side, then compare those numbers with outsourced per-unit prep pricing. Small differences in prep fees change your break-even quantity; for example, a CAD 1.00 per-unit prep fee versus a CAD 0.25 DIY fee alters required sales volume. With landed costs modeled you can set realistic pricing and reorder plans before you ship.

6) Register for GST/HST and handle import duties and customs

If your worldwide taxable supplies exceed the CAD 30,000 small-supplier threshold within the current and previous four consecutive calendar quarters, you must register for GST/HST. Many sellers register earlier so they can claim input tax credits on GST/HST paid at import and avoid limits on charging and remitting tax to customers. Marketplace facilitator rules do not remove the need to understand your own registration and filing obligations, especially when you import or hold inventory in Canada. Filing frequency depends on revenue and may be monthly, quarterly, or annually, so non-resident sellers should work with a CPA experienced in Canadian indirect tax to choose the right cycle and file returns correctly.

The importer of record needs a Business Number with an RM account to make import declarations and receive release notices from the Canada Border Services Agency. Many cross-border sellers hire a customs broker because carriers' brokerage services can add flat fees and delays, while a professional broker manages classification, duties, and any examinations. For smooth clearance, have a commercial invoice with unit values, a packing list, a bill of lading or air waybill, HS tariff codes, country of origin, and any certificates of origin ready.

Duties depend on HS codes and the tariff schedule, so correct classification determines the rate and whether preferential treatment applies. CUSMA (USMCA) can reduce or eliminate duties for qualifying U.S. goods only when origin requirements are actually met and properly documented. Confirm rates and rules with CBSA, CRA guidance, or your broker before preparing labels and inbound documentation to avoid reassessments.

7) Prepare, label, and pack inventory to Amazon.ca's FBA standards

Each unit must have a scannable barcode that matches your listing's barcode setting (Amazon barcode/FNSKU or eligible manufacturer barcode). As a best practice, use high-contrast labels, place them on a flat accessible surface, and scan-test a sample before sealing cartons.

Prevent rejections with a simple QC routine before sealing cartons: verify barcode presence and readability on a sample, confirm print contrast, check polybag suffocation warnings and tamper seals where required, and count pieces to match carton manifests. These checks catch the majority of common failures and keep your inbound on schedule. If you don't have internal capacity, run a sample prep with a reliable partner to validate processes before full shipments, or review our How to Set Up In-House Amazon FBA Prep in 2026 for building internal capabilities.

Pallet requirements are strict: commonly cited limits are about 72 in (182.5 cm) max height including the pallet and about 1,500 lb (680 kg) max weight, with stable stacking and no overhang. Always follow the exact requirements shown in your shipping plan and carrier instructions for your lane.

Outsourcing prep and labeling reduces touches and shortens lead time. Using a single experienced partner lowers the chance of rejected inbounds and shortens time to shelf. For practical tips, our Amazon FBA Prep Blog covers common inbound failures and QC routines.

8) Ship, clear customs, and follow a 30 to 90 day checklist

Match carriers to shipment profiles: small parcel carriers work best for samples and light loads, ground trucks are cost-effective for near-border freight, air freight moves pallets to shelf quickly, and ocean transport gives the lowest unit cost for full containers. Treat any shipping and brokerage figures as directional only because costs vary by lane, carrier, season, and commodity. Get spot quotes for each lane before finalizing pricing.

Choose a customs approach based on predictability and control: delivery duty paid gives a single predictable landed cost and fewer border surprises, while brokered clearance can lower recurring fees and provide more control as volume grows. Self-clear only if you have customs expertise and systems in place. Many sellers use delivery duty paid for initial test runs, then switch to a broker when volume proves sustainable.

Follow a clear 30 to 90 day cadence instead of guessing margins. Day 0 to 7: open carrier accounts, register tax IDs, and verify customs paperwork. Day 8 to 30: send a small test inventory, confirm Amazon receipts, optimize listings, run a modest PPC campaign, and monitor returns and feedback. Day 31 to 90: scale replenishment, adjust pricing based on sell-through, set reorder points, and schedule a QC audit with your prep partner to lock quality.

9) Launch Amazon FBA in Canada with confidence

Follow a focused sequence to launch without guesswork: decide if FBA fits each SKU, model landed costs in CAD, and choose the seller plan and tax setup that match your volume. Start small to validate demand, watch returns and storage closely, and protect margins with conservative pricing and reorder points. Accurate landed-cost modeling and a reliable prep and customs plan remove the biggest sources of margin surprises.

Take action with a measurable test: calculate landed cost for one SKU in CAD using expected Amazon fees and your target retail price, then create a single shipping plan and request a sample prep to validate labeling, inspection, and clearance. Stratosphere Prep offers pay-as-you-go prep with no minimums, automatic tiered discounts as volume grows, and 24 to 48 hour turnaround for prep and inspection across Canada and the U.S. Run the landed-cost worksheet and book a sample prep to see how the numbers hold up in practice and decide your next steps.